The housing market cheered as the Federal Reserve signaled interest rate cuts next year after making a series of rapid rate hikes starting in 2022.
While the central bank did not completely rule out the possibility of a rate increase in 2024, that action seems unlikely. Instead, fresh economic projections from central bank officials showed rates would be slashed to a median 4.6% by the end of 2024, suggesting three 25 basis points (bps) cuts from current levels.
The so-called dot plot estimates show interest rates falling to a median 3.6% in 2025, indicating four more 25 bps cuts. For 2026, Fed officials projected rates to fall below 3% by the end of 2026 through three more quarter percentage point reductions.
What does this mean for mortgage rates?
“Mortgage rates should get better. If the spreads get better, that will be an extra plus,” said Logan Mohtashami, lead analyst at HousingWire. “The main focus now is that if the economic data gets weaker, bond traders have the green light to take yields lower.”
Mortgage rates track the yield on 10-year U.S. Treasuries, which move based on anticipation about the Fed’s actions, what the Fed ends up doing and investors’ reactions. When Treasury yields go down, so do mortgage rates. The 10-year Treasury yield hit a low of 4.007% following the Fed’s press conference, declining from 4.202% at market open on Wednesday.
“While nobody in the mortgage world would say ’tis the season to be jolly’ based on current market conditions, the Fed’s outlook at its December meeting points to an increased possibility of a happier new year,” said Marty Green, principal at mortgage law firm Polunsky Beitel Green.
Expect lower mortgage rates
With the central bank shifting toward the next phase in its fight against rapid inflation, experts expect the path for monetary policy to support further declines in mortgage rates, just in time for a traditionally busy spring housing market.
“The commentary about three expected cuts next year and no rate hikes is great news for the mortgage industry,” Michael Merritt, senior vice president of customer care and default mortgage servicing at BOK Financial. “These cuts will allow mortgage rates to fall faster throughout 2024. The conservative expectation of three cuts also paints a positive overall outlook since they are not expecting to have to make large numbers of cuts to fuel economic growth or make increases to offset inflation.”
After hovering below 8% at the time of the last FOMC meeting in November, mortgage rates sit at just under 7%, according to HousingWire’s mortgage rate center on Wednesday.
“We’re probably at an inflection point where rates have come down enough that more buyers are coming back into the marketplace,” said Melissa Cohn, regional vice president of William Raveis Mortgage.
While mortgage rates are expected to decrease, high home prices combined with low inventory still pose a challenge for potential homebuyers.
“We don’t expect rates to fall that much in this period and it may not offset rising home prices in hot housing markets. So, homebuyers who wait on the sidelines for better rates next year may find the waiting game didn’t pay the dividends they expected,” said Max Slyusarchuk, CEO of A&D Mortgage.
The median price of single family homes in the U.S. is $424,900, which is up 2.4% from last year at the same time, according to Altos Research.
“There are really no national indicators, anywhere in the data, that show home prices currently falling,” Mike Simonsen, president of Altos, said in a recent commentary.
While inventory typically rises with higher mortgage rates and falls with lower mortgage rates, there is no signal of any flood of sellers, which would be bearish for home prices, Simonsen noted.
For there to be a supply-demand balance, rates would need to stay higher and cuts would have to come slower than markets are predicting, according to Jack Macdowell, chief investment officer at Palisades Group.
“The housing market plays a role in this given the contribution to headline inflation calculations,” Macdowell said.
“If rates come down too much (and mortgage rates follow), we’ll see the current supply-demand imbalance exacerbated as pent-up demand gets released into an undersupplied market, putting upward pressure on home values–and inflation. Until mortgage rates drop below 6% it is unlikely that pent-up deferred sales will meaningfully contribute to supply.”
PrimeLending, a Texas-based retail mortgage bank, added 12 new loan originators as it attempts to grow market share within its existing Texas footprint.
Among the newly added LOs in the fall included two LOs — John Muhammad ($25.72 million) and Hugo Ortiz-Pulido ($21.21 million) with a production volume of more than $20 million year-to-date, according to mortgage tech platform Modex.
Hiring high-performing LOs has been PrimeLending’s strategy in large part because it’s a tough market to execute mergers and acquisitions (M&As), Gene Lugat, executive vice president of strategic support at PrimeLending, said in a previous interview with HousingWire.
“We are dialing down data, metrics and information that allow us to target communities and markets where we again think we have a competitive advantage and we’re using that strategy across the country,” Lugat had said.
“We would prefer to be picking up the loan officers without the branches, without physical locations because we’re trying to backfill into where we have existing retail opportunities and we have space.”
PrimeLending has been on a hiring spree to bring on high-performing LOs in 2023 to its existing branches.
In June, the lender brought on 100 loan officers and hired 33 additional LOs based in Texas since that period.
Lugat had noted the mortgage bank’s opportunity to grow in the entire Southwest regions and Texas in particular.
PrimeLending has 934 registered mortgage loan originators across 192 active branches across the country, according to the Nationwide Mortgage Licensing System (NMLS).
