Uncommon Knowledge
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You’re likely familiar with the story of Robinhood, the outlaw who stole money from the rich and gave it to the poor. Well, you’ll find a similar principle behind the investing app, Robinhood.
The founders of Robinhood aren’t stealing anything, but they do believe that the current financial system doesn’t benefit every American. For that reason, they make it easy for non-traditional investors to get started.
When you sign up for Robinhood, you get access to commission-free trades, a cash management account, and a lot more. Keep reading to learn more about the pros and cons of signing up for Robinhood, as well as whom the app is best for.
Robinhood is a popular investing app that allows users to trade stocks, options, exchange-traded funds (ETFs), and even cryptocurrencies without paying any commission fees. It was founded in 2013 and has since grown to over 22 million users, disrupting the financial industry.
The app is designed to cater to non-traditional investors and make the financial system more accessible to everyone. In this Robinhood review, we’ll explore its features, pros and cons, and determine who it’s best suited for.
When you sign up for a Robinhood account, you’ll get your first stock for free, even if you don’t deposit any funds. Signing up for an account is easy. All you have to do is enter your name, email address, and create a password.
From there, you’ll be prompted to enter more personal information, like your address and Social Security Number. Robinhood is required by federal law to request this information.
After you’ve set up your brokerage account, you’ll outline your investing experience thus far. And to go forward, you will need to fund your account at this point. However, there’s no minimum deposit required to fund the account, so you can always start small and invest more later.
You can connect your bank account to the Robinhood app to make funding your account easier. And there are no fees for transferring money in and out of your account.
User-friendly interface: One of the key selling points of Robinhood is its simple, user-friendly interface. Both the web and mobile versions of the app have been designed to make it easy for users to navigate and trade. The intuitive design allows users to quickly understand their account, monitor their investments, and execute trades with minimal hassle.
Account setup and verification: Setting up an account with Robinhood is a straightforward process. Users can sign up with just their name, email address, and a password. Further personal information, such as address and Social Security number, is required due to federal law. Once the account is set up, users can outline their investing experience and link their bank account for easy funding.
Robinhood offers several features that make it stand out from other investing apps:
Zero commissions: As mentioned earlier, Robinhood has been a pioneer in offering commission-free trading on stocks, options, ETFs, and cryptocurrencies. This feature has helped democratize investing and lower the barriers to entry for non-traditional investors.
Cryptocurrency trading: Robinhood is among the few investing apps that support cryptocurrency trading. Users can trade popular cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Dogecoin. This added functionality allows users to diversify their investments within a single platform.
Mobile app: Robinhood’s mobile app is highly regarded for its ease of use and clean design. Users can quickly view their portfolio, monitor market news, and execute trades on the go.
Account notifications: Users can customize their notification settings to receive alerts about their account performance, significant price movements, and other relevant information.
Daily market updates: Robinhood’s news feed provides users with daily updates on market trends, economic news, and other developments that can impact their investments. This helps users stay informed and make better investment decisions.
In addition to the features already discussed, Robinhood offers various other aspects that make it an attractive choice for investors. Let’s dive into some of these additional features and see how they can benefit users.
Robinhood allows users to participate in extended-hours trading, which includes pre-market and after-hours trading sessions. This feature gives investors the opportunity to act on news and events that happen outside of standard market hours, potentially capitalizing on price movements before the broader market reacts.
Robinhood offers options trading, which involves buying and selling contracts that give investors the right, but not the obligation, to buy or sell a stock at a specific price within a specified period. This feature enables users to implement more sophisticated trading strategies and potentially profit from market volatility, while also providing the flexibility to manage risk according to their preferences.
Robinhood supports a Dividend Reinvestment Program, allowing users to automatically reinvest their dividends back into the underlying stocks or ETFs. This feature can help investors grow their portfolios more efficiently over time by harnessing the power of compounding returns, allowing them to maximize their potential earnings.
In addition to allowing fractional share purchases, Robinhood also enables users to reinvest dividends as fractional shares. This functionality ensures that users can continue to grow their investments, even if they don’t have enough dividends to purchase a full share, making it a valuable tool for long-term wealth accumulation.
Robinhood offers instant deposits for its users, allowing them to access their transferred funds more quickly (up to $1,000). This feature ensures that users can take advantage of investment opportunities without waiting for their funds to settle, providing a more seamless investing experience.
