For the past decade or so, it seems gold and brass have been the metals of the moment in the interior design world, closely aligned to the fashion cycle that’s placed them at the forefront. But the tides could be turning. With 2000s fashion having a full-circle moment, so are the cool steely tones of the early aughts and late ‘90s, paving the way for a prominent silver home decor trend.
“Silver and gold like to fight for the spotlight every year, and this year, silver has won,” says Bethany Struble, lead designer at Totum Home. She explains that this recent victory is a direct correlation to runway shows of recent seasons — think the silver brooch trends that dominated the Fall/Winter 2024 runways of Miu Miu, Chanel, and Tory Burch and the silver statement necklaces and earrings seen at Prabal Gurung and Carolina Herrera, respectively — that now has consumers embracing the shimmering silver tones.
Although silver may have once been associated with wealth and status, Struble says, this time around, it feels a bit more casual and approachable compared to gold (especially if you lean toward shiny finishes) and this modern take on the metal has more of a laidback edge to it.
“I think it connotes something futuristic,” says Alex Bass, an interior designer, art curator, and founder of Salon 21, a fine art and interior design studio, drawing comparison to the decor of the Space Race era of 1950s and 1960s, which had a silver-clad, futuristic look.
Embracing this trend is all about incorporating subtle accents that can elevate your space through their shimmering finish. From accent lighting to shelving, here’s how Bass and Struble say to embrace the classic metal.
How To Decorate With Silver Pieces
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Small Touches
When trying new trends, it always helps to start small. Bass says one of the best ways to dip into silver aesthetics is to add small touches here and there, whether it be through barware, picture frames, planters, or even accent lighting. “I love adding a silver table lamp to a space — it creates a visual interest without being too much,” Bass notes.
Add Dimension Through Shelving
“Silver is also reflective, so it’s a fun way to add dimension to a space,” Bass explains. To up the ante on dimension while still keeping things subtle, she recommends adding silver etageres to your space or using similar-looking items like side tables or even serving trays as decor items.
Mirrors
Accent mirrors automatically have a silver touch to them, so they’re an easy way to add this cool metallic tone to your space. Bass says to take this a step further and choose mirrors with silver frames. “Having a silver border makes it more decorative,” she explains, noting that mirrors also help a space appear larger. You can also incorporate more metallic tones in your wall art through framing. (And, if you do go for a silver frame, be sure to include a silver picture light to elevate the finished piece.)
Cabinet Knobs & Drawer Pulls
Your cabinets and dresser drawers are another easy way to lean into a trend. To add more silver tones to your space, Struble recommends swapping out your cabinet knobs and drawer pulls for the cool-toned metallic.
Mixing Metals
Decorating with silver doesn’t mean you need to swap out all of your gold and brass accents. Instead, finding a balance between the various tones can be chic — just like it is with your jewelry.
“Mixing metals is easier than you might think,” says Struble. Since silver has a more neutral tone, it’s easy to pair with most other metal finishes, and you don’t have to think too hard to create a balance — not just in metallics but in your overall decor look. “Silver and gold together open up a lot of opportunity to style with warm and cool tones in the same space,” Struble explains.
When decorating with mixed metals, Bass recommends finding pieces that you love and that fit the same aesthetic to ensure they pair together seamlessly, even if they have different tones. And, if you want to embrace the current style without it feeling too trendy, she says to look for vintage brass and silver pieces at antique malls and thrift stores for a more timeless look that will never go out of style.
Your 40s can be a pivotal decade in your life. It’s typically a time of peak earnings, growing family responsibilities, and an increased focus on long-term financial stability. You may have a house, kids, and a busy job. College expenses may be looming. Maybe you’re hatching a plan to start your own business or buy a beach house that’ll one day be your empty-nester home.
To navigate these years successfully, it’s essential to make strategic financial moves that can secure your future and make your plans and dreams a reality. Here are some critical financial planning tips to consider as you move through your 40s.
7 Financial Moves to Make During Your 40s
In your 40s, you’re old enough to know what you want and likely have enough earning years ahead to achieve your goals — if you manage your money right. The following strategies can help you build wealth in your 40s.
1. Maintain or Replenish Emergency Funds
Life is full of unexpected twists and turns. Not all of them are fun, such an expensive car or home repair, a medical emergency, or losing your job. An emergency fund offers financial stability during a stressful time. It also saves you from running up expensive debt that could derail your financial goals.
A general rule of thumb is to have six to 12 months’ worth of living expenses stashed away for the unexpected. If you already have an emergency fund but it has been partly or fully depleted, you’ll want to prioritize replenishing it to maintain financial security.
Consider setting up automatic transfers into savings to build your emergency fund consistently. Keep these funds in a liquid, easily accessible account, such as a high-yield savings account, to ensure you can access the money quickly when needed.
2. Manage Your Debt
Debt management is a crucial aspect of financial planning at any age, but it becomes even more critical in your 40s. Since high-interest debts, like credit card balances, can significantly hinder your ability to save and invest for the future, you’ll want to prioritize paying them off as quickly as possible.
One strategy that can help is the avalanche payoff method. Here, you list your debts in order of interest rate from highest to lowest, then put extra money toward the highest-interest debt, while continuing to pay the minimum on the others. Once that debt is paid off, you put your extra funds toward the debt with the next-highest rate, and so on.
Alternative approaches to paying down high-interest debt include getting a low- or no- interest balance transfer credit card or taking out a personal loan for debt consolidation with a lower rate than you are paying on your cards.
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3. Revisit Retirement Saving
In your 40s, you’re roughly at the midpoint between entering the workforce and traditional retirement age. How you invest and save for retirement at this point in your career can strongly impact your future assets and ability to one day retire comfortably.
If you’re not currently contributing to a retirement plan, such as a 401(k) or individual retirement account (IRA), now’s a good time to start. If you have been, it’s time to assess your progress. Consider how much of a nest egg you will need to retire and, using an online retirement calculator, whether your current plan will get you there.
If you’re behind on your savings, consider stepping up your contributions or, if you’re already contributing the max allowed, making “catch-up” contributions down the road. Starting at age 50, the IRS allows higher maximums designed to help people catch up on their retirement savings goals.
4. Plan for Childrens’ College Expenses
If you have kids, planning for their future education expenses may be top of mind. College costs continue to rise, and early planning can alleviate future financial stress. If you haven’t started saving for college expenses, you may want to explore opening a 529 college savings plan, which offers tax advantages and can be a flexible way to save for educational expenses.
An online college cost estimator can help you determine how much you need to stash away each month or year, based on the year your child will likely attend college and the type of school they might choose.
Just keep in mind that it’s important to balance college savings with other financial goals, like retirement. As kids get closer to leaving the nest, you may also want to encourage them to apply for scholarships and grants, and explore financial aid options.
5. Choose or Reevaluate Insurance Coverage
Insurance is an important component of financial planning in your 40s. You’ll want to evaluate your current insurance coverage and make sure it’s adequate to meet your family’s needs. This includes not only health and home insurance, but also life and disability insurance.
Life insurance provides financial security for your family should you die prematurely. If you don’t currently have a life insurance policy, consider purchasing one. If you do have one, you’ll want to make sure your policy’s coverage amount is sufficient to cover your family’s current living expenses, outstanding debts, and future financial needs, such as college tuition for your children.
It’s also a good idea to review your disability insurance, which protects your income if you’re unable to work due to illness or injury. Many companies provide a policy through work. However, you may want to consider supplementing employer-provided coverage or, if you’re self-employed, getting your own policy. This offers a different, but equally important, safety net for you and your family.
Recommended: Which Insurance Types Do You Really Need? Here Are 6 to Consider
6. Invest Outside of Retirement
While retirement accounts are crucial, investing outside of retirement can diversify your portfolio and help you achieve goals that may be five or 10 or more years away, such as a downpayment on a vacation home or a child’s wedding.
Though investing carries risk and can be volatile in the short term (which is why you generally don’t want to invest funds you’ll need in the next few years), an investment account has the potential to grow more than other types of accounts over the long term. Consider taxable investment accounts that align with your risk tolerance and financial objectives.
7. Meet with a Financial Professional
Getting expert advice on managing your finances can be invaluable at this stage of life. Whether you opt for regular meetings or simply go for a one-time consultation, a financial professional can provide valuable insights and help you navigate complex financial decisions.