Led by president and CEO Steve Thompson, Prime Lending ranked as the 35th largest mortgage lender as of the first nine months of 2023, with an estimated origination volume of $6.4 billion, data from Inside Mortgage Finance showed.
Production from January to September declined about 39.5% from the same period in 2022 as with most of the lenders in the industry.
PrimeLending has a market share of around 0.6%, lagging behind its goal to increase its market share to 1% this year.
Government sponsored enterprise Freddie Mac has approved mortgage technology company Truv for both payroll verifications and consumer-permissioned income.
With the new integration, lenders will have access to the Truv platform to obtain and transmit information and data required on Freddie Mac’s Loan Product Advisor platform for the income modeling assessment without needing a third-party verification.
“We are proud to collaborate with Freddie Mac to help lenders streamline their origination processes,” Kirill Klokov, co-founder and CEO of Truv, said in a statement. “More than ever, lenders need robust, safe technology to lower their origination costs while reducing risks. By automatically extracting income data from a borrower’s payroll accounts, our platform does both, while empowering lenders to verify the borrower’s information in a single step.”
Truv says it’s different than some competitors because it eliminates the middleman and pulls payroll directly, which reduces costs. Founded in 2020, Truv covers more than 150 million Americans via 12,800 unique integrations to payroll providers, employers, and gig platforms, according to the firm’s website. Truv says it’s all-in-one borrower verification platform helps mortgage lenders save $350 or more per closed loan.
“Approved third-party service providers like Truv support delivering the best tools and insights the industry has to offer,” said Daniel Miller, Freddie Mac Single-Family Director of Strategic Technology Partnerships. “This collaboration will help lenders quickly and easily obtain income and employment verification.”
More than 70 mortgage lenders currently use the Truv platform; it is also integrated with leading point-of-sale and loan origination systems.
In October, Truv announced a new integration with cloud banking provider nCino, allowing lenders who use the nCino Mortgage Suite to benefit from Truv’s ability to instantly verify income and employment for most of the U.S. workforce.
Blend, Equifax, Experian, Finicity and Informative Research are also approved on Freddie Mac’s AIM platform.
Today’s inflation reports show that Federal Reserve rate cuts are in play in 2024 — not because of the labor market breaking, but because real rates are too high. If the labor market gets weaker, meaning jobless claims break over 323,000 on the four-week moving average, we can get even more rate cuts. The labor market is not there yet so for now we can focus on the fact that the Fed overhiked, and because of that, they have room to cut.
The Fed can’t avoid the reality that existing home sales are at record lows and the Fed should be pro-housing again, something I discussed on this HousingWire Daily podcast.
Let’s dig into the report to find out why the Fed can now discuss rate cuts for next year.
From BLS: The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent in November on a seasonally adjusted basis, after being unchanged in October, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all-items index increased 3.1 percent before seasonal adjustment.
Tuesday’s report showed inflation was a bit stronger than anticipated, but it was boosted by rents and used car prices, both of which have longer-term disinflationary futures in store for them. If you take shelter inflation out of the equation, CPI is running at 1.4%, so the lagging shelter data keeps the CPI report artificially higher than it should be and the Fed knows this. Core CPI would be much lower today if we had real-time rent data.
Shelter inflation is also 44.4% of the index so it’s the most significant component of the CPI index. Back in September 2022 on CNBC, I talked about rents falling, which will be more of a positive story in 2023 as this data line lags badly. Everyone is on the same page on this and the chart below again shows shelter inflation being high but in real terms, it’s much lower than that today.
What does this mean for the Fed meeting on Wednesday? I am not a Fed pivot person: I don’t think the Fed will reverse course until the labor market breaks. So, when we are talking about rate cuts next year, that has to do more with the Fed over-hiking starting in 2022 to make sure the growth rate of inflation fell. With where inflation is going, they can cut rates a few times and still be in restrictive policy if the growth rate of inflation falls even more.
The 10-year yield has fallen dramatically from the recent peak of around 5%, currently at 4.22%. So, the market has loosened financial conditions a bit already but more needs to happen for housing to get going again. Mortgage rates should be below 6% today, but the spreads are still very restrictive in the mortgage market. With the growth rate of inflation falling, this needs to change.
What I would take away from today’s inflation data is that the trend is your friend: the growth rate of inflation has been falling for some time now. The Fed policy is still too restrictive for housing and hopefully the Fed gets a wake-up call and can be pro-housing once again, giving up it’s “stay-at-home” housing economic policy sooner than later.
It’s worth noting that inflation is falling without a job loss recession. Bond yields will head even lower if the labor market gets weaker as they won’t wait for the Fed to act. Hopefully, in tomorrow’s Fed meeting we will see that they’re on the same page and we can all land the plane.
In the mortgage business, November typically represents the start of the slow season. While mortgage rates cooled down significantly from October, it wasn’t enough to overcome seasonal, historic trends and low levels of inventory.
Lock volume declined 10% last month from October, driven by a 12% drop in purchase locks, according toOptimal Blue’s originations market monitor report.
“Cooling economic indicators and dovish commentary from the Federal Open Market Committee (FOMC) meeting at the beginning of November drove a rally in rates across mortgage products,” said Brennan O’Connell, data solutions manager at Optimal Blue.