Robinhood prioritizes the security of its users’ accounts and personal information. The platform uses industry-standard encryption and security measures to protect user data. Additionally, Robinhood accounts are insured by the Securities Investor Protection Corporation (SIPC) for up to $500,000, including a $250,000 limit for cash. This protection offers users peace of mind as they navigate the world of investing.
Robinhood offers various educational resources, including articles and guides, to help users improve their investment knowledge and make more informed decisions. These resources can be especially beneficial for new investors looking to learn more about the world of investing, equipping them with the knowledge needed to navigate the markets confidently.
Robinhood’s platform has a social component, allowing users to follow friends, family members, or other investors and view their portfolios. This feature can create a sense of community and motivate users to learn from one another’s investment strategies, fostering collaboration and the sharing of ideas.
There are several advantages to using Robinhood as your investing app of choice:
Despite its numerous benefits, there are a few drawbacks to using Robinhood:
Robinhood Gold is a subscription-based premium service that offers a suite of advanced features designed for more experienced investors. By upgrading to Robinhood Gold, users can access the following benefits:
While standard Robinhood users can access instant deposits of up to $1,000, Robinhood Gold subscribers receive instant deposits depending on their account balance. This feature allows users to invest larger amounts immediately, without waiting for their funds to settle.
Gain access to Level II market data provided by Nasdaq TotalView, which shows real-time bids and asks for stocks. This advanced market data can help users make more informed trading decisions by providing greater transparency into market activity.
Robinhood Gold allows users to trade on margin, providing them with access to additional buying power by borrowing funds from Robinhood. With margin trading, users can potentially amplify their gains, but should be aware that it also increases the risk of losses. It’s essential to carefully consider the potential risks and rewards before engaging in margin trading.
Subscribers receive access to research reports from Morningstar, a leading provider of independent investment research. These reports can help users make more informed decisions by offering in-depth analyses of individual stocks and industries.
Robinhood Gold users have the opportunity to invest in initial public offerings (IPOs) before the stocks are listed on public exchanges. This feature allows users to potentially profit from the early stages of a company’s growth, as well as gain exposure to new and innovative industries.
The cost of Robinhood Gold is $5 per month, which includes access to all the premium features mentioned above. It’s important to note that margin trading also comes with additional fees based on the amount borrowed, so users should carefully consider the costs before utilizing this feature.
Robinhood is best suited for new investors who want an easy-to-use platform to start trading with minimal barriers to entry. It’s also an excellent choice for casual investors who prefer a more hands-off approach, as the app’s features and design make it easy to monitor investments and stay informed on market trends.
For those interested in margin trading, Robinhood Gold is an option worth considering. This premium service costs $5 per month and provides access to additional margin, ranging from $5,000 to $50,000, depending on the user’s deposit amount.
However, Robinhood may not be the best fit for individuals focused on long-term retirement savings, as it doesn’t offer retirement accounts or investment options like bonds and mutual funds. Additionally, more experienced investors seeking advanced research tools and a wider range of account types may find Robinhood’s offerings somewhat limited.
While Robinhood is a popular choice for many investors, it’s essential to consider other factors and alternatives before deciding on an investing platform.
Tax implications: Investing through Robinhood’s individual taxable account means that any capital gains or dividends received will be subject to taxation. Users should be aware of the tax implications of their investments and consider seeking professional tax advice.
Risk management: Investing always carries a degree of risk, and Robinhood is no exception. It’s crucial for users to assess their risk tolerance, diversify their investments, and develop a long-term investment strategy to minimize potential losses.
Alternatives to Robinhood: There are several other investing apps and platforms available that cater to different types of investors. Some popular alternatives include:
Robinhood is a solid option for new investors looking to explore the world of trading without paying commission fees. The user-friendly interface, zero-commission trades, and various features make it an attractive choice for casual investors or those just starting. However, more experienced investors or those with specific account needs may need to consider other brokerage platforms.
By weighing the pros and cons, potential users can decide if Robinhood is the right fit for their investment goals and preferences. With no commitment required and a free stock upon sign-up, there’s little risk in giving Robinhood a try and determining if it meets your investing needs.
Source: crediful.com
Mortgage rates ticked up last week after weeks of declines while applications for home loans dropped in a sign that the housing market continues to struggle despite some recent signs of optimism.
