The real estate market is kind of strange at the moment.
Everyone expected mortgage rates to jump in 2019, but so far they’ve done the exact opposite.
At the same time, home price appreciation has slowed in much of the country, creating a situation where affordability is actually better than it was a year ago.
To make matters even weirder, negative equity is increasing again, a topic I haven’t discussed for many years.
Refi Candidates Up 75% From November
First those refis – amazingly, the number of homeowners who could both qualify for and benefit from a mortgage refinance rose almost 75% from the 10-year low seen in November 2018, per the latest Black Knight Mortgage Monitor for January 2019.
It also marked a 16% year-over-year increase and the highest number of eligible candidates since January 2018.
There are about 3.27 million homeowners today who could reduce their mortgage rate by at least 0.75%, which would obviously amount of some serious savings monthly and over the life of the loan.
However, the numbers are still down a hefty 30% from late 2017 when 30-year fixed mortgage rates stood below 4%.
Sadly, Black Knight believes the impact will be muted because some 85% of homeowners took out their mortgages more than seven years ago, meaning they’re not likely to refinance.
Still, roughly 250,000 homeowners who took out their mortgages just last year could stand to benefit greatly from a refi, especially those who received rates on the higher end of the spectrum due to bad timing and/or bad credit, etc.
Falling Home Prices?
Now let’s address home prices, which after some really solid years of growth, seem to be getting tested.
It could just be an affordability issue, as new home buyers simply don’t have the ability to purchase real estate at today’s relatively sky-high prices.
Certainly, it’s not for a lack of wanting to buy, nor is it an inventory issue – low supply continues to be a problem.
Despite a limited housing stock and still-low mortgage rates, annual home price appreciation slowed for the 10th straight month in December, per Black Knight.
It fell from a high of 6.8% YoY growth in February 2018 to just 4.6% at the end of 2018, and on a monthly basis in December, the average home price actually declined 0.3%.
The average home price has fallen a combined 0.82% over the past four months, marking a $2,440 loss.
And Black Knight economists expect the same trend in January based on early data collection.
Now the good news – because home price gains have moderated, and even fallen over the past several months, housing affordability has increased.
A prospective home buyer today needs just 22.2% of their median income to purchase the average-priced home with a 20% down payment on a 30-year fixed-rate mortgage.
That’s slightly lower than the post-recession high of 23.4% seen just a few months back, and well below the long-term average of 25% seen in the late 1990s and early pre-bubble 2000s.
Additionally, despite the recent slowdown, annual home price growth is still outpacing its 25-year average of 3.9%, so if anything, the real estate market is simply normalizing after some really hot (unsustainable) years.
Underwater Mortgages Are Back?
That brings us to the issue of negative equity, something I definitely haven’t mentioned on this blog in a long, long time.
It was a hot topic post-housing crisis when something like half of all borrowers with a mortgage owed more than their homes were worth.
That led to a new definition for “underwater” in the dictionary, the advent of underwater mortgage insurance, and the very popular and widely-used HARP refinance program.
Now Corelogic is telling us that the quarterly increase in negative equity during the fourth quarter of 2018 was the first in four years.
Between the third and fourth quarter of 2018, the total number of mortgaged homes in negative equity increased 1.6% to 2.2 million homes, representing 4.2% of all mortgaged properties.
It was the first quarterly increase since the fourth quarter of 2015, and led to some 35,000 properties falling into underwater positions.
Before we ring the alarm bells, if you consider the year-over-year basis, the number of mortgaged properties in negative equity actually fell by a significantly larger 14%, representing some 351,000 homeowners.
And the CoreLogic Home Price Index estimates a 4.5% increase in home prices from December 2018 to the end of 2019, which should lift another 350,000 homeowners above water.
Still hard to believe that millions remain underwater on their mortgages in light of the massive home price gains realized since the recovery got underway. Tells you how bad things got.
Negative equity peaked at a staggering 26% of mortgaged residential properties during the fourth quarter of 2009. It’s been nearly a decade since those very dismal times.
Well, 2019 is set to come to a close. It’s certainly been an interesting year (and decade), surely one to remember.
But now it’s time to look forward to what 2020 might bring with regard to the housing market, mortgages, and so on. Let’s dive in.
You can see my 2019 predictions here.
1. Mortgage rates will go down
As always, we tackle mortgage rates first. The forecasts have been wrong year after year lately, with most pundits calling for an end to the ultra-low rate era.
But over time, it has become apparent that this is simply the new normal for rates. They probably aren’t going back to 5-6% anytime soon.
Instead, expect 30-year fixed rates closer to 4%, as they have been for years now. In 2020, we might even see new all-time lows if the election, Brexit, or other geopolitical events really shake things up.
If you’re a home buyer or a refinancer, 2020 will be yet another favorable year in the financing department.
2. Home prices will go up (limited inventory, but not a seller’s market)
Now let’s talk home prices, which don’t have a clear correlation with mortgage rates. No, one doesn’t go up while the other goes down, despite many assuming that.
While we’ve already seen the really stellar years of appreciation since bottoming nearly a decade ago, the end of home price appreciation isn’t quite here yet.
In fact, 2020 should be another solid year in terms of home price growth, likely mirroring the 5-6% gains seen in 2019.
That means even more home equity for those who already own a home, and perhaps a little less sticker shock for those in the market to buy, with prices not all that different from the year prior.
If your wages have increased since then, it may not look all that bad, especially if low interest rates make your home loan financing that much more affordable.
I believe we’ll continue to see a healthy balancing of the housing market between buyers and sellers, though some markets nationwide will continue to be more competitive than others due to a serious lack of supply.
3. Builders will build more homes
Speaking of housing supply, expect home builders to really ramp up their building in 2020.
Fannie Mae is forecasting almost 1 million single-family starts next year, representing a near-10% increase from a year earlier.
That should begin to ease demand in areas that need it, though it may take more than a year or two for it to really show since these projects take time to be completed and marketed to buyers.
The question is will home builders get it right this time around, or overshoot the mark again?
4. Low down payment mortgages will dominate purchases
With regard to financing those new home purchases, I expect a lot of low-down payment mortgages to be involved.
I’m talking the 3% down offered by Fannie and Freddie, 3.5% from the FHA, along with zero down from the VA, USDA, and other individual lenders.
It seems low- and no-down is back en vogue, especially with competition a bit lower in today’s housing market.
Again, this could be an ominous sign we are returning to the dark days of the early 2000s. However, the underlying mortgages should still be a lot cleaner.
5. More quick refis from recent home buyers
I also expect the trend of buy-to-refi to continue in 2020. Many of those who refinanced in 2019 had just acquired their mortgage, but thanks to rate improvements, it was beneficial to refinance just months later.
This drove a lot of refinance volume in 2019, and probably will do the same next year.
As I said, we could see new all-time lows in mortgage rates, so recent buyers, along with not-so-recent buyers, may benefit from a rate and term refinance (or cash-out).
That’ll be great news for mortgage lenders who rely on refis to post big numbers, as the purchase market will likely be just marginally higher than in 2019.
It also means you can do better your second time around if you made some missteps on your first mortgage go-around.
6. More iBuying replacing traditional real estate agents
The disruptors have been around for some time now, and they continue to grow market share and take from the traditional channels.
This includes iBuyers, such as Offerpad, Opendoor, and Zillow Offers, who are gently pushing out real estate agents with their instant all-cash offers.
Unfortunately, these companies are keeping more for themselves in exchange for a little convenience. As I’ve said, homeownership requires constant work.
Part of that is putting in the time/effort to buy and sell a home thoughtfully. You can rush it if you want, but it’ll cost you. Potentially a lot.
7. Cash out refis will be big
While the number of cash out refinances has increased in recent years, the total dollar volume is still a drop in the bucket compared to the early 2000s.
Expect more homeowners to cash in on their home equity in 2020 as mortgage lenders look for new strategies to boost their own pipelines.
With more homeowners ageing in place or simply not moving because there’s nowhere to move, they may instead pull out cash to make much-needed renovations. Or simply to pay for other stuff.
Americans are sitting on a ton of equity, so it’s really a matter of when, not if. And they’ve been sitting on it for a while…
8. Faster digital mortgages will become the norm
Mortgages have been getting faster and faster in recent years thanks to advances in technology.
Nowadays, borrowers have the ability to seamlessly connect financial accounts to an application, forgo a home appraisal, or participate in an eClosing.
We’ve been hearing claims of mortgages in a week, a matter of days, or with the push of a button.
In 2020, I think we get closer to the elusive instant-mortgage, thanks to wider spread adoption of existing and new technologies.
Speed and convenience is becoming more of a selling point for mortgages, so look for a greater number of lenders to offer things like on-time guarantees.