Following the Federal Reserve’s decision to hold rates steady in November, the spread between the 30-year conforming rate and the 10-year Treasury narrowed by 16 basis points (bps) to 274 bps – the lowest since March.
The Optimal Blue Mortgage Market Indices (OBMMI) 30-year conforming rate dropped 67 bps in November, finishing the month at 7.11%. Jumbo rates fell 34 bps to 7.61%, FHA dropped 54 bps to 6.90%, and VA dropped 61 bps to 6.79%.
The recent decline in rates incentivized borrowers who took out loans over the last few months to refinance – driving up refi volume by 2% month over month to reach its highest level since February.
The refinance climb included 10% month-over-month growth in rate/term refinance volume, while cash-out refi volume remained essentially flat from October.
Purchase lock counts, which exclude the impact of changes in home prices, were down 13% year over year and 37% from pre-pandemic levels in 2019.
Nonconforming products – including jumbo and expanded guidelines loans – gave up share in November, dropping from 12% to 10% of total production month-over-month.
Origination volume from FHA products rose to 23% of total production in November, up 1% from October.
Other products remained mostly flat in production – including GSE-eligible products at 56%, VA products at 10%, and USDA products at 1%.
The steep drop in rates drove down ARM shares to 6.5% in November from 7.9% in October.
Most metropolitan statistical areas (MSAs) experienced declines in rate lock volume, with the exception of Orlando, Florida (6%), which saw growth in production, and New York, New York (0.9%) and San Antonio, Texas (-0.5%), which both remained flat in month-over-month volume.
The average loan amount dropped to $347,400 from $352,500 and the average purchase price saw the largest decline since October 2022, falling to $438,300 in November from $449,300 the previous month.
“Historic affordability issues are keeping buyers on the sideline and forcing sellers to reduce their expectations,” O’Connell added. “This may signal a downward trend in home prices after an extended period of steady growth.”
“We see a little bit of pickup but not like you normally would because of seasonality,” Overfelt added.
If rates continue to drop, some LOs expect a small ‘bump’ in cash-out refis but traditional rate-term refis won’t be likely in the foreseeable future until rates are in the 5% range, LOs said in an interview with HousingWire.
“We need a continuity in rates”
Rates are quoted differently for every buyer depending on several factors – including their credit score, down payment and loan-to-value (LTV) ratio, as well as how many points they buy down upfront.
In other words, a borrower with a 700 FICO score and a 5% down payment won’t be getting a mortgage rate in the 6% range any time soon. Even a good-not-great borrower profile likely isn’t in the 6s yet without buying points or getting pricing exceptions from their lender.
Though conditions have undoubtedly improved from a dismal fall, mortgage rates today are still far higher than they were about a year ago.
HousingWire’s Mortgage Rates Center showed 30-year conforming rates at 6.998% on Monday. Compared to a year ago, it’s still well above 6.35%.
“If we compare 24 months ago, demand is way off. If I compare two months ago, demand is up. So if you look macro versus micro, you’re going to get a very different picture,” said Shane Kidwell, CEO of Dwell Mortgage. “We hit that point where we saw the worst and so it feels like we’re moving past that. How fast we move past that is up for debate.”
Loan originators are hopeful that mortgage rates will continue to decline as the spread between the 30-year fixed mortgage rates and the 10-year Treasury yield narrows.
Demand for approvals has definitely increased, but homebuyers are waiting to see if they will drop just as fast as they have come down recently, said Robby Oakes, managing director at CIMG Residential Mortgage.
Buyers want to know that they will be able to get a low mortgage rate when they lock in a rate. Rates are too volatile for buyers to have that confidence, Oakes noted.
After a fairly strong jobs report on Friday, rates ticked back up. All eyes will be on the CPI report and Fed meeting this week.
“When rates go up by a point, people sit on the sidelines. When rates go down by a point, people sit on the sidelines because the consumers and the sellers want to know what the market is going to be when they sell the house. We really need an orderly, return to normal rates,” said Oakes.
A potential small refi bump
With about 90% of mortgage holders having a rate below 6%, a traditional refinance boom isn’t likely in the cards for the next few years.
“For somebody to want to do a traditional refinance there has to be a financial incentive, right? They’ve got to be able to see a rate lower than where they are to do a traditional refinance,” said Kidwell.
“Today is not the best day for them to get a refinance. It’s the best day to start thinking about that process and reengaging,” Kidwell noted.
Loan originators say homeowners are reluctant to give up their low-rate first lien mortgages and lean towards tapping into their accumulated home equity through home equity line of credits (HELOCs) even if it means getting a second mortgage with a higher interest rate.
“There is a lot more inquiry for home equity line credit. People are afraid to give up that rate that has a three in front of their mortgage,” said Steinway.
ICE Mortgage Technology estimated tappable home equity – the value borrowers can borrow while still preserving at least a 20% equity stake in the home – was $10.6 trillion as of Q3 2023, nearing its 2022 peak.
“We’ve already seen there is more of a focus on home equity lines of credit and cash out refinances. Borrowers are not doing this because the rate is where they want it to be, their debt is where they don’t want it to be and so they’re consolidating debt or they’re using their equity to purchase something else or to pay something else off,” Kidwell noted.