The 30-year fixed rate inched closer to 7 percent for the week ending December 29, according to the Mortgage Bankers Association (MBA). Meanwhile, mortgage applications tumbled by more than 9 percent from two weeks earlier, lenders said.
“Markets continued to digest the impact of slowing inflation and potential rate cuts from the Federal Reserve, helping mortgage rates to stay at levels close to the lowest since mid-2023,” Joel Kan, MBA’s deputy chief economist, said in a statement shared with Newsweek on Wednesday.
The 30-year fixed mortgage ended 2023 at 6.76 percent, more than a percentage point lower than the peak of nearly 8 percent in October, he said.
“The recent decline in rates has given the housing market some cause for optimism going into 2024, but purchase applications have not yet picked up in response, with the overall level of purchase activity 12 percent lower than a year ago,” Kan said.
Economists say that activity in the housing market will ramp up if prices decline, which at the moment are elevated partly due to low supply. The existing homes market is still in the doldrums as sellers are reluctant to give up their low rates for new home loans that could cost them close to 7 percent in interest.
“The housing market has been hampered by a limited supply of homes for sale, but the recent strength in new residential construction will continue to help ease inventory shortages in the months in come,” Kan said.
Recent data shows that private residential construction moved up, according to the U.S. Census Bureau, to nearly $900 billion in November—a jump of more than a percent from the previous month, helped by spending on single-family home building.
“November was the first month in over a year when single-family construction spending rose compared to the year prior,” Yelena Maleyev, KPMG’s senior economist, said in a note shared with Newsweek on Tuesday. “Builders have become more positive about the single-family market as mortgage rates have come down from recent peaks and revived buyers’ interests.”
In a sign that rates may be entering some level of uncertainty, as the market looks to see how many rate cuts the Fed will institute in 2024, the average contract interest rate for 15-year fixed-rate mortgages decreased to 6.26 percent from 6.41 percent in the week ending December 29.
Fed policymakers held rates at 5.25 to 5.5 percent last month for the third time in a row and have suggested that they may cut rates to a possible 4.6 percent in 2024. It’s unclear yet when such cuts could come.
But declining mortgage rates could give a boost to the housing market, with builders feeling optimistic in the new year.
“Construction activity remains robust as strong demand for housing and infrastructure remain a tailwind for builders,” Maleyev said, noting that elevated rates could be a challenge for the sector in 2024. “Spending is expected to end the year on a high, with lower mortgage rates helping revive activity in the housing market.”
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Source: newsweek.com
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“My dad always said to me, ‘Work until your bank account looks like a phone number’ so I did. Account balance: $9.11.” You can work harder, or you can work smarter. (I have severe doubts about the validity of this clip; it gave me the willies watching it.) Swimming is certainly a competitive sport. Do you have competitors? Most businesses do. Which is a reason that hotels offer free ice, thanks to a hotel chain that began in Memphis, TN. If the Mortgage Bankers Association is right, and volume does pick up some in 2024, that doesn’t mean the competition to do that business is going to go away. Numbers game. 5 calls, 25 a week, one closed loan $4k, two loans $8k. At these rates, less competition. If rates come down, competition for inventory just increases. (Today’s podcast can be found here, and this week’s is sponsored by the STRATMOR Group, the data-driven mortgage advisory. At STRATMOR, insights and knowledge are applied to guide mortgage clients to make sound strategic decisions and take actions that improve their success. Hear an interview with the STRATMOR Group’s Garth Graham on if industry forecasts for a better market should lead to industry optimism.)
Broker and Lender Programs and Software
Servicers know how much work it takes to release a lien once a mortgage has been paid off. That’s why they’re turning to the new Automated Lien ReleaseSM (ALR) capability in the ICE MSP® servicing system to help lighten the load at the end of a loan. ALR combines document creation and automated workflows to streamline the lien release process. It helps with eSigning and eRecording where available (and prints the release package for wet sign where it’s not) to help servicers cut through the delays and release liens faster. Read the press release to see how you can start releasing fully paid liens in days instead of weeks.
Truv is now an approved third-party service provider supporting Freddie Mac Loan Product Advisor® asset and income modeler (AIM) Revolution Mortgage estimates that they can save up to $20,000 in cost on verifications with TRUV over competitors. “Let’s talk about our documentation costs and those giant monopolies that are out there and laughing at customers and increasing prices because they have a particular monopoly. You want to lower your manufacturing costs” said Femi Ayi, EVP Operations. Contact TRUV today to discuss how we can help you with your income, employment, insurance, and asset verifications. Come join us!