An advisor will typically look at your whole financial picture and assist you with creating a comprehensive financial plan. This may include optimizing your investment strategy and ensuring you’re on track to meet your goals, including retirement, investments, and college savings.
The Takeaway
It’s never too late to take control of your finances. In your 40s, you are likely entering your prime earning years, so it’s a good time to focus on paying down debt, preparing for the next chapter of your children’s lives, and saving and investing for your future retirement. With some wise money moves, you’ll be set to make the most of this decade and beyond.
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FAQ
What financial goals should a 40-year-old have?
Ideally, a 40-year-old will want to focus on several financial goals. These include:
• Establish or maintain an emergency fund with three to six months’ worth of essential living expenses.
• Reduce financial burdens by paying off high-interest debt.
• Ensure you’re on track with retirement savings by maximizing contributions to retirement accounts.
• Start or continue saving for children’s college expenses through plans like 529s.
• Consider investing outside of retirement to diversify your portfolio and build wealth.
How much should a 40-year-old have saved?
By age 40, financial advisors often recommend having three times your annual salary saved for retirement. This benchmark ensures you’re on track to meet long-term financial goals and maintain your desired lifestyle in retirement.
In addition, you’ll want to maintain an emergency fund with three to six months’ worth of living expenses.
Savings outside of emergency and retirement, such as investments in taxable accounts, can further enhance financial security. The exact amount can vary based on individual circumstances, income, lifestyle, and future goals.
How can I build my wealth in my 40s?
To build wealth in your 40s, you’ll want to focus on several strategies:
• Maximize retirement account contributions, taking full advantage of employer matches.
• Pay off high-interest debts to free up resources for savings and investments.
• Establish or maintain an emergency fund to cover unexpected expenses without derailing financial goals.
• Consider additional income streams, such as side businesses or rental properties.
• Diversify investments across stocks, bonds, real estate, and other assets to balance risk and growth potential.
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Several days ago, we were debating whether the presidential debate or the month-end/new-month trading environment was the bigger market mover. The political angle was more popular in the analytical community, but evidence is increasingly suggesting that popularity wasn’t necessarily warranted. Today offered some compelling evidence in the form of absolutely no reaction to a widely circulated newswire that seemed to suggest Biden having second thoughts about remaining in the running. Contrast that to the immediate and obvious reaction to the ISM Services data, which made for the highest Treasury trading volume since PPI and jobless claims data on June 13th. Data will remain in focus when markets return from the holiday break on Friday morning thanks to non-farm payrolls.
ADP Employment
150k vs 160k f’cast, 157k prev
08:39 AM
Flat overnight and stronger in early trading. MBS up 1 tick (0.03). 10yr down 2.6bps at 4.406
01:40 PM
Drifting sideways after strong reaction to weak ISM data. MBS up about a quarter points and 10yr down 8bps at 4.352
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A federal court on Sunday lifted an injunction that blocked lower student loan bills for borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plan. Meanwhile, an injunction in a separate lawsuit still blocks SAVE loan forgiveness. The lawsuits impact up to 8 million borrowers enrolled in SAVE, accounting for roughly 1 in 5 Americans with outstanding federal student loans.
Lower student loan payments for SAVE borrowers with undergraduate loans can proceed starting in July.
Accelerated 10-year loan forgiveness for SAVE borrowers with $12,000 or less in principal loan debt is still on hold.
All other components of the SAVE plan remain in place, including protection against interest accrual.
Some borrowers entitled to lower payments will have no student loan bill in July, as student loan servicers recalculate lower monthly payments.
“As the Department of Justice continues to vigorously defend the SAVE Plan, President Biden, Vice President Harris, and I remain committed to our work to fix a broken student loan system and make college more affordable for more Americans,” said Secretary of Education Miguel Cardona in a statement on Monday.
Neither of these rulings are final decisions, so the situation could change.
“There’s still a lot of chaos, and borrowers have experienced a lot of whiplash over the last week,” says Persis Yu, the Student Borrower Protection Center’s deputy executive director and managing counsel.
The Education Department and servicers will share updates directly with borrowers. Log in to your servicer’s online portal to view the latest information about your monthly payment amount. For updates about the ongoing SAVE lawsuits, go to StudentAid.gov and subscribe to the Education Department’s email list.
What’s still happening: Lower SAVE payments, other benefits
As a result of the latest ruling, the Education Department has directed servicers to move forward with the July 1 SAVE plan changes.
Most significantly, borrowers with undergraduate loans will see their monthly SAVE payments cut by as much as half, from 10% to 5% of their discretionary income. So if you have a $400 SAVE bill, that could shrink to $200. Borrowers who enroll in SAVE for the first time can also get the new lower payment.
Other SAVE benefits can also proceed:
Borrowers enrolled in SAVE will receive automatic forgiveness credit for forbearances and deferments.
Borrowers enrolled in SAVE will be allowed to make additional “buyback” payments to get credit for most other periods of deferment or forbearance that don’t qualify for automatic credit.
Borrowers deemed at risk of default will be enrolled automatically in SAVE.
Payments made before consolidation will count toward forgiveness.
The latest ruling isn’t a final decision. There’s not yet a briefing schedule for this case, Yu says, so it’s not clear when future rulings could happen.
What’s on hold: Accelerated SAVE forgiveness
On June 24, a Missouri judge issued an injunction blocking the Education Department from forgiving small principal student loan balances ($12,000 or less) in 10 years under the SAVE plan. This is the most generous income-driven repayment (IDR) forgiveness timeline — other IDR plans forgive debt after 20 or 25 years of payments, regardless of the amount borrowed.
This injunction still stands as of July 2, though it’s not a final decision. Updates could come in August, when legal briefs in the case are due, Yu says.
The Education Department began rolling out the accelerated 10-year SAVE forgiveness in February. As of mid-May, the department had approved about $5.5 billion worth of student debt forgiveness for 414,000 SAVE borrowers with lower principal balances. SAVE forgiveness that borrowers have already received isn’t at risk, Yu says.
The injunction doesn’t impact the 20- or 25-year forgiveness timeline for SAVE borrowers who took out over $12,000.
What the lawsuits mean for borrowers
Reach out to your servicer if you have questions about your situation. While the lawsuits continue through federal courts, here’s how you could be impacted.
If you already have $0 payments
If you have a low enough income (about $32,800 as an individual or $67,500 as a family of four) to qualify for $0 SAVE payments, nothing has changed. You continue with $0 payments and keep earning credit toward IDR forgiveness and Public Service Loan Forgiveness (PSLF).
If you have a bill for July
If your servicer sent you a bill for July, make the payment as scheduled. This bill may reflect a new lower payment amount if you have undergraduate loans.
If your servicer emailed you in early or mid-June about a July forbearance
Before the rulings, servicers emailed some SAVE borrowers in June about a temporary administrative forbearance related to payment recalculations. The email’s subject line was, “Your Student Loans Have Been Placed into A Forbearance,” according to a copy of the email reviewed by NerdWallet.
If you got this email, you won’t owe a July payment. No interest will accumulate during July, and you’ll get credit toward forgiveness under IDR or PSLF. Your bills will resume in August, with a smaller amount if you have undergraduate loans.
If you were notified last week about a forbearance related to the lawsuits
Servicers put a small group of borrowers into forbearance last week as a result of the court rulings, the Education Department said. These borrowers don’t owe a July payment. Bills will resume in August.
If you want to sign up for SAVE
Borrowers can still sign up for SAVE and any other IDR plan.
However, the Education Department pulled down its online applications for IDR plans and loan consolidation on Friday, and began directing borrowers to submit PDF applications to their servicers.
The department changed course on Monday after the latest ruling allowing lower payments to proceed and said it would reinstate online applications by Monday afternoon. However, the applications on studentaid.gov/IDR and studentaid.gov/loan-consolidation/ remain inaccessible as of Tuesday evening.
Borrowers who want to consolidate and/or apply for an IDR plan immediately should continue mailing in PDF applications. Otherwise, consider waiting a day or two until the online application is restored.
High mortgage rates mean affordability is still “stretched” for many home buyers, according to the Nationwide.
The building society said that while earnings had been rising faster than house prices in recent years, this had not been enough to offset the impact of more expensive mortgages.
Its comments came as it said house price growth had been “broadly stable” in June, with prices up 0.2% from the previous month.
The average house price is now £266,064, the lender said.