While loan originators don’t expect a refi boom, they anticipate a small refi ‘bump’ stemming from cash-out refis.
“I think non-traditional refinances (cash-out refis), we’re probably going to see probably more of. Traditional refinances (rate-and-term refi), I don’t think I’d call it a refi boom. I think we might see a small refi bump,” said Kidwell.
Only a mere 14% of originations came from refis in Q3 and cash-out refinance loans fueled what is left of the small refinance market accounting for 92% of the third quarter activity, according to ICE Mortgage Technology.
Meanwhile, it will be a long time before the industry sees a traditional refi boom.
Most LOs don’t expect traditional rate-term refinance demand to return until the second half of 2025 and into 2026.
For 2024, roughly 75% of origination volume is expected to come from purchase loans.
The Mortgage Bankers Association (MBA) expects the 30-year fixed-rate mortgages to come down to 6.1% in 2024, followed by 5.5% in 2025. Fannie Mae has a more conservative outlook expecting rates to average 7.3% in 2024 before declining to 6.9% in 2025.
And for originations business to pick up, a stability of low rates as well as a supply in inventory would have to work in tandem.
“I don’t think things will pick up dramatically because there is still no inventory. Anytime you see rates drop, you can see business pick up. I think what we need is continuity of rates,” said Oakes.
Wells Fargo, once the largest mortgage lender in America, was accused of discrimination through the common industry practice of offering mortgage loan discounts to select borrowers, CNBC reported.
The bank received Matter Requiring Attention (MRA) notice from the Consumer Financial Protection Bureau (CFPB) on problems with loan discounts, CNBC reported on Monday, citing anonymous sources.
It is unclear whether Wells Fargo was accused of discrimination or sloppy oversight, the report noted.
Loan discounts — known as pricing exceptions — is when a lender makes exceptions to its established credit standards. Whether certain borrowers – based on race, gender and age – received fewer pricing exceptions, violating U.S. fair lending laws has been on regulators’ radar in recent years.
According to the CNBC report, mortgage bankers at Wells Fargo would request pricing exceptions that typically lowered a customer’s Annual Percentage Rate (APR) by between 25 and 27 basis points to help secure deals in competitive markets.
Wells Fargo received the MRA from the CFPB a couple of months before the company announced it was scaling down its mortgage business in January. On the heels of regulatory pressure, Wells Fargo adjusted its policies in 2023 that would require hard documentation of competitive bids, sources told CNBC.
After receiving an MRA from the CFPB, Wells Fargo hired a law firm to look into mortgage bankers’ such practices whose sales included high levels of discounts, the report said.
Wells Fargo didn’t respond to HousingWire’s request for comment but told CNBC that the bank does not “discriminate based on race, gender or age or any other protected basis.”
“As part of our renewed focus on supporting underserved communities through our Special Purpose Credit Program, we have spent more than $100 million over the last year to help more minority families achieve and sustain homeownership, including offering deep discounts on mortgage rates,” said a spokesperson from CNBC.
CFPB’s probe into mortgage lenders
The CFPB’s probe into mortgage lenders was shared back in Fall 2021.
Its findings showed that mortgage lenders violated U.S. fair lending laws by discriminating against African American and female borrowers in the granting of pricing exceptions based upon competitive offers from other institutions.
Since then, regulators conducted additional examinations and again found that mortgage lenders violated “Equal Credit Opportunity Act (ECOA) and Regulation B by discriminating in the incidence of granting pricing exceptions across a range of ECOA-protected characteristics, including race, or age.”
“In several instances, examiners identified policies and procedures that were not designed to effectively mitigate ECOA and Regulation B violations or manage associated risks of harm to consumers,” according to a CFPB’s report in the summer of 2023.
“Some policies permitted mortgage loan officers to request a pricing exception by submitting a request into the loan origination system without requiring that the request be substantiated by documentation. While those requests were subject to managerial review, there were no guidelines for the basis for approval or denial of the exception request or the amount of the exception,” said the report.
The report didn’t share names of the mortgage lenders that indicated they violated ECOA and Regulation B.
The CFPB declined to comment on HousingWire’s request for comment.
Wells Fargo was repeatedly slapped with hefty fines regarding its missteps involving home loans recently.
Wells Fargo paid $3.7 billion for consumer abuses on products including home loans in December 2022 and was fined $250 million in 2021 for failing to address problems in its mortgage business.
The CFPB has been tightening its screws on fair lending practices. In 2022, the regulator carried out 32 fair lending investigations, more than doubling the number of probes it started in 2020.
Are you looking for the best sites to scan receipts to make extra money? In our busy world, who wouldn’t want to earn some extra money without working hard? One way to do this is by taking pictures of your everyday shopping receipts. There are apps for your phone that can turn your regular shopping…
Are you looking for the best sites to scan receipts to make extra money?
In our busy world, who wouldn’t want to earn some extra money without working hard? One way to do this is by taking pictures of your everyday shopping receipts. There are apps for your phone that can turn your regular shopping (whether you’re shopping for groceries, clothes, gas, or other stuff) into cash and gift cards.
