Fort Wayne is a growing Midwestern city with a lot to offer. From one-of-a-kind festivals to innovative breweries, the city has options for anyone looking to find a home in the Fort Wayne area.
As the second-largest city in Indiana, Fort Wayne has developed a distinctive identity through its kind people and unique attractions. Whether you’re exploring its scenic parks, tasting its local flavors, or meeting the people, there’s always something memorable to discover.
Below is a list of ten of the top things that Fort Wayne is known for so you can see a whole new side of this Midwestern gem.
1. Fort Wayne Children’s Zoo
Fort Wayne Children’s Zoo is a family-friendly spot in the heart of the city. Known for its well-maintained animal exhibits and child-friendly activities, the zoo spans over 40 acres and houses hundreds of animals from around the world. It’s particularly famous for its African Safari journey where children can get up close with giraffes and zebras.
2. Johnny Appleseed Festival
Each year, Fort Wayne pays homage to John Chapman, better known as Johnny Appleseed, with a festival that transports visitors back to the 1800s. The Johnny Appleseed Festival features period crafts, food, and music, celebrating the legendary figure who planted apple trees across the United States. This event has historical reenactments that offer a glimpse into the pioneer life.
3. Fort Wayne TinCaps
The Fort Wayne TinCaps, a Minor League Baseball team affiliated with the San Diego Padres, play their games at the modern Parkview Field. This ballpark is a centerpiece of downtown Fort Wayne and has a fantastic family-friendly atmosphere. The name “TinCaps” references the tin pot that Johnny Appleseed famously wore on his head, linking the team to local lore.
4. Fort Wayne’s Famous Coney Island
Since opening its doors in 1914, Fort Wayne’s Famous Coney Island has been a landmark for classic American cuisine. Known for its coney dogs, the nostalgia-inducing diner transports patrons back in time with its vintage décor.
5. Science Central
Science Central is a hands-on science museum located in a former power plant. It has over 200 exhibits ranging from a high-rail bike to a giant slide that teaches physics through play. Science Central is instrumental in providing STEM education in a fun environment, making it a must-visit for families and school groups looking to ignite a passion for science.
6. Mad Anthony Brewing Company
Named after the fiery General “Mad” Anthony Wayne, whom the city is also named after, Mad Anthony Brewing Company is a cornerstone of Fort Wayne’s craft beer scene. This brewery is famed for its unique selection of beers and a vibrant atmosphere. Whether you’re trying the seasonal specialties or the year-round favorites, Mad Anthony’s embodies the spirit of innovation and community in every pint.
7. The Embassy Theatre
The historic Embassy Theatre is a beautifully restored vaudeville house that is now one of Fort Wayne’s prime venues for performing arts. Hosting a range of events from Broadway shows to concerts and films, the Embassy Theatre remains a true hub for the arts in Indiana.
8. Allen County Public Library
The Allen County Public Library houses one of the largest genealogy collections in the nation. Its expansive archives attract researchers from all over the country, making it a center for historical study. The library’s commitment to community enrichment through educational programs and resources makes it a pillar of Fort Wayne society.
9. Lakeside Park & Rose Garden
Lakeside Park & Rose Garden is one of Fort Wayne’s most picturesque places. With beautifully landscaped gardens, a reflective pond, and a massive display of over 2,000 roses, it’s a real hotspot for photographers.
10. DeBrand Fine Chocolates
DeBrand Fine Chocolates is a luxurious chocolate company based in Fort Wayne, known for its high-quality confections and beautiful presentation. A tour of DeBrand offers insights into the chocolate-making process and ends with a tasting of their exquisite creations. This chocolatier is a favorite for locals and visitors looking for a sweet treat or a gourmet gift.
Maybe you’ve recently spoken to a broker or financial adviser about investments, and they suggested exchange-traded funds (ETFs) as a way to diversify your portfolio and boost your earnings.
But, you don’t know how they work or how to go about adding them to your arsenal of investments. Or perhaps you’re just starting out and want to learn more before making an investment decision?
Either way, we’ve got you covered. Read on to learn more.
Key Takeaways
Exchange-traded funds (ETFs) are diversified investment vehicles that allow investors to buy shares in a collection of assets, ranging from stocks and bonds to commodities and currencies, functioning similarly to mutual funds, but trading like stocks on exchanges.
ETFs offer various types, including those focused on specific industries, commodities, or strategies like inverse or leveraged ETFs, catering to a wide range of investment objectives and risk tolerances.
The benefits of ETFs include lower administrative costs compared to mutual funds, flexibility in trading throughout the trading day, tax efficiency in capital gains, and the transparency of holding disclosure, making them an attractive option for both novice and experienced investors.
What are ETFs?
In a nutshell, an exchange-traded fund (ETF) is a basket of assets that can include a medley of the following:
Exchange-traded funds are ideal for individual investors because they allow you to diversify your holdings without purchasing individual shares of each asset. And the profits are generated by the performance of the overall ETF and not individual shares.
Furthermore, ETFs trade like stocks and are easily bought and sold on the stock exchange, making it simple for investors to buy and sell.
How do ETFs work?
Before exchange-traded funds hit the exchange for trading, they must be created by authorized participants or specialized investors. They conduct extensive research and choose the assets that they deem as most suitable for the portfolio.
