Bonds remained in selling mode after Friday’s jobs report. 10yr yields rose in Asia and Europe before hitting the highest levels of the day just before the domestic session opened. A glut of corporate bond issuance created additional headwinds, but they were no match for the weaker ISM Services data (50.3 vs 52.2). That was good enough to get both Treasuries and MBS back to “unchanged” levels or slightly stronger.
ISM Non-Manufacturing
50.3 vs 52.2 f’cast, 51.9 prev
Factory Orders
0.4 vs 0.8 f’cast, 0.9 prev
S&P Global Services PMI
54.9 vs 55.1 f’cast, 53.6
10:50 AM
Weaker overnight but bouncing back after soft PMI data. 10yr down .3bps at 3.697. MBS up 1 tick (0.03)
12:31 PM
Sideways to slightly weaker after ISM-driven rally. 10yr roughly unchanged at 3.70%. MBS showing down a quarter point, but illiquidity is also worth about a quarter point at the moment.
03:25 PM
Sideways to slightly stronger with MBS unchanged and 10yr yields down almost 1bp at 3.69.
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After being utterly bombarded for weeks, newswire feeds at trading terminals are suddenly devoid of debt ceiling headlines. To be fair, there have been a few mentions of final approval set for this weekend, but markets moved on long ago. If there was any reaction in longer term rates, it played out by Tuesday night. Today’s sell-off was all about nonfarm payrolls. Today’s AM commentary has all of the charts and discussion on that topic. Today’s recap is just here to let you know bonds continued selling into the afternoon with 5.0 MBS losing almost half a point.
Nonfarm Payrolls
339k vs 190k f’cast, 253k prev
Unemployment Rate
3.7 vs 3.5 f’cast, 3.4 prev
Participation rate
unchanged at 62.6
Earnings
0.3 vs 0.4 f’cast, 0.5 prev
08:53 AM
flat overnight. weaker after jobs data. 10yr up 3.8bps at 3.639. MBS down roughly a quarter point.
10:36 AM
recovery attempt until 9:30am. Weaker since then. MBS down 3/8ths. 10yr up 6bps at 3.662.
03:35 PM
Additional selling into the PM hours and flat since then. 10yr up 9bps at 3.689. MBS down just over 3/8ths.
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Any time bonds make a big (but not necessarily completely justified) move in the run up to a 3.5-day weekend, we’re inclined to suspect a certain degree of position squaring. In other words, traders who had been betting on an intact trading range sold bonds and pushed rates higher. While that may not be the only way to explain the losses seen late last week, the return of those buyers can help explain a bit of Tuesday’s bounce back. Other factors included European bond market strength and more debt ceiling delays.
Month over month home prices
Case Shiller 0.5 vs 0.0 f’cast, 0.3 prev
FHFA 0.6 vs 0.2 f’cast, 0.5 prev
Year over year home prices
Case Shiller -1.1 vs -1.7 f’cast
FHFA 3.6 vs 4.0 prev
Consumer Confidence
102.9 vs 99.0 f’cast, 104.2 prev
09:50 AM
moderately stronger overnight despite some recent pullback. MBS up 10 ticks (.31). 10yr yield down 2.7 bps at 3.746.
12:45 PM
Additional gains despite stronger consumer sentiment. 10yr down 6.5 bps at 3.708. MBS up 10 ticks (.31) in 5.5 coupons and nearly half a point in 5.0 coupons.
02:57 PM
MBS doing more to join in the rally now. 5.0 coupons up 5/8ths. 5.5 coupons up almost half a point.
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Yesterday’s economic data made for a bit of back and forth in the bond market with Fed speakers ultimately riding to the rescue by forwarding the notion of “skipping” a rate hike at the upcoming meeting. Today was a bit different with the AM econ data largely coming across in a bond-friendly manner. This was especially true of Q1 unit labor costs which missed estimates by a wide margin. Traders have increasingly moved on from debt ceiling headlines and are now turning their attention to Friday’s jobs report as casting the tie-breaking vote on whether this week’s events merit a return to the previous 3.4-3.6 range in 10yr yields.