Plus, the process of scanning receipts for money is extremely simple.
I have personally been using receipt scanning apps for years now – I love how easy they are to use and how you can earn points or cash while barely spending any time. Plus, I already have the receipts – so it’s nice to make some extra money by doing almost nothing.
Key Takeaways on the best receipt scanning apps
Scanning receipts can earn you cash back and free gift cards.
My favorite receipt scanning and cash back sites include Fetch Rewards, Ibotta, and Rakuten.
Receipt scanning apps pay people to scan receipts for a few different reasons such as: 1) Because brands and stores give the apps money for gathering information about what people buy from their receipts. Then, the apps give a part of this money back to users as rewards. 2) To reward people for shopping through their referral links.
14 Best Apps To Scan Receipts For Money
Below, you’ll find a list of the best apps to scan your receipts and earn money. I am personally signed up for many of the apps and sites listed below, and they are so easy to use!
1. Fetch Rewards
Fetch Rewards is an easy-to-use app that rewards you for scanning your shopping receipts, such as at grocery stores and even gas stations. Just shop as usual, and after your purchase, take a picture of the receipt in the Fetch Rewards app.
You’ll earn points for every receipt you take a picture of, which you can later redeem for free gift cards (such as to places like Target, Visa, and Amazon) and other rewards.
You can sign up for Fetch Rewards here.
I really like this app because it’s super easy to use. I’ve been using it for a while, and it makes getting rewards from your regular shopping easy.
You can also read my review at My Real Fetch Rewards Review.
2. Ibotta
Ibotta is one of the most popular receipt-scanning apps. You select the items you want to buy, go to the store, then scan your receipt.
You can redeem rebates while shopping from stores such as Walmart, Target, Kroger, Publix, Walgreens, CVS, City Market, and more.
You can sign up for Ibotta here.
Also, in case you’re wondering how Ibotta and Fetch differ: Fetch Rewards and Ibotta are very similar. All of the receipt-scanning apps are fairly similar too, but they do have some differences.
For example, Fetch Rewards is easier to use than Ibotta. With Fetch Rewards, you just take a picture of your receipt using the app, and that’s it. Ibotta, on the other hand, is more like using digital coupons and takes a few more minutes. Basically, you go through the Ibotta app and see if there are “coupons” that you want to shop with for a specific item like cereal or bread. However, even though there’s a little more work, you can usually earn more rewards with Ibotta. So, it depends on what works best for you!
The great part is that you can use the exact same grocery receipt for both Fetch and Ibotta.
For me, I go shopping and scan my receipts with both apps. It only takes me probably less than a minute to do so, and I can earn more points for free gift cards this way.
3. KashKick
KashKick is a site where you can get rewards for doing things like shopping, answering questions, and playing games online. You can then turn these rewards into real money through PayPal.
Simply head to KashKick and go to their Offers tab. There, you can see if you can unlock any offers where you can scan a receipt for points.
Please click here to sign up for KashKick.
4. Swagbucks
Swagbucks is not only a receipt-scanning app but also a site to make money by taking surveys, watching videos, and more.
You simply go to the Swagbucks website and go to the “Magic Receipts” tab. You can then scan any receipt from any store (grocery stores, warehouse club stores, drugstores, home improvement stores, clothing stores, restaurants, and more) and earn points.
Swagbucks is a company that I started using years ago, and it has helped me easily earn some extra cash on the side, all from home or while traveling. I exchange my points for Amazon gift cards and have earned over 100 free gifts over the years.
Please click here to join Swagbucks.
5. Rakuten
Rakuten is the best cash back app that rewards you for your online purchases. So, it’s technically not a receipt-scanning app, but you do get cash back for shopping just like how you normally would.
All you have to do is choose a store you want to shop from (they have a wide range like Kohl’s, REI, Toys “R” Us, and many more) and shop just like you normally would online. It’s that simple!
Rakuten earns a commission for sending you to the store you shopped at, and they share some of that money back with you as a reward. It’s a win-win!
Please click here to sign up for Rakuten. You can also get a $40 bonus for spending $40 through my link.
6. Upromise
Upromise is a site that helps you save money for college by scanning your receipts.
When you shop at partner stores and upload the receipts, a percentage of your purchase amount is added to a college savings account or used to pay off student loans.
With Upromise Grocery Rewards, you simply add deals to your Upromise Grocery Rewards shopping list and click the “Add To List” button. Then, you shop at the store (either in-person or in-store), and take a picture of your receipt when done. You can either snap and upload your receipt or email it to Upromise directly.
Please click here to learn more about Upromise.
7. Receipt Hog
Receipt Hog is a fun and easy-to-use app that rewards you for scanning your shopping receipts. All you have to do is take a picture of your receipt using the app, and you’ll earn rewards.
You can shop at any store (grocery store, convenience store, and more) and either in-person or online. You can then upload your paper or digital receipt onto the Receipt Hog app for coins, slot spins, or sweepstakes entries.
You can even link your Amazon account or other loyalty accounts like Walmart, Target, and Costco to earn rewards automatically without having to upload receipts.