The pool of assets is then divided into ETF shares and traded on a major stock exchange, like the NYSE or NASDAQ, or through a brokerage firm.
Each exchange-traded fund has a ticker symbol like a stock and intraday price that can be tracked throughout the day. But unlike mutual funds or index funds, prices are constantly fluctuating because ETF shares are issued and redeemed throughout the day.
Mutual funds are priced at the end of the trading day, so all buyers and sellers receive the same price. This is referred to as the NAV (net asset value.)
Individual investors can purchase ETFs, but the way returns are generated differs from what you’d see with stocks or bonds. Profits are not tied to the actual assets in the ETF, but a sum of the profits generated from interest and dividends from the overall ETF. The return is collectively based on your proportion of ownership in the ETF.
Types of ETFs
There’s no shortage of exchange-traded funds as offerings are designed to track various sectors, markets, and indexes both here in the U.S. and abroad. The types of ETFs that are most popular among investors include:
Actively managed ETFs: ETFs that are managed by a professional fund manager and traded on a stock exchange. They aim to outperform a specific benchmark or index by actively selecting and trading the securities in the fund’s portfolio.
Bond ETFs: ETFs that track a basket of bond securities, such as corporate bonds, government bonds, or municipal bonds.
Commodity ETFs: These ETFs track the price of a specific commodity, such as gold, silver, oil, or agricultural products.
Currency ETFs: ETFs that track the value of a specific currency, such as the US dollar, Euro, or Japanese yen.
Foreign market ETFs: The main objective for these ETFs is to track the performance of a specific foreign market, such as a specific country or region.
Inverse ETFs: A type of ETF that aims to produce the opposite return of a specific benchmark or index.
Leveraged ETFs: These ETFs use financial instruments, such as futures contracts and options, to amplify the returns of a specific benchmark or index.
Market ETFs: The main objective is to track a specific index. These include DIA (tracks the Dow Jones Industrial Average), Spider or SPDR (tracks the S&P 500 Index), and QQQ (tracks the Nasdaq 100).
Sector or Industry ETFs: The main objective is to track a sector or industry. Common sector ETFs include XLF (financial companies), OIH (oil companies), FONE (smartphones), and XLE (energy companies).
Stock ETFs: ETFs that track a basket of stocks, such as those in a specific index, sector, or country.
Benefits of ETFs
Diversified Asset Pool
With ETFs, you can invest with minimal effort to fit your taste in securities, risk tolerance, and investment goals. This also means you can choose from various market segments. Furthermore, poor-performing assets can offset those that are performing well.
Hands-off Management
Professional fund managers do all the work for you according to your investment objectives. They also continuously monitor the performance of the ETF. But since these investments are generally passive and track an index, your fund manager won’t have to spend a bulk of their time day in and day out managing the ETF to stay ahead of the curve.
Quick note: The exception to this rule applies when you’re dealing with an actively managed ETF that is designed to beat an index.
Flexible Purchase and Selling Window
Unlike mutual funds, ETFs are available for purchase at any time of the day. There’s also flexibility with orders as you can choose from margin, limit, or stop-loss orders. Even better, there are no minimum holding periods, like you’ll see with some mutual funds, so you’re free to sell at any point after you purchase ETF shares.
This added flexibility is also beneficial to investors because it minimizes the level of risk they’ll have to absorb if the market takes an unexpected turn for the worse. ETFs are much easier to unload in a shorter window than mutual funds, that sometimes have a 30-day holding period before they can be sold.
Tax Efficient
With taxable mutual funds, you must pay taxes on distributions, regardless of whether you keep the cash or use it to invest in more mutual fund shares. However, you will only pay capital gains on ETFs when your investment is sold.
Transparency
As mentioned earlier, the performance of a particular ETF can be tracked throughout the day using the ticker. And the end of each day, the ETF’s holdings are shared with the public. But mutual funds only disclose this information on a monthly or quarterly basis.
Lower Administrative Costs
Unless the ETF is actively managed, your administrative costs will be substantially lower than what you’d find with a portfolio that must have oversight at all times, like a mutual fund. On average, the expense ratio for most ETFs is lower than .20 per year, compared to the 1% or more per year in administrative costs that accompany actively managed mutual funds, according to Nasdaq.
But keep in mind that expense ratios aren’t the same across the board. So, it’s best to speak with the ETF issuer to get a better idea of what you’d expect to pay in administrative costs should you decide to invest in their ETFs.
Drawbacks of ETFs
Before you invest in ETFs, there are some drawbacks you should be mindful of.
Price Fluctuations
Prices often change, so you could be at a disadvantage if you like to buy in small increments. And it’s not always possible to buy low and sell high if the ETF is a slow mover.
Fees from Commissions
Looking to buy ETFs through an online broker? If you select an ETF that’s outside the scope of what they offer, you could incur substantial fees from brokerage commissions.
Sudden Death
If the ETF underperforms and is forced to shut down abruptly, you have no control over the hit you may take, either through a loss on your investment or tax obligation.
Settlement Window
When you sell ETFs, there’s a two-day settlement window that must pass before you can access your cash. This could be to your disadvantage if you need the funds right away to invest in another asset.