Challenger Job Cuts
80.1k vs 92k f’cast
ADP Employment
278k vs 200k f’cast, 296k prev
Jobless Claims
232k vs 235k f’cast, 229k prev
Q1 Labor Costs
4.2 vs 6.3 f’cast, 3.3 prev
ISM Manufacturing
46.9 vs 49.8 f’cast, 50.2 prev
ISM Prices Paid
44.2 vs 52.0 f’cast, 53.2 prev
08:27 AM
slightly weaker after am data. 10yr down half a bp at 3.65. MBS down just over an eighth, but illiquid.
09:09 AM
Nice bounce back after 8:30am data. MBS up nearly a quarter point and 10yr down 4.4bps at 3.601
02:49 PM
MBS at best levels with 5.0 coupons up 3/8ths. 10yr down 4bps at 3.605
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Domestic Events Mostly Overshadowed by European Influence
By:
Matthew Graham
Wed, May 31 2023, 3:58 PM
Domestic Events Mostly Overshadowed by European Influence
While we can trace some of this morning’s back and forth market movement to domestic economic data (Chicago PMI helped, JOLTS hurt), it was the European market hand-off that set the tone for today’s US rate rally. The only major contribution from a domestic standpoint would be several Fed speakers hitting the wires talking about “skipping” the next rate hike at the upcoming meeting.
Chicago PMI
40.4 vs 47.3 c’cast, 48.6 prev
Job Openings
10.1m vs 9.2m f’cast, 9.6m prev
08:53 AM
decently stronger overnight, but losing ground since 8:20am. MBS still up 1 tick (0.03) in 5.5 coupons and 5 ticks (.16) in 5.0 coupons. 10yr down 2bps at 3.673.
11:37 AM
Some back and forth surrounding AM econ data. 10yr down 4bps at 3.654. MBS up a quarter point.
03:03 PM
Additional gains in the PM hours. 10yr down 5.3bps at 3.641 and MBS up 3/8ths of a point.
03:53 PM
Best levels of the day with 10yr down 7.8bps at MBS up half a point.
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National mortgage rates jumped for all types of loans compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans moved higher.
The Federal Reserve has raised rates 10 times in a row, most recently at its May 3 meeting. Rates now are at a 15-year high, but the consensus is that inflation is finally cooling and the central bank might halt raising rates.
”Mortgage rates have settled into a new normal of around 6.5 percent on a 30-year fixed-rate loan,” says Lisa Sturtevant, chief economist at Bright MLS, a large multiple listing service in the Middle Atlantic region. ”With growing recession risks, we could see mortgage rates dip lower, but we will not be returning to the 3 percent level seen during the height of the pandemic.”
Rates as of May 29, 2023.
These rates are marketplace averages based on the assumptions indicated here. Actual rates available on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, May 29th, 2023 at 7:30 a.m.
You can save thousands of dollars over the life of your mortgage by getting multiple offers. Comparing mortgage offers from multiple lenders is always a smart move, but shopping around grew especially critical during the interest rate run-up of 2022, according to research by mortgage giant Freddie Mac. It found the payoff for bargain-huntng borrowers doubled last year.
“All too often, some homeowners take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
Mortgage rates
30-year fixed-rate mortgage rises, +0.15%
The average rate for the benchmark 30-year fixed mortgage is 7.19 percent, up 15 basis points over the last seven days. Last month on the 29th, the average rate on a 30-year fixed mortgage was lower, at 6.88 percent.
At the current average rate, you’ll pay a combined $678.11 per month in principal and interest for every $100k you borrow. That’s $10.12 higher compared with last week.
The 30-year mortgage is the most popular option for homeowners, and this type of loan has a number of advantages, including:
Lower monthly payment. Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower, more affordable payments spread over time.
Stability. With the 30-year, you lock in a consistent principal and interest payment. That predictability lets you plan your housing expenses for the long term. Keep in mind: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
Buying power. Because you have lower payments, you can qualify for a bigger loan and a more expensive house.