Prices were up 1.5% from a year earlier, but Nationwide said activity in the housing market had been “broadly flat” over the past 12 months, with transactions down by about 15% compared with 2019.
The lender said the market was still being affected by the increase in mortgage rates, which started climbing after the Bank of England began to raise its key interest rate in late 2021.
Robert Gardner, Nationwide’s chief economist, said that mortgage rates are “still well above the record lows prevailing in 2021 in the wake of the pandemic”.
“For example, the interest rate on a five-year fixed rate mortgage for a borrower with a 25% deposit was 1.3% in late 2021, but in recent months this has been nearer to 4.7%.
“As a result, housing affordability is still stretched.”
Nationwide’s figures are based on the building society’s own mortgage lending, which does not include buyers who purchase homes with cash, or buy-to-let deals. Cash buyers account for about a third of housing sales.
The impact of higher borrowing costs can be seen in the fact that transactions involving a mortgage are down by nearly 25% over the past year, Nationwide said.
Meanwhile the number of cash transactions for properties is about 5% higher than pre-pandemic levels.
Across the UK, Northern Ireland saw the biggest price increases, up 4.1% from a year earlier.
Wales and Scotland both saw a 1.4% annual rise. Prices in England climbed by 0.6%, with northern regions seeing bigger increases in general than the south.
Despite some major lenders cutting their mortgage rates last week, home loan costs remain far higher than pre-pandemic levels.
According to financial information service Moneyfacts, the average rate on a two-year fixed mortgage deal stands at 5.95%, while for a five-year deal the average is 5.53%.
The focus is now on the Bank of England’s Monetary Policy Committee (MPC), which sets interest rates, to see if it decides to cut at its next meeting on 1 August.
June’s MPC meeting saw a change in tone from policymakers, with suggestions that the Bank could vote for a rate cut next month.
“Buyers may find their mojo again when we get a rate cut from the Bank of England,” said Sarah Coles, head of personal finance at Hargreaves Lansdown.
“This could come as early as August, although sticky services inflation and higher wages could mean we need to wait until the autumn.
“Either way, we’re not expecting massive overnight drops in mortgage rates, so the reaction is more likely to be a muted upturn in sentiment than an overwhelming wave of optimism.”
Last week, the Bank said that about three million households are set to see their mortgage payments rise in the next two years.
These are homeowners who arranged mortgage deals before the Bank started to lift rates in 2021.
These deals are now expiring, and the Bank said the majority will finish before the end of 2026.
For the typical household looking for a new deal, monthly mortgage repayments are forecast to increase by about £180, or about 28%, the Bank said.
However, for around 400,000 households, monthly payments could jump by 50% or more.
Bank of England figures released on Monday showed a small fall in the number of mortgages approved in May, down to 60,000 from 60,800 in April.
However, the data also showed the amount borrowed through mortgages dropped sharply to £1.2bn in May, from £2.2bn the month before, although this does not include those remortgaging with the same lender.
Ways to make your mortgage more affordable
Make overpayments. If you still have some time on a low fixed-rate deal, you might be able to pay more now to save later.
Move to an interest-only mortgage. It can keep your monthly payments affordable although you won’t be paying off the debt accrued when purchasing your house.
Extend the life of your mortgage. The typical mortgage term is 25 years, but 30 and even 40-year terms are now available.
Little Rock, Arkansas, is a city rich in history and culture, with each of its neighborhoods offering a unique charm and distinct lifestyle. The city has so many hidden gems, vibrant neighborhoods, and stunning seasons that it’s no wonder about 203,000 residents live here. In Little Rock, you’ll find that the average rent for a one-bedroom apartment is $868. If you’re looking to rent an apartment in Little Rock, you’re in the right place. We’ve gathered a list of the 7 most expensive Little Rock neighborhoods to rent an apartment in this year.
7 Most Expensive Neighborhoods in Little Rock
From historic luxury in the Heights to the midcentury charm of Boyle Park, there are plenty of exciting neighborhoods in Little Rock. Whether you’re looking for a luxurious home to rent in Little Rock or wondering where to live in the city, we’ve got you covered.
1. Heights 2. Capitol View – Stifft Station 3. Rock Creek 4. Downtown 5. River Market 6. Boyle Park 7. Parkway Place
Let’s jump in and see what these neighborhoods have to offer.
1. Heights
Average 1-bedroom rent: $1,217 Apartments for rent in Heights
Heights is the most expensive neighborhood in Little Rock, as the average rent for a one-bedroom unit is $1,217. This upscale area stands out for its picturesque, tree-lined streets and historic charm, boasting beautifully preserved early 20th-century homes alongside elegant modern residences. The Heights is known for its boutique shopping and dining, with local favorites like Heights Taco & Tamale Co., offering a unique twist on Southern cuisine, and Eggshells Kitchen Co., a specialty kitchen store that attracts cooking enthusiasts. Residents enjoy the serene Allsopp Park, a local gem with hiking trails, picnic areas, and tennis courts, providing ample outdoor recreation within walking distance. The Heights also features a vibrant social scene with art galleries, local coffee shops like Boulevard Bread Company. Getting around is convenient, with well-maintained sidewalks promoting a walkable lifestyle, and the neighborhood’s proximity to downtown allows for quick commutes by car or public transit.
2. Capitol View – Stifft Station
Average 1-bedroom rent: $975 Apartments for rent in Capitol View – Stifft Station
Capitol View – Stifft Station in Little Rock is a distinctive neighborhood known for its eclectic charm and historic character. The streets are lined with a mix of Craftsman bungalows and early 20th-century homes, creating a picturesque and inviting atmosphere. A standout attraction is the White Water Tavern, a beloved local music venue that hosts a variety of live performances and community events. Residents also enjoy the neighborhood’s proximity to the Arkansas River Trail, offering scenic routes for biking and walking. Public transportation is convenient, with several Rock Region Metro bus routes providing easy access to downtown and other parts of the city.
3. Rock Creek
Average 1-bedroom rent: $960 Apartments for rent in Rock Creek
With an average one-bedroom rent of $960, Rock Creek is the third most expensive neighborhood in Little Rock. The area is distinguished by its lush, wooded landscapes and well-maintained residential streets, creating a serene suburban atmosphere. The neighborhood is home to the beautiful Rock Creek Park, which offers extensive walking trails, playgrounds, and picnic areas, making it a favorite spot for families and outdoor enthusiasts. A highlight of the community is the Chenal Country Club, providing residents with a premier golfing experience and various social activities. Rock Creek boasts a variety of local eateries, like Maddie’s Place, where residents can enjoy Southern cuisine in a cozy setting. Getting around Rock Creek is convenient with easy access to major roads like Chenal Parkway, facilitating quick commutes to other parts of Little Rock.
4. Downtown
Average 1-bedroom rent: $922 Apartments for rent in Downtown
Downtown is the next most expensive neighborhood in Little Rock. The neighborhood is characterized by a mix of beautifully restored historic buildings and sleek, contemporary developments, creating a visually engaging streetscape. Key attractions include the Arkansas Museum of Fine Art, which offers world-class exhibitions and performances, and the Historic Arkansas Museum, showcasing the state’s rich heritage. Residents and visitors enjoy the Riverfront Park, a scenic area along the Arkansas River with trails, sculptures, and the iconic Junction Bridge pedestrian crossing. Getting around downtown is convenient, with the Rock Region METRO streetcar system offering easy access to key areas, along with well-maintained bike lanes and pedestrian-friendly streets encouraging walking and cycling.
5. River Market
Average 1-bedroom rent: $922 Apartments for rent in River Market
The River Market neighborhood of Little Rock stands out with its bustling streets and vibrant atmosphere, characterized by a mix of modern apartments and historic buildings. The area is home to the River Market Pavilion, a hub for local farmers and artisans offering fresh produce, handmade crafts, and delicious street food. Cultural attractions such as the Arkansas Museum of Discovery provide interactive exhibits that engage both children and adults, while the nearby Clinton Presidential Center offers insights into American history and politics. Residents and visitors enjoy scenic walks along the Arkansas River Trail, which provides stunning views of the river and skyline. Transportation within River Market is convenient, with the Rock Region METRO streetcars offering a charming and efficient way to navigate the neighborhood and connect to other parts of the city. The lively nightlife, art galleries, and annual events contribute to the unique appeal of the River Market, making it a standout neighborhood in Little Rock.
