Purchase apps did give us a good sign for a rebound in sales from November to February, which facilitated that big print. However, after the second week of February the data line has been flat for the year.
Year to date, we have 14 positive purchase application data prints versus 13 negative purchase application data prints.
Even with mortgage rates near or above 7% for two months, we haven’t seen dramatic moves in the purchase application data or active and new listings data. The housing market has slowed and stabilized itself with higher rates, but the existing home sales market isn’t growing like the new home sales market. The new home sales market can operate in a sub-6% world while builders buy down rates — the existing home market can’t. Hence, one market is down yearly in sales, and one isn’t.
From NAR: Total existing home sales – completed transactions that include single-family homes, townhomes, condominiums, and co-ops – receded 3.3% from May to a seasonally adjusted annual rate of 4.16 million in June. Year-over-year, sales fell 18.9% (down from 5.13 million in June 2022).
Let’s look at the report and see what we can make of it. First, the one data line I hate to see is that the days on market are back to a teenager level for back-to-back months. You can easily see why home prices took off after 2020 as active listings broke to all-time lows.
NAR: First-time buyers were responsible for 27% of sales in June; Individual investors purchased 18% of homes; All-cash sales accounted for 26% of transactions; Distressed sales represented 2% of sales; Properties typically remained on the market for 18 days.
This has been a hard concept for me to get people to believe since 2020 because people assumed we were in a housing bubble — even Federal Reserve Chair Jay Powell said we were in a housing bubble! However, if that was the case, when demand collapses, inventory should have skyrocketed, as happens in every housing bubble. Let’s just say the Fed and the housing bubble boys whiffed on that together.
NARdata shows that:
Traditionally, housing inventory is between 2-2.5 million since 1982
The peak of the housing bubble years, inventory was 4 million
Today, inventory is at 1.08 million, down 13.6% year over year from last year’s 1.25 million print with monthly supply at 3.1 months
What levels would make me take off the savagely unhealthy housing market label?
Inventory between 1.52-1.93 million
Monthly supply of four months plus
Days on the market over 30 days
None of that is happening today!
Of course, part of the reason things are so savage is that home prices aren’t collapsing; we have four national home price indices that are already at all-time highs, and even the NAR median sales price index is not far from an all-time high.
NAR: The median existing-home price for all housing types in June was $410,200, the second-highest price of all time and down 0.9% from the record-high of $413,800 in June 2022.
Now we are dealing with 7% mortgage rates, affordability is not getting better and active listings are still near all-time lows with sale levels near record lows. That’s the savagely unhealthy housing market.
Today’s existing home sales report wasn’t shocking in any way, my sale range of 4.0-4.6 million for 2023 is still intact, and I have talked about how I can easily make a case that sales go below 4 million rather than over 4.6 million because we don’t see the growth in purchase application data.
However, with all that said, the housing market stabilizing after the biggest one-year sales crash in history is a testament not only to the credit data of homeowners but the fact that we have demand for housing with rates near 7%. We will still end the year with total home sales near 5 million unless the data worsens over the second half of the year; this is new and existing home sales. This shows the power of mother demographics kicking in.
Start 2022 off strong with the strategies shared by last month’s Real Estate Rockstars. Guests covered content creation, team building, work-life balance, and more. Plus, we offer real estate predictions for 2022, including one that suggests agents should load up on leads right away!
Listen to today’s show and learn:
A trick for creating high-quality real estate videos with ease [2:30]
Real estate topics to cover on social media [4:14]
A saying that helped guide Jacob’s success [5:47]
A law that could make it even harder to evict tenants in New York [7:46]
Our final thoughts and advice for investors [9:09]
What it really takes to build a business [12:49]
Advice on building a real estate team [14:32]
A way to earn $100,000 your first year in real estate [16:33]
What you need to succeed in real estate [17:43]
When to find a financial advisor [19:11]
Kevin’s real estate predictions [20:26]
Why you need to be an authority [21:35]
The great thing about authority marketing [22:27]
How Trish does more deals working less [26:34]
Why building a database makes it so much easier to win business [29:59]
Megan’s most successful direct-mail campaign [34:09]
What Megan learned about hiring team members [36:55]
What all kids should experience [38:41]
How to thrive through the next year [40:22]
The business-owner mindset [41:10]
Why finding a deal is only half of the battle [42:08]
Why real estate is the same everywhere [43:40]
Why you need to load up on leads in early 2022 [45:37]
Every day is closing day [47:28]
Related Links and Resources:
Thank You Rockstars! It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email. -Aaron Amuchastegui
SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Securities and Exchange Commission as an investment adviser. SmartAsset’s services are limited to referring users to third party registered investment advisers and/or investment adviser representatives (“RIA/IARs”) that have elected to participate in our matching platform based on information … [Read more…]
With over 50 countries to choose from, Africa offers a diverse array of mouthwatering and unique dishes that are sure to tantalize you. But African street food is more than just delicious—it’s a reflection of the continent’s rich history and diverse cultural influences. These flavorful dishes have been influenced by African, Latin American, European, and Asian culinary traditions. Sampling street food is one of the best and most authentic ways to experience the culture and people of a country. And the best part? It’s usually affordable, with street food like Senegal’s Accara costing less than a dollar!