Flexibility. Lower monthly payments can free up some of your monthly budget for other goals, like building an emergency fund, contributing to retirement or college tuition, or saving for home repairs and maintenance.
Strategic use of debt. Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year mortgage with a smaller monthly payment can allow you to save more for retirement.
15-year mortgage rate trends upward,+0.19%
The average rate for the benchmark 15-year fixed mortgage is 6.61 percent, up 19 basis points since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $877 per $100k borrowed. The bigger payment may be a little more difficult to find room for in your monthly budget than a 30-year mortgage payment would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more quickly.
5/1 adjustable rate mortgage moves upward, +0.13%
The average rate on a 5/1 adjustable rate mortgage is 6.00 percent, adding 13 basis points over the last 7 days.
Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. To put it another way, the interest rate can change periodically throughout the life of the loan, unlike fixed-rate mortgages. These loan types are best for people who expect to refinance or sell before the first or second adjustment. Rates could be considerably higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.00 percent would cost about $600 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.
Current jumbo mortgage rate moves upward, +0.11%
The current average rate you’ll pay for jumbo mortgages is 7.20 percent, up 11 basis points from a week ago. This time a month ago, the average rate on a jumbo mortgage was below that, at 6.96 percent.
At the current average rate, you’ll pay a combined $678.79 per month in principal and interest for every $100,000 you borrow. That’s an additional $7.43 per $100,000 compared to last week.
Recap: How mortgage rates have shifted
30-year fixed mortgage rate: 7.19%, up from 7.04% last week, +0.15
15-year fixed mortgage rate: 6.61%, up from 6.42% last week, +0.19
5/1 ARM mortgage rate: 6.00%, up from 5.87% last week, +0.13
Jumbo mortgage rate: 7.20%, up from 7.09% last week, +0.11
Interested in refinancing? See rates for home refinance
Current 30 year mortgage refinance rate trends upward, +0.13%
The average 30-year fixed-refinance rate is 7.25 percent, up 13 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 6.99 percent.
At the current average rate, you’ll pay $682.18 per month in principal and interest for every $100,000 you borrow. That’s $8.80 higher compared with last week.
Where mortgage rates are headed
The days of sub-3 percent mortgage interest on the 30-year fixed are behind us, and rates have so far risen beyond 7 percent in 2022.
“Low interest rates were the medicine for economic recovery following the financial crisis, but it was a slow recovery so rates never went up very far,” says McBride. “The rebound in the economy, and especially inflation, in the late pandemic stages has been very pronounced, and we now have a backdrop of mortgage rates rising at the fastest pace in decades.”
Comparing mortgage options
The 30-year fixed-rate mortgage is the most popular loan for homeowners. This mortgage has a number of advantages. Among them:
Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower payments spread over time.
Stability: With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
Buying power: With lower payments, you can qualify for a larger loan amount and a more expensive home.
Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
Strategic use of debt: Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.
That said, shorter-term loans have gained popularity as rates have been historically low. Although they have higher monthly payments compared to 30-year mortgages, there are some big benefits if you can afford the upfront costs. Shorter-term loans can help you achieve:
Greatly reduced interest costs: Because you pay off the loan faster, you’ll be able to pay less interest overall.
Lower interest rate: On top of less time for that interest to compound, most lenders price shorter-term mortgages with lower rates.
Build equity faster: The faster you pay off your mortgage, the faster you’ll own value in your home outright. That’s especially handy if you want to borrow against your property to fund other spending.
Debt-free sooner: A shorter-term mortgage means you’ll own your house free and clear sooner than you would with a longer-term loan.
Determining how much house you can afford
If you’re not sure how much of your income should go toward housing, follow the traditional 28/36 percent rule. Most financial advisers agree that people should spend no more than 28% of their gross income on housing (i.e., your mortgage payment or rent), and no more than 36% of their gross income on total debt, including mortgage payments, credit cards, student loans, medical bills and the like. Calculate how much house you can afford and determine your monthly payments.
HousingWire presents the Modern Mortgage Origination Master Class, a four-part educational series presented by Zillow Home Loans. This educational series features four classes designed to bring the HousingWire community expert-level knowledge on modern mortgage origination and how today’s homebuyer navigates the homebuying process.