How to Invest in ETFs
To invest in exchange-traded funds (ETFs), you’ll need to follow these steps:
Choose a brokerage: First, select a brokerage firm where you will place your trades. Reputable options include well-known online brokers such as Charles Schwab, E*TRADE, Robinhood, and Fidelity. Be sure to compare fees, trading platforms, and other features before making your decision.
Open an account: Once you’ve chosen a brokerage, you’ll need to open a brokerage account and complete any required paperwork. This may include providing personal and financial information, as well as completing any necessary identity verification steps.
Fund your account: To buy ETFs, you’ll have to deposit money into your brokerage account. This can typically be done by linking a bank account or using a credit or debit card.
Select your ETFs: Once your account is funded, you’ll be able to browse and select the ETFs you’d like to purchase. Most brokerage firms offer a wide range of ETFs to choose from, including those that track specific indexes, sectors, or countries.
Place your trade: Once you’ve selected the ETFs you’d like to purchase, you can place your trade by specifying the quantity and price. Your brokerage firm will handle the rest of the process, including executing the trade and holding the ETF shares in your account.
Keep in mind that investing in ETFs carries risks, and it’s important to do your own research and consider your own financial goals and risk tolerance before making any investment decisions. It’s also a good idea to consult a financial professional for personalized advice.
Bottom Line
It’s easy to buy or sell ETFs and make them part of your investment strategy. By gaining a thorough understanding of how they work and working with a broker to analyze how they will impact your investment portfolio, you’ll have the best chance of maximizing your returns.
“We just really heavily speak to that in the preapproval process, making sure they understand the temporariness of the rate, the importance of the rate,” he said. “We talk about permanent buydowns, we talk about adjustable-rate mortgages, we talk about the future opportunities to refinance and having reduced cost to refinance. “We talk about the … [Read more…]
Historically speaking, mortgage rates have remained relatively low since the Great Recession, with some fluctuation at times due to market conditions. As a result, a generation of homebuyers has become accustomed to a low 30-year fixed-rate mortgage.
But with mortgage rates on the rise, it can put a sour taste in the mouths of people trying to join the ranks of homeowners in the country. They may be thinking that they missed an opportunity to buy a home. However, it’s important to look at the history of mortgages and mortgage rates to put the current conditions into context.
The History of Mortgage Rates
The modern history of mortgage lending in the U.S. began in the 1930s with the creation of the Federal Housing Administration. From the 1930s through the 1960s, a combination of government policy and demographic changes made owning a home a normal part of American life. During this time, the 30-year fixed-rate mortgage became the standard for home mortgage loans.
When discussing the fluctuation of mortgage rate trends, analysts usually refer to the average 30-year fixed-rate mortgage. Here’s a look at the trend of these mortgage rates since the 1970s.
The 1970s
Throughout the 1970s, mortgage rates rose steadily, moving from the 7% range into the 13% range. This uptick in rates was due, in part, to the Arab oil embargo, which significantly reduced the oil supply and sent the U.S. into a recession with high inflation — known as stagflation.
As a result, Federal Reserve Chairman Paul Volcker made a bold change in monetary policy by the end of the decade, raising the federal funds rate to combat inflation. Though the Federal Reserve doesn’t directly set mortgage rates, its monetary policy decisions can still impact many financial products, including mortgages.
The 1980s
The average 30-year fixed-rate mortgage hit an all-time high in October 1981 when the rates reached 18.63%. The Federal Reserve’s tight monetary policy affected this high borrowing cost and put the economy into a recession. However, inflation was under control by the end of the 1980s, and the economy recovered; mortgage rates moved down to around 10%.
The 1990s and 2000s
Mortgage rates continued a downward trend throughout the 1990s, ending the decade at around 8%. At the same time, the homeownership rate in the U.S. increased, rising from 63.9% in 1994 to 67.1% in early 2000.
Several factors led to a housing crash in the latter part of the 2000s, including a rise in subprime mortgages and risky mortgage-backed securities.
The housing crash led to the Great Recession. To boost the economy, the Federal Reserve cut interest rates to make borrowing money cheaper. Mortgage rates dropped from just below 7% in 2007 to below 5% in 2009.
Recommended: US Recession History: Reviewing Past Market Contractions
The 2010s
Mortgage rates steadily decreased throughout most of the 2010s, staying below 5% for the most part. The Federal Reserve enacted a zero-interest-rate policy and a quantitative easing program to prop up the economy during this time following the Great Recession. This helped keep mortgage rates historically low.
The 2020s
The Federal Reserve reduced the federal funds rate to near-zero levels in March 2020, causing a drop in rates of various financial products. The effects of the fallout from the Covid-19 pandemic pushed mortgage rates below previous historic lows. The average 30-year fixed-rate mortgage hit 2.77% in August 2021.
However, with inflation reaching levels not experienced since the early 1980s, the Federal Reserve reversed course. The central bank started to tighten monetary policy in late 2021 and early 2022, which led to a rapid increase in mortgage rates. In May 2022, the average mortgage rate was above 5%. While this was below historical trends, it was the highest rate since 2018. From there, the 30-year fixed rate mortgage crept upward, reaching a high of 7.79% in October 2023 before declining to 7.1% in April 2024.