Be Wary of Relying on Interest Rate Predictions
I am asked all the time, “Hey Rob, where do you think rates will be in six months?” My answer, after I say that I can’t even predict where I’m going to have lunch tomorrow, is always the same, “Higher, or lower, or possibly the same.” Or sure, one can have a prediction until a ship becomes stuck in the Suez Canal, a ship is attacked in the Red Sea, or a pandemic occurs. A recent STRATMOR blog is titled, “Interest Rates are Like the Weather? Or Like Signs of the Zodiac?”
The interest rate markets have a way of humbling almost all the ‘experts’ and the very first thing you learn in Secondary Marketing is that you shouldn’t take a view on where rates are headed because half the time, you’re wrong anyway. In Q4 of 2022 the arm-chair prognosticators were predicting that we’d see rates come down by the end of 2023. After reaching a peak in October, Treasury rates did come down to where they were at the beginning of 2023. But mortgage rates were well into the 7 percent range.
The Federal Reserve, in its attempts to control inflation and cool a very strong economy, raised fed funds several times in 2023. Throughout the year, however, we heard, inside the world of mortgage banking, opinions expressed that rates will not only come down, but when to expect this to happen. Based upon what data, one should ask, are their views speculative, biased, or just hopeful?
I would challenge these prognosticators as to the reasons why mortgage rates are positioned to fall. What leads them to predict that? I’m sure some opinions are based on fundamentals: Fed raises rates to control inflation, money is taken out of the economy, the economy cools, Fed cuts rates, and mortgages come down to some predicted level. A lot of the predictions I see are not rooted in actuality, but rather rooted in exuberance for mortgage banking.
In the summer of 2023, little of the macro data even hinted at a reduction of short-term interest rates. Inflation, which has been grinding lower, was a tad north of 4 percent with the Federal Reserve’s target set at 2 percent. Economists have modeled that unemployment would need to reach as high as 7 percent in order for inflation to come down to 2 percent… Not a pretty picture. Remember, when an economy ‘slows’ jobs are not created, historically they’re lost.
The Fed was relatively “hawkish” in its monetary policy for the remainder of 2023 until the end. Anyone predicting where interest rates will be in the future would need to start by predicting where the Federal Funds rate NEEDS to be in order to see inflation that’s appealing to the Fed, and then ultimately, HOW LONG rates needs to remain there; when is it warranted to reduce borrowing rates under recessionary fears? These are two almost impossible questions to answer since the number of variables that you need to get right, coupled with unpredictable world events, play such a strong role in forecasting interest rates.
A year from now, rates will either be higher, lower or the same. So, focus on your products and services!
Capital Markets
Ever wondered how to hedge a mortgage pipeline? Hedging one’s mortgage pipeline typically produces the greatest return over long-term macroeconomic cycles, which is why it is considered an essential step in the growth of a mortgage lender. In MCT’s whitepaper, Mortgage Pipeline Hedging 101, their experts explain what hedging is and why it is a valuable strategy for maximizing profitability in the secondary market. The whitepaper also reviews information on moving to mandatory loan sales, the strategy of hedging, the benefits of hedging, and how to determine if you are ready. Download the whitepaper or join MCT’s newsletter for upcoming releases.
Turning to interest rates, what’s that you say? Markets have gotten ahead of the Fed again? Gasp! Yes, markets aren’t looking all that cheerful in the new year. I don’t put much opinion in here, but I’d say it’s because of investors’ own doing. The added potential for interest rates to stay high for some time is forcing investors to continue to unwind optimistic trades placed in late 2023. The Federal Reserve’s policy makers poured water on predictions of early 2024 interest rate cuts, revealed the minutes from the most recent Federal Open Market Committee meeting, with several voting members seeing the potential for the fed funds rate range to stay at a peak level for longer than the market expects.
Policymakers did acknowledge that we are probably at the peak of rates and that projections show cuts by year-end. Richmond Fed President Barkin cautioned that the potential for more rate hikes remains alive, called a soft landing “increasingly conceivable but in no way inevitable,” and added that any decision on a March cut is a “long way away.” Staff projections point to rate cuts by the end of 2024, but officials do not seem to be supportive of a series of cuts at this time.