This final installment of this series features a conversation between Clayton Collins, CEO of HW Media and Tim Swank, Zillow Home Loans’ Vice President of Mortgage Sales and Real Estate Partnerships. Tim has more than 15 years of experience in the mortgage and lending industry where he has held a variety of positions from his early days as a mortgage banker to executive roles focusing on sales and partnerships.
In today’s conversation, they recap what we’ve learned in the past three master class episodes and then discuss what homebuyers want from their lender and how consumer expectations are changing — or not — throughout the modern mortgage process.This includes some of the current needs and expectations from a consumer perspective, how lenders can best engage with borrowers, and how Zillow’s tools and resources can make it easier to get started.
Related to this episode:
The Housing News podcast explores the most important topics happening in mortgage, real estate, and fintech. Each week a new mortgage or real estate executive joins the show to add perspective to the top stories crossing HousingWire’s news desk. Hosted by Clayton Collins and produced by the HW Media team.
Debt Ceiling Debate Volatility Causing Issues For Bonds
By:
Matthew Graham
Thu, May 25 2023, 4:24 PM
Debt Ceiling Debate Volatility Causing Issues For Bonds
Treasuries sold off in a linear fashion today–much more aggressively than MBS. The debt ceiling debate is the most logical scapegoat considering the direct implications for the US government’s borrowing capacity. It’s not that the bond market doesn’t already know that the debate will be resolved before default, but it does provide a series of tradeable headlines allowing traders to capitalize on the volatility inside the broader range. The trade of the day has been to push yields higher in anticipation of a deal. We also shouldn’t rule out the massive rallies seen in short-term bills. These were initially sold en masse with traders parking the money farther out the curve. With an end in sight, it’s not unreasonable to expect those trades to be unwound.
Jobless Claims
229k vs 245k f’cast, 225k prev
Q1 GDP Prelim
1.3 vs 2.9 f’cast, 1.1 prev
08:54 AM
Bonds had been unchanged after the AM econ data, but are losing ground on the prospect for a near-term debt ceiling deal. 10yr yields are now up 4.6bps at 3.79 and MBS are down just over a quarter point.
01:37 PM
Steady weakness all day in Treasuries with 10yr up 5bps at 3.794. MBS down only an eighth–outperforming.
03:08 PM
snowball selling in Treasuries with 10yr up 8bps at 3.82+. MBS are down less than 3/8ths, but at their lows of the day.
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Bonds began the day on the back foot as UK inflation crushed forecasts. Treasuries sold in sympathy, but found their footing before the start of the US session. From slightly lower opening yields, the rest of the day was spent selling, apart from a brief bounce surrounding the 5yr auction and Fed Minutes release. Yields were less than 3bps higher at the 3pm close and haven’t gone much higher after hours. No one likes higher rates, but today is best viewed through the lens of in-range volatility. MBS can’t quite make that claim as 5.0 coupons are a bit lower than they were yesterday, but 10yr yields traded under yesterday’s ceilings. Nothing was decided in the bigger picture. The Fed is data dependent. Inflation is still too high. Corporate earnings suggest a resilient economy. And we’re waiting until early June for more relevant econ data.
S&P Manufacturing PMI
48.5 vs 49.0 f’cast, 50.2 prev
Services PMI
55.1 vs 51.5 f’cast, 53.6 prev
09:44 AM
MBS down an eighth of a point, underperforming. 10yr also losing ground, near AM highs, but still down 0.6bps at 3.692.
11:57 AM
Steady weakness throughout AM hours and another pop of selling following debt ceiling progress headlines. 10yr up 2.8bps at 3.726. MBS down 9 ticks (.28).
02:04 PM
No major reaction to FOMC Minutes. 10yr up 2.3bps at 3.721. MBS down a quarter point.
03:24 PM
Modest gains until about 2:40pm, but losing ground since then. 10yr up 3bps at 3.728. MBS down 3/8ths with almost an eighth of that due to illiquidity.