6. Boyle Park
Average 1-bedroom rent: $915 Apartments for rent in Boyle Park
Next up is Boyle Park, the sixth most expensive neighborhood in Little Rock. The centerpiece of the area is Boyle Park itself, a sprawling urban oasis featuring winding trails, picnic spots, and a serene creek that attracts nature lovers and families alike. The neighborhood is characterized by charming mid-century homes and cozy bungalows, giving it a welcoming and nostalgic feel. Local attractions include the War Memorial Stadium and the Little Rock Zoo, both just a short drive away, offering entertainment and recreational activities. Residents primarily get around by car, but the well-maintained bike lanes and pedestrian-friendly streets also encourage walking and cycling.
7. Parkway Place
Average 1-bedroom rent: $908 Apartments for rent in Parkway Place
Located west of downtown, Parkway Place is the next neighborhood on our list. One standout feature is the neighborhood’s proximity to the beautiful Boyle Park, where residents can enjoy hiking trails, picnicking areas, and a scenic creek. The community is also home to War Memorial Stadium, a historic venue hosting local sports events and concerts, adding a lively atmosphere to the area. Local dining gems like Trio’s Restaurant offer residents gourmet meals with a focus on fresh, seasonal ingredients. Getting around Parkway Place is convenient, with easy access to the Interstate 630, providing quick routes to downtown and other parts of the city. Additionally, the neighborhood’s pedestrian-friendly design and bike lanes make it easy for residents to enjoy a walk or bike ride to nearby attractions and amenities.
Methodology: Whether a neighborhood has an average 1-bedroom rent price over the city’s average. Average rental data from Rent.com in June 2024.
Inside: The answer is so obvious! Stop the assumptions with the 3 percent or 4 percent rule of retirement. Learn how much money to save for retirement today.
We all know that saving money for retirement is something we should do.
Maybe you are contributing the minimum to your 401K through work to get the match. Possibly saving money in a Roth IRA.
But, are you truly saving enough for retirement?
More than likely not.
Don’t feel like you are alone. According to a new study, only half of households actually have money saved in retirement accounts. The good news for those who have saved is the dollar amount saved for retirement has been increasing in the past 10 years.
Here is the real reason you don’t save for retirement… you have absolutely no clue how much money you need to be saved to retire.
You have tried to use all of the online retirement calculators from all of the big companies. Your results are millions of dollars different. You have no clue where to start, or what to believe.
And then you just get unmotivated because you’re like there’s absolutely no way I can make that dollar amount work.
So, What is Our Retirement Number
Personally, I completely get it this is a conversation. My husband and I have had it for years.
What is our retirement number?
What amount do we need to retire with?
And honestly, even can I actually save that much before I am too old to work?
It is all a complete unknown, it is a best-guess scenario.
There is absolutely no way for you to truly understand how much you need because there are so many things that go into it, including inflation, your savings rate, your withdrawal rate, and your anticipated expenses. So there’s a lot of variables and that’s when the variables get too confusing you don’t know which way to start.
One Guaranteed Truth…
The financial advisors believe they are the know-all-be-all with their calculations while charging you an asset management fee that is putting a drag on your overall portfolio.
And then October 27, 2020, Bill Bengen announced that instead of using the 4% rule is outdated, and now you can use a 5% rule. (Bill Bengan is a financial advisor who made the 4% rule of thumb famous 25 years ago.) So, this latest information just throws a curveball into everything that has previously been used for the past 25 years, and now you’re left wondering…
Well, I have no idea what is the proper amount I need to save for retirement.
Do you know what the amount that you need to save for retirement is?
So, let’s dig in for a little bit and we’re gonna talk about the three different percentages that are talked about the most. It’s the 3% rule, the 4% rule, and the 5% rule is one better than another. We’ll debate that and shortly.
How does Withdrawal Rate work?
But first of all, you have to realize that not everything works the way you want, so let’s show some examples before we dig into the specifics of the different rules.
Basically, the whole concept is if you save $1 million and you start withdrawing either 3%, 4%, or 5%. That withdrawal amount is the amount of income that you would live on each and every year, while the rest of your portfolio is continuing to grow and increase in value.
The ultimate, perfect-scenario goal is that you would withdraw as much as you possibly could without depleting the portfolio.
Withdrawal Rate Example:
Here are the assumptions:
Plan to spend $50,000 a year
7% rate of return on your money
Age doesn’t matter and not accounting for taxes or inflation (we want to keep this simple)
The amount you would need to save based on each of the withdrawal rates:
3 percent rule, you would need: $1,666,667
4 percent rule, you would need: $1,250,000
5 percent rule, you would need: $1,000,000
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
The Withdrawal Rate Confusion
In our example, we used simple calculations that don’t account for age, taxes, or inflation and the amount you need to save for retirement is $666,667 different.
The numbers are too much for the average person to understand and have faith in.
This is why the confusion on how much to save for retirement and what model and which retirement calculator is the best.
Shortly, we are going to give you the simple answer of how much to save for retirement. But, first, a little background on the various percent rules for retirement.
3 Percent Rule
The 3% rule has gotten very popular with the FIRE movement.
The FIRE movement is Financial Independence Retire Early.
Because most of these people aren’t looking at retiring in the normal typical retirement age of 60s, they’re looking to retire in their 30s or 40s. They feel like they need to be super conservative because they are trying to estimate how much they need each month to live off their money for possibly the next 50 years.
That’s a lot of variables that you have to take into account.
The good news is you can always learn and figure out ways to make money in retirement so it’s not a complete waste, you can always go back to work because you are younger, and have youth on your side. So, is 3% a safe withdrawal rate?
The golden advice is you want to plan for the worst but hope for the best. The goal is that 3% would cover all of your necessities and basic expenses.
4 Percent Rule
Is the 4 percent rule viable?
The 4 percent rule of retirement was made famous by Bill Bengen 25 years ago (and just recently he said that number is outdated.)
The assumptions were if you withdraw 4% of your investment account every year, you will still have enough to live on throughout retirement.
This was based on what has happened in the markets, accounted for inflation, and the age you want to retire. He conducted many possible case scenarios and concluded that by only withdrawing 4 percent will make sure your money lasts. That is why it has been what is called a golden rule for retirement.
How long will my money last using the 4% rule? If you do all the calculations, it should last for at least 30 years. Obviously, you are looking at many variables of the stock market doing well and your living expenses staying low. Once again, the other big factor is what inflation will do in the future.
So, is the 4% rule that much better?
5 Percent Rule
And then, October 2020 rolls in. The breaking news is that Bill Bengen announced the 4 percent rule for retirement is too conservative and now you can actually use 5%.
So, that leaves the average person going… Okay. My head is spinning. I’m not sure how much I need to save for retirement. What is a good number?
Can I safely withdraw 5% of my investment accounts and still have enough money? That means I need less money to retire.
This is where people quit investing and saving for retirement becomes too hard.
Real truth from real people
Can you Overcome Why Most People don’t save for Retirement?
There are too many variables, there are too many unknowns, and they don’t understand how it all works.
That is the real reason people don’t save for retirement.
I get it. I’m there with you. I feel it. I hear it from readers. But, we are going to break down some of the key items so that way you know how much you need for retirement.
And just remember, even if you messed up your numbers, the market went down, or you want to spend more in retirement than you are, then you could always go back to work. Even better, learn how to make money online for beginners, pick up a side hustle, make a little bit of extra money, and actually do something that you truly enjoy doing.
Learn how much money should I have saved by 30.
How Much do I need to Retire?
The simple answer… aim for $1,000,000 in investment accounts.
You may be able to aim lower depending on some variables which we cover shortly.
Investment accounts can include any of the following:
401K
Roth IRA
IRA
HSA (health saving account)
Brokerage Accounts
High-interest bank accounts
Real estate
You want accounts with liquidity. Things that can be bought and sold for cash. Those are the assets we are counting on how much to retire with.
Don’t use equity in your house because you need a place to live. If you want to use equity, that is fine, but your calculations just become slightly more difficult. We want simplicity.
Right now, your money goal is to reach $1,000,000 in investment accounts. Specifically in liquid net worth.
(Of course, this number may be lower if you live in a low cost of living area, plan to move with overall lower costs or another country, or have good options with lower health care costs. There have been plenty of people who retired with less and love life.)
Based on these variables, you may just need $500,000 to retire. Or somewhere in that range.
