When Should I Retire? Consider These 8 Factors | Discover
If youâre asking, âWhen should I retire?â these considerations can help you find your target retirement date.
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When Should I Retire? Consider These 8 Factors | Discover
If youâre asking, âWhen should I retire?â these considerations can help you find your target retirement date.
When should I retire? Consider these 8 factors as you decide
Before you can develop a retirement plan, you need a goal for when to retire.
The post When should I retire? Consider these 8 factors as you decide appeared first on Discover Bank – Banking Topics Blog.
When should I retire? Consider these 8 factors as you decide
Before you can develop a retirement plan, you need a goal for when to retire.
The post When should I retire? Consider these 8 factors as you decide appeared first on Discover Bank – Banking Topics Blog.
An inside look at the latest trends in housing regulation and policy, featuring the 2022 Vanguard Honoree, Armando Falcon
Several of the 2022 HousingWire Vanguard honorees shared their insights on whatâs happening at the federal level
Emergency Loans – SmartAsset
Emergency loans can be a lifesaver for people who don’t have an emergency fund that can cope with a needed expense. Just be sure that you find a loan with
Can You Have Multiple IRA (Traditional or Roth) Accounts?
You certainly can! The IRS actually allows for multiple IRA accounts. This could be multiple Roth IRA’s or multiple Traditional IRA’s. There are benefits and disadvantages of owning multiple IRAs that you should be aware of before making a decision. Why You Need to Save For Retirement According to a recent study, nearly 50% of […]
The post Can You Have Multiple IRA (Traditional or Roth) Accounts? appeared first on Good Financial Cents®.
How rising mortgage rates affect home-buying power
Interest rates on home mortgages are rising rapidly across the United States, which seems to be slowing most housing markets. (Some, like the market here in Corvallis, have been less affected. Give it time.)
The average mortgage rate for a 30-year loan was about 3.0% at the start of the year; today, it’s at 6.245% â even for somebody with an excellent credit score over 800.
Kim and I are fortunate that we bought our home in 2021 instead of waiting until 2022. Mortgage rates weren’t actually a factor during our deliberations last year; the historically low rates were simply an added bonus for buying when we did.
When we purchased our home last August, we took out a $480,000 mortgage at 2.625%. We didn’t hit the precise bottom of the mortgage market (that was early January 2021, when we might have had a loan for 2.5%), but we came close.
Here’s a chart from the Federal Reserve that shows mortgage rates from the past 2.5 years.
And here’s a chart that shows mortgage rates for the past 50+ years:
Mortgage rates have hovered at historic lows since the Great Recession of 2007-2009. And rates fell even further during the COVID pandemic. (These low rates are partly responsible for the blazing-hot housing market of the past two years.)
What do these rising mortgage rates mean to actual home buyers? Let’s use our situation as a representative example.
How rising mortgage rates affect home-buying power
Interest rates on home mortgages are rising rapidly across the United States, which seems to be slowing most housing markets. (Some, like the market here in Corvallis, have been less affected. Give it time.)
The average mortgage rate for a 30-year loan was about 3.0% at the start of the year; today, it’s at 6.245% â even for somebody with an excellent credit score over 800.
Kim and I are fortunate that we bought our home in 2021 instead of waiting until 2022. Mortgage rates weren’t actually a factor during our deliberations last year; the historically low rates were simply an added bonus for buying when we did.
When we purchased our home last August, we took out a $480,000 mortgage at 2.625%. We didn’t hit the precise bottom of the mortgage market (that was early January 2021, when we might have had a loan for 2.5%), but we came close.
Here’s a chart from the Federal Reserve that shows mortgage rates from the past 2.5 years.
And here’s a chart that shows mortgage rates for the past 50+ years:
Mortgage rates have hovered at historic lows since the Great Recession of 2007-2009. And rates fell even further during the COVID pandemic. (These low rates are partly responsible for the blazing-hot housing market of the past two years.)
What do these rising mortgage rates mean to actual home buyers? Let’s use our situation as a representative example.
Bonds Push Back Against Stronger Employment Data, But Tomorrow is a Different Fight
Bonds Push Back Against Stronger Employment Data, But Tomorrow is a Different Fight Bonds got off to a weaker start today following 3 consecutive upbeat labor market reports (Challenger, ADP, and Jobless Claims). Yields managed to find a ceiling with the 10yr in the high 3.7s and ultimately made it back down to the low 3.7s by the close (only a few bps higher on the day). MBS made a similar recovery. Some sources cited “new year” inflows for bond funds. Comments from Fed’s Bullard helped a bit as well. Still, the most important observation for today was the willingness to react to labor data because tomorrow’s jobs report is an infinitely more tradeable event than today’s 3 reports combined. Econ Data / Events ADP Employment 235k vs 150k f’cast, 127k prev Jobless Claims 204k vs 224k f’cast, 223k prev Trade Gap -61.5bln vs -73.0 bln f’cast, -77.85bln prev Market Movement Recap 08:34 AM Mostly flat overnight but losing ground after AM data. 10yr up 6bps and MBS down about 3/8ths. 09:33 AM Additional weakness in MBS now, primarily a factor of illiquidity. 5.0 coupons down 18 ticks (.56). 10yr up 7.7 bps at 3.767. 11:32 AM Decent push back over the past half hour with 10yr yields now up only 4bps at 3.731. MBS are off the lows by about an eighth of a point, but still down 3/9ths on the day. 01:28 PM Bullard comments helped a bit. 10yr now up only 1.5bps on the day at 3.705. MBS down only an eighth of a point on the day.