1. Suya
Photo Credit: Shutterstock.
Suya is a mouthwatering Nigerian dish is thought to have originated among the Hausa people. Thin slices of juicy beef or chicken are seasoned, then grilled over open charcoal grills. But the dry spice blend is what makes it so unique. Known as suya or yaji, this blend is a combination of ground peanuts and red peppers that adds a smoky, nutty flavor to the meat. Depending on the region, additional ingredients can be incorporated, giving each suya its own distinct flavor profile. In Nigeria, you’ll find suya skewers sold individually, making it the perfect on-the-go snack that’s quick, cheap, and nutritious. For those who prefer to sit down and enjoy their meal, suya is often served in restaurants with sliced onions and tomatoes as a refreshing and flavorful accompaniment.
2. Attieke
Photo Credit: Shutterstock.
Attiéké is made from fermented and ground cassava roots that are transformed into fluffy, flavorful couscous. And it’s not just for dinner—Attiéké is a versatile dish that can be enjoyed for breakfast, lunch, and dinner. Attiéké is usually served with a colorful medley of sliced onions and juicy tomatoes, as well as succulent grilled chicken or crispy fried fish for added protein. The aroma of Attiéké wafts through local markets across Ivory Coast, where you can buy it in individual portions or large bags to take home. So, whether you’re looking for a hearty meal or a tasty snack, Attiéké is the perfect choice to satisfy your cravings and transport you to the vibrant streets of Ivory Coast.
3. Brik
Photo Credit: Shutterstock.
Brik is a delicacy popular North African that’s famous for its crispy, flaky exterior and delicious savory fillings. Traditionally, brik is made using malsouqa dough, but these days, most people opt for the more readily available phyllo pastry. The pastry is carefully laminated to create a crunchy, layered texture that perfectly complements the savory stuffing inside. Brik can be filled with a variety of ingredients, but the most popular is a tuna-based mix that’s spiced up with traditional North African flavors like cilantro, chilis, pepper, and coriander seeds. To take things up a notch, a raw egg is often placed on top of the tuna filling before the pastry is expertly folded and either fried in deep oil or baked in an oven. As the brik cooks, the egg partially cooks inside the flaky pastry, creating a rich, delicious flavor.
4. Kushari
Photo Credit: Shutterstock.
This tasty blend of rice, pasta, and lentils has rich, complex flavors and a satisfying texture. The name Kushari comes from the Hindu word khichri, a traditional dish made with rice and lentils, but this hearty meal has become a true icon of Egyptian cuisine. One of the best ways to experience Kushari is from a street vendor, where it’s served fresh on big, shiny metal platters. The dish typically features small yellow lentils and rice that are slowly simmered in a rich, flavorful stock, with crunchy fried vermicelli and buttery browned onions.
5. Kebda Eskandarani
Photo Credit: Shutterstock.
This dish features succulent beef liver fried to perfection and seasoned with a fiery blend of cumin, garlic, cardamom, and chili peppers. One of the best things about Kebda Eskandarani is its versatility. You can enjoy it in a hearty sandwich with a creamy tahini dip, or on its own with a side of warm rice, zesty lime wedges, or fluffy pita bread. If you’re ever in Alexandria, be sure to seek out one of the many street food carts or fast food shops serving up this delectable dish.
6. Nyama Choma
Photo Credit: Shutterstock.
Get ready to tantalize your taste buds with Kenya’s unofficial national dish—Nyama Choma! It’s a mouth-watering barbecued meat delicacy, which translates to “grilled meat”. Served up and down the country, Nyama Choma is typically made using succulent goat or beef that’s been slow-roasted to perfection. To complete the meal, locals often pair it with some local beer and sides like the staple Ugali.
7. Shawarma
Photo Credit: Shutterstock.
Shawarma is a Middle Eastern dish that has become popular all around the world. It typically consists of marinated meat (chicken, lamb, or beef) that is stacked on a spit and slowly roasted to juicy perfection. The meat is then thinly sliced and wrapped in a soft pita bread with vegetables such as tomatoes, lettuce, onions, and sauces like hummus, tahini, or garlic sauce. Shawarma is a delicious and convenient meal that you can enjoy on the go or sit down to savor every bite.
8. Hawawshi
Photo Credit: Shutterstock.
Imagine a traditional baladi bread stuffed to the brim with a scrumptious mix of minced meat, veggies, and aromatic spices. The meaty filling is generously seasoned, and when it’s baked inside the bread dough, it creates a taste sensation that’ll have you drooling. You’ll know it’s ready when the bread achieves a crispy, golden texture that’s both light and satisfying. And to make this treat even better, it’s usually served alongside fresh veggies, salads, and mouthwatering dips.
9. Mahjouba
Photo Credit: Shutterstock.