Of course, getting it right (and for a good price) is more important than getting it done fast.
9. Mortgage broker share will rise
Not all mortgages can be streamlined. Some continue to take time, whether it’s because the borrower is self-employed, the property is unique, or some other unconventional scenario.
One group that excels when it comes to tricky or outside-the-box stuff are mortgage brokers. They’ve been actively gaining back market share since nearly going extinct after the Great Recession.
And 2020 will probably be another banner year for the group, thanks in part of better technology leveling the playing field, and a more diverse origination mix.
They’ve also got a new group doing a better job communicating the benefits of using a mortgage broker.
10. We’ll be one year closer to the next housing crisis
While I do see 2020 being another solid year for both real estate and mortgage, it might be time to start thinking about what’s next.
This housing rally has gone on for quite a while, and we’re certainly well into the late innings in terms of bust to recovery to expansion.
We’ve probably still got a few more good years, but that window is really beginning to narrow.
There’s a lot to start worrying about if we want to avoid making the same mistakes that felled us a decade ago.
My hope is we don’t overbuild and throw underwriting standards out the window again, damaging another generation that seems to finally be warming to the idea of homeownership.
KOCHI: Looking for some unique decor to add character to your living space? Well, Bronze Age — Sculpture Foundry in Kochi might be the right place for you. With an impressive collection of handmade bronze sculptures and customisation, the art decor venture promises to up the drama.
“Be it residential or commercial spaces, a statement sculpture has the power to set the mood,” says Neenu Varghese who runs the Bronze Age gallery at Gandhinagar in Kadavanthra. “More than being just a decorative piece, a sculpture can evoke memories, stir emotions, and spark meaningful conversations. Its multidimensional nature allows for diverse perspectives and interpretations, amplifying its emotive impact.”
Renny Jacob, the founder of Indian Cocoa Group, which owns Bronze Age, believes there is a “reawakening of interest in interior decor and a growing appreciation for fine craftsmanship”. “Consumers are now embracing the skill involved in creating these exquisite pieces,” he says, adding that the gallery also provides a platform for artists who wish to cast their ideations in bronze.
“We work closely with artists, designers, and craftsmen. With each sculpture, we aim to tell a story, start a conversation and create possessions that generations will cherish.” Neenu explains that each sculpture is the result of long hours of work using special processes and tools. “While ideation is one of the most time-consuming stages, patination is the final stage in the production of bronze sculptures; it is quite exciting,” she says.
Gallery curator Sujaya C P agrees. “Our sculptures are meticulously crafted using a combination of cast metals and mixed media,” she says. “Each piece is hand-finished with bronze, copper, iron, or other alloys. It takes hundreds of hours of skilled labour,”
Applying a patina involves using a combination of chemicals and heat to achieve the desired finish on a sculpture, Sujaya explains. “Over time, the patina effect naturally appears on the metal surface, adding character to the artwork,” she says.
“The sculpture’s real metal surface can be polished to maintain its shine or left to develop a natural, greenish ageing patina. This important step enhances and enlivens the bronze casting, breathing life into the sculpture.”
Bronze Age works in different styles and mediums and also deals with small- and large-scale architectural and interior design projects across Kerala. “We undertake concept development as well, bringing ideas to life,” says Neenu.
“Through the gallery, we aim to educate people on the techniques and philosophy behind artworks. We create bold statement sculptures that have the power to transform any space, and create a lasting impression.”
U.S. home equity declined for the first time in 11 years, but the downward trend could be short-lived, according to new data from CoreLogic.
The amount of equity among homeowners currently holding mortgages on their properties inched down 0.7% on an annual basis in the first quarter, resulting in an average loss of $5,400 per household and a collective total of $108.4 billion. It was the first case of negative annual growth since 2012, according to the property data and analytics provider’s quarterly homeowner equity report. Mortgaged homes comprise approximately 63% of all U.S. housing units.
The data marks a turnaround from three months earlier when homeowner equity increased by 7.3%, or $14,300, in equity year over year, representing nationwide growth in household wealth of $1 trillion. Meanwhile, 12 months earlier, in the first quarter of 2022, collective equity shot up by an even larger $3.8 trillion.
The first-quarter downturn largely reflects the deceleration and flattening of home values from month to month in the second half of 2022 after they surged to record highs less than a year earlier. But with recent data showing a small pick-up to start 2023, the current falloff may turn out to be a short-term blip rather than the beginning of a prolonged crisis, according to researchers.
“Home equity trends closely follow home price changes,” said CoreLogic Chief Economist Selma Hepp in a press release. “As a result, while the average amount of equity declined from a year ago, it increased from the fourth quarter of 2022, as monthly home prices growth accelerated in early 2023.”
Earlier in June, CoreLogic’s Home Price Index found housing costs had continued increasing between March and April by 1.2%, and were up 2% annually, running counter to earlier predictions.
Most of the 14 states posting annual drops in home equity levels were located in the West, where housing values previously soared thanks to elevated pandemic-fueled demand. Average equity fell the most in Washington State with a decrease of $74,300, followed by California and Utah, which saw home values depreciate by $59,600 and $37,400, respectively.
On the opposite end, homeowners in Hawaii, Florida and Rhode Island gained the most in equity with growth of $24,900, $24,500 and $23,700.
The lack of any significant rise from quarter to quarter in underwater mortgages — where the amount owed exceeds home equity available — also suggest early-year losses may turn out to be an anomaly, CoreLogic said. The number of underwater loans remained unchanged from the fourth quarter at 1.2 million, or 2.1% of all mortgaged properties. But compared to the first quarter last year, borrowers finding themselves in a negative-equity situation increased by 4% from 1.1 million homes.
Louisiana, Iowa and Oklahoma led all states in the share of underwater mortgages at 7%, 5.4% and 4.2%.
The rapid increase in home equity before last year’s dip began is protecting many homeowners, even when they find themselves struggling to keep up with payments. Housing researchers at both Black Knight and Attom similarly noted fewer borrowers falling into foreclosure this year, largely due to the amount of equity in hand.
“The average U.S. homeowner now has more than $274,000 in equity — up significantly from $182,000 before the pandemic, Hepp said. And future trends appear to indicate that some underwater homeowners who made their purchases when prices were at their highest should be able to see some return of value, according to CoreLogic.
“While homeowners in some areas of the country who bought a property last spring have no equity as a result of price losses, forecasted home price appreciation over the next year should help many borrowers regain some of that lost equity,” Hepp said.
Overall mortgage rate lock took a hit in May, led by a drop in refinance activity, both for rate-term refis and cash-outs. In a higher rate environment, lenders were more reliant on the purchase market for origination volumes.
Rate locks were down 4.8% last month, according to Black Knight’s monthly mortgage originations market report. Purchase locks, which are not as rate-sensitive as refinancings, accounted for 82% of the entire share of rate locks in May, the largest slice since Black Knight’s Optimal Blue began tracking the data in 2018.
Mortgage rates, measured by Black Knight’s Optimal Blue OBMMI pricing engine, finished the month of May at 5.34%, down 7 basis points from the previous month, but that wasn’t enough to push up refinance rate lock volume.
Rate/term refinance lending activity declined 23.6% in May from the previous month and was down 89.9% year over year. Cash-out refinance locks also dropped 11.9% from April and 42.2% from May 2020.
“We’ve seen rate/term refinance activity essentially evaporate and cash-out activity is now suffering as well,” said Scott Happ, president of Optimal Blue, a division of Black Knight. “While there is volume pressure across the board due to rising rates, purchase volumes are holding up the best and are now driving 82% of all origination activity.”
Purchase volumes fell 2.3% in May from April and remained unchanged from the same period last year. When excluding the affect of home appreciation on volumes, purchase locks were down 8.5% year-over-year in May.
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Government loan products gained market share as the Federal Housing Administration (FHA) and Veterans Affairs (VA) lock activity increased at the expense of agency volumes, a trend also likely reflected in the decline of the average loan amount, ranging between $362,000 to $359,000, according to Black Knight.
Average credit scores fell in May, led by a drop in cash-out refinance scores, which are now below 700 on average. It dropped 20 points in the last three months and 33 points year over year.
Black Knight’s monthly market monitor reports provide origination metrics for the U.S. and the top 20 metropolitan statistical areas by share of total origination volume.
The New York-Newark-Jersey City MSA had the highest rate lock volume at 4.4% in May. The Washington-Arlington-Alexandria area had the second-highest lock volume rate (3.8%) trailed by the Los Angeles-Long Beach-Anaheim (3.7%) area.
Correction: An earlier version of this article misstated borrower credit scores for cash-out refis in May.