Realistic Retirement Savings for Motivation
We shared what a realistic retirement savings amount of $1 million dollars is. Is your first reaction – yikes, there is absolutely no way I can reach that amount.
However, you can!
Just break it down into smaller chunks.
For instance, make your next goal to save $100,000. You do that 10 times and you hit that realistic retirement savings amount.
If that seems like a stretch, then break it down even further. To stay motivated you can strive to save $50K or even $20K.
Break it into bite-sized manageable pieces to help you save for retirement and stay on track.
Learn what happens if you don’t save for retirement.
Best Ways to Save for Retirement
This is the basics to start saving for retirement.
You already know much should you really save for retirement. Now, you just to need to do it.
Here is the safest way to save for retirement. First, open up one or all of these accounts (pending where you are on your money journey). Then, look at investing in S&P 500 Index funds. The most highly recommended index fund for beginners is VTSAX.
1. Contribute to 401K
This is the simplest way to start saving.
Make sure you are contributing at least the minimum to your employer’s 401K.
Every year you can contribute up to a maximum amount. In 2023, an employee can contribute $22,500 to their 401k (the employer is eligible to contribute as well for a combined amount not to exceed $66,000 or 100% of your compensation, whichever is less). For the latest contribution limits, check out the IRS site.
Each year, increase your percentage by 1%. A simple way to reach maxing out your 401K.
Pro Tip: Check if your employer offers a ROTH IRA option. These are becoming more and more popular with companies. A Roth 401K will let your money grow tax-free because you pay taxes when you contribute money. If they don’t offer one, pester the human resources department.
2. Open Roth IRA
The next best option is the ROTH IRA. You want to contribute to a Roth IRA because you pay taxes upfront rather than at withdrawal like a traditional IRA.
Since ROTH IRAs have tax advantages, there are also contribution limits set by the IRS. The contribution amounts have remained the same for a couple of years now. The annual contribution limit is $6,000 per year, or $7,000 if you’re age 50 or older.
The downside to Roth IRAs… the amount you can contribute may be limited based on your income and filing status. However, for the average American, you should be able to max out the amount you can save each year.
Learn if can you have multiple Roth IRAs as it may be a smart financial move.
Pro Tip: Even if one spouse is a stay-at-home parent, you can still contribute to a Roth IRA for the non-working spouse.
3. Health Savings Account
Say what? Yes, a health savings account is on the list as a way to save for retirement. It is a great way to grow your money tax-free going in and on withdrawals.
You must have a High Deductible Health Insurance Plan to open a health savings account.
This is something you want to do and contribute the maximum amount each year. For 2023, you can contribute $3,850 for individuals and $7,750 for family coverage. Typically, the limits go up $50 each year, which helps you save more every year.
Pro Tip: This account will stay with you even when you leave your current employer and insurance. Plus you can use the HSA funds forever – even to pay Medicaid premiums. (Hopefully, nothing changes on these tax-advantaged accounts).
4. Traditional Brokerage Account
The last avenue has no tax benefits, but you are still saving money to be used later. That is what really matters.
Since there are no tax advantages to these basic brokerage amounts, there also are no limits on how much you can contribute.
This is where you would save the remaining money after you exhausted all the other methods listed above.
Side Note…
Yes, there are other ways to save for retirement. For this post and the average investor, the above-mentioned accounts are a great place to start. Once you become savvier and want to invest more money, then you can look at back door IRAs, 529s, or whole life insurance.
Saved $1 million for retirement, Now What?
Once you reach that 1 million dollars retirement mark, congratulations!!
That is a huge milestone that many people never reach. So, what is the next step?
Now, that you are closer to finally being able to live off your investments, you must start to look at the retirement calculators more seriously and factor in all of those variables (age, taxes, and inflation). It is much easier to predict the future once you have built a solid nest age and are closer to living off your investments.
Everyone started the financial independence journey at a different age and will reach their million-dollar mark at different times.
For the average person, you know learned how to save for retirement. You know what you need to do and where to start.
In this post, we took out all of the confusion on how much to save for retirement. Don’t worry about is the 4 percent rule is viable – or if it should be the 3 percent rule or the new 5% rule. The assumptions and variables will hold you back from starting. You know the dollar amount to start with, move on with that.
This simple advice for hitting your first milestone is the motivation to keep you going. Along the way, you will become savvier with finances and investing.
When it is time to move to the question of “can I retire” at such and such age, you have already taken out many of the variables, and the decision becomes more and more clear.
Take steps to reach that $1000000 mark today.
Get ahead now…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Spot Bitcoin ETPs are a type of investment vehicle that seeks to track the spot price of Bitcoin. ETPs, or exchange-traded products, are a broader basket of investments that include both exchange-traded funds (ETFs) and exchange-traded notes (ETNs), and are listed on an exchange, and can be purchased or sold much like a stock.
But what’s critical to know is that generally, ETFs are regulated by the Investment Company Act of 1940 (the “1940 Act”). While the most common type of ETPs are structured as ETFs, not all are, and spot Bitcoin ETPs are a specific type of ETP that are not registered under the 1940 Act. As such, these ETPs are not subjected to the 1940 Act’s rules, and investors holding shares of Bitcoin ETPs may not or do not have the same protections as those that are regulated by the 1940 Act, which may mean these investments have relatively higher associated risks.
What Is a Bitcoin ETP?
As noted, Bitcoin ETPs are a type of exchange-traded fund or product that allow investors to gain exposure to Bitcoin without directly owning it. These seek to track the price of Bitcoin. That means when the price of Bitcoin in U.S. dollars goes up, a spot Bitcoin ETP, trading on the stock exchange should also see its share values go up, and vice versa.
But it’s critical to note that Bitcoin ETPs have a much narrower focus than most other exchange-traded funds, which started out with the aim of giving investors broad exposure to the stock market. But, like all investments, they have various risks associated with them. In fact, it’s possible that an investor could lose the entirety of their investment.
An Introduction to Bitcoin ETPs
Bitcoin ETPs are exchange-traded products that, effectively, allow investors to gain exposure to the crypto markets as easily as they would buy or sell a stock, as discussed. Again, a Bitcoin ETP seeks to track the price or value of Bitcoin, and so the value of a Bitcoin ETP share is designed to rise or fall in relation to the change in value of the underlying cryptocurrency.
It also means that investors don’t necessarily need to directly own Bitcoin to gain exposure to the market in their portfolio — they can invest in a security, the ETP, that seeks to track it, instead. Note, too, that all ETPs have related fees and expenses, which vary.
💡 Quick Tip: How to manage potential risk factors in a self-directed investment account? Doing your research and employing strategies like dollar-cost averaging and diversification may help mitigate financial risk when trading stocks.
Get up to $1,000 in stock when you fund a new Active Invest account.*
Access stock trading, options, auto investing, IRAs, and more. Get started in just a few minutes.
*Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.
What Are Spot Bitcoin ETPs?
Spot Bitcoin ETPs are investment vehicles that trade at “spot” value. “Spot” value, in this case, refers to the price of the underlying asset at any given time. So, if a buyer and seller come together to make a trade, they would do so at the spot price. There are spot markets for all sorts of commodities.
Where Can Investors Buy Spot Bitcoin ETP Shares?
Investors can buy spot Bitcoin ETP shares via numerous exchanges and platforms. While previously, investors interested in Bitcoin or other cryptocurrencies would need to trade on platforms that supported cryptocurrencies, since Bitcoin ETPs are exchange-traded vehicles, investors are likely to find them available on many other platforms — that includes SoFi, which allows investors to buy spot Bitcoin ETP shares as well.
Are There Other Spot Crypto ETPs?
Spot Bitcoin ETPs seek to track the price of a fund’s Bitcoin holdings, and other spot crypto ETPs, if and when they are approved and hit exchanges, will do the same.
Spot Bitcoin ETPs were first approved for trading by regulators in early 2024. There are ETPs that seek to track Bitcoin-exposed or Bitcoin-adjacent companies, too, as well as Bitcoin futures. Spot Ethereum ETPs could be similar vehicles to to spot Bitcoin ETPs, in that they would seek to track the price of Ethereum, and allow investors to gain exposure to Ethereum in their portfolios without owning it directly.
What Are Bitcoin Futures ETPs?
Bitcoin futures ETPs are another type of ETP that give investors exposure to the price movements of Bitcoin via futures contracts. Futures are a type of contract that dictates the terms of a trade at a future date, and typically have underlying assets such as precious metals or other commodities — including crypto.