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In October I published my most recent update in what I call “The Digit + Axos Invest Experiment”.
Since February has come and gone I thought this might be a good time to do my review of the experiment after 1 year – to see just how much I was able to save, and invest, over that time.
The Experiment
The series of posts was designed to show just how easy it can be to save and invest using today’s free and automated saving and investing solutions.
To facilitate the experiment I opened two new accounts, both with free automated services that I discovered just over a year ago
The first account was an free online savings account from Digit, an account that helps take the busy work out of saving. It analyzes your checking account daily and at regular intervals it saves small amounts of money from your checking and puts it into your Digit savings account – without your intervention. It allows you to save money, a little bit at a time, without even realizing it.
The second account is a free automated investment adviser from the folks at Axos Invest. When you have an investment account from Axos Invest, their system will allow you to regularly invest in a taxable or tax-advantaged retirement account, and it will automatically invest your funds in a portfolio of low-cost ETF index funds. It’s a great new long term investing site, along the lines of Betterment or Wealthfront, but without any account management costs.
Digit and Axos Invest are both big on the idea of automating things in order to make them more efficient, more cost-effective and better for your bottom line. I liked the idea behind both sites, and after signing up, a year ago I decided to take both services on a trial run, and to run an experiment.
Just how much could I save automatically for the year using Digit’s tools? How much would I be able to invest at no cost using Axos Invest? How much intervention would I need to have – and just how much could I save over time? First, let’s take a brief look at these two accounts.
Digit Savings Account
According to Ethan Bloch, the founder of Digit, the company was started to help people, “maximize their money, while at the same time driving the amount of time and effort it takes to do so as close to 0 minutes per year as possible”
So how does Digit work? You sign up for an account, and link your checking account. Digit will then analyze your income and expenses, find patterns and then find small amounts that it can set aside for you – without any pain for you.
So once you sign up and turn on auto-savings, every 2 or 3 days Digit will transfer some money from your checking to your savings, usually somewhere between $5-$50. Digit won’t overdraft your account, and they have a “no overdraft guarantee that states they’ll pay any overdraft fees if they accidentally overdraft your account.
Open Your Digit Savings Account
Axos Invest Investing Account
Axos Invest launched with the goal of being the world’s first completely free financial advisor. Their founders had a mission “to ensure everyone can achieve their financial goals, which starts with investing as early as possible. This is why there is no minimum to start and we do not charge fees.”
Axos Invest’s founders understood that one of the drags on the typical person’s portfolios is the fees that they’re paying to invest, as well as the friction point of having to invest thousands of dollars to start. They changed that with no minimums to invest, and no fees charged for investing. Axos Invest will be releasing some premium add-on products for their users, which they will charge for, but a basic investing account will not cost anything beyond the mutual fund expense ratios associated with your investments.
What do you invest in with Axos Invest? Axos Invest will invest your funds based on Modern Portfolio Theory (MPT). Your investments will be diversified, low cost and recognize the value of long term passive investing by investing in ETF index funds. Plus, when you sign up now, you’ll get a $20 Signup Bonus!
Open Your Axos Invest Investing Account and Get A $20 Bonus!
The Digit + Axos Invest Experiment (D+AI Experiment)
So for my Digit + Axos Invest Experiment, the goal was not only to take these two free products for a spin, but also to show just how easy (and low cost) it can be to invest. There really should be no excuse to not get started.
When I started in February 2015 my goal was to allow Digit to automatically pull money from my checking account and put it into my Digit savings. Whenever the amount in my Digit savings reached $75 or more I would transfer that money over to my Axos Invest account and invest it in their highly diversified set of ETF index funds.
Why was I doing it this way? I did it this way because Axos Invest has no minimums and you can buy fractional shares, so why not? I can transfer money in small chunks, and engage in a bit of dollar-cost averaging while I’m at it.
So how are things going now that I’ve been doing the experiment for an entire year? Let’s take a look.
The Experiment 1 Year In Progress
After setting up my Digit and Axos Invest accounts I put the plan in action and allowed my Digit account to start saving on my behalf.