Recommended: How Inflation Affects Mortgage Interest Rates
First-time homebuyers can prequalify for a SoFi mortgage loan, with as little as 3% down.
Why Do Mortgage Rates Change?
As we can see from looking at interest rate fluctuations, major economic events can significantly impact mortgage rates both in the short and long term. As noted above, this has to do primarily with the Federal Reserve.
Federal Reserve actions influence nearly all interest rates, including mortgages through the prime rate, long-term treasury yields, and mortgage-backed securities. The Federal Reserve sets the federal funds benchmark rate, the overnight rate at which banks lend money to each other.
This rate impacts the prime rate, which is the rate banks use to lend money to borrowers with good credit. Most adjustable short-term rate loans and mortgages use the prime rate to set the base interest rates they can offer to borrowers. So, after the Federal Reserve raises or lowers rates, adjustable short-term mortgage loan rates are likely to follow suit.
Longer-term mortgage rates have also risen and fallen alongside economic and political events with movement in long-term treasury bond yields. In the short term, a Federal Reserve interest rate change can affect mortgage markets as money moves between stocks and bonds, affecting mortgage rates. Longer-term mortgage rates are influenced by Fed rate changes but don’t have as direct an effect as short-term rates.
Recommended: Federal Reserve Interest Rates, Explained
Can Changing Rates Affect Your Existing Mortgage?
If you have a mortgage with a variable interest rate, known as an adjustable-rate mortgage, changing rates can affect your loan payments. With this type of home loan, you may have started with an interest rate lower than many fixed-rate mortgages. That introductory rate is often locked in for an initial period of several months or years.
After that, your interest rate is subject to change — how high and how often depends on the terms of your loan and interest rate fluctuations. These changes are generally tied to the movement of interest rates, but more specifically, which index your adjustable-rate mortgage is linked to, which can be affected by the Fed’s actions.
However, most adjustable-rate mortgages have annual and lifetime rate caps limiting how high your interest rate and payments can change.
If you took out a fixed-rate mortgage, your initial interest rate is locked in for the entire time you have the home loan, even if it takes you 30 years to pay it off.
Recommended: What Is a Good Mortgage Rate?
The Takeaway
If you are in the market to buy a home, it might be tempting to rush and buy when mortgage rates drop a bit, or to put off buying until rates hopefully decrease in the future. However, choosing the perfect time to buy a home based on the ideal rate can be difficult. You’re probably better off letting your need for a home and your personal financial situation drive your decision making. (Do you have a down payment saved up? Is your debt under control?) When it’s time to buy, do your research and choose the best mortgage available for your personal situation.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Have you been asking yourself, “Should I move to Minneapolis, MN?” Located along the banks of the Mississippi River, Minneapolis is a dynamic city with a unique blend of natural beauty and urban charm. Known for its picturesque lakes, thriving arts scene, and diverse neighborhoods, Minneapolis always has something exciting in store. Whether you’re drawn to the city’s music and theater scene, its abundance of outdoor activities, or its friendly community, Minneapolis has plenty to offer for those looking to put down roots in the Land of 10,000 Lakes. In this article, we’ll discuss the pros and cons of living in this city to help you decide if it’s the right place for you. Let’s jump in.
Minneapolis at a Glance
Walk Score: 71 | Bike Score: 83 | Transit Score: 55
Median Sale Price: $330,000 | Average Rent for 1-Bedroom Apartment: $1,560
Minneapolis neighborhoods | Houses for rent in Minneapolis | Apartments for rent in Minneapolis | Homes for sale in Minneapolis
Pro: Flourishing arts scene
Minneapolis is renowned for its vibrant arts scene. The city is home to the Walker Art Center, one of the most celebrated contemporary art museums in the U.S., and the adjacent Minneapolis Sculpture Garden, famous for the iconic “Spoonbridge and Cherry” sculpture. Additionally, the Guthrie Theater offers world-class theatrical productions, and the First Avenue nightclub has played host to countless legendary performances. These venues provide residents with endless opportunities for artistic exploration and inspiration.
Con: Harsh winters
The winters in Minneapolis are notoriously brutal, with temperatures often plummeting below zero degrees Fahrenheit. The city experiences heavy snowfall, which can disrupt daily life, from commuting challenges to the simple act of walking outside. The city has efficient snow removal and a well-designed network of skyways in downtown areas that help pedestrians avoid the cold. However, the winter months can still be daunting for those not accustomed to such extreme weather conditions.
Pro: Abundance of lakes and parks
One of Minneapolis’s most charming features is its abundance of lakes and parks. The city’s park system is consistently ranked as one of the best in the country, offering residents access to over 22 lakes and more than 200 parks. From sailing on Lake Harriet to biking around Lake Calhoun (also known as Bde Maka Ska), the opportunities for recreation and relaxation are virtually limitless. This access to green space is a significant advantage of living in Minneapolis.
Con: Traffic congestion
Like many major cities, Minneapolis faces issues with traffic congestion, especially during rush hours. The city’s layout and reliance on a few major highways can lead to significant delays, particularly on I-35W and I-94, which are crucial routes for commuters. While public transportation options like the Metro Transit light rail and bus services offer alternatives, the traffic can still be a considerable inconvenience for residents.