The minutes from the Federal Open Market Committee meeting hinted at hard landing concerns amongst board members while recognizing that they could “face a tradeoff between its dual-mandate goals in the period ahead.” Fortunately, there were more indications of optimism about inflation, which is supported by the latest jobs data showing cooling.
U.S. job openings fell in November to 8.79 million in November, the lowest level since early 2021 as fewer workers voluntarily quit and the number of hires fell. People who voluntarily left their jobs as a share of total employment fell to the lowest point since September 2020, signifying that Americans are feeling less confident in their ability to find new jobs or better paying jobs in the current market.
Separately, we also learned yesterday that the December ISM Manufacturing PMI indicated an ongoing contraction in the manufacturing sector, but at a slower pace than the previous month. December marked the 14th straight month the PMI reading has been in contractionary territory. The report was not devoid of good market news, as the Prices Index reflected a further easing of inflation pressures.
Today’s calendar sees some early labor market indicators ahead of tomorrow’s payrolls report. Markets have already received December job cuts from Challenger, Gray & Christmas (34,817 cuts in December, down 24 percent from the 45,510 cuts announced in November) as well as ADP employment for November (164k, higher than expected), and initial (202k, down from 218k) and continued (1.855 million) jobless claims. Later today brings the final December S&P Global services PMI, Treasury announcing the details of next week’s mini-Refunding (consisting of $52 billion 3-year notes, $37 billion reopened 10-year notes, and $21 billion 30-year bonds), and Freddie Mac’s Primary Mortgage Market Survey. We begin the day with Agency MBS prices worse .125-.250, the 10-year yielding 3.98 after closing yesterday at 3.91 percent, and the 2-year at 4.36 after a spate of employment data.
Employment
It’s a new year and Merchants Bank, is off and running, continuing to leverage its diversified business model to grow market share and assist Merchant’s lending partners. Merchants Bank’s Correspondent channel, offering Non-Delegated and Delegated options, recently hired Liberty Tribe as Sales Executive to help grow TX and the Mid South Region. Liberty along with Dan Hastings, CMB, AMP cover the Mid-South (TX, LA, AR, MO, OK, KS). In addition, Merchants is expanding its Financial Institutions channel by adding a Mini-Correspondent offering to their TPO Wholesale platform. If you are interested in learning more, contact Rob Wilson. On the Retail front, Merchants Bank continues to grow there as well and if you are looking for stability, support and products, they want to hear from you. Contact Ron Berry for more information. Their LO centric platform along with the strength and balance sheet of the bank allows them to expand market share in their regional markets.
Planet Home Lending’s new Vice President, Construction Sales Melony Harpe is paving the way for Planet MLOs to increase their construction loan volume in 2024. Interested in building your construction business? Join Planet and you’ll have support for calls with builders, resolving construction issues, and educating stakeholders. “I want MLOs and retail branches to feel confident and supported in their construction lending efforts,” Harpe said. “My role is to give MLOs the tools and resources needed to navigate the complexities of construction lending and expand their connections with builders.” To lay the foundation for a better 2024, contact VP of Talent Peter Briggs or 949-202-8213; all inquiries will be held in strict confidence.
Download our mobile app to get alerts for Rob Chrisman’s Commentary.
Source: mortgagenewsdaily.com
National metrics found that the median sale price was $364,250 in the four weeks ending December 24. This was a 4.5% change year-over-year and the biggest increase seen since October 2022. This was caused by the rapid rise of mortgage rates hampering prices during the previous year. New listings reached 53,243 the biggest increase since … [Read more…]
Mortgage rates over the last seven days followed a split path, but an important rate are now higher. Average 15-year fixed mortgage rates didn’t move, while average 30-year fixed mortgage rates grew.
For variable rates, the 5/1 adjustable-rate mortgage slid lower.
Since early November, the average rate for a 30-year fixed mortgage started making sustained drops, largely due to the Federal Reserve’s less restrictive monetary policy, cooling inflation and other economic data. The most common home loans are now in the 6% to 7% range.
Yet even with the recent decline in rates, the mortgage market always slows down toward the end of the year. And rates aren’t compelling enough to upset holiday plans to do home shopping, according to Keith Gumbinger of HSH.com. “After the holidays, if rates are still in this range, we’ll likely see a little seasonal pent-up demand by borrowers expressed in January,” Gumbinger said.