These savory, flaky flatbreads are a true delight for your taste buds. Made with semolina, these thick crepe-like bread are then filled with a heavenly mix of sweet caramelized onions and tangy tomatoes, creating a perfect balance of flavors. And if you want to spice things up, you can add some Harissa sauce on the side for an extra kick. This Algerian delicacy is a must-try for anyone who loves hearty and delicious food. So, whether you’re strolling through the bustling streets of Algiers or trying it at home, you’re sure to enjoy every bite of Mahjouba!
10. Forodhani and Dafu
Photo Credit: Shutterstock.
One of the most beloved street foods in Zanzibar is the Forodhani, lovingly nicknamed the ‘Zanzibar pizza’. Imagine a mouthwatering mixture of veggies, egg, and mayo (plus meat if you prefer) all wrapped up in thin dough and fried to crispy perfection. You can find it at night market stalls throughout Stone Town. If you’re looking for a refreshing snack, try a young coconut, known locally as Dafu. Not only are they delicious, but they also boast numerous health benefits, like curing sunstroke and fighting dehydration. Keep an eye out for the ubiquitous salesmen peddling these tropical treats on their bicycles all over the island.
11. Accara
Photo Credit: Shutterstock.
One of the most popular snacks in Senegal is Accara, a crispy black-eyed bean fritter that will make your mouth water. This mouthwatering dish is typically served with a tangy tomato-and-onion-based hot sauce called kaani, which perfectly complements the crispy texture of the fritter. If you’re a foodie, you may recognize the similarities between Accara and the Brazilian acarajé fritter. Both dishes feature the same crispy fritter base, but Senegalese Accara has its own unique twist. It’s often served on a crusty baguette with an oniony sauce that adds an extra layer of flavor to this already delicious snack.
12. Akara
Photo Credit: Shutterstock.
Akara, a beloved Nigerian snack, consists of deep-fried bean cakes made from finely ground beans mixed with onions, peppers, and an array of spices. These protein-rich delights are renowned for their lightness and nutritional value. They pair perfectly with Agege bread, famous for its soft, fluffy texture, and ability to complement a variety of dishes, including stews. The traditional method of making Akara involves blending peeled brown beans with spices and onions, then deep-frying the mixture in vegetable or canola oil.
From suya in Nigeria to Attiéké in Ivory Coast, we’ve covered a range of delicious and unique dishes. African street food is not only mouthwatering but also a reflection of the continent’s rich cultural history and culinary traditions. So, if you’re looking to explore new flavors and cultures, be sure to add African street food to your culinary bucket list.
Image Credit: Shutterstock – Denis Makarenko
Who is one actress you can never stand watching, no matter their role? After polling the internet, these were the top-voted actresses that people couldn’t stand watching.
10 Actresses People Despise Watching Regardless of Their Role
These 7 Celebrities are Genuinely Good People
Photo Credit: Shutterstock.
We’ve all heard the famous adage that “no publicity is bad publicity,” and while it tends to be accurate, there are certainly exceptions. But what about those few stars who stay out of the limelight and get along without a hint of trouble?
These 7 Celebrities are Genuinely Good People
Photo Credit: Shutterstock
Have you ever known someone and thought you liked them—until you learned about their hobbies? Then you get to know them and then you’re like, “Wow, red flag.” Well, you’re not alone.
These 10 Activities Are an Immediate Red Flag
Photo Credit: Shutterstock.
Some celebrities definitely seem to enjoy the limelight and keep working to stay in the public eye. While others quickly move out of the spotlight. Many of these actors and actresses stepped out of the spotlight to live a more private life without constant media pressures.
10 Celebrities That Made the Big Times Then Disappeared Off The Face of the Earth
Image Credit: Troma Entertainment
We’ve all been there – sitting through a movie that we can’t help but cringe at, but somehow it still manages to hold a special place in our hearts.
These 10 Terrible Movies Are Still People’s Favorites
If you’re checking your bank account every day, looking for the second stimulus payout, you aren’t alone. It seems like everyone else has the money already. Yes, some of the money issued in early January but that doesn’t mean you’re the only one still waiting.
This tax season, don’t wait for your refund. File on time with TurboTax
If you haven’t received your second payment yet, you’ll probably need to claim it when you file your taxes. But the IRS has a tool that will help you trace your payment. If it hasn’t been sent yet, filing your taxes is the quickest way to get your stimulus payment, but you’ll still have to wait for the IRS to process it.
What’s Ahead:
Understanding stimulus checks
The stimulus program was created in direct response to COVID-19. As everything shut down to stop the impact of the pandemic in the U.S., the government wanted to reduce the impact on businesses. By issuing a payment to all qualifying households, the hope is that people will spend, spend, spend.
Under the provisions of the first bill, every qualifying household received a one-time payment of up to $1,200, or $2,400 for married couples who file their taxes jointly. The second payment, approved in December, issues $600 per person, or $1,200 for married couples, plus an additional $500 per child.