Accordingly, Bitcoin futures ETPs are crypto futures ETPs that specifically seek to track Bitcoin futures contracts. Regulators approved Bitcoin futures contracts in 2021, but again, investors should know that they don’t seek to track the price or value of the underlying asset exactly — which differentiates them from spot Bitcoin ETPs.
💡 Quick Tip: Look for an online brokerage with low trading commissions as well as no account minimum. Higher fees can cut into investment returns over time.
Are There US-listed Spot Bitcoin ETPs?
There are U.S.-listed spot Bitcoin ETPs. When the Securities and Exchange Commission (SEC) first granted their approval in January 2024, it opened the door to several Bitcoin ETPs hitting the market. As a result, investors were able to start buying and selling them via the stock market.
The SEC’s approval led to new spot Bitcoin ETPs being listed on a few different exchanges. Here’s a list of the first 11 spot Bitcoin ETPs that gained approval from the SEC:
• Grayscale Bitcoin Trust (GBTC)
• Bitwise Bitcoin ETF (BITB)
• Hashdex Bitcoin ETF (DEFI)
• ARK 21Shares Bitcoin ETF (ARKB)
• Invesco Galaxy Bitcoin ETF (BTCO)
• VanEck Bitcoin Trust (HODL)
• WisdomTree Bitcoin Fund (BTCW)
• Fidelity Wise Origin Bitcoin Fund (FBTC)
• Franklin Bitcoin ETF (EZBC)
• iShares Bitcoin Trust (IBIT)
• Valkyrie Bitcoin Fund (BRRR)
Note, too, that it’s anticipated that additional spot cryptocurrency ETPs will become available.
How Are Bitcoin ETPs Regulated?
Bitcoin ETPs are regulated by the SEC, which sets out guidance in terms of legality. Regulation in the crypto space is and has been murky — it’s been largely unregulated for the entirety of the crypto space’s existence. But the advent of crypto ETPs is likely to change that to some degree, as spot Bitcoin ETPs’ underlying asset is and can be Bitcoin itself, rather than Bitcoin derivatives.
Remember, too, that Bitcoin ETPs are not regulated under the Investment Company Act of 1940, as discussed. That differentiates them from most ETFs on the market.
That’s another important distinction investors should note: Spot and futures Bitcoin ETPs may be regulated under slightly different terms, as futures are derivatives. Investors should pay attention to the space and to any SEC guidance released regarding crypto regulation, as it may impact the value of their holdings in crypto ETPs, too.
Pros & Cons of Bitcoin ETPs
Like all investments, there are pros and cons of ETFs and ETPs — including Bitcoin ETPs.
Benefits of Bitcoin ETPs
Proponents of Bitcoin ETPs appreciate that they can give investors exposure to the complicated and volatile cryptocurrency market, without the need to personally hold actual crypto.
Convenience and Ease
Buying a spot Bitcoin ETP requires little tech know-how beyond knowing how to use a computer, open a brokerage account, and place a buy order.
ETPs provide a way for investors to indirectly add exposure to certain assets — like Bitcoin, in this case — to their portfolio. That may result in a return on investment, or a possible loss of principal. On the other hand, holding actual Bitcoin may require a somewhat advanced level of technical expertise.
Secure Storage Options
Some cryptocurrency exchanges might be trustworthy, but some users have also had a controversial history of being hacked, stolen from, or defrauded. Even reliable exchanges open investors up to risk.
Securely storing cryptocurrencies — for example, storing the private keys to a Bitcoin wallet — is most often done by using either a paper wallet that has the keys written in the form of a QR code and a long string of random characters, or by using an external piece of hardware called a hardware wallet.
Risks of Bitcoin ETPs
First and foremost, investors should be aware that it’s possible that they could lose the entirety of their investment when investing in Bitcoin ETPs. There are, of course, other risks to consider as well, including volatility, costs, and the unpredictable and still largely-unregulated nature of the crypto market.
Volatility
The volatility comes from the occasional wild swings experienced in the price of Bitcoin and Bitcoin futures against most other currencies. This could scare investors that have a lower risk tolerance, enticing them to panic and sell.
Fees
One of the risks that comes from holding an ETP of any kind involves its expense ratio. This number refers to the amount of money a fund’s management charges in exchange for providing the opportunity for investors to invest in their fund.
If a fund comes with an expense ratio of 2%, for example, the fund management would take $2 out of a $100 investment each year. This figure is usually calculated after profits have been factored in, cutting into investors’ gains. In other words, some Bitcoin ETPs could be relatively expensive for investors to hold, but it’ll depend on the specific fund.
There can be other various types of fees that may apply to an investment in ETPs as well. While the specific fees will vary from ETP to ETP, investors will likely encounter one or a combination of commissions, account maintenance fees, exchange fees, and wrap fees (a type of management fee). Again, investors will want to look at an ETP’s prospectus or related documents to get a better sense of the costs associated with a specific ETP.
Fraud and Market Manipulation
Regulators have cited fraud and market manipulation as reasons for why they were cautious about approving a spot market Bitcoin ETP. It’s unclear how the SEC’s approval of spot Bitcoin ETPs may affect fraud and market manipulation in the crypto space, but it’s something investors should be aware of.
The Takeaway
Spot Bitcoin ETPs were approved for trading by the SEC in early 2024, and as a result, it’s likely that many more crypto ETPs will also hit markets and exchanges in the future — though nothing is guaranteed. Investors may use them to gain exposure to the crypto markets. For investors curious about the cryptocurrency market but not yet ready to invest in crypto itself, a Bitcoin ETP may represent another option. It may be best to speak with a financial professional before investing, too.
If you’re ready to bring crypto into your portfolio, you can invest in a Bitcoin ETP with SoFi. Along with many other types of investments, SoFi’s platform offers investors access to the crypto space through spot Bitcoin ETPs.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.
FAQ
What are the options for Bitcoin ETPs?
There are Bitcoin futures ETPs and spot Bitcoin ETPs listed in the U.S., which investors can buy. Given the SEC’s approval of Bitcoin ETPs for trading in early 2024, there may soon be additional spot crypto ETPs available to investors in the future.
Are there US-listed Bitcoin ETPs?
As of July 2024, there are U.S.-listed spot Bitcoin ETPs after the SEC approved an initial batch of them, and it’s likely there will be more in the subsequent months and years.
Where can Bitcoin ETP shares be purchased?
Crypto ETPs can be purchased and traded on the stock market, alongside other ETPs.
Photo credit: iStock/JuSun
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Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
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Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.
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Fair Lending Compliance, HELOC Products; Training and Events; FICO News
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Fair Lending Compliance, HELOC Products; Training and Events; FICO News
By: Rob Chrisman
Tue, Jul 2 2024, 11:36 AM
Cracker Jacks, Quaker Oats, Ferris Wheels, and 1893 Chicago have something in common. World’s Fairs, and World’s Expos, have pretty much gone away due to financial issues. A lot has happened since then, financially, and otherwise. Equifax was founded in 1899. The modern credit card, able to be used at various merchants, was developed in the 1950s, when many of today’s loan officers were entering the business. (Ok, just kidding.) FICO (legal name: Fair Isaac Corporation) began in 1956. FICO’s latest news came out yesterday with Encompass Lending Group and Equity Resources, Inc. being the latest to adopt FICO® Score 10 T. Meanwhile, the Mortgage Bankers Association and others have stated that credit-related price hikes have cost lenders & consumers hundreds of millions of dollars. FICO’s executives are well paid. FICO’s stock, at around $1,500 per share, has a price earnings ratio at around 77 (versus the S&P 500 average of around 25) although the only product with any great revenue growth is mortgage credit scores. (Other lines are flat or mediocre.) Observers suggest that Fair Isaac may only have two choices going forward: keep raising mortgage credit score prices even higher or watch its stock price plunge. Some give it near-monopoly status; American Economic Liberties Project’s Matt Stoller uses the word “cartel” when it comes to Experian, TransUnion, Equifax, and FICO. (Today’s podcast is found here and this week’s is sponsored by Bundle, the attorney-prepared legal documents company that is dedicated to the real estate, mortgage, and title industries. Fuel your operations and execution of documents from deeds to subordinations to assignments, and everything you need for any order, in one bundled price; receive 20 percent off using the code “Chrisman” at checkout. Hear an Interview with FirstClose’s Tedd Smith on a new national consumer survey that explored homeowners’ level of awareness of home equity and how it could be used to pay down higher interest credit card debt.)