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I’m not really sure about this whole expensive holiday gift thing. I know it’s supposed to be a way of showing love and appreciation, but I think it is too much pressure. Why not give a cheap holiday gift that they will actually use?
Plus a lot of people struggle with finding a Christmas gift for their loved ones, regardless of price.
Some people say that the best gifts are homemade, but not always. I am going to show you 101+ of my favorite cheap but thoughtful Christmas gifts ideas for someone who is on a budget or does not want to spend too much money.
These cheap Christmas gift ideas are for everyone on your list, from the family member you don’t know what to get them to the coworkers who always complain about not getting anything.
You will find the best advice on how to find the perfect present without breaking your budget.
The holidays are right around the corner, and it is time to start thinking about those gift lists! The holidays are about spending time with those closest to you, for many Americans it can be exceedingly difficult to find a decent gift for those from your close circle.
Why Cheap Christmas Gift Ideas
I know that you’re looking for some great gift ideas this year and we have you covered: adults, teens, kids, fashionistas, athletes, teachers, plus so much more!
There are so many inexpensive Christmas gift ideas that it can be hard to know where to start. This article will help you find the perfect present for everyone this holiday season.
The price range will be cheap Christmas gifts under $10 or nice cheap gifts for Christmas under $20. Some items maybe a little bit more expensive, but well worth the extra cost based on the idea!
Find over 250 cheap last-minute Christmas gifts (delivered by Amazon) on this list that I know the recipient will love!
Cheap Christmas Gifts for Adults
Easy cheap Christmas gifts for adults are those that can be afforded by the budget-conscious and the best part is still are awesome gifts.
These gifts usually have a handmade flair or personal touch to them to reflect the recipient’s personality.
To find cheap Christmas gifts for coworkers, you can pick any present on this list.
DIY Jewelry: This is one of the best ways to make multiple gifts for cheap. You can make many types of homemade jewelry.
Mug with their name on it: Make them smile with a customized mug just for them!
Coloring Books: Coloring isn’t just for kids. Adult coloring books are extremely popular and inexpensive to pick up an adult coloring book and colored pencils.
Magazines Subscriptions: Some ideas include National Geographic or Smithsonian. Great way to find new inspiration and ideas.
A Photo Album of your Memories: This can be a physical or digital photo album. A simple way to portray your friendship and experiences together.
Journal: Write down thoughts, ideas, or quotes that they love in the journal. Pick up a plain journal at Target for $5-$10.
Stickers: Add a few stickers from your collection, some ribbon, and scrapbook papers to decorate it!
Movie Night: A movie night with popcorn and some of their favorite movies is a thoughtful, inexpensive gift that everyone will enjoy. Buy a streaming movie or pass to the local cinema.
Handmade Gifts: If you have a knack for the arts and crafts, making a handmade gift is not only thoughtful but also can be very inexpensive!
Coffee or tea from their favorite coffee shop: There’s nothing better than a cup of joe or tea to start the day off right.
A Bouquet of Flowers: Get a bag of those colorful hair ties, and tie them to the stems for an extra special touch!
Collage Frame: A collage frame can be used as a picture frame, or it can be used as a decoration on the wall.
Holiday Decor: This is an affordable and practical gift for someone who loves to decorate their home for the holidays.
DIY-ed Ornaments: Get creative with this craft and let their imagination run wild!
Homemade Treats: Who doesn’t love cookies, chocolates, or homemade baked goods? Even canned salsa or jelly make great gifts!
Stockings: With any number of crafts available to make-you can’t go wrong with a stocking full of goodies for the holidays.
Cookies: Bake up some of your favorite holiday cookies and package them in a festive container for a sweet treat. Perfect to host a cookie exchange as a fun experience!
Comic Books: It can be no surprise to some adults when they think of all the hard work that goes into creating a comic book and see the end product. What’s even more surprising is that more adults don’t try them.
Handmade Gifts from Kids: If your child loves to paint, draw, or make things with their hands-this is the perfect opportunity for them.
Cheap Christmas Gifts for Teens
Coming up with Christmas gift ideas for teens can be tough. Teens are often too old to play childish games like Monopoly or Jenga, yet they’re not quite ready for more grown-up games like Trivial Pursuit.
There are a lot of inexpensive gift ideas for teens from the mall, but teens often want something more personal and unique to show they are maturing.
If you are looking for cheap gifts for teens, you can try any of these present ideas.
Gift cards are always a huge hit with this age group! Double bonus if you can make it a fun way to spend some time together. Make sure that your teen is comfortable with this idea.
iPod Touch / iPhone / iPad Accessories: A new case, screen protector, and a few apps are always great. Whether it’s to show off or just something fun, this is a great idea.
Journal: This gift will help your teens reflect on the year and all of the good things that happened!
Fun Colors to Write With: The festive design on these pens will make teens want to use them all year round. Fun gel pens are wonderful gifts for all ages; they are inexpensive and come in a variety of colors.
Fashion Designer Scarf: This gift will help your teen express his or her individuality while also staying warm during the winter months.
Room Decorations: Checking out new colors and themes for the room is a fun way to spend some time together. Plus they may be ready for a change from their younger decor.
Makeup: Teens love makeup and skincare items, so make it their job to pick out a few new things they want.
Candles: Having a nice scent can help relax and soothe your teen before bedtime. These versatile gifts come in many shapes. It is also how teens feel more grown-up.
Hand-Painted Mug: Handpainted mugs are perfect for all the coffee and tea lovers in your house, and they are so easy to make! This can be an experience gift, too!
Handmade Jewelry: this is an affordable yet creative holiday present
Trendy Socks: These are always a great gift for anyone. Not only does it keep your feet warm, but it can be fashionable too!
iTunes Gift Card: Let them download a favorite song or album.
Movies: Movies are a great gift to give especially if it’s one of their favorites or they’ve been wanting to see it!
Clothing: The recipient will love getting some new clothes-especially if they’re trendy and stylish, or their favorite store has a sale going on that you know about.
Special Treat: A special treat is a great way to show someone that you care about them and appreciate all they do.
Cheap Christmas Gifts for Kids
Kids are the most precious gift of all. They’re also notoriously hard to buy inexpensive presents for – they normally want gifts that are outside your price range! Fortunately, these Christmas gifts will have your child smiling from ear-to-ear.
Cheap easy Christmas gifts for kids are especially not difficult to find and you have plenty of inexpensive gift ideas, – plus your bank account will thank you for it.
At the end of the day, kids don’t really care what it costs as long as they like it.
Stuffed Animals: Give them the gift of a new favorite toy that they can hug and take with them everywhere-just make sure to tuck in an extra battery for their new favorite toy.
Paper & Stickers: A package of paper and stickers is perfect for kids who love to create their own projects or write notes, letters, or holiday cards. This pack is also perfect for young ones who are just learning how to write.
Colored Pencils & Crayons: Colored pencils and crayons are a fun way to keep kids focused on their art. These pens will help them create original masterpieces.
Customized Shirts: A new shirt is a great way for kids to express their personality, and it can also be an easy outfit of the day solution when they’re running out the door.
Puzzles: Puzzles are a great way for kids to learn new skills and stay entertained on rainy days. They also make excellent stocking stuffers!
Ice Cream Variety Pack: A yummy variety pack of ice cream will make their day.
Play Doh: Kids love play doh, and it’s a great way to keep them entertained for hours! It also makes a great stocking stuffer.
Colorful Pens: Kids love to color, so give them the opportunity with some bright new pens! They’ll have fun for hours doodling on all their things.
Slime: Slime is all the rage right now, and kids can make their own with this kit.
Sippy Cups: Kids love sippy cups because they’re fun and easy to drink from! They also come in a variety of designs and colors.
Kitten: They will love this sweet little creature that they can cuddle up with in winter.
Fidget Toys: Fidget toys are a great way to keep kids entertained and focused with some fun. They come in a variety of colors and shapes, making them perfect for all ages!
Star Night Light: This was one of my daughter’s favorite gifts (even her older teen brother was jealous). Huge hit to light up the wall at nighttime.
Remote Controlled Car: A remote-controlled car is a great gift idea because it can be played indoors or outdoors. It also makes for hours of fun!
Make Your Own Soap Kit: This kit will allow your child to make their own soaps at home with some fun ingredients. They have a variety of colors and scents available which they can use to customize the soap for their own preference.
Board Games for Kids: Board games are a great way to keep entertained while bonding with their friends and family. They come in different levels of difficulty, making them perfect for all ages.
Nature Exploration Set: A nature exploration set will help to inspire your child’s curiosity and creativity. The kit includes a journal, binoculars, magnifying glass, and more!
NERF: NERF toys are classics for kids of all ages. They’re great to take on family vacations or just to play with friends.