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.
If you’re in the market for a home, check out how today’s mortgage rates compare to last week’s. We use data collected by Bankrate to track daily mortgage rate trends. This table summarizes the average rates offered by lenders across the country:
Loan type | Interest rate | A week ago | Change |
---|---|---|---|
30-year fixed rate | 7.05% | 7.00% | +0.05 |
15-year fixed rate | 6.41% | 6.41% | N/C |
30-year jumbo mortgage rate | 7.12% | 7.06% | +0.06 |
30-year mortgage refinance rate | 7.21% | 7.16% | +0.05 |
Rates as of January 3, 2024.
When picking a mortgage, consider the loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. You’ll also need to choose between a fixed-rate mortgage, where the interest rate is set for the duration of the loan, and an adjustable-rate mortgage. 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’s current interest rate. Fixed-rate mortgages offer more stability and 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.
The average 30-year fixed mortgage interest rate is 7.05%, which is an increase of 5 basis points from one week ago. (A basis point is equivalent to 0.01%.) 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.
The average rate for a 15-year, fixed mortgage is 6.41%, which is the same rate compared to a week ago. 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.
A 5/1 ARM has an average rate of 6.39%, a slide of 2 basis points compared to last week. 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.
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.
At the start of the pandemic, mortgage rates were near record lows, around 3%. That all changed as inflation began to surge and the Fed kicked off a series of aggressive interest rate hikes, which indirectly drove up mortgage rates. Now, nearly two years after the first rate increase in March 2022, mortgage rates are still more than double what they were just a few years ago.
The central bank has kept interest rates steady since late July, and mortgage rates are just now starting to see sustained decreases. With the Fed extending its rate-hike pause in December, experts are waiting for the first rate cut. It may be months before that happens, but as long as inflation continues to moderate, mortgage rates should stabilize and start inching even lower in the coming months.
While mortgage forecasters base their projections on different data, most predict rates will remain near or above 7% for the rest of 2023. Here’s a look at where some of the major housing authorities expect average mortgage rates to land at the end of the year.
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.
Source: cnet.com
Veros Real Estate Solutions released their quarterly review of forecasts for the nation’s real estate market in 2008 today, highlighting a handful of hot and cold markets.
The analysis, which covers the period of December 1, 2007 through December 1, 2008, uses more than 50 factors to examine and develop the pricing trends, including interest and unemployment rates, inventory, inflation, geographical information, and other factors.
Per the report, Veros predicted that the five strongest markets in 2008 will be Wichita, Kansas, with an expected increase of four percent, along with Raleigh/Cary, North Carolina, Sioux Falls, South Dakota, Fargo, North Dakota, and Tulsa, Okalahoma, all seeing gains of three percent.
“The central part of the nation has thus far been largely unaffected by the rapid price appreciations that were seen in many other geographic areas. Consequently, this region is moving forward without distress from the depreciation felt elsewhere and is experiencing minor growth,” the report said.
The predicted five weakest markets include some of the nation’s most heavily-populated regions, including: Sacramento/Roseville, California, expected to fall 12 percent; Cape Coral/Ft. Myers, Florida, slated to drop 13 percent; Palm Bay/Melbourne/Titusville, Florida, forecast to drop 14 percent, and the Riverside/San Bernardino and Modesto, California markets, both predicted to fall 15 percent.
“The heavy decline in the coastal markets, California and Florida, is due to the extended time properties remain on the market, combined with the excess residential inventory much of which is in condominium projects purchased speculatively.”
“Also contributing to this decline is the need of sellers to dispose of their properties by lowering prices, often more than once.”
According to Veros, “the numbers reflect both the current and anticipated prospective impact of the current mortgage credit ‘crisis’.”
The Santa Ana, CA-based company has been developing and releasing these quarterly forecasts since October 2003.
Source: thetruthaboutmortgage.com
With its unique mix of Midwestern and Southern culture, many flourishing industries and mouthwatering cuisine, Missouri stands as a captivating state in the heartland of the United States. But what is Missouri known for, even beyond the stereotypes?
From the iconic Gateway Arch in St. Louis to the enviable live entertainment scene in Branson, Missouri offers a diverse range of experiences for full-time residents and first-time visitors alike. In this in-depth exploration, we’ll delve into the thriving job market and industries, the allure of key attractions, the killer food culture, the state’s cultural norms and the popular forms of entertainment that make Missouri a truly exceptional place to call home.
