growth
What is a robo-advisor? An introduction to automated investment tools
One of the joys of writing a money blog like Get Rich Slowly is the continuing self-education. I’m always reading and learning about personal finance. A lot of the times — as in the past month — this education is about esoteric topics. I’m currently diving deep into the history of personal finance, a subject that’s interesting to me but admittedly not of much practical use in the modern world. (Today in the mail, I got a book about advertising and the use of credit during the 1920s. How’s that for esoteric?)
But sometimes, this self-education does have practical uses, and it’s stuff that I can share with you folks so that you too can become better educated.
For instance, I have a huge blind spot when it comes to so-called “robo-advisors”. When I stopped writing here in 2012, robo-advisors existed but they hadn’t yet become a Big Deal. By the time I re-purchased this site in 2017, things had changed. Robo-advisors had become a major force in the investment industry — and I was clueless about what they were.
I’ve remained (mostly) clueless for almost three years now. I have a general idea of what robo-advisors are and how they operate, but only in the broadest sense. During our weekly planning call on Monday, I mentioned this blind spot to my business partner, Tom.
“You should write about robo-advisors,” Tom said. “If you don’t know what they are, I’ll bet there are plenty of readers who don’t know either. Do some research, write it up, and then everybody benefits.”
Tom is a smart man.
Here then is my research into the world of robo-advisors. What are they? How do they work? And who should use them? Let’s find out.
Refinance Volume Reflects Lower Rates
Overall mortgage application activity returned to pre-holiday levels during the first week of the new year. Lower interest rates bolstered refinancing and the Mortgage Bankers Association said its Market Composite Index, a measure of mortgage loan application volume, increased 1.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index was up 48 percent compared to its December 30 level. The Refinance Index rose 5 percent from the previous week but was 86 percent lower than the same week one year ago. Refinancing accounted for 30.7 percent of applications during the week, up from 30.3 percent the previous week. [refiappschart] The seasonally adjusted Purchase Index dipped 1.0 percent compared to the prior week but was 47 percent higher on an unadjusted basis week-over-week. Purchase loan activity was 44 percent lower than the same week one year ago. [purchaseappschart] âMortgage rates declined last week as markets reacted to data showing a weakening economy and slowing wage growth,â Joel Kan, MBAâs Vice President and Deputy Chief Economist said. âAll loan types in the survey saw a decline in rates, with the 30-year fixed rate falling to 6.42 percent. Purchase applications continued to be hampered by broader weakness in the housing market and declined slightly over the week, with the index slipping to its lowest level since 2014. There was an increase in refinance activity as a result of the 16-basis-point decline in rates, as both conventional and government refinance applications increased. However, the overall pace of refinance applications was lower than November and Decemberâs 2022 averages, and over 80 percent lower than a year ago. Refinances were about 30 percent of all applications last week â well below the past decadeâs average of 58 percent.â
Mortgage rates have peaked along with inflation
If you want a soft landing, this is the inflation data you want to see, something I talked about last year, even on recession watch.
30-Year Fixed Mortgage Rates Drop 15 Basis Points
Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.26 percent, down from 4.41 percent.
Single-family rental market slammed by headwinds
Single-family rental investors and their lenders face challenges: rent growth is slipping, vacancy rates are growing and a possible recession looms.
The Real Benefit of Being Rich
There have been a lot of big bills coming across my kitchen table recently. Property taxes, car registrations, income taxes, things for the school orchestra in which little MM plays the standup bass. Plus the usual credit card bills for all my spending on groceries and not-all-that-rare luxury indulgences. There’s nothing bad or unexpected in […]
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Bitcoin Annual Total Returns (1 – 10 years)
Demand for riskier home loans is high as interest rates soar – CNBC
Demand for riskier home loans is high as interest rates soar CNBC