Lender and Broker Services, Products, and Software
Spring EQ Wholesale is thrilled to unveil a new and unique product to the second mortgage industry: The FIXLINE product. FIXLINE is a fixed-rate HELOC, giving borrowers the flexibility of a line of credit with the stability of a fixed-rate loan. Register for its webinar taking place today, where their team will explore the ins-and-outs of the new FIXLINE product! Spring EQ is also excited to announce a recent addition to their TPO leadership team, Reno Heine. Reno joins Spring EQ as the SVP of TPO, bringing more than 25 years of mortgage industry experience. The need for home equity solutions is surging among borrowers, so make sure your business is prepared to meet this demand by partnering with the experts in home equity at Spring EQ. Interested in a wholesale partnership? Click here. Second mortgages are Spring EQ’s specialty, so think of them first for all your seconds.
Uncovering Fair Lending Risk to Build a Stronger Fair Lending Program! Preventing and detecting discrimination with an active fair lending compliance management system (Fair Lending CMS) is essential for every financial institution (FIs). FIs don’t just have a moral obligation to prevent and detect discrimination… They also have a legal obligation. Lending practices or programs that negatively impact a protected class can result in fines or enforcement actions, even if the discrimination was unintended. Ncontracts’ latest whitepaper introduces the key components of a fair lending compliance management system, discuss common fair lending mistakes, and highlight essential considerations when conducting a fair lending risk assessment to build or strengthen the institution’s overall fair lending program. Download the free whitepaper to learn more.
Events, Training, and Webinars
A good place for longer term conference planning is to start is here for in-person events in the future.
Today the 2nd at 11am PT, two veteran LOs discuss all things mortgage with Industry Leaders. Mortgage Pros 411 with Audrey Boissonou and Kevin Casey. And I get to join in!
Register now for FAMPChat Summer Series presented by the Central Florida FAMP Chapter beginning July 2nd, register now for all 10 sessions.
On Wednesday, July 10 at 11:00 am, NMMLA will present “The current and future state of Digital Mortgages” with Guest Speaker, Robert Pathman.
Thursday the 11th will be another episode of The Big Picture at 3PM ET… Rich Swerbinsky is interviewing the fabled Kevin Peranio of PRMG!
National MI: Leading a Teamwith Andrew Oxley – July 11th at 2pm ET.
Friday the 12th will see an episode of The Mortgage Collaborative’s Rundown with Melissa Langdale and me covering current events in the mortgage market for 30 minutes starting at noon PT, 3PM ET.
The Ultimate Mortgage Expo returns to New Orleans July 10 – 11. Join OCN in the Hotel Monteleone for a jam-packed event featuring 2 days of sessions and 2 days of exhibition hall opportunity. Also, come earlier on July 10 to enjoy complimentary access to the Mortgage Star Conference for women. Enjoy free access to this can’t-miss event using the code OCNFREE.*
Join Servbank’s cohosted webinar with the Mortgage Bankers Association on July 11 at 1-2p ET to learn how handling thousands of service transfers has gotten Servbank’s transfer plan down to a science. With a battle-tested plan and a laser-focus on customer experience, the painless service transfer is a reality. Register for the webinar today! The webinar is free for non-members by creating an account and entering the campaign code “SERVBANK100” at checkout.
On June 20, federal regulators published new quality control standards for automated valuation models (AVMs). The standards focus especially on safeguarding the credibility and integrity of AVMs to support fair lending practices and non-discrimination in real estate property valuations. Attend a complimentary webinar hosted by ICE for an insightful panel discussion with leading valuation experts. The webinar, “New quality standards for AVMs – are you ready?” will take place Tuesday, July 16, from 2 – 3 p.m. ET. Save your seat today.
Join ACES EVP, Nick Volpe and ACES President, Phill McCall on July 17, 11:00 AM – 11:45 AM PDT for a QC NOW webinar as they take a deeper dive into these analytics and how it aligns with the current state of the industry and how to best navigate through the volatile financial landscape.
Join NAMB and Freddie Mac on Wednesday, July 17, from 2pm – 3:30pm ET for Self Employed-The Basics, to get started learning about the self-employed borrower. This introductory session is designed to provide you with the information you need to complete your analysis and to enhance your processes for underwriting self-employed borrowers, with a focus on the sole proprietor.
Newrez Correspondent offers a comprehensive training curriculum on Newrez products and processes, to keep your staff informed of the latest developments in products, technology solutions, compliance issues and process improvements. Each of these programs is offered by its training and development staff on a monthly basis and is updated regularly to reflect recent changes in the industry.
National MI upcoming July 2024 webinar sessions. How to Plan and Attack the Week for Loan Officers with Dr. Bruce Lund – July 18th at 1pm ET. Become an Open House Success Partner with Rebecca Lorenz – July 23rd at 1pm ET. Mortgage Industry Updates Impacting the Balance of 2024 and Beyond with Scott Weghorst, July 25th at 2pm ET.
Thursday July 18th will another episode of The Big Picture at 3PM ET… Rich Swerbinsky is interviewing the Stan Middleman from Freedom Mortgage.
Monday, 5 August 9:00 AM – Tuesday, 6 August at 6:00 PM PDT join the California Association of Mortgage Professionals on August 5th -August 6th for its Annual Summer CAMP at Hyatt Regency Newport Beach, 1007 Jamboree Road, Newport Beach, California. Attorney Brian Levy will be the featured speaker!
“Join me and other leaders in the Michigan mortgage industry at the MMLA Annual Lending Conference, August 14 – 16 @ Boyne Mountain Resort. Go to www.mmla.net for all the registration and sponsorship information. I hope to see you there!”
August 19-21 will see the California MBA’s Western Secondary at the Terranea Resort in Southern California. Come say hi!
Whether you’re an appraiser, educator, or you work for an AMC, lender, tech company, or E&O insurance firm, the Valuation Expo 2024 is your premier opportunity to stay up to date with industry advancements and meet the people at the forefront. Don’t miss the chance to learn, network, and prosper. Register for Valuation Expo at Caesars Palace in Las Vegas, August 19th – 21st.
“NAMMBA CONNECT 2024, August 21-23, is calling for speakers who can inspire and empower our diverse community of mortgage professionals. Whether you specialize in innovative technology, leadership strategies, or industry trends, we invite you to join us in shaping the future of the mortgage industry. Submit your proposal through this speaker application form and be a catalyst for meaningful dialogue and growth.”
The MISMO Fall Summit is in Reston, Virginia, August 26-29 for a jam-packed program filled with presentations and strategy sessions focused on some of the most pressing issues in the industry. In-person and virtual attendance options are available. Early bird pricing extends through July 15, but space is limited, so register before it’s too late.
September 4-6 the NY MBA is taking over the Turning Stone Resort Casino in Verona, NY with a slate of top-notch speakers and information.
Register for the New England Mortgage Bankers two-day conference, September 11-13 in Portsmouth NH. Hear from a range of speakers, learn about new technologies and products, join golf and social events.
There’s the upcoming 2024 Pacific Northwest Mortgage Leaders Conference is Sunday, September 22 – Tuesday, September 24 at the Seattle Grand Sheraton. As the industry continues to evolve through technology, innovation, and adaptation, the conference will present an impressive lineup of local and national industry leaders who will share insights on critical topics impacting the mortgage industry.
“Loan Vision is excited to announce that registration is now OPEN for its 2024 Loan Vision Innovation Conference (previously the Loan Vision User Conference). With a focus on innovation, growth, and doing more with less, our new and improved annual conference is taking place in Chicago, Illinois from Monday, September 23rd – Wednesday the 25th. This conference will deliver highly recognized names in mortgage banking as our speakers, enhanced social networking events, and a fresh agenda for both executives and users and will be aimed at redefining industry standards and setting a new benchmark for excellence. If you’re interested in sponsoring this event, please contact Haleigh Heilman. To learn more about this conference, register, and book your hotel, please visit here.”
Registration has opened for the reverse mortgage industry’s biggest event of 2024, NRMLA’s Annual Meeting & Expo, September 24 from 1PM through September 26 at 12:00 pm, at the Hard Rock Hotel San Diego.
MBAC’s 68th Annual Convention is October 6-8 at the Embassy Suites in Myrtle Beach, SC. It is always worthwhile!