Qualifying for a stimulus check
If you haven’t received your check yet, are you sure you’re getting one? Those with an adjusted income above $75,000 ($150,000 for married couples) who have no qualifying dependents won’t get a check at all. Your income is based on what you reported on your 2019 federal income tax return.
That brings us to your tax filing. As tax season begins, you’ll input information on your stimulus payment, known as the Recovery Rebate Credit for tax purposes, on Form 1040. The IRS is providing a worksheet to help you figure how much the IRS owes you. Any money you’re due will be issued as part of your tax refund.
The stimulus money you’ve already received will also be reported on your taxes but won’t be counted as taxable income. It also won’t impact the refund you get. You’ll only see an impact on your refund if you haven’t received the money that was due to you based on your income and household setup.
It’s important to note, though, that even if you file your taxes today, there will be a delay. The IRS won’t begin processing tax returns until February 12th. If you’re eager to see your second stimulus payment, you’ll boost your chances by filing as early as possible and setting up direct deposit for your refund.
You can use the calculator below to determine the amount you can expect.
Check vs. direct deposit
If you received your first stimulus payment by mail, you probably already know that direct deposit is the fastest way to get your money. This also goes for tax refunds. If you use tax software to file your taxes, you simply select direct deposit as your refund method. You’ll be directed to input your bank account information and from that point forward, any future stimulus payments should be deposited to that account.
TurboTax is already preparing to answer questions about the Recovery Rebate Credit. The tax preparation software has been updated to walk you through any changes that COVID-19 made to this year’s taxes. You’ll just need Notice 1444, which was sent to you when you received your first and/or second stimulus payments. If you have any questions, you can connect to a tax expert to get the answers you need.
What if the Get My Payment tool shows that the amount was sent but you haven’t received it? The IRS can trace your payment to see if it was cashed. If not, the IRS will credit your account to show that you never received it. Another check won’t be issued at this point, but you’ll be able to claim the rebate on your tax return and get the money along with your tax refund.
What about a third payment?
There’s good and bad news when it comes to a third payment. The good news is that President Biden has signed a $1,200 payment to go to each qualifying American. The bad news is that it could be a while before you see the money in your account.
Why the delay? As before, it has to go through Congress first. Experts are hopeful it could be approved as early as mid-February or early March. But as before, it will take a while to get the machine moving so that those payments are in your account. Complicating matters is the fact that the IRS, which issues the payments, will be deep into tax season if that timeline holds, which could further slow things down.
While you wait…
Let’s face it: all of us could use the extra money right now. But if your circumstances are stressing you out, there are some steps you can take to potentially relieve some of the pressure.
If you haven’t already, get in touch with your lenders to find out if you can delay or reduce payments until things improve. You may have already checked into unemployment. Make sure you’re signed up to get the extra $300 a week that some states have already begun issuing.
Summary
The stimulus payment stands to help out the many Americans impacted by COVID-19. Waiting for that payment can be tough, but at this point, filing your taxes as early as possible is the best you can do to speed things up.
If you haven’t already, make sure you direct the IRS to issue your refunds via direct deposit to get any future payments moving quickly.
Checked bag fees can cost as much as $35 one-way — adding up quickly, especially if you travel with your family.
But by carrying the right credit card, you may be able to get these charges waived completely, and possibly even for your travel companions.
In this guide, we’ll go over the credit cards that feature free checked baggage as a benefit.
Alaska Airlines
Alaska Airlines charges a $30 fee for the first checked bag and $40 for the second on all its flights.
CHAD SLATTERY/ ALASKA AIRLINES
But for cardholders of the Alaska Airlines Visa® credit card ($95 annual fee) and the Alaska Airlines Visa® Business card ($70 for the company and $25 per card annual fee), you’ll be able to check a first bag for free for you and up to six additional passengers on the same reservation when you purchase your flight with your card.
These annual fees are well worth the cost, even if you travel with Alaska Airlines a handful of times yearly.
American Airlines
American Airlines charges $30 for your first checked bag and $40 for the second bag for all domestic flights, as well as those to Canada, Mexico, Central America and the Caribbean.
AMERICAN AIRLINES
However, the carrier offers multiple cobranded credit cards from two issuers: Citi and Barclays. Both issuers offer a free checked bag, depending on the card you carry in your wallet.
Citi AAdvantage Cards
There are three Citi cobranded options that offer a first free checked bag on domestic itineraries:
Reward your inbox with the TPG Daily newsletter
Join over 700,000 readers for breaking news, in-depth guides and exclusive deals from TPG’s experts.
The Citi AAdvantage Platinum Select and the CitiBusiness AAdvantage Platinum Select extend this free checked baggage benefit to you and up to four traveling companions on your reservation. Both cards have $99 annual fees that are waived for the first year.
The information for the Citi AAdvantage Platinum Select World Elite Mastercard and CitiBusiness AAdvantage Platinum Select World Mastercard have been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Meanwhile, the Citi AAdvantage Executive World Elite Mastercard offers the same free checked bag benefit, but it extends to up to eight traveling companions on the same reservation. It has other benefits, such as Admirals Club lounge membership and a TSA PreCheck or Global Entry application credit.