Pro: Thriving job market
Minneapolis boasts a robust job market, particularly in the fields of healthcare, education, and technology. The city is home to several Fortune 500 companies, including Target, UnitedHealth Group, and Best Buy, providing ample employment opportunities. Additionally, the University of Minnesota, based in Minneapolis, is a significant employer and contributes to the city’s focus on research and innovation. This economic environment offers locals a wide range of career paths and other opportunities.
Con: Seasonal allergies
Due to its lush environment and diverse plant life, Minneapolis can be a challenging place to live for people with seasonal allergies. Spring and fall are particularly difficult times for allergy sufferers as the pollen from trees, grasses, and weeds reaches peak levels. While the city’s green spaces are a significant asset, they can also contribute to discomfort for a portion of the population.
Pro: Diverse culinary scene
Minneapolis’s culinary scene offers an array of dining options that reflect the city’s multicultural population. From the traditional Scandinavian dishes that pay homage to the city’s Nordic roots to the thriving East African cuisine found in neighborhoods like Cedar-Riverside, there’s something for every palate. The city also boasts a growing number of farm-to-table restaurants and craft breweries, highlighting Minnesota’s rich agricultural heritage and innovative spirit.
Con: Limited public transportation options
While Minneapolis has made strides in expanding its public transportation system, options can still be limited. The Metro Transit system, consisting of buses and light rail lines, does not fully cover the metropolitan area. This can make it difficult for those without cars to access certain parts of the city and surrounding suburbs. This limited Transit Score of 55 can affect daily commutes and restrict access to certain amenities and job opportunities for those relying on public transit.
Pro: Active lifestyle
Minneapolis encourages an active lifestyle, with its extensive network of bike lanes and trails, public parks, and recreational facilities. The city has been named one of the best biking cities in America, with over 200 miles of bike trails and dedicated lanes for cyclists. Whether it’s kayaking on the Mississippi River or cross-country skiing in Theodore Wirth Park, Minneapolis provides ample opportunities to stay active and engaged with the outdoors.
Jenna is a Midwest native who enjoys writing about home improvement projects and local insights. When she’s not working, you can find her cooking, crocheting, or backpacking with her fiancé.
(Bloomberg) — UK house prices fell at the sharpest pace in eight months after the cost of mortgages crept higher, one of the country’s biggest lenders said, underscoring continued cost-of-living pressures on consumers ahead of a general election later this year.
Most Read from Bloomberg
The figures from Nationwide Building Society followed a scaling back of bets on Bank of England interest rate cuts this year, which pushed up the cost of home loans in markets. That’s strained the ability of people to afford to buy a property and held back a recovery from last year’s slump.
Higher borrowing costs have hurt Prime Minister Rishi Sunak’s government in the eyes of voters and reminded voters of the big jump in mortgage rates that Liz Truss triggered during her short term as premier in late 2022. The UK slipped into a recession last year, and the weak recovery so is reflected in the housing market.
“Though mortgage affordability is much better than it was last summer, it remains very stretched relative to historical norms,” said Peter Arnold, chief economist at EY UK. “A strong recovery in house prices and activity is unlikely.”
The Conservatives are defending seats in local authorities including mayors in West Midlands and Tees Valley in key local elections on Thursday. Sunak is widely expected to call a general election in the autumn.
Nationwide estimated house prices fell 0.4% in April after an 0.2% decline the month before. Economists had expected a 0.1% monthly increase. The average cost of a home is now £261,962 ($326,680), which is about 4% below the peak in the summer of 2022.
What Bloomberg Economics Says …
“The shift in the interest rate outlook was the catalyst for the change in sentiment at the start of the year, encouraging buyers to enter the market. However, borrowing costs have risen recently as investors reappraise how far the Bank of England will cut interest rates over concerns about persistent price pressures in both the UK and US. The best-buy five-year fix are above 4.1% having dropped below 4% at the start of the year. That will hit affordability.”
—Niraj Shah, Bloomberg Ecoomics. Click for the REACT.
Home prices have stagnated over the past year, up just 0.6%. That’s much less than the 1.2% gain economists had expected.
“The slowdown likely reflects ongoing affordability pressures, with longer term interest rates rising in recent months, reversing the steep fall seen around the turn of the year,” Robert Gardner, chief economist at Nationwide, said in a report Wednesday.
Nationwide said research it did with Censuswide found that almost half of the prospective first-time buyers looking to secure a home in the next five years have delayed their plans.
“Among this group, the most commonly cited reason for delaying their purchase is that house prices are too high (53%), but it is also notable that 41% said that higher mortgage costs were preventing them from buying,” Nationwide said.
Another 55% of people said they’d be willing to buy in a cheaper area of the country or where they could get a bigger property — half willing to move more than 30 miles away.
The UK housing market has defied expectations of a sharp downturn last year, yet its recovery over the last few months has remained weak. Prospective buyers are still finding it hard to come up with the money for a deposit, while the benchmark lending rate is at a 16-year high.
BOE officials warning of lingering price pressures have pushed up two- and five-year swap rates, used to set the bulk of mortgage products. That suggests households would still be spending a higher share of their incomes on mortgage payments than they did in the decade to 2007, according to Bloomberg Economics.