8. Checkout 51
Checkout 51 is another site where you can get cash back on your groceries and fuel purchases.
You simply download the free app on the App Store or Google Play Store. Then, look at the app to see what deals are available and make a shopping list – it’s kind of like using a digital coupon.
Click on “Redeem” and mark the items you bought on your receipt. Once you’ve done that, use the app’s camera to take clear, readable pictures of your receipt.
Once your receipt gets approved, they’ll add cash back to your account. You can cash out when you reach $20.
9. Tada
Tada is an app that gives you cash back on everyday purchases such as groceries, clothing, and dining out.
Using Tada is easy and you just shop at the stores that are part of the program. After you make a purchase, scan your receipt and you’ll earn cash back on the items that qualify. You can then exchange this for gift cards (such as to Home Depot, Target, Best Buy, Amazon, and Visa).
10. MyPoints
MyPoints is an app that not only lets you scan receipts for rewards, but you can also make money answering surveys, watching videos, and shopping online. With MyPoints, you can earn points by scanning your receipts, and then redeem them for gift cards or cash.
To get started with MyPoints, just go to their website and the “Magic Receipts” section. You can snap a picture of any receipt from stores like grocery stores, warehouse clubs, drugstores, clothing stores, restaurants, and more.
Please click here to sign up for MyPoints.
11. InboxDollars
InboxDollars is an app that allows you to earn cash by scanning receipts as well as taking surveys and doing other tasks.
To begin using InboxDollars, go to their website and find the “Magic Receipts” section. Then, take a picture of a receipt from stores like grocery stores, warehouse clubs, drugstores, clothing stores, restaurants, and others. Every receipt earns you points, which you can later convert into cash or gift cards.
You get a minimum of $0.01 for any receipt you scan, plus whatever deals you qualify for. For example, I just logged in and some of the deals available to me include $0.50 cash back on eggs (from any store and any brand), $4.00 back on deli meat, $5.00 back on whole milk yogurt, $8.00 back on chicken nuggets, and more.
Please click here to sign up for InboxDollars.
12. ReceiptPal
ReceiptPal is an app that rewards you for uploading your shopping receipts.
With ReceiptPal, you can take pictures of your paper receipts or link your email or Amazon account. This way, you’ll earn points for every receipt you submit.
You can exchange your points for gift cards from popular retailers, and you’ll also be entered into their weekly sweepstakes for a chance to win cash prizes.
13. Shopkick
Shopkick is an app that rewards you not only for scanning your receipts but also for simply walking into participating stores and scanning barcodes.
You earn points called “kicks” that can be redeemed for gift cards to TJ Maxx, Sephora, Walmart, Starbucks, and more.
Please click here to learn more about Shopkick.
14. Dosh
Dosh is a fast and easy-to-use app that automatically gives you cash back when you shop at participating stores (such as Disney, Costco, Lyft, AT&T, and over 10,000 other companies).
Simply link your debit or credit card to the app (or even your Venmo or bank account), and the rest is taken care of. When you shop and pay using your linked card, you’ll receive cash back directly into your Dosh account, which can be transferred to your bank or PayPal account.
Please click here to learn more about Dosh.
How Scanning Receipts For Money Works
Many of the receipt-scanning apps mentioned above work the same way:
To begin, just download an app like Fetch or Ibotta. Many of the sites above work whether you have an iPhone, Android, or even just from your computer.
After you finish shopping, open the app and look for the option to upload or scan your receipt. Use your phone’s camera to take a clear picture of the receipt. Typically, the receipt scanner will want to see what you purchased, the store you went shopping at, the order total, as well as the date.
Once you snap a picture of the receipt, the app will usually check and process the receipt. With certain apps like Ibotta, you might need to choose specific items you bought before scanning the receipt. On the other hand, apps like Fetch will automatically scan for eligible products. They each have their own way of doing it!
Your receipt is usually automatically processed, and you will see how many points you have earned within just seconds.
Your points can be turned into PayPal cash, gift cards, and more.
For me, I simply scan every grocery receipt right after I shop. It’s easy to do and only takes me a few moments.
How To Increase Your Earnings From Receipt Scanning
Here are some easy tips to make even more extra money when using receipt-scanning apps and rewards sites:
Use multiple receipt scanning apps – To increase your earnings, you can use more than one receipt-scanning app. This way, you can redeem different deals, cash back, and rewards points that each site gives you.
Download browser extensions – Some apps, like Capital One Shopping, can be downloaded straight to your computer and it will automatically scan for available coupons.
Use store loyalty cards – Most grocery stores have free store loyalty cards. Make sure you are using those to get the lowest prices while shopping, plus you can earn points.
Use cash back credit cards – If you are a careful credit card user and know that you won’t go into debt, credit card rewards can be an easy way to earn more free cash.
Frequently Asked Questions About Scanning Receipts For Money
Here are answers to common questions about scanning receipts for extra money.
How do these receipt scanning apps make money to pay users? Why do receipt scanning sites pay people to scan receipts?
Okay, so after reading the above – this may be your top question. Why would they pay you money? What’s in it for them? Are receipt-scanning apps a scam?