Barclays Aviator cards
Issued by Barclays, the AAdvantage Aviator Red World Elite Mastercard ($99 annual fee) and the AAdvantage Aviator Business Mastercard ($95 annual fee) both offer a first bag checked free to the primary cardholder and four companions on domestic itineraries.
The information for the Aviator Red card and Aviator Business card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
None of these cards will waive the fee for your first checked bag on short-haul international flights.
Related: Best American Airlines credit cards
Delta Air Lines
Delta normally charges $30 each way for your first checked bag and $40 for your second bag on flights within the U.S.
DELTA
However, through most of the carrier’s consumer and business credit cards, you’ll get one free checked bag for the cardholder and eight others traveling on the same itinerary. To utilize this benefit, attach your Delta SkyMiles number to your reservation.
Here are the six Delta cards that offer this perk:
Related: Best Delta credit cards
Hawaiian Airlines
Hawaiian charges $30 for the first checked bag and $40 for the second bag on flights from North America.
HAWAIIAN AIRLINES
Hawaiian Airlines World Elite Mastercard from Barclays cardholders receive two free checked bags — however, travel companions aren’t included in this benefit. The card comes with a $99 annual fee.
The information for the Hawaiian Airlines Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
JetBlue Airways
JetBlue charges $35 for the first checked bag and $45 for the second.
JETBLUE
Thankfully, you can avoid these charges if you carry the JetBlue Plus card or the JetBlue Business Card — both with a $99 annual fee. This free checked bag benefit extends to the primary cardholder (you) and three travel companions on your reservation.
The information for the JetBlue Plus card and the JetBlue Business Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related: Credit card showdown: JetBlue Plus Card vs. JetBlue Business Card
United Airlines
United charges $35 per bag and $45 for the second on all domestic flights, but there’s a total of four cards you can apply for to avoid checked bag fees.
UNITED AIRLINES
The United Explorer Card ($95 annual fee, waived the first year) and the United Business Card ($99 annual fee, waived the first year) let you bring your first checked bag free for you and a companion on your reservation.
Meanwhile, the United Club Infinite Card ($525 annual fee) and the United Quest Card ($250 annual fee) let you check two free bags for the primary cardholder and one companion on the same reservation.
However, there’s a big caveat here. Per the terms of this benefit, you must have your MileagePlus number on your reservation and purchase your ticket with the applicable card for the perk to apply. If you use a different card offering a better earning rate on airfare, you may miss out on the free checked bags.
Related: Best credit cards for United flyers
Other cards worth considering
While opening any of the airline credit cards above is a great way to save on checked bag fees, what happens if you fly with multiple carriers throughout the year?If you tend to prioritize price or convenience over sticking with a particular airline, it may not be worth it to apply for a cobranded credit card that offers perks solely on that one carrier.
THOMAS BARWICK/GETTY IMAGES
An alternative is to apply for a credit card that comes with more general travel benefits and can reimburse you for checked bag charges:
The information for the Hilton Honors Aspire has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related: What still triggers Amex airline fee reimbursements?
What you should know about checked bags
Here are some tips to keep in mind when taking advantage of your free checked bag benefit on your airline cards:
Free baggage benefits don’t stack
There’s a popular misconception that your credit card will offer an additional free checked bag rather than the first free checked bag. Unfortunately, these credit cards’ fee waivers wouldn’t apply if you already receive a free checked bag due to your elite status, class of service or travel to an overseas destination. Therefore, you will not receive an additional free checked bag beyond your existing allowance just for holding a credit card that offers this benefit.
Some airlines make exceptions, but check your airline’s policy before assuming a second bag will be covered.
Make sure to book your ticket correctly to use this benefit
With most of these offers, you only have to attach your frequent flyer number to your reservation to be given the free checked bag benefit. The exceptions are Alaska and United, which require you to purchase the ticket (or pay taxes and fees on an award ticket) using your airline credit card.
You’ll want to keep these tips in mind when trying to avoid checked baggage fees. IAM ANUPONG/GETTY IMAGES
Be careful booking large groups on a single reservation
It’s nice that several of these credit cards offer free baggage for multiple companions, but there’s a potential catch. When searching for flights, airlines will display a single airfare that applies to all tickets rather than offer lower fares for some passengers. So if only three seats are offered for $300 each, and the next best fare is $400, booking four people together in one reservation will cost $400 each.
Clearly, paying the extra $300 will not be worth it to receive a free bag worth $50 each round trip. So before booking reservations for multiple people, be sure to check the price for a single passenger and take into account your credit card’s bag fee waivers before deciding whether to book your party with multiple reservations.
Book flights on Southwest
Southwest Airlines is the only domestic carrier not to charge checked bag fees for any traveler, offering two free checked bags weighing 50 pounds or less each on every single flight.