Dolls: Dolls are a classic toy for girls and they come in all shapes and sizes. From Barbie to Baby Alive, there’s plenty of options available!
Spirograph: A Spirograph can keep kids entertained for hours. They design pictures with the help of an included pen and paper.
Rock Painting Kit: A rock painting kit will allow kids to express their creativity by decorating rocks.
Bead Kit: A beading kit is a great way to teach kids about colors and patterns. It also teaches patience as they work with the small beads
Sewing Kit: Sewing kits allow kids to create their own stuffed animals and clothes for themselves.
Drawstring Backpacks: Helpful to keep their stuff organized on outings, vacations, or events when the kids need to be entertained.
Kids love getting gifts, and these cheap Christmas gifts ideas are perfect for any child!
Best Cheap Gifts for the Foodie Cook
One of the most difficult parts about shopping for a gift is coming up with creative ideas.
This list is full of affordable gifts is perfect for that friend or family member who loves to cook and bake!
Here are some of the best cheap gifts for the foodie cook.
Charcuterie Board Set: This is the perfect gift for the foodie that loves to cook with meat. It provides an assortment of meats, cheeses, fruits, and bread in a beautiful wooden tray.
Mason Jar Set: This gift is perfect for a friend or family member who loves to cook. The set includes six pint-sized jars with lids and can be personalized with the recipient’s name.
Salt and Pepper Grinder: This set comes with salt and pepper grinders for the foodie who loves to cook.
Gourmet Spices: Spice up a friend’s cooking experience with this assortment of spices from around the world.
Frother: Perfect for milk frothing for coffee, lattle, milk shares, hot chocolates, and matcha powder. You need one of these and everyone else around you does too!
Mini Stand Mixer: This is a perfect gift for a friend who loves to cook and bake! The mixer comes with attachments such as a whisk, dough hook, and flat beater.
Fondue Pot: This pot is perfect for families that enjoy eating together! The set includes a fondue pot, forks, skewers, dippers, and dipping sauces.
Cookie Press: This press is perfect for a friend who loves to bake! The set includes a cookie press, dough sheet mold, rolling pin, and recipes.
Oven Mitts: You don’t want your foodie gift receipeint to burn their hands. Replace their worn-out oven mitts with one of these stylish oven mitts.
Hot Sauce Set: Every foodie needs some hot sauce in their fridge. This set includes 3 bottles of the hottest sauces around, plus a recipe book for beginners.
Spice Rub Set: Give your foodie friend the gift of spices especially if they love to grill or have a Traeger! This set includes salt, pepper, cumin, chili powder.
Teapot Set: This is for all those tea drinkers out there. This set includes a teapot and infuser ball.
Tea Bags: Add on to the teapot set and deliver a set of tea bags with a bunch of different flavors.
French Press: French press brewing prevents an over-extraction of flavors; the grounds only add flavor regardless of how little or how much coffee is steeped. Expand their coffee experience!
Coffee Grinder: This is for all those coffee drinkers out there who like to make their own custom blends.
Bamboo Cutting Board: Over time, we all have to replace our words cutting boards at some point. So, this makes a chop-worthy gift.
Tea Towels: These are great for drying dishes, wiping counters and so much more. Find a catchy saying they will love to display!
Sourdough Banneton Proofing Basket: If they are hooked on the sourdough trend, then they need one of these to elevate their breadmaking skills.
Bread Lame Scouring Tool: A must for anyone who makes sourdough breads!
Batter Bowl: This is a great kitchen tool for mixing batters, making pancakes, and more. It will be a welcome addition to the kitchen!
Flour Sifter: This is another one of those necessary tools in the kitchen.
Coffee Mug: For coffee lovers, this is a great gift idea!
Salt Cellar: This is a nice addition to the kitchen and it will hold those hard-to-reach salt and pepper.
Cheese Plane: This tool makes cutting cheese into perfect, uniform slices – making cooking and serving a breeze.
Saute Pan: This pan is great for frying, sautéing, and more! It’s perfect for the average home cook or budding chef.
Zester: This handy tool is perfect for adding flavor to dishes with just the slightest touch.
Meat Thermometer: This is a tool that can’t be beaten especially for the grill master. This one is by far the best on the market!.
Pizza Cutter: This is an essential kitchen tool for any pizza lover!
Ice cream scoop: This ice cream scoop is perfect for any ice-cream lover. It comes in 2 different sizes of scoops and they come in a variety of colors.
Cooking Class: Give them the gift of cooking skills-it’ll be something they can use for years to come!
Best Cheap Gifts for the Homebody
Holiday shopping can be a stressful time, but not to worry. Here are some great gifts for the person who has everything and doesn’t want anything.
Consider these cheap, homey gifts that will please any loved one or host.
Weighted Blanket: For those who love to cozy up with a blanket, this one might be the perfect weight and size for them.
Hot Cocoa Mix: This is an easy way to ensure that your loved ones have a delicious treat from their kitchen.
Wool Socks: This is a great item to have on hand for the winter months.
Tea Infuser: This one will help your loved ones in their journey of self-discovery.
Homemade Snow Globe: Grab a this snow globe kit and make your loved ones their own little winter wonderland.
House Shoes: A pair of these comfortable shoes will be something your loved ones can wear around the house.
Cozy Blanket: These blankets are made to keep you warm and cozy during those cold winter nights.
Popcorn Popper: This is a fun gift that they will all enjoy especially on movie night.
Jigsaw Puzzle: Give them a puzzle that will keep their mind sharp and occupied.
Board Games: More than likely they prefer to have people over to enjoy good old-fashion board games and a night of laughter with friends!
Comfy Pajamas: A new set of cozy pajamas is sure to be a hit with the kids.
Robe: A new robe is a great gift for those who love to lounge around in their comfiest clothes.
These are some Cheap Christmas Gift ideas for those who are on a budget!
Best Inexpensive Gift Ideas for Spa Lovers
The perfect gift for anyone who loves to pamper themselves is a spa gift card. Spa gift cards are the perfect present because it gives the recipient freedom over what they would like to do during their stay.
There are many different spa gift cards available on the market, so it is easy to find one that suits the recipient’s personality and budget.
If you can’t find a group of people to go in on this idea, then turn their home into a spa experience.
Bath Salts: These are perfect for the person who loves to relax and take baths. All they will need is a nice scented candle or bath bomb, their favorite book, and these salts to make themselves feel like royalty.
Candles: These are perfect for the person who loves to relax and read, or just has a nice smelling home. There are many different scents available so it is easy to find one that suits the recipient’s personality.
Aromatherapy: This gift idea is perfect for those who want an inexpensive yet thoughtful gift. There are many aromatherapy oils to choose from, but the two most popular would be lavender and peppermint
Diffuser: These are perfect for someone who enjoys a deep and restful sleep, as well as those who enjoy shut-eye at night to take away any stresses or worries. A few drops of these oils in a diffuser or humidifier will soothe the recipient and ease them into relaxation before bedtime.
Tea: This is perfect for the person who enjoys a good cup of tea. A nice box of loose leaf teas is sure to be appreciated and used for many, many years to come!
Cookies: This may seem like a typical and uninspired gift that most people would choose, but it is thoughtful and they will appreciate the thoughtfulness.
Scalp Massager: This is great for those with a sensitive scalp. It helps to soothe the skin and will leave them feeling relaxed
Shower Speaker: This is a great gift for someone whose favorite song isn’t Top 40. They will be able to listen to their music while they shower.
Manicure Dip Starter Kit: This is a great gift for those who love to paint their nails
Hyaluronic Acid: Help maintain the hydration of the outer layers of skin, which helps to improve its appearance.
Hair Mask: This is a great gift for someone who loves to pamper themselves, especially if they are in need of moisture.
Lip Sleeping Mask: A gentle overnight moisturizer for dry, sore lips.
Microfiber Hair Towel Wrap: This is a great gift for someone who spends a lot of time in the pool or at the beach. It is quick and easy to help dry your hair faster.
Handheld Massager: Seriously, this is the best gift ever. Plus the cost has been coming down each year.
Cheap Gift Ideas for the Fashionista
If you are looking for an affordable, fashionable gift idea that is also fun and creative then this list has something to offer you.
Here are some ideas for the fashionista on a budget.
Scarf: Scarves are always in style and can be found anywhere. You can get a nice one for only about $25, depending on the brand.
Tote bag: A tote bag is a necessity for school, the mall, and even just running errands around town. You can find them anywhere from $5-25 depending on what type you want.
Pandora Bracelet: The Pandora bracelet is a beautiful piece of jewelry that can be bought with any budget in mind, and it’s a great option for people who want to give something that will last. Great gift to add charms each year.