Nationwide’s figures contrast with more upbeat data from the BOE showing mortgage approvals rose to the highest in 18 months in March. Banks and building societies authorized 61,325 home loans, up from 60,497 in February and the most since September 2022.
Separate data released Tuesday from HM Revenue & Customs, the UK tax authority, showed property transactions climbing for a third month to 84,200 in March.
However, a recent resurgence in borrowing costs has raised questions over whether the recovery can continue. Natwest, Santander and Nationwide all have increased mortgage rates this month in response to rising swap rates, which are used to set the bulk of mortgage products.
For the 1 million households due to refinance fixed-rate mortgages by end of the year, new loans will be pricier than the ones they are currently on.
“Buyers and sellers are starting to accept the new reality of the housing market in the face of current interest rate levels,” said Nathan Emerson, CEO of Propertymark.
–With assistance from Andrew Atkinson.
(Updates with comment and context from first paragraph.)
In a low-volume mortgage origination market, some sellers “don’t have the balance sheet or their owners are not interested in legacy and continuity,” which is a different model than Lower’s, Snyder said.
The company is looking for geographic expansion and companies that are “technically sound,” he added.
In November 2023, Lower announced the acquisition of Colorado-based Universal Lending Home Loans, which became a separate division. Universal president and industry veteran TJ Kennedy leads its retail and wholesale channels. Founded in Denver in 1981, Universal added 60 loan officers to Lower.
That deal was followed by the acquisition of Texas-based Thrive Mortgage in December. As is usually the case with Lower’s deals, Thrive maintained its brand. Thrive CEO Selene Kellam, and Randell Gillespie, its national sales director, joined the executive team at Lower.
Financials of the Universal and Thrive deals were not disclosed.
To support its business strategy, Lower announced in June 2021 that it had raised $100 million in a Series A funding round led by venture capital firm Accel. It also expects to raise more capital, “probably a Series B, ideally this year,” according to Snyder.
He added that becoming a publicly traded company isn’t out of the question, although it “really depends on the capital” needed in the future.
“Lower is still majority owned by myself and my co-founders,” said Snyder, who started his career in corporate banking at Wells Fargo and American Bank. “But we have raised money from Silicon Valley. They have seen the bottom [of the mortgage origination market] and can now start seeing the growth.”
Another minority stakeholder at Lower is Veritex Holdings, the parent company of Veritex Community Bank. In 2021, Veritex acquired a 49% stake in Thrive for $53.9 million, valuing the lender at roughly $110 million. Veritex kept a stake in Lower following the acquisitions of Universal and Thrive.
Acquisitions are only one part of Lower’s battle plan, as the lender is also looking to attract talent. In November, the company announced the addition of Amir Syed, co-founder of Growth Only Coaching, as its chief growth officer.
A multichannel lender, Lower operates an online consumer-direct channel that expects to launch a full-service refinance product by the end of the year. It also has an offline retail channel that is “picking up steam” through M&A opportunities, such as Thrive and Universal, and it maintains a local presence, Snyder said.
Meanwhile, Snyder said that Lower’s third-party origination platform that services brokers and other fintechs has been competitive with niche products such as down payment assistance programs.
“We get our customers from multiple places where they want to transact and then fulfill as efficiently as possible with technology,” Snyder said.
Lower claims that the Thrive acquisition made it the country’s 25th largest mortgage lender. According to the Nationwide Multistate Licensing System (NMLS), it had 620 sponsored loan officers and 108 active branches as of Tuesday.
Getting into gold coin investing can be a smart move for anyone looking to add some shine to their financial strategy. In this guide, we’ll give you the lowdown on different types of gold coins, how to figure out what they’re really worth, and tips for keeping your investment safe and sound.
You’ll also get the inside scoop on dealer markups, how to make sure you can cash out when you need to, and the steps to check that your coins are the real deal. Ultimately, we want to empower you with the knowledge to make informed decisions and enhance your investment portfolio with the timeless appeal of gold coins.
Key Takeaways
Gold coins offer investment diversity, with bullion coins being tied to gold content and purity, numismatic coins prized for their rarity and design, and semi-numismatic coins providing both gold value and collectible interest.
Key factors in gold coin investment include understanding premiums over spot price, ensuring liquidity and ease of resale, and selecting appropriate storage options to safeguard the investment.
Investing in gold coins entails choosing reputable dealers to prevent counterfeit risks, understanding tax implications like capital gains, and considering gold coins as a way to diversify and hedge against inflation within an investment portfolio.
The Fundamentals of Investing in Gold Coins
Gold coins, with their gleaming allure and historical significance, offer investors a tangible asset that stands the test of time. They come in various forms, each bearing unique characteristics and investment potential.
From bullion coins valued for their gold content and purity to collectible gold coins prized for their rarity and historical significance, the world of gold coins is as diverse as it is fascinating. As a form of precious metals, these coins, along with silver coins, provide a sense of security and value for investors.
Bullion Coins
Bullion coins, including bullion gold coins, are the go-to choice for those seeking straightforward exposure to gold. Valued based on their gold content and purity rather than historical and artistic considerations, a bullion coin like the Canadian Maple Leaf and American Gold Buffalo offers a direct link to the global gold market. For those interested in other forms of investment, gold bars can also be considered.