Bottom line
Airfare can be costly by itself, but additional bag fees can quickly add up — especially when traveling with a large family. Thankfully, there are several ways to avoid these costs. In fact, many of the airline cards on this list that offer a free checked bag carry annual fees under $100.
Therefore, it’s worth crunching the numbers. Even if you fly with that airline several times in one year, it’s easy to justify paying the ongoing annual fee — and that’s not even factoring in any welcome bonuses or other perks the cards offer.
Additional reporting by Emily Thompson and Jason Steele.
For rates and fees of the Delta SkyMiles Gold, click here. For rates and fees of the Delta SkyMiles Gold Business, click here. For rates and fees of the Delta SkyMiles Platinum, click here. For rates and fees of the Delta SkyMiles Platinum Business, click here. For rates and fees of the Delta SkyMiles Reserve, click here. For rates and fees of the Delta SkyMiles Reserve Business, click here. For rates and fees of the Amex Platinum, click here. For rates and fees of the Amex Business Platinum, click here. For rates and fees of the Hilton Honors Aspire, click here.
True or False? Credit card companies lure you in with big promises, but bury the nasty stuff in fine print.
It would be hard to find many people that disagree. Unfortunately, when the consensus is that card companies are out to get you, you might be tempted to throw up your hands and give in, saying “What can I do?” If that’s your attitude, you can be sure they’ll take full advantage.
Because you read Get Rich Slowly, though, I’m guessing you’re a little more savvy, a little more proactive about your finances, a little more likely to look before you leap. So, let me give you five specific things to watch out for, both when getting a credit card and when using the card you have, and how to avoid each trap.
Promise #1: “As Low as 9.99% APR!”
The Trap: Your interest rate could be as low as 9.99%… but it could also be as high as 20.99%, or whatever the card company has put in the fine print.
Your Plan: Read the “Schumer box” (where the interest rate is shown in larger type, usually on the reverse side of an application) to see if the card company has allowed themselves the luxury of giving you any interest rate they please. If yes, either consider your credit history and go in with your eyes wide open to the possibility of a higher rate, or choose a credit card that offers a single take-it-or-leave-it rate. In that way, you’re either approved or rejected, but you don’t come away feeling fleeced.
Promise #2: “Up to 5% Cash Back!”
The Trap: Several. The card may offer you much less than the 5% rebate until you spend a certain amount per year. On the flip side, it may give you a 5% rebate for the first $300 in purchases each month, then drop the rebate down to 1% or less.
Your Plan: Stay away from cards that market a rebate “up to” a certain percentage, and go for those that promise a “full” percentage. And check the fine print for caps on monthly or yearly rebates.
Promise #3: “0% APR on Balance Transfers for 12 Months!”
The Trap: Two-fold. First off, it’s almost impossible these days to transfer a credit card balance without paying 3% of the balance upfront. Transfer $5000 and you’ll pay $150 before we even start talking about paying down the balance.
Second, almost all card companies take your payments and apply them first to balances with the lowest interest rate. Say you transfer $1000 to a card at 0%. The card’s interest rate on new purchases is 13.99%. This month you buy $500 worth of stuff with the card, then pay $500 when the bill comes. Do you still have a $1000 balance at 0%? No, you have a $500 balance at 0% and a $500 balance at $13.99%! Why? Because your $500 payment went toward the balance sitting at 0%, not toward the balance sitting at the 13.99%.
Your Plan: A couple of options. The easy thing to do would be to swear off credit for a bit — transfer the balance then don’t use the card until it is paid off. (You’d stilll get hit with the 3% fee, but it might be worth it if you had a high interest rate on your old card.)
If you have decent credit and a little more self control, you could get a new credit card that offers a 0% rate on purchases for 12 months, then use it while you pay off your old card’s balance. By doing so, you focus on paying off your high-interest debt while floating new purchases at 0%. If you follow my logic, this is very similar to transferring your balance at 0% but without the fee. Either way, recognize that the 0% rate doesn’t last forever and the bill eventually comes due.
Promise #4: Your Card Has a Credit Limit of $3000.
The Trap: While logic would tell you that your card company won’t approve purchases beyond the limit, the reality is that they will let you charge beyond your limit, then slap you with a $39 fee to penalize you.
Your Plan: Don’t think of your card company as a caring parent who cuts you off when you overspend. It’s up to you to keep track of when you get close to your limit. (By the way, you really should not be getting that close to your card’s limit. It’s hell on your credit score.)
Promise #5: “Any Time for Any Reason”
The Trap: Unlike the other promises, this one’s too nasty for the issuers to put a positive spin on, so it stays tucked away. In short, in almost every card agreement, the card issuers give themselves the right to change your interest rate at any time for any reason, even if you’ve done nothing wrong. And they only have to give you 15 days notice, so you could find yourself scrambling if it happens to you.
Your Plan: Have a second credit card before this happens instead of waiting until you’re in trouble. You don’t ever have to use the second card, but the last thing you want is to have your interest rate jacked up to 25% with no recourse if your credit card issuer decides to play hardball.