Apps that scan receipts make money by working with brands and stores. These brands and stores give the apps money for gathering important information about what people buy from their receipts (they want to learn more about your shopping behavior – such as what you buy and when). Then, the apps give a part of this money back to users as rewards for using their app.
Are receipt scanning apps safe to use?
Yes, many receipt-scanning apps are safe. They protect your personal information by encrypting it and following strict data protection rules. However, I recommend reading the app’s privacy policy and user reviews (such as on TrustPilot).
Can you make money by scanning receipts?
Yes, you can make money by scanning receipts. You can scan receipts for cash back, gift cards, or points that can be redeemed for rewards. Now, of course, this will not be a full-time income. You can simply earn some spare cash and free gift cards.
What types of rewards can I earn by scanning receipts?
When you scan receipts using these apps, you can earn rewards such as cash back, Amazon gift cards (and many other places), or even make donations to charity.
Is it illegal to scan other people’s receipts for Fetch?
Scanning other people’s receipts for Fetch, or any other receipt-scanning app, is almost always against the app’s terms of service and may result in your account being closed, so you should only use your own receipts.
Can I use more than one receipt scanning app per receipt?
Yes, you can usually use multiple receipt-scanning apps to maximize your rewards. However, make sure to read each app’s terms of service to make sure you’re not violating any rules or participating in actions that could result in account termination. Personally, I use multiple apps all the time for the same receipt, such as Fetch Rewards and Ibotta.
How To Scan Receipts for Money – Summary
I hope you enjoyed this article on how to scan receipts for money.
By using the apps and sites above, you can earn money or rewards while shopping, and it’s a simple way to get something extra from your everyday spending!
So, what is the best app to scan receipts and get money back?
My favorite receipt scanning app is Fetch Rewards. I’ve been using it for years! I also like to scan the same receipts with the Ibotta app. And, if I’m shopping online, then my favorite is Rakuten.
But, there are many great apps and sites listed above – find the best one for you and your own personal situation.
Do you scan receipts for money? What’s your favorite receipt scanning app?
When individual mortgages are originated by lenders like banks or credit unions, they may bundle groups of these mortgages together into financial vehicles called mortgage-backed securities (MBS) that are then sold to investors on a secondary market.
This allows investors to gain exposure and returns from the mortgage market, while the lenders gain immediate capital to issue new mortgages.
However, if a mortgage in an MBS bundle defaults or contains errors, there is a “repurchase risk.” This means the entity that assembled and sold the MBS is obligated to buy back any non-performing or defective mortgage loans. This ensures their bundle retains its credit rating and market value.
If too many mortgages default, the MBS can lose significant value. As a result, lenders aim to include reliable mortgages in their securities and have technology to assess credit risk, detect fraud, and monitor performance — in order to avoid forced buybacks or losses for investors that diminish market confidence. In Q1 of 2023, there were $459 million in repurchases on about $68 billion in Fannie Mae loan-acquisition volume, or a 68 basis-point repurchase rate.
Benefits of technology for repurchase risk
Emerging technologies are proving essential to reducing repurchase risk and improving confidence in mortgages sold on secondary markets, enhancing transparency and security of loan data transfer to minimize errors.
For example, automated underwriting powered by artificial intelligence (AI) and machine learning allows lenders to more accurately assess risk and detect potential fraud during the application process, leading to higher-quality loans less likely to default.
Lenders are also utilizing predictive analytics on borrower behavior to identify early signs of trouble and take preventive action through improved loan monitoring systems.
With automated tracking enabling quicker interventions as needed, these technological capabilities help drive down default rates, ensure smooth payments and significantly mitigate repurchase risk. By leveraging such innovations, lenders can greatly strengthen investor trust in bundled mortgage products.
Specific types of technologies to reduce risk
Cutting-edge data technologies are invaluable for mitigating repurchase risk across sectors, especially in mortgages. For instance, certain firms now employ automated direct-source data connections to validate applicant details in real-time, confirming income, employment, assets and other information at the moment of origination. This prevents falsities upfront.
Additionally, enhanced data access enables lenders to monitor loan performance factors on an ongoing basis. Via API connections, loan data is streamed into systems allowing staff to catch early warning signs of borrower distress, like missed payments on other credit accounts. This data empowers lenders to take timely preventive and corrective actions with struggling borrower before complete default.
Between advanced application fraud checks and early intervention on emerging trouble signs, these data capabilities attack repurchase risk from both sides, further safeguarding mortgages for downstream investors.
Benefits to lenders and consumers
Employing such technological safeguards carries major advantages across mortgage lending stakeholders. With reduced defaults and minimized repurchase requests, lenders can reap higher profits on sold mortgages while strengthening investor trust in associated securities. This helps attract ongoing investment capital into the housing sector.
Consumers also benefit as improved loan quality and lower perceived default risk opens lending access, allowing originators to offer more borrowers mortgage financing, often at better interest rates.
By cutting risk through data and automation, these innovations allow for mortgage market growth, fueling a win-win for both lenders and everyday borrowers seeking to purchase homes. The enhanced market stability and consumer access further establishes technology’s power to drive positive change in lending.