Numismatic Coins
For the history buffs and collectors, numismatic coins offer a unique allure. These coins are valued not just for their gold content, but also for their rarity, historical significance, and the artistry of their designs. Their value is less tethered to the spot price of gold, making them less susceptible to short-term market fluctuations.
Semi-Numismatic Coins
Straddling the line between bullion and numismatic coins are semi-numismatic coins. These coins offer both the gold value of bullion coins and the collectible appeal of numismatic coins. Their versatility makes them an attractive choice for a range of investors, from those seeking a straightforward gold investment to collectors looking for unique assets.
Top Gold Coin Options for Investors
There are a wide variety of gold coins to choose from, which can be overwhelming for new investors. However, some standout choices have captured the attention of investors worldwide. Let’s examine three popular gold coin options: the American Gold Eagle, the Canadian Gold Maple Leaf, and the South African Krugerrand.
American Gold Eagle
The American Gold Eagle coin, prominently displaying Lady Liberty and an American bald eagle, not only represents American heritage and freedom but also stands as a testament to the nation’s robust minting capabilities.
Introduced in 1986, these coins are struck in 22-karat gold, which includes a small alloy of copper and silver to ensure durability. Their availability in multiple denominations—1 oz, 1/2 oz, 1/4 oz, and 1/10 oz—makes them accessible to a wide range of investors, from those starting out to seasoned collectors. The blend of historical significance and investment flexibility has cemented their status as a favored option in precious metals markets.
Canadian Gold Maple Leaf
Produced by the Royal Canadian Mint, the Canadian Gold Maple Leaf is globally acclaimed for its .9999 fine gold purity, one of the highest in the market. Launched in 1979, this coin features the sugar maple leaf, a national symbol of Canada, which underscores the country’s appreciation of its natural environment and cultural heritage.
Its cutting-edge security features, like light diffracting patterns of radial lines and micro-engraved laser marks, ensure its authenticity and protect investors. The coin’s combination of high gold content and stunning design makes it not only a secure investment but also a collector’s delight.
South African Krugerrand
The South African Krugerrand is renowned for being the first gold bullion coin available to the general public, introduced in 1967 to help market South African gold. Named after the 19th-century Boer leader and the rand, the national currency, this coin features the image of Paul Kruger on one side and the Springbok gazelle on the other, celebrating South Africa’s rich wildlife and cultural heritage.
Unlike many other gold coins, the Krugerrand is minted from a gold alloy that is 22 karats, or 91.67% gold, with the remainder being copper, giving it a distinctive, more durable rose tint. This combination of affordability, durability, and cultural symbolism makes it a staple in the global gold trade, appealing to both investors and collectors alike.
Factors to Consider When Investing in Gold Coins
Investing in gold coins doesn’t just stop at choosing the right coin. It’s also about understanding the inherent factors that come with it. Let’s explore these key factors: premiums over spot price, liquidity, and storage options.
Premiums and Spot Price
While the spot price of gold is a key factor in determining the price of a gold coin, it’s not the only cost to consider. Premiums over the spot price can significantly impact the overall investment returns. Therefore, it’s essential to understand how premiums work and to be mindful of market trends.
Liquidity and Ease of Sale
One of the key advantages of gold coins is their liquidity. Gold coins are recognized worldwide and can generally be sold in any volume. However, the ease of sale can vary depending on the specific coin and market conditions.
Storage Options
Once you’ve invested in gold coins, you need a safe place to store them. Storage options range from home safes to professional vaulting services. Each comes with its own advantages and costs, and choosing the right one is crucial to the security of your investment.
How to Buy Gold Coins Safely and Securely
Investing in gold coins requires careful planning and vigilance. From choosing a reputable dealer to avoiding counterfeit coins and inspecting your purchase upon delivery, let’s explore how to buy gold coins safely and securely.
Choosing a Reputable Dealer
Purchasing gold coins from a well-established dealer is the first step towards a secure investment. A reputable dealer provides high-quality coins and offers invaluable customer support and guidance.
Avoiding Counterfeit Coins
Counterfeit coins pose a significant risk to investors. It’s crucial to understand how to identify counterfeit coins and ensure the authenticity of your purchase. From requesting documentation to conducting physical tests, vigilance is the key to safeguarding your investment.
Delivery and Inspection
The final step of your gold coin purchase is the delivery and inspection of your coins. Upon delivery, be sure to promptly inspect your gold coins to ensure they meet quality and authenticity standards.
Tax Implications and Legal Considerations
Like all investments, gold coins come with their own set of tax implications and legal considerations. From capital gains tax to reporting requirements, it’s crucial to understand these aspects to avoid legal complications and ensure a smooth investment journey.
Capital Gains Tax
Profits from the sale of gold coins are subject to capital gains tax. The rate of this tax can vary depending on the holding period of the coins and the investor’s income level. It’s essential to understand these rates and plan your investments accordingly.
Reporting Requirements
Certain gold coin transactions may be subject to reporting requirements. Be prepared to declare your holdings when necessary and ensure you comply with all applicable regulations.
Legal Ownership
Maintaining accurate records of transactions and ownership is crucial when investing in gold coins. These records not only help establish legal ownership, but are also essential for proper tax reporting.