Earrings: Earrings can be a great gift for someone you know who is really into fashion. You can find them at the drugstore or even in some clothing stores, and they cost anywhere from $5-20.
Belt: A belt is great for someone who doesn’t have too many accessories, or if you just want to spice up an outfit with a new piece of jewelry.
Hair Clips: Hair clips are a great gift for someone who spends most of their time at home because you can clip them in your hair to keep it out of the way while you do chores. Also, great for those trendy messy up-dos!
Felt Hat: A felt hat can be a great gift for someone who goes to the beach a lot, or just likes wearing hats because it’s cold outside. They last longer than other types of material and they can be a really inexpensive gift.
Jewelry Dish: Find a small dish at the dollar store and decorate with paint or fabric to make it look pretty!
Re-gift Jewelry: Add jewelry from your old collection that you don’t wear anymore (maybe some old costume jewelry?).
Sunglasses: Sunglasses are one of the most popular Christmas gifts, and they can be found cheaply at many stores. I bought a pair for under $15!
Watch: Watches can be found at many stores for a cheap price. Watchmakers are competing to lower their prices as they try and go against the trend of cell phone watches, which is why you can find a nice watch for under $10.
Sweatshirt: A good sweatshirt is a woman’s best friend. It will keep you warm during the winter and can easily be dressed up or down depending on what you’re wearing-It doesn’t have to be too expensive either, with most stores having sales or clearance racks that are perfect for picking up gifts.
Nail Polish: The best thing about nail polish is that you can buy it in a lot of sizes, from the little bottles that are perfect for stocking stuffers to larger ones that come in packages of 5 or more. Great stocking stuffers!
Yoga Pants: We all know yoga pants are a girl’s best friend. But, y’all the prices of these yoga pants are amazing, and did I mention how many I have given as cheap gifts?!?!
Winter Gloves: Some people might think winter gloves are odd to put on a Christmas list, but they make such great stocking stuffers!
Shopping Bag: This is a great present for someone who likes to shop! I know what you’re thinking, “how do they not have one?”
A New Outfit: Even if the person you are buying for is not a fashionista, clothes still make great gifts. And if you know what their favorite style of clothing is then nows the time to indulge them in some new clothes!
Some suggestions are old and some are new, but all of them will be perfect for the person you want to give a gift to.
Cheap Gift Ideas for the Makeup Artist
Check out these cheap beauty Christmas gifts for the makeup artist on your list. These are great for anyone that has a budget of $10 or less.
Makeup: Find out what brands your friends, family members, or classmates like and buy them the makeup in that brand. You can find this information at their favorite retailers or by asking around to see which brands they wear.
Nail Polish: Buying nail polish as a gift is a great idea because you can buy them the exact color they want to wear and it’s usually not too expensive.
Perfume: If your budget is $10 or less, you can buy a nice perfume that smells great and it will be something they use often.
Bath Bomb: If you’re shopping for someone who needs to relax, then a bath bomb is the perfect gift.
Specialty Coffee Mug: You can find these for fairly cheap and they’re something that people will use every day so it’s great. Find a fun coffee mug with an artsy flair!
Lip Stain: Lip stains are a really popular product because they’re long-lasting and come in so many colors. This is perfect for someone who loves makeup!
Makeup Brushes: Any good makeup artist knows the quality of the brush makes a difference. You can find a decent brush at an affordable price!
Silicone Makeup Sponges: These are perfect for applying makeup evenly and providing coverage.
Reusable Beauty Products: For the eco-conscious, find plenty of reusable beauty products. You will be surprised at this list.
Gather all of these makeup supplies and put them together for a creative gift basket!
Cheap Gift Ideas for the Athlete
Sweating is gross, so this guide has come to help! It’s tough when you have an athlete in the family because they are always on the move.
Athletes will have to replace their equipment and clothing because of use.
Here are some nice, thoughtful gift ideas for the athlete on your list!
Water Bottle: Sometimes I feel like I can never have enough water bottles!
A pack of compression pants: I wear them for my sport because they help with the swelling and protect against injury.
New backpack: I use mine all of the time!
Headphones: These allow people to listen to their favorite music or podcast while getting the sweat on.
Full-zip fleece jacket: I love being able to bundle up when it gets cold! This is a thoughtful guide for the athlete on your list for before and after workouts.
Polarized Sunglasses: These help protect eyes from glare and add style to any outfit.
Music Subscription (ad free): This is a great gift for the athlete who loves music!
Yoga Mat: Yoga mats are great because they’re environmentally friendly and also come in a bunch of different colors. Sometimes it’s nice to be able to stretch out and do some poses on your own. Plus the experts say we should stretch every day.
Sports Watch: Preferably with stopwatch and alarm clock. THey need to time those tabata crossfit workouts.
Running Gloves: These are thoughtful gifts for someone who loves the outdoors and running.
Foam Roller: A great gift for the athlete who is looking for a little bit of extra relief.
Folding Bike: This is a thoughtful gift idea for someone who loves to bike ride but doesn’t have space for a bike. This one is more expensive, but a great idea to go in with others on!
Sports Massage Oil: This is a thoughtful gift for the runner, cyclist, or anyone who gets sore muscles. Pick a hand massager to go with it!
Camouflage Pillow: This is a great present for an outdoorsy person who has their head in the clouds.
Good Socks: Have you ever smelled the stinky socks?!?! Enough said.
Sports Tape: The runner in your life will need this present to keep them on the go.
Sports Bra: This is a great present for someone who participates in any activity that requires it! One that fits well and is made of quality materials. Plus an affordable price!
Fleece Headband: This is a great present for the runner in your life who also likes to wear their hair up when they’re not running.
Yoga Pants: This is a great present for someone who likes to keep their activities active. Or just wears yoga pants every single day to be trendy. No one needs to know why! These are my favorite brand.
Athletic Shorts: This is a great present for the person in your life who likes to wear their athletic shorts outside of working out. Plus, come on it’s not like they’re going to be wearing them over clothes so people would notice.
Resistance Bands: These are great for the person who likes to keep their workouts active, but doesn’t have a ton of space.
Light Set of Weights: Everyone needs to have some weight training as part of their workouts. Pick up three or five pound weights to help them reach their workout goals.
Armband for Phone: When you workout, you may want to keep your phone with you to track the steps or distance you worked out. This is an armband to keep your phone and simple enough to change your workout music.
Latest Fad Cookbook: In need of a great gift idea for the person in your life who likes to cook but always seems to have not-so-perfect dishes? This is perfect! Gift them this latest fad cookbook and they’ll be able to make all the popular, Instagram-worthy dishes that you see on TV.
Sneakers: Maybe you are lucky enough to score a pair of comfortable, breathable athletic sneakers on clearance!
I’m sure they’ll be appreciative of any one of these gifts!
Cheap Gift Ideas For Teachers
This list of cheap teach gifts for Christmas will help you choose a thoughtful and useful present that won’t break your budget.
Essential Oil Set: A true favorite for teachers who like to use aromatherapy in their classrooms or at home. This is our favorite essential oil set.
Stress-relief Hand Sanitizer: Teachers are always on the go, so they can use a little help to keep them stress-free. Plus, germs are no fun for anyone!
Personalized Mask Lanyard: Personalize your teacher’s mask with their name, school mascot or work logo.
Tiger Balm: This is a classic product for teachers and athletes alike! Tiger balm will help soothe your aches and pains.
Lounge Pants: Nothing reminds a teacher of home like their favorite TV show! A few years ago my mom gave me a really cute pair of lounge pants and I still wear them. The cut is oversized with pockets for my phone and remote which make it perfect for relaxing on the couch.
Smart Plugs: These plugs can be controlled on an app from anywhere. That means the teacher doesn’t have to worry about forgetting to turn their lights off before they left for work.
Personalized Stamp: A teacher’s stamp of approval is the best kind. This personalized stamp will help teachers quickly get through their paperwork.
Amazon Gift Card: Teachers deserve to take a breather and use some of their hard-earned cash on themselves. A gift card is the perfect way for friends or family members to say “thank you.”
Wireless Headphones: Music is a great way to get the energy going and keep kids psyched up, but it can be tough when they’re working on group tasks. Wireless headphones like these ones from Sony
Day-by-day Calendar: The last thing teachers need is to scramble for a blank piece of paper whenever they want to jot down notes. The day-by-day calendar is perfect because it’s got enough space for writing, but it’s compact enough to tuck into a drawer.
Magnetic Dry Erase Whiteboard: After all the long hours spent at school, who wouldn’t want their own personal whiteboard where they can write, draw, and erase?