Capital Markets
Bond yields (read: mortgage rates) rose to the highest levels since late May yesterday to begin this holiday-shortened week that will likely be marked by low trading volumes. The jump in yields occurred a day after the first round of voting in France’s parliamentary elections suggested that the National Rally far-right party scored a smaller win than some polls had expected.
At home, President Biden’s widely derided performance in last week’s debate has put increased pressure (read: downward prices) on Treasuries, as a potential President Trump win is bringing anxiety into markets for a variety of reasons having to do with fiscal policy, tariff policy, and immigration policy. There is also mainstream media chatter that a Trump administration in 2025-2028 will be more inflammatory for rising budget deficits than a Biden administration.
In terms of cold hard data (read: not media speculation), the June ISM Manufacturing Index suggested there was a faster pace of contraction in the manufacturing sector last month than in May, signaling subdued activity for the manufacturing sector that fits with the narrative of a slowing economy. This was the third straight month, and 19th out of 20, that economic activity in the manufacturing sector contracted.
Total construction spending decreased 0.1 percent month-over-month in May, as expected, following an upwardly revised 0.3 percent increase (from -0.1 percent) in April. Total private construction was down 0.3 percent month-over-month while total public construction was up 0.5 percent month-over-month. On a year-over-year basis, total construction spending was up 6.4 percent. The restrictive effects of tight monetary policy are becoming increasingly apparent across the construction industry, despite the construction market having navigated the higher interest rate environment relatively well, thus far.
Keep in mind that the big data point this week is the June jobs report on Friday, which is expected to show the unemployment rate rising to the highest level since late 2021, despite a decent monthly gain in payroll employment. Payrolls are expected to come in +190k from the previous release’s +272k pace. More people are returning to the workforce, and there is slower job-finding among newly laid-off workers. Initial and continued claims have trended upward over the last few weeks, with initial claims trending at the highest level since last September and continued claims at the highest since December 2021.
Today’s economic calendar has little: Redbook same store sales for the week ending June 29, Fed Chair Powell’s participation in a panel discussion at the ECB Forum on Central Banking in Portugal, JOLTS job openings for June will be released, and Treasury will conduct several short-duration Treasury auctions. The May Job Openings and Labor Turnover Survey (JOLTS) is expected to show another step down in job openings and a cool rate of hiring across nonfarm industries. We begin the day with Agency MBS prices a few ticks better than Monday afternoon, the 10-year yielding 4.45 after closing yesterday at 4.48 percent, and the 2-year at 4.76.
Employment
“First Horizon Announces Mortgage Warehouse Lending Group leadership transition!
After joining First Tennessee in 1998, Bob Garrett, Executive Vice President of First Horizon’s Mortgage Warehouse Lending Group (MWL) is retiring. At a time when the company had a small footprint and little name recognition outside of Tennessee, Bob and his team were pioneers in the development of our national brand. Today MWL operates as one of the largest and best warehouse lenders in the nation and has funded over $1 trillion in mortgage loans under Bob’s leadership. Scott Walker, MWL Director of Business Development, will assume leadership of the business as Co-Director immediately and report to David Popwell. Bob will continue to assist Scott until his departure December 31, ensuring a smooth transition. Scott joined MWL in 2004 as a Relationship Manager and has since held several management roles. After joining the company, he quickly emerged as a significant contributor and well-regarded leader. “Bob’s legacy of excellence will not be forgotten as it serves as a building block for continued success,” said David Popwell, President of Specialty Banking. “We are fortunate to have Scott step into this role, a proven leader with the depth of experience and commitment to the company needed to continue to excel in this space. We wish Bob all the best in his retirement.”
Patrice Ficklin, who has led the Consumer Financial Protection Bureau’s fair lending office since 2011, is leaving the CFPB to rejoin Fannie Mae. She’s an expert in bureaucracy: Ficklin has been the CFPB’s only fair lending director through seven acting and permanent directors, setting up the agency’s Office of Fair Lending & Equal Opportunity, responsible for the oversight and enforcement of fair lending laws. She has helped coordinate efforts with the Department of Justice to rein in redlining and introduced new rules and guidelines aimed at curbing the impacts of racial bias on home valuations. Kate Berry with American Banker reminds us that, “Ficklin previously served as Fannie Mae’s associate general counsel for nearly a dozen years.” She is rejoining Fannie as its new fair lending officer.
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The average 30-year fixed mortgage interest rate is 7.00% today, down -0.02% compared to one week ago. The average rate for a 15-year fixed mortgage is 6.46%, which is an increase of 0.03% since last week. For a look at mortgage rate movement, see the chart below.
The Federal Reserve has been holding off on interest rate cuts because inflation has been slow to improve. While experts still expect mortgage rates to gradually move lower in the coming months, housing market predictions can always change in response to economic data, geopolitical events and more.
Today’s average mortgage rates
Today’s average mortgage rates on Jul. 04, 2024, compared with one week ago. We use rate data collected by Bankrate as reported by lenders across the US.
Lower mortgage rates make buying a home more affordable. Experts recommend shopping around with different mortgage lenders to find the best deal. Enter your information below to get a custom quote from one of CNET’s partner lenders.
About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.
How can I choose a mortgage term?
Each mortgage has a loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. With a fixed-rate mortgage, the interest rate is set for the duration of the loan, offering stability. With an adjustable-rate mortgage, the interest rate is only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the market. Fixed-rate mortgages are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront.
30-year fixed-rate mortgages
The average 30-year fixed mortgage interest rate is 7.00% today. A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you’ll have a lower monthly payment.
15-year fixed-rate mortgages
Today, the average rate for a 15-year, fixed mortgage is 6.46%. Though you’ll have a bigger monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest in the long run and pay off your mortgage sooner.
5/1 adjustable-rate mortgages
A 5/1 adjustable-rate mortgage has an average rate of 6.66% today. You’ll typically get a lower introductory interest rate with a 5/1 ARM in the first five years of the mortgage. But you could pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your house within five years, an ARM could be a good option.
Why are mortgage rates so high right now?
At the start of the pandemic, mortgage rates were near record lows, around 3%. That all changed as inflation began to surge and the Federal Reserve kicked off a series of aggressive interest rate hikes starting in March 2022 to slow the economy, which indirectly drove up mortgage rates.
Now, more than two years later, mortgage rates are still around 7%. Over the last several months, mortgage rates have fluctuated in response to economic data and investors’ expectations as to when the Fed will start to lower rates.
Today’s homebuyers have less room in their budget to afford the cost of a home due to elevated mortgage rates and steep home prices. Limited housing inventory and low wage growth are also contributing to the affordability crisis and keeping mortgage demand down.
Will mortgage rates drop this year?
Most experts predict mortgage rates will fall below 7% in the coming months. However, a sustained downward trend will depend on several factors, including upcoming inflation and labor data.
The Fed hasn’t hiked interest rates in almost a year, but an actual rate cut doesn’t appear imminent. Some experts say the first cut could come as early as July, though it’s more likely we see the Fed lower rates in September or November.
“If the Fed makes any moves later this year, the signal would be sufficient for the mortgage market, and mortgage rates would start falling,” said Selma Hepp, chief economist at CoreLogic. “In that case, we could see the mortgage rates around 6.5% at the year-end.”
One thing is for sure: Homebuyers won’t see lower mortgage overnight, and a return to the 2-3% mortgage rates from just a few years ago is unlikely.
Here’s a look at where some major housing authorities expect average mortgage rates to land.
Calculate your monthly mortgage payment
Getting a mortgage should always depend on your financial situation and long-term goals. The most important thing is to make a budget and try to stay within your means. CNET’s mortgage calculator below can help homebuyers prepare for monthly mortgage payments.
Where can I find the best mortgage rates?
Though mortgage rates and home prices are high, the housing market won’t be unaffordable forever. It’s always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right.
Save for a bigger down payment: Though a 20% down payment isn’t required, a larger upfront payment means taking out a smaller mortgage, which will help you save in interest.
Boost your credit score: You can qualify for a conventional mortgage with a 620 credit score, but a higher score of at least 740 will get you better rates.
Pay off debt: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. Not carrying other debt will put you in a better position to handle your monthly payments.
Research loans and assistance: Government-sponsored loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help with your down payment and closing costs.
Shop around for lenders: Researching and comparing multiple loan offers from different lenders can help you secure the lowest mortgage rate for your situation.