Diversifying Your Investment Portfolio with Gold Coins
Bringing gold coins into your investment portfolio can add a unique layer of diversification. They can hedge against inflation, balance risk with other investments, and open up opportunities for both long-term and short-term investment strategies.
Hedging Against Inflation
In times of economic uncertainty, physical gold, particularly gold coins, can serve as a protective hedge against inflation. As the cost of living rises, gold coins can help maintain the value of your investment portfolio, safeguarding your purchasing power.
Balancing Risk with Other Investments
Including gold coins in your investment portfolio can help balance risk. The value of gold coins often moves inversely to other asset classes like stocks and bonds, providing a buffer against market volatility.
Long-Term vs. Short-Term Investment Strategies
Whether you’re looking for a long-term investment to weather market fluctuations or a short-term investment influenced by temporary market trends, gold coins can be a fit for your gold investing strategy, making them a viable option for gold investments.
The choice depends on your financial objectives and risk tolerance.
Bottom Line
Investing in gold coins can be a rewarding journey. From understanding the basics to navigating tax implications and legal considerations, it’s a path filled with learning and potential growth. As you progress, remember the importance of diligence, careful planning, and informed decision-making. With the right approach, you can unlock the golden opportunities that await in gold coin investing.
Frequently Asked Questions
How do I determine the authenticity of gold coins?
The authenticity of gold coins can be verified through several methods, including checking for hallmarks, weight and size measurements, and performing sound and magnetism tests. Purchasing from reputable dealers and considering third-party grading and certification can also ensure authenticity.
Can I purchase gold coins from banks?
Some banks do offer gold coins for sale, but availability can vary widely depending on the bank and the country. It’s often more common to purchase gold coins from specialized bullion dealers, coin shops, or online marketplaces.
How does the price of gold affect gold coin values?
The value of gold bullion coins is closely tied to the current market price of gold, known as the spot price. As the price of gold fluctuates, so does the value of gold coins. Numismatic and semi-numismatic coins may also be affected by gold prices, but their value is more influenced by rarity, condition, and historical significance.
Are gold coins a good option for short-term investments?
Gold coins can be a good option for short-term investments if you are knowledgeable about the gold market and current economic conditions. However, due to the premiums over the spot price and potential market volatility, gold coins are generally considered a more stable long-term investment.
How do I store and insure my gold coin collection?
Gold coins should be stored in a secure location, such as a safe deposit box at a bank or a home safe. For insurance, you can add a rider to your homeowner’s insurance policy or obtain a separate policy specifically for valuable items like gold coins. Ensure that your insurance policy covers the full value of your collection.
What impact do market conditions have on gold coin investing?
Market conditions can significantly impact gold coin investing. Economic uncertainty, inflation, and currency devaluation typically increase demand for gold, potentially raising gold coin prices. Conversely, a strong economy might lead to less demand for gold as an investment.
Is it better to invest in gold coins or gold bars?
The choice between investing in gold coins or gold bars depends on your investment goals. Coins are better for those interested in collectability and legal tender value, while bars typically have lower premiums over spot price and may be preferable for those focusing purely on the gold content and investment.
How do I sell my gold coins when I want to cash out?
To sell your gold coins, you can approach coin dealers, precious metal exchanges, online marketplaces, or auction houses. It’s important to research the current gold price and get multiple quotes to ensure you receive a fair price for your coins.
“The inclusion of ITIN loans in our diverse mix of products for homebuyers gives creditworthy, tax-paying customers a unique opportunity to realize their dream of homeownership,” Greg Austin, executive vice president of lending for CMS, said in a media release. “Our ITIN program demonstrates Carrington’s commitment to the unique financial needs of non-US citizens and … [Read more…]
Mortgage rates inched higher last week ahead of the Federal Reserve’s Federal Open Markets Committee on Wednesday and the national jobs report on Friday.
HousingWire’s Mortgage Rates Center showed the average 30-year fixed rate for conventional loans at 7.57% on Tuesday, slightly below the rate on Monday, which was the highest level seen this year. The 30-year rate was up from 7.48% one week earlier. At the same time one year ago, the average was 6.59%.
The 15-year fixed rate averaged 6.77% on Tuesday, up from 6.74% one week earlier.
“The economic data has been solid, GDP growth looks good in Q2, and it’s jobs week,” HousingWire lead analyst Logan Mohtashami said. “The Fed’s employment wage index still shows good wage growth. People are anticipating a more hawkish Fed at tomorrow’s meeting.”
As of April 26, there were 556,000 single-family homes on the market, up 2.4% from the previous week, according to data from Altos Research. About 13,000 additional properties were added to the market during the previous week. Unsold inventory was nearly 32% higher than at this time last year and 90% higher compared to the end of April 2022.
“The weekly volume of new listings is now higher than at anytime last year,” Mike Simonsen, founder and president of Altos Research, wrote on Monday. “It’s still April, so there could be as many as eight more weeks of seller growth in the spring housing market. And seller growth is happening pretty much everywhere across the country, with Florida and Texas leading the way.”
There are two ways to interpret this rise in inventory, according to Simonsen. The bearish take would be to highlight the fact that there are more sellers than buyers, which could lead to a decline in home prices in the near future. On the more bullish side, more inventory could result in more sales. In addition to a higher number of new listings, there were also more new contracts started this week than in any week in 2023.