Digit started saving small amounts in my account when I first began. $5 here, $15 there. Over time multiple transfers and deposits ended up adding up to larger amounts in my Digit account. My first transfer to my investment account was about $186.
From then on every time the amount reached around $75-$100 or more, I transfered the money to Axos Invest.
Amounts Saved And Invested In One Year
I’m now just over 1 year into my little experiment, and I’ve withdrawn my Digit savings balance and invested it in my Axos Invest Roth IRA 25 times.
Here are the amounts that I have withdrawn and invested, with the most recent investment first:
$541.21
$230.47
$296.95
$350.92
$306.40
$445.21
$173.84
$419.66
$112.68
$155.20
$142.02
$74.36
$79.76
$121.75
$82.03
$95.67
$81.27*
$93.28
$109.47
$76.20
$99.08
$99.32
$90.88
$74.72
$186.00
A total of $4538.55 was saved by my Digit account over the 12 months I did this experiment. I invested $3347.68 of that in my Roth IRA. (the last couple of months in the experiment a large tax bill came due and some of the Digit savings went to that instead of my Roth IRA)
Here’s a screenshot from my Digit account showing my latest $541.21 withdrawal for the purpose of investing.
After withdrawing the money I then transfer it from my checking account over to Axos Invest. Deposits can be used to purchase fractional shares of the ETF index funds used in the account.
I currently have $3298.83 invested at Axos Invest, from the $3347.68 I have deposited. The investments (and the markets) have gone down about 1.5% since I started, so that accounts for the losses.
Here’s my portfolio’s asset allocation in my Axos Invest account. It is a bit more aggressive than in my other retirement accounts.
The funds that Axos Invest currently uses, and their expenses, are shown below (but are subject to change)
Vanguard Total Stock Market ETF (VTI): 0.05%
Vanguard FTSE Developed Markets ETF (VEA): 0.09%
Vanguard FTSE Emerging Markets ETF (VWO): 0.15%
Vanguard Intmdte Tm Govt Bd ETF (VGIT): 0.12%
Vanguard Short-Term Government Bond Index ETF (VGSH): 0.12%
iShares Investment Grade Corporate Bond ETF (LQD): 0.15%
State Street Global Advisors Barclays Short Term High Yield Bond Index ETF (SJNK): 0.40%
iShares Barclays TIPS Bond Fund (ETF) (TIP): 0.20%
Vanguard REIT Index Fund (VNQ): 0.10%
We’ll see what kind of returns my account sees over the coming months/years, but I’m sure it will be close to what the market does. Since I’m not paying any account management fees to invest, I’ll be coming out ahead as compared to some other automated investment advisers.
A Recap Of My Progress After 1 Year
So how has the experiment gone now that I’ve made it an entire year? In my book it’s been a rousing success. I’ve saved $4538.55 over the 12 month period via Digit. If we divide that over 12 months, it means an average saved of about $378.21/month.
If you look at that $4538 amount, it’s about 83% of the annual $5500 contribution limit for a Roth IRA. So essentially, almost all of my year’s Roth IRA contributions are happening without me having to actually think about it.
The money is slowly coming out of my accounts – usually in amounts that don’t even really register. The savings amounts tend to be in the $10-50 range, although a few have been $100+. It’s amazing how fast those small amounts really add up!
The Power Of Investing Over Time
Let’s say you were in your 20s and you were to do something similar to what I’m doing with this experiment. You could end up with a pretty nice start to your nest egg over time.
Just setup automated savings and investments, and in my case that $4538 contribution for the year when extrapolated out over 30 years at an average 8% interest, will end up as just over $567,300 over 30 years.
To me that’s the power of long term investing. You can take small savings and investment amounts like this, and make it grow. In the end those small amounts end up adding up to a large lump sum in retirement. That’s pretty powerful. Why not get started now?
Join In The Digit & Axos Invest Experiment
Interested in joining the “Digit and Axos Invest Experiment” for year 2? I invite you to join in!
Open your accounts here:
After your accounts are open, sit back and wait for the savings to pile up – then invest! Piece of cake! Give it a shot and let us know how it goes!