Credit cards ain’t for fools. If you’re going to carry one, then take responsibility for understanding what you’re getting into, and fight fire with fire when your card company decides to play rough.
Mortgage rates are flat to slightly higher right now. We did see a big jump in this week’s Freddie Mac PMMS that got released this morning. Looking at the big picture, though, mortgage rates are still at low levels.
They are expected to continue rising in 2018 so we’re recommending that borrowers take action sooner rather than later. Read on for more details.
[embedded content]
Market Outlook 1.22.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates flat to slightly higher today
Mortgage rates are moving sideways today. A few hours ago the European Central Bank left their benchmark interest rate unchanged, with ECB President Mario Draghi stating that it will likely remain that way throughout 2018.
Click here to get today’s latest mortgage rates (Jul. 22, 2023).
The decision really came as no surprise to financial market participants, resulting in a very muted market reaction.
The yield on the 10-year Treasury note (which is the best market indicator of where mortgage rates are going) is up a little over one basis point from the start of the day.
Rates Jump in Freddie Mac PMMS
Mortgage rates jumped up again this week in the Freddie Mac Primary Mortgage Market Survey. Here are the numbers:
The average rate on a 30-year fixed rate mortgage spiked up eleven basis points to 4.15% (0.05 points)
The average rate on a 15-year fixed rate mortgage jumped up thirteen basis points to 3.62% (0.05 points)
The average rate on a 5-year adjustable rate mortgage moved up six basis points to 3.52% (0.4 points)
Here is what the Freddie Mac’s Economic & Housing Research group had to say about mortgage rates this week:
“Rates keep climbing. The 10-year Treasury yield reached its highest point since 2014 reflecting expectations of broad-based economic growth. Mortgage rates, in turn, followed the surge in Treasury yields. The 30-year fixed rate mortgage jumped 11 basis points to 4.15 percent, its highest level since March of last year.
The release of the December existing home sales data confirms that 2017 was the best year for home sales in over a decade. Will 2018 home sales outpace 2017? Homebuyer affordability will be a challenge, with mortgage rates moving higher and robust house price gains across the country. The FHFA reported that house prices increased 6.5 percent from November 2016 to November 2017, with all regions showing positive 12-month changes.”
Rate/Float Recommendation
Lock now while rates are low
Mortgage rates are continuing to move higher. This is what has been expected for some time now, which is why we’ve been recommending that anyone looking to purchase a home or refinance their current mortgage takes action sooner rather than later.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Jobless Claims
Jobless claims for the week of 1/20/18 came in at 233,000. That’s up from the prior revised reading of 216,000. The four-week moving average is now at 240,000.
New Home Sales
New Home Sales came in at an annualized rate of 625,000 for December. That’s a little below the consensus for 680,000.
Kansas City Fed Manufacturing Index
Get the GreenLight and close in 21 days*
Notable events this week:
Monday:
Chicago Fed National Activity Index
Tuesday:
Richmond Fed Manufacturing Index
Fedspeak
Wednesday:
FHFA House Price Index
PMI Composite Flash
Existing Home Sales
EIA Petroleum Status Report
Thursday:
Jobless Claims
New Home Sales
Kansas City Fed Manufacturing Index
Friday:
International Trade in Goods
Durable Goods Orders
GDP
*Terms and conditions apply.
Carter Wessman
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
Michigan State University Federal Credit Union in East Lansing is opening five branches in Chicago. This is its first expansion outside of its home state.
Semma Burba
The Spartans are invading the Windy City.
Michigan State University Federal Credit Union said this week that it will make its first-ever expansion outside of Michigan by opening five branches in Chicago next year.
The $7.5 billion-asset credit union in East Lansing said the institution’s strategy has been to locate branches where its members live, and more than 10,000 Michigan State University students and alumni now reside in Chicago.
“Many MSU alumni move to Chicago post-graduation,” President and CEO April Clobes said in an interview. “In addition, the incoming MSU student class has a high number from Illinois.”
The branches will be located in the Lakeview, Lincoln Park, Wicker Park, Gold Coast and Old Town neighborhoods.
Clobes said MSUFCU has been evaluating the Chicago region for some time, and the right mix of retail locations near where its existing and eligible members reside became available.
Post-covid, there were more available location options to consider, she said.
MSUFCU is the second largest credit union in Michigan behind only the $12.4 billion-asset Lake Michigan Credit Union in Caledonia.
“Many MSU alumni move to Chicago post-graduation,” President and CEO April Clobes said.
Dave Trumpie-Trumpie Photography
MSUFCU has offered services digitally to members outside of Michigan for many years, including selling mortgage products in 18 states across the country.
But Clobes said physical locations grow membership and existing member balances faster than digital services alone.
“Our members and eligible members are able to do all of their business with the credit union online, yet when we move into a market, the members appreciate having a branch location for complex transactions and financial education,” she said.
Whether digital or physical, credit unions need to be able to differentiate themselves to their members and ensure they have the product mix and delivery channels.