Technology is transforming how mortgages are originated, bundled and sold on secondary markets to mitigate repurchase risk and improve stability. Through automated underwriting, direct source data verifications, and API-driven performance monitoring, lenders can significantly reduce defaults and errors in loan pools.
With lower repurchase risk, lenders enjoy greater revenue potential and investor confidence in the mortgage instruments they bring to market. Further boosted by early warning systems that enable targeted borrower interventions, these capabilities don’t just move risk off lender books, but actively prevent it at scale.
The results are profitable loan growth and expanded consumer access. Government agencies like Fannie Mae and Freddie Mac both have integrated these capabilities into the loan origination process to confirm the reliability of data from day one through closing and the eventual sale of the loan.
While regulations and diligent processes remain essential, innovations in data and analytics provide the infrastructure to continually improve mortgage quality over time. As adoption accelerates, technology systems will become the indispensable foundation upholding housing market growth for generations to come.
John Hardesty is general manager of mortgage at Argyle, the leading platform for consumer-permissioned payroll connectivity.
We will start with the price cut data percentage because it deserves a detailed explanation. 2022 was a historic year for housing as we had the most significant home sales crash ever, and mortgage rates went from 3% to 7% in the same year. That type of move is very abnormal and home sales simply collapsed, especially in the second half of 2022.
Naturally, some people thought home prices would crash in 2023 as many market players said prices always follow volume. But not only did that not happen, home prices quickly got back to all-time highs. Then something even crazier happened: mortgage rates shot to to 8% but the number of homes taking price cuts never went above 2022 levels during this time.
In fact the price cut percentage consistently stayed 4% below 2022 levels. I believe this is due to the fact that home sales aren’t crashing anymore like they were in 2022. What happened between June 2022 to June 2023 can be confusing, so if you need more clarity I suggest listening to this podcast.
Here is the price cut percentage data for the same week in other years:
2023 38%
2022 42%
2021 27%
As you can see, affordability is an issue, and the price cut percentage is higher now than in any period from 2015-2021, but still below 2022 levels.
Now lets take a look at the weekly inventory data. Last year, according to Altos Research, the seasonal peak for housing inventory was Oct. 28. the seasonal peak this year was on Nov. 17.
Weekly inventory change (Dec. 1-Dec 8): Inventory fell from 555,717 to 546,424
Same week last year (Dec. 2-Dec. 9): Inventory fell from 550,302 to 536,409
The inventory bottom for 2022 was 240,194
The inventory peak for 2023 so far is 569,898
For context, active listings for this week in 2015 were 1,050,971
The new listing data has been trending at the lowest levels ever for 17 months now. What 2023 data has shown me is that even with mortgage rates heading toward 8%, new listings data didn’t take a new leg lower — it stayed remarkably consistent all year long. This is a positive, and something I discussed on CNBC months ago, that we should see some flat-to-year-over-year growth data in the second half. Since most sellers are also buyers, getting growth in this data line will be a positive for home sales in 2024.
New listings data last week
2023 43,188
2022: 39,149
2021: 46,881
In 2024, what we want to see is new listings data grow back to 2021 and 2022 levels in the spring. This will bring more inventory to the marketplace and get more sellers, who will also be buyers.
Mortgage rates and the 10-year yield
Last week was another interesting week for bond yields and mortgage rates. We almost broke under 7% mortgage rates for the first time in a while, getting as low as 7.04%. We ended the week at 7.09%, and this was during jobs week where had two weaker-than-anticipated labor reports and two better-than-anticipated reports. Regarding jobs Friday, I wrote this article on why the Federal Reserve was wrong about inflation and jobs.
We have a big week ahead of us. For now I would focus on the 4.10% level on the 10-year yield since we bounced on that level twice last week. We have two inflation data points this week and if both come in lighter than anticipated and the Fed gives a dovish outlook, that is the best case for the 10-year yield to fall below 4% and get us mortgage rates below 7%.
Purchase application data
There was some confusion over the purchase application data this last week: The unadjusted data showed 35% week-to-week growth and the seasonal adjusted data showed a slight decline of 0.03%. We always take the seasonal adjusted numbers no matter what. Just be mindful of purchase apps around the holidays.
Since Mortgage rates have fallen from 8% and are now near 7%, purchase apps have had four positive and one flat weekly print. This makes the year to date count 22 positive prints, 23 negative prints and 2 flat prints. Clearly we have a positive trend here in purchase apps which is typically the normal with a 1% move in rates. But again, we are working from a low bar here in this data line and we will need at least 12-14 weeks of positive growth trends to have it been something material.
The week ahead: Fed and inflation week
Ok, here we are heading into Christmas and the question is: will the Fed be the good Grinch going into Christmas or the Grinch we see for 93% of the movie? There is no rate hike coming of course, but what the Fed says matters a lot, especially what Chairman Powell says in the Q&A portion of the press conference. Inflation data is key as always, because we wouldn’t be talking about rate cuts in 2024 if the growth rate of inflation was at 5%-8% year over year. We also have retail sales coming up this week so we will be keeping a close eye on all of these reports.