Lunch Boxes: There is nothing better than a home-packed lunch. These stainless steel containers are compact enough to carry with you, but they’re also roomy enough to hold a sandwich, fruit, and veggies.
Educational Activity Books: If you’re looking for something that’s not only fun, but chock full of learning activities and information, these books are perfect for further learning.
Cheap Christmas Gifts for Mom or Her in your life
All of these are great inexpensive ideas for buying on a budget
Shopping for a great gift for women or moms can be hard, but not too much with these affordable options.
Little Succulents: This is a cute DIY gift. All you need are succulents, a pot with dirt, and some other accessories if desired.
Bath Bombs: These are great for anyone, including people who enjoy a good bath every now and again. They come in various scents so you can find something that is sure to please.
Chapstick: This is perfect for the person in your life who always has chapped lips or complains about dry skin on their hands when they are outside too long during winter months.
A Book: It may seem like the most unimaginative gift, but it’s perfect for someone who enjoys reading and is looking for something they haven’t read yet. Books are also a great way to get someone hooked on a series so you can recommend their next read.
Slippers: These are perfect for the person in your life who is constantly complaining about how cold their feet are.
Candles: This is a perfect gift for someone who enjoys relaxing or reading after dinner and the scent fills up the whole house with aromatherapy benefits.
A Scratch Off Map: This is a great gift for someone who enjoys traveling or seeing the world. It’s very personalized and they can see how many countries they have visited.
A Coffee Mug: This is a great gift for the coffee lover in your life. You can put anything on it such as their favorite book, television show or artist and they will be reminded of you every time they drink their coffee.
A Memory Blanket: This is a great gift for people who are always cold and it can go with them anywhere in the world because it folds up easily.
A Personalized T-shirt: This is a great gift because it’s very personal and you can put anything on the shirt that has meaning to them such as their favorite sports team, favorite food, or where they have traveled.
A Personalized Finger Drum: This is a great gift for anyone who loves to play drums because it has their name engraved right on the drumhead.
Cheap Christmas Gifts for Men
The following items are inexpensive and will make any man, dad, or boyfriend insanely happy! The cheapest gifts can be the best!
Here are some budget-friendly, manly, fun, and creative ideas for Christmas presents.
A New Shirt: You can find many options for cheap shirts. Grab one with a funny saying he would enjoy for an out-of-the-park win!
Belt: Belt prices vary by brand, but can be found for as low as $10.
Wallet: Wallets can also vary by brand and cost, but often end up being around $15.
New Socks:: Many men enjoy their sock collection. You can always add on to replace their worn-out socks.
A Tie: Ties can be found for as low as $5.
Watch: The watch market is a tough one to navigate, but if you know your partner’s style and budget beforehand it can be easier to find what you’re looking for.
A Tie Clip: You can usually pick one up for $5 or less, and it’s something that he’ll wear every day!
Old-school Vinyl Record Player: Old school vinyl is making a comeback and can be found in all sorts of different styles.
Latest Board Game: Board games are always a fun gift idea. You can pick up the latest hot game for less than $20
A Good Book: A good book is always a great gift idea. You can find them for as low as $5 and books are something that never goes out of style!
Cash: Let’s be honest… most men like to have the cash to spend as they please with no questions asked.
Cheap Christmas Gifts for Friends
You may not have a lot of money for this Christmas, but that doesn’t mean you can’t give your friends something thoughtful.
These inexpensive items may not be the most lavish of presents to give a friend this year, but they are sure to be appreciated and useful!
Whimsy Kit: A Whimsy Kit is a small package that includes activities such as drawing, coloring, and collaging. It can be used in classrooms or at home to relax and have fun.
Poster Board & Markers: A poster board and markers are perfect for making holiday cards to send out or decorating with a festive design.
Fun Scrapbook Pens: Fun pens are a wonderful gift for any age to bring color to their writing, coloring, or journaling.
Scented Candles Kit: Scented candles can be used for the holidays, but they also make a great gift for any time of the year. The smell will bring a warm and cozy feeling into your home.
Gold Foil Blanket: A gold foil blanket is perfect for snuggling up in the car when you are stuck in the car!
Cute Pillow Case: A new pillowcase is a fun way to change things up in your bedroom or living room. The best part about these gifts are that they can be given with other items, like the gold foil blanket or a fun pillow.
Comfy Socks: When it’s cold outside, there is nothing more comforting than a good pair of socks. These make a great gift for someone who spends most of their time at home or just loves to relax.
Bracelets: Jewelry is a great way to show someone you care. Bracelets are not only cute but they go with any outfit!
Christmas Ornament: A Christmas ornament makes for the perfect stocking stuffer. They are usually inexpensive and they can be used year round to decorate your home for the holidays.
Christmas Fun Pack: It is always fun when Santa sends a surprise in the mail, so why not surprise your friends with a Christmas Fun Pack!
Shower Steamers: These will make a great gift for someone who is your best friend, especially if they like to take long showers.
Flashlights: These are fun and practical gifts that will come in handy during the dark days of winter.
Tissue Box Covers: A unique and inexpensive gift for the person who has everything, these tissue box covers will make any house seem a little more homey during cold winter months.
Chocolate: For the person that has everything, you can’t go wrong with some chocolate.
Cheap Christmas Gifts for Coworkers:
A quick, easy, and affordable way to get the perfect gift for your coworkers this Christmas is by giving them a coworker appreciation gift basket.
These inexpensive gifts are great for bosses or employees. They can be personalized so it’s a gift that will really stick with your coworkers.
Planner: This is a great way to give your coworkers something they will really use. They can write down their goals, schedule, and use it as a to-do list.
Personalized Stationery: This is such an adorable idea and can be so much fun for everyone involved. These are the perfect gifts that will make your coworkers feel special this holiday
Putting Green: This is a great gift that they can use to practice their putting skills in the comfort of their own office.
Desk Organizer: A desk organizer is a great way to start your day off with a clean and organized workspace.
Timeless Candle: This candle helps you enjoy the holidays or winter season while relaxing in the office.
Coffee Mug: Every office needs a good coffee mug to stay energized and motivated throughout the day.
Personalized Mouse Pad: You could get them their favorite movie, sport or hobby as a personalized mouse pad and they’ll enjoy using it every day at their office.
Luxury Pen: This is the perfect gift for that person who has everything and needs something to help them write down their thoughts and ideas.
Desk Lamp: A desk lamp can help you read in your office when it’s dark outside so all the daylight hours are available for working on projects or catching up on paperwork.
Ink Pen: This is a great gift idea for anyone who likes to write or doodle. You could get them this as a refillable pen and they can use it to write down their thoughts or ideas.
Laptop Tote Bag: This is the perfect gift for anyone who likes to travel and needs something stylish but functional to carry everything in one place.
Plant pot & planter: This is a great gift for someone who likes to spend time in their garden or on the porch. You could give them this as an opportunity to grow something new and have something beautiful in their office that is all their own.
Journal: This is a classic gift that people like to get for themselves or others. You can find many different styles and sizes of journals, making it easy for you to find the perfect one for your recipient.
Watercolor set: This is a great gift if you know someone who loves to paint or draw. It is an opportunity for them to tap into their creative side while also having the materials that they need to create something beautiful or special for someone else.
Keychain: This is a great gift for anyone because everyone needs keys! You can get them a keychain that has their name on it, or you can get them a cute one for someone they love.
Laptop sleeve: This is a great gift for anyone who has to have their laptop with them at all times. They come in so many different colors and designs, so you can find one that fits your friend or family member perfectly!
Monitor riser: If you know someone who has a desk job, they’re probably struggling to stay focused on their screen. This is the perfect gift for anyone who spends time at work looking down all day!
Best Cheap Christmas Gift of them All – Gift Card:
A gift card is a prepaid credit or debit card that can be spent in any number of stores, restaurants, and other venues as desired by the purchaser.
This option is great for people who are the “hard to buy for” type.
Even a $10 or $20 gift card to somewhere they like is better than a gift to sit on the shelf unused.
Giving a gift card is always an easy way out, but it can be more useful than materialistic gifts they may not use.
You can never go wrong with a gift card to their favorite store!
You can Buy Cheap Christmas Presents that Look Expensive
I know that this time of year can be so busy and stressful. It’s hard to find the perfect gift for everyone on your list, especially when you have a tight budget. But there are so many fun and creative ideas that won’t break the bank.
You’ll find the perfect gift for everyone on your list!
Hopefully, you can find cheap Christmas gifts under $20 or less. Most of these power ideas you can pick up on Amazon or Etsy.
Christmas is often a time where people try to get the best gifts for their loved ones. In order to make these gifts more affordable, it’s smart to think about ways that can lower expenses.
One way to do this is by choosing gifts that can be combined with other items. Or even choosing a no gift Christmas.