While members make nearly 2 million visits a year to MSUFCU branches, they log in to its mobile app 36 million times a year.
“Their branch visits are purposeful for when the member would like to be assisted by our team versus self-serve. Physical locations help to support a growing community through employment and economic activity as well,” Clobes said.
Michael Fryzel, a Chicago attorney and former chairman of the National Credit Union Administration, called the entry into the Chicago market by Michigan State University FCU an “excellent move.”
“The potential exists for substantial membership growth for the credit union. There are thousands of MSU graduates and family members who live and work in the city and surrounding suburbs,” Fryzel said.
Michigan State University FCU has more than 350,000 members. Clobes said historically when the credit union adds a branch to a digital-only region, it grows about 30% in both balances and new members in that area.
She anticipates the Chicago market will see similar growth.
“Our annual new member growth is between 5% and 6%, and we anticipate that moving to a new market area will help us maintain this level of membership growth through better retention of existing members as well as attracting new eligible members,” Clobes said.
So will the Chicago expansion serve as a springboard for moves into more out-of-state markets?
Clobes was noncommittal.
The credit union already has plans for growth in new markets and in the areas it already serves in Lansing, Traverse City Grand Rapids, Oakland County and metro Detroit.
“We will evaluate the success of these locations to determine possible additional locations in the Chicago suburbs,” she said. “While we are moving into the Chicago market, we are still branching throughout Michigan where our members are concentrated without a convenient branch location.”
MSUFCU’s plans continue the broader industry pattern of credit unions continuing to build branches. There were 20,694 branches among federally insured credit unions in March 2023, up 87 branches from a year ago, according to recent data from the National Credit Union Administration.
Compass CEO Robert Reffkin revealed on CNBC how volatile mortgage rates are sidelining homesellers and why a boost in existing-home inventory could happen as early as December.
In these times, double down — on your skills, on your knowledge, on you. Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. Get your ticket now for the best price.
Volatile mortgage rate increases have brought the housing market to a creep, as would-be homesellers desperately hold onto the savings they secured during 2020 and 2021’s historic interest rate drop. Since the federal government averted a disastrous June 2 debt default, rates have retreated to the mid-six-percent range — a drop that’s resulted in three consecutive weeks of increasing homebuyer mortgage demand.
So, what will it take to bring homesellers out of hiding and bring the housing market back to life? A five-percent mortgage rate, according to Compass CEO Robert Reffkin.
Robert Reffkin
“Across the board, there are more buyers than sellers,” Reffkin said during a CNBC appearance on Wednesday. “Buyers that have accepted six or seven percentage mortgage rates as a new normal. The issue that we have is there’s just not enough inventory, and that’s because 30 percent of homeowners are locked into mortgage rates at 3 percent or below, and 70 percent of homeowners are locked in a 4 percent or below.”
“We need to have an unlock [of] inventory. It’s probably going to happen when mortgage rates get to 5 to 5.5 percent in a sustainable level,” he added. “At that point, I would expect there to be a flood of inventory in the market. And we’ll feel like the pandemic craze all over again.”
Reffkin said some homebuyers are already bringing their rates down to the five-percent range through buydowns. There are two common ways to complete a buydown: paying a one-time discount point fee at closing to bring the rate down for the lifetime of the loan or using funds escrowed by the seller to temporarily drop the rate for the beginning of the loan.
“There are definitely incentives and buydowns bringing mortgage rates down by two points in a number of our markets,” he said.
While some homebuyers are waiting for the existing-home market to recover, Reffkin said a greater segment of homebuyers are simply turning their attention to the new-home market, which experienced a 20 percent year-over-year increase in May sales.
“[It’s a] great time to be a homebuilder because they’re benefiting from the price increases that are a result of low inventory,” he said. “Homebuilders are meeting [buyer] demand. Last month, we saw the largest amount of housing starts since 2016, and that’s because homebuilders, their sentiment index improved for the first time in over a year.”
Reffkin said it’ll likely be another year before rates drop to the five-percent range; however, the market could still experience a boost in existing-home inventory earlier as homeowners with adjustable-rate mortgages reevaluate the value of their current loans.
“The topic around adjustable rates, which I think people don’t fully appreciate, is that around 30 percent of the people that are locked in at three or four percent mortgage rates had adjustable rate mortgages that are five years, seven years or 10 years,” he said. “So the value of a 5-percent ARM they got in 2022, in six months is not that valuable anymore.”
The lock-in effect is the financial disincentive for existing homeowners to give up the low rate on their existing mortgage.
“You only have another year or year and a half” before ARM borrowers don’t feel locked in by the rate on their existing mortgage, he added. “So I think there’s going to be some new inventory entering the market, even if rates don’t come down because of those ARMs that are getting less value over time.”
Watch the full interview below:
[embedded content]
Editor’s note: This story has been updated to correct that Reffkin said around 30 percent of the people that are “locked in” to mortgages at lower rates have ARM loans, rather than 30 percent were “wanting” mortgages at lower rates.