It is always fun to give a gift to someone special on Christmas. However, sometimes you feel uncertain about what the perfect present is for somebody else.
We hope you’ve enjoyed our cheap but thoughtful Christmas gift ideas!
With these items, your loved one will have a great Christmas! Be sure to check our blog for more money saving tips!
Need More Inexpensive Christmas Gift ideas?
Know someone else that needs this, too? Then, please share!!
The housing market is getting stranger by the day.
While affordability has arguably never been worse, prices are rising and there are virtually no homes for sale.
This is making it difficult for both housing bulls and bears to make the case for a boom or a crash.
When all is said and done, we might just experience a stagnant market that fails to keep up with inflation.
And a severe economic downturn in the housing industry due to a lack of sales volume.
New For Sale Listings Hit Seasonal Low in June
First things first, new real estate listings are off a whopping 25% from a year ago, according to a new report from Redfin.
This covers the four-week time period ending on June 4th. Just 89,249 homes were listed.
And the real estate brokerage noted that new listings fell in all metros analyzed.
The declines were the most pronounced in Las Vegas (-42.3% YoY), Phoenix (-40.9%), Seattle (-40.4%), Oakland (-39.8%), and San Diego (-37.2%).
These happen to be areas that saw massive home price appreciation, then big home price corrections.
It seems homeowners are now staying put in these areas, perhaps as they come to terms with the inability to make a move from a financial standpoint.
Ultimately, the mortgage-rate lock in effect continues to make it both unfavorable and sometimes impossible for existing homeowners to move.
Simply put, selling your home with a 2-3% mortgage rate, only to buy one with a 7% mortgage rate, doesn’t pencil.
And rents aren’t cheap either, so it’s not a viable option to sell and rent for much less.
Active Real Estate Listings Are Falling When They Typically Rise
Meanwhile, active listings (the number of for-sale homes available at any point during the period) declined 4.6% from a year earlier.
This was just the second decline in 12 months, the first being a week earlier when actives fell 1.7%.
Redfin noted that active listings were also down month-to-month at a time of year when they typically rise.
Because of the lack of new listings, the total number of homes on the market fell to its lowest level on record for an early June.
Long story short, there is no housing inventory, which is somewhat good news because there aren’t a lot of buyers either.
As noted, affordability isn’t great with mortgage rates at/near 7% and home prices still historically high.
This explains why the median home sale price was down just 1.6% from a year ago at $379,463.
That represented the smallest decline in the past three months as many markets that were down year-over-year begin to turn things around.
Housing Supply Is Up Slightly from a Year Ago
While new listings and active inventory are down, housing supply inched up a bit from last year.
As of June 4th, supply was at 2.6 months, which is the amount of time it would take to clear inventory at the current sales pace.
But while it’s up 0.5% from a year ago, it’s still well below the 4-5 months that represents a healthy, balanced housing market.
The reason it’s higher is because homes are sitting on the market longer and taking more time to receive offers.
Again, you can blame affordability for this as there are fewer eligible buyers out there. And perhaps fewer who are interested even if they can afford it.
About a third of homes that went under contract received an accepted offer within the first two weeks on the market, down from 38% a year ago.
And homes that sold were on the market for a median 28 days (the shortest span since September), but much longer than the record low 18 days a year earlier.
So it’s clear the housing market isn’t thriving at the moment, but due to a continued lack of inventory, prices remain sticky.
But that could change if mortgage rates remain elevated during the softer part of the calendar year (summer/fall/winter).
Still, the resilience of home prices continues to exceed expectations and defy the housing bears.
Read more: When will the housing market crash again?
More than any time since before the Great Financial Crisis, the disconnect between Washington policy makers and the actual reality in the mortgage markets is widening. The lack of real-world knowledge and comprehension by key agency heads in the Biden Administration begs the question whether Washington is a help or a hindrance as the industry grapples with rising interest rates and mounting credit loss expenses.
For example, Consumer Financial Protection Bureau head Rohit Chopra said in May that “a major disruption or failure of a large mortgage servicer really gives me a nightmare.” He made these intemperate comments during CBA Live 2023, a conference hosted by the Consumer Bankers Association.
Like his predecessor Richard Cordray, Chopra’s focus is political rather than on any real threat. But of course, progressive solutions require problems. Three large and mismanaged depositories failed in the first quarter of 2023, yet progressive partisans like Chopra, Treasury Secretary Janet Yellen, and Federal Housing Finance Agency head Sandra Thompson ignore the public record and continue to fret about nonexistent risk of contagion from mortgage servicers. Really?
The big risk posed by mortgage servicers, of course, is to shareholders and creditors, not to consumers. Witness the abortive auction for Specialized Loan Servicing by Computershare of Australia. The offering of private label servicer Select Portfolio Servicing byCredit Suisse and now UBS AG is another example of shareholder value destruction. Homepoint was basically a liquidation from the 2021 IPO.
When progressive politicians in Washington yowl about risk in the financial markets, it is usually really about risk to the personalities in question and financing their careers. There is no appreciable risk to consumers or the taxpayer from mortgage servicers, which like Black Rock and UBS are basically asset managers working for a fee. Bureaucrats like Chopra simply raise operating costs.
More than any real world problem posed by IMBs, it is the government in all of its manifestations that poses a significant risk to the world of mortgage finance and the housing sector more generally. Washington regulatory agencies seek to stifle the markets, limit liquidity and impose additional capital rules, strictures that must inevitably reduce economic growth and access to affordable housing.
The good news, of course, is that many of the proposals from the FHFA, HUD and other agencies are effectively modified or rolled back entirely (such as the debt-to-income calculation for loan-level pricing adjustments) once the industry trades and large issuers engage.
In this case, Washington listened, but only after taking an inordinate amount of time and resources from private issuers, resources that are badly needed elsewhere. Would it be too much to ask for government agencies to vet ideas thoroughly before a public proposal?
In other cases, however, as with the risk based capital rules proposed by Ginnie Mae and the capital rules already approved for the GSEs, Washington is definitely not listening. But then again, the industry did a lousy job of pushing back on the capital rules for Fannie Mae and Freddie Mac, to our great disadvantage.
Despite the withdrawal of the LLPAs, personnel at the GSEs are still pressing issuers for “mission loans,” meaning loans to underserved and generally low-quality borrowers that are sought by the Biden Administration. Some issuers approaching the GSE cash windows have been told that they will not receive attractive pricing unless the pools include mission loans.
But sadly, there are few cases where a lender could or should advise a consumer to take out a conventional loan vs. FHA/VA. And the execution from the GSEs is hardly attractive.
The changes in GSE loan pricing and other policy changes reflect the FHFA’s focus on implementing the enterprise capital requirements put into place by Thompson, even while paying lip service to progressive goals. Garrett Hartzog, Principal of FundamentalAdvisory and Consulting notes in a comment in NMN:
“The Enterprise Regulatory Capital Framework is going to dramatically transform GSE pricing in ways the industry hasn’t begun to contemplate. Understanding the ERCF means being able to mentally reconcile increasing risk-based pricing (the DTI-based fee) and decreasing the level of risk-based pricing (the credit score/LTV matrices). What’s more, people need only read Fannie Mae and Freddie Mac’s comment letters during the rulemaking process to understand that g-fees will ultimately experience a dramatic increase as a result of the ERCF.”
If FHFA raises guarantee fees for the GSEs in line with the capital rule, then Fannie Mae and Freddie Mac will no longer be competitive for larger, high-FICO loans. But poor execution at the cash window and higher g-fees are just some of the issues facing the GSEs as defaults rise and loan put backs also increase.
A number of issuers complain about an increasing tide of loan repurchase requests coming from the GSEs, Fannie Mae and Freddie Mac. One prominent industry CEO known for his ability to “see around corners” laughs at the fuss so far and told NMN: “The GSEs are just practicing for the real push back. This is just a dress rehearsal.”
Meanwhile, the FHFA has just rolled out a new program whereby all large conventional issuers must have pre-funding quality control (QC) in place for all loans going through their systems by Labor Day. For larger correspondent shops, this could mean dozens of new hires and hundreds of thousands in new annual expenses. Apparently the QC personnel at the GSEs did not know about the change.
One angry issuer tells NMN: “If your volume is mostly FHA/VA, it does not matter to the FHFA. They want QC on all loans. If my volume is mostly delegated correspondent, it does not matter. I’m buying closed loans, but it does not matter.”
Most issuers contacted by NMN say they cannot comply with the new QC edict from FHFA. The lack of appreciation for market realities within the FHFA mirrors the situation in much of official Washington, with regulators working against the best interests of consumers and the entire private mortgage and housing industry by reducing volumes and liquidity.
Ironically, even as the FHFA is becoming the focus of increased industry concerns, Ginnie Mae President Alanna McCargo is now focused on problems faced by issuers. The new partial claim regime put in place by the FHA to help finance loss mitigation for Ginnie Mae servicers evidences this concern.
The CEO of one lender that focuses on underserved communities told NMN: “Ginnie Mae understands that they need to let us run our businesses as delinquency rates rise. Until interest rates fall and volumes improve, this is a war of attrition among lenders.”
Lenders hoping for lower rates in 2023 and that are dragging their feet on cost cutting will not survive in many cases. With the markets extending spreads on late vintage production, the MBS with 6% and 7% coupons, higher for longer seems to be the plan in residential mortgages in 2023. Hope is not a strategy.
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The real estate market is cooling down, observers say.
Reports released this week by several respected market observers point to less good and increased bad and ugly ahead for the housing market.
For some of the good, a U.S. Census Bureau report released late last week spurred a bout of optimism when it revealed that new-home sales jumped by nearly 11% month-over-month in May on a seasonally adjusted basis, after declining by 12% in April.
Moody’s Investors Service, in a housing-market report released this week, puts some ugly back into the home-sales figures for May, however.
“At 696,000 units, May new home sales were around 17% below the recent peak of 839,000 units in December last year,” the Moody’s report notes. “[On June 21], the National Association of Realtors said that existing-home sales declined for the fourth consecutive month.
“Existing-home sales fell in May by 3.4% on a seasonally adjusted basis to 5.41 million, the lowest since June of 2020 and similar to pre-pandemic levels.”
Those figures, along with “sharp recent increases in mortgage rates” and other supporting data, lead Moody’s to conclude that the “U.S. home-price boom is over.” The firm, which rates securitization offerings and provides other capital-market services, predicts “material declines” in both new- and existing-home transactions this year, compared with 2021.
Supporting the ugly outlook for the housing market is the release today, June 29, of the quarterly CFO Survey, conducted jointly by Duke University’s Fuqua School of Business and the Federal Reserve Banks of Richmond and Atlanta. The survey of more than 300 U.S. financial executives conducted between May 25 and June 10, shows optimism about the broader U.S. economy continuing to decline.
The average index score for the current survey was 50.7, compared with 54.8 in the prior quarter and 60.3 two quarters ago.
“Price pressures have increased, real revenue growth has stalled and optimism about the overall economy has fallen sharply,” said John Graham, a Fuqua finance professor and the survey’s academic director. “Monetary tightening [by the Federal Reserve] is one of several factors dampening the economic outlook.”
The CFO Survey’s findings are echoed by a revised first-quarter 2022 gross domestic product (GDP) estimate released Wednesday by the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA). It shows that a drastic economic slowdown is already underway.
“Real gross domestic product [a measure of all goods and services produced in the economy] decreased at an annual rate of 1.6 percent in the first quarter of 2022 …,” the BEA report states. “In the fourth quarter of 2021, real GDP increased 6.9 percent.”
The BEA’s first-quarter GDP estimate, it’s third to date, was revised downward from -1.4% and -1.5% in the two prior estimates. The grim data led Mortgage Capital Trading (MCT), a San Diego-based capital market software and services firm, to broach the “R“ word in its daily market-overview report.
“Concern over a slowing economy and aggressive interest rate hikes from the Fed are beginning to dominate market sentiment,” the MCT report states. “This morning’s GDP release [on June 29] came with a downward revision for the last reading, further supporting views that a recession is either in progress or coming soon.”
What does all this mean for the housing market in the months ahead? The Moody’s report attempts to frame some of the expectations.
“We expect some increases in existing-house prices over the next 18 months, though for appreciation to be well below the general rate of inflation,” the Moody’s report states. “After that, we expect home appreciation to settle in at levels somewhat lower than the rate of overall U.S. inflation.”
The report even indicates that there “is risk that existing home prices will have a minor correction over the next two years, similar to housing markets in many other developed counties facing risks after recent booms.”
The “moderation” in the U.S. housing market is ongoing and the full effects of recent rate increases have yet to be fully realized, the Moody’s report adds, especially with respect to housing prices.
Moody’s predicts that housing demand will “dampen significantly” in the months ahead due to the doubling of rates for 30-year fixed mortgages since the start of the year, which is fueling a huge jump in monthly mortgage costs. Freddie Mac’s most recent Primary Mortgage Market Survey shows the average 30-year fixed rate mortgage at 5.81% as of June 23.
“The monthly costs of new mortgages on existing homes sold at median transaction prices [are] more than 60% higher than a year ago,” the Moody’s report states. “Although higher mortgage rates do not always drive home prices lower, they typically affect sales activity and drive down the rate of price appreciation.
“We also expect higher rates to restrict for-sale supply because current homeowners will be reluctant to lose low-rate fixed borrowing costs.”
So, in effect, moderating or even declining home prices could be neutralized by rising borrowing costs, leading the housing market toward stagnation — the doldrums — in the worst-case scenario.
There is some good news mixed in with all this bad and ugly, however. Moody’s points out that some “fundamental housing strengths” will likely help to mitigate the degree of any market correction, at least over the next 12 to 18 months.
Those strengths include “favorable demographic trends, solid underwriting of outstanding mortgages and lingering housing supply constraints from a period of underbuilding,” according to the Moody’s report. Also on the bright side, according to Moody’s, is that a moderate decline in housing prices could be good for the market longer-term. That’s assuming the Federal Reserve wins the fight to tame inflation, now running at 8.6%, without causing a major spike in unemployment, which was at 3.6% in May for the third month in a row, according to the Bureau of Labor Statistics.
In short, the housing market has reached a fork in the road, based on the Moody’s analysis — with one path leading to the doldrums, or even decline, and the other toward resurgence and a new normal.
“If U.S. home prices were to decline modestly, it would increase affordability for potential homebuyers and improve demand, including for individuals who were priced out of the market in the recent months because of rapidly rising interest rates,” Moody’s reasons in its report. “However, sustained large increases in mortgage rates or a material weakening in the labor market could lead to sharper declines in housing activity and prices.”
Purchase mortgage rates this week dropped 11 basis points to 5.70%, according to the latest Freddie MacPMMS Index, ending a two-week climb following the Federal Reserve’s rate hike earlier this month.
A year ago at this time, 30-year fixed rate purchase rates were at 2.98%. The PMMS, a government-sponsored enterprise index, accounts solely for purchase mortgages reported by lenders during the past three days.
“The rapid rise in mortgage rates has finally paused, largely due to the countervailing forces of high inflation and the increasing possibility of an economic recession,” said Sam Khater, chief economist at Freddie Mac.
Another index showed the 30-year conforming rates also slid from last week.
Black Knight’s Optimal Blue OBMMI pricing engine, which includes some refinancing data — but excludes cash-out refis to avoid skewing averages – measured the 30-year conforming rate at 5.89% Wednesday, down slightly from last week’s 5.9%. The 30-year fixed-rate jumbo was at 5.42% Wednesday, up from 5.33% from the previous week, according to the Black Knight index.
Khater expects the dip in mortgage rates will also slow down home price growth.
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“This pause in rate activity should help the housing market rebalance from the bottleneck growth of a seller’s market to a more normal pace of home appreciation,” Khater said.
Mortgage application volume rose 0.7% last week led by refinancing applications and a slight uptick in conventional loans, according to the Mortgage Bankers Association. After increasing 65 basis points during the past three weeks, the 30-year fixed rate declined 14 basis points last week, the MBA said.
Refi application rose 1.9% from the previous week and purchase application marginally increased 0.1% from a week earlier.
Mortgage rates tend to move in concert with the 10-year U.S. Treasury yield, which reached 3.10% Wednesday, down from 3.16% a week before. The federal funds rate doesn’t directly dictate mortgage rates, but it does steer market activity to create higher rates and reduce demand.
Following the Federal Reserve’s interest rate hike of 75 basis points on June 15, mortgage rates have been showing an upward trend for the past two weeks.
According to Freddie Mac, the 15-year fixed-rate purchase mortgage averaged 4.83% with an average of 0.9 point, down from last week’s 4.92%. The 15-year fixed-rate mortgage averaged 2.26% a year ago.
The 5-year ARM averaged 4.50% up from 4.41% the previous week. The product averaged 2.54% a year ago.
Economists expect the tightening monetary policy will reduce originations in 2022 and 2023. TheMBA expects loan origination volume to drop about 40% to about $2.4 trillion this year, from last year’s $4 trillion. Meanwhile, the MBA expects 6.53 million existing and new home sales in 2022, compared to 6.9 million in 2021.