Missouri calls out with a storied history that has shaped its identity and character. The Show-Me State, a nickname derived from the resilient skepticism of its residents, has been witness to many pivotal moments in American history. From its role as a gateway to the West during the era of westward expansion to the battlegrounds of the Civil War, Missouri’s past is woven into the fabric of the nation.
As we embark on a journey through the state’s present-day landscape, it’s essential to appreciate the historical circumstances that laid the foundation for its thriving industries and job markets. Join us as we explore Missouri’s rich heritage, discover the economic forces that drive its progress and unravel the surprisingly strong threads that bind its communities together.
Missouri is home to passionate sports fans who rally behind their favorite teams. Baseball fans cheer for the St. Louis Cardinals, a storied franchise with a loyal following. On the football front, the Kansas City Chiefs, led by their fervent fan base, have become a powerhouse in the NFL and, thanks to star tight-end Travis Kelce’s recent relationship with Taylor Swift, pop culture as well.
College basketball takes center stage during the annual Missouri Valley Conference Basketball Tournament. Basketball enthusiasts gather to witness the intense competition as college teams vie for victory, adding to the state’s enthusiastic sports culture.
In the entertainment department, Missouri’s contribution to American music history is significant, particularly in jazz, blues and country. The state has produced legendary musicians like Chuck Berry, known as the “Father of Rock and Roll,” jazz trumpeter Miles Davis and singer-songwriter Sheryl Crow. The live music scene in cities like St. Louis and Kansas City continues to thrive, attracting local talent and international acts throughout the year.
Missouri’s economy is as varied as its topography, ranging from urban centers to rural expanses. The state hosts several major corporations that contribute significantly to job growth and economic prosperity.
St. Louis, a bustling metropolis on the banks of the Mississippi River, is home to industry giants like Anheuser-Busch, a global brewing company that traces its roots back to the mid-19th century. The city also hosts Express Scripts, a leading pharmacy benefits management company, and Emerson Electric, a multinational corporation specializing in technology and engineering.
In Kansas City, technology and healthcare are the two main driving forces behind economic growth. Companies like Cerner, a healthcare information technology company, and Garmin, a global leader in GPS technology, have established their headquarters here.
Missouri’s landscape is a testament to its rich natural resources, providing a foundation for both historical development and contemporary prosperity. The fertile soils of the Missouri River Valley foster a thriving agricultural industry, yielding bountiful harvests of soybeans, corn and wheat. Meanwhile, the Ozark Mountains contribute to the state’s economic opportunities with abundant timber resources, sustaining a solid forestry industry.
The state’s commitment to sustainable practices is evident in its utilization of water resources. The Missouri and Mississippi Rivers, along with numerous lakes, not only support agriculture but also facilitate trade and transportation. Furthermore, Missouri is at the forefront of renewable energy initiatives, tapping into wind and solar resources to create a balanced and eco-friendly energy portfolio.
Missouri’s natural resources stand as a dynamic force, blending tradition with innovation to drive economic growth while emphasizing the importance of responsible environmental stewardship.
A cornerstone of Missouri’s barbecue tradition, St. Louis-style ribs are renowned for their distinctive flavor. These ribs are typically seasoned with a dry rub, slow-cooked to perfection and finished with a tangy barbecue sauce. Pappy’s Smokehouse in St. Louis is a local institution loved for its mouthwatering ribs, and attracting barbecue enthusiasts from far and wide.
St. Louis claims the invention of toasted ravioli, a delectable appetizer that has become a local favorite. These bite-sized pasta pockets, filled with meat or cheese, are breaded and deep-fried to a crispy perfection. Numerous restaurants across the state celebrate this St. Louis culinary creation, making it a must-try for visitors and a staple for locals.
Another St. Louis culinary gem, gooey butter cake is a delectable dessert that has found its way into the hearts of locals and tourists alike. This sweet treat is a dense, buttery cake topped with a decadent, sugary layer. Variations abound, with flavors like chocolate and pumpkin adding a delightful twist to this St. Louis classic.
Missouri’s culture is bolstered by an array of artists and literary figures, reflecting the state’s rich heritage and creative spirit. The birthplace of literary luminary Mark Twain, Missouri has long been a muse for writers seeking inspiration in its scenic landscapes and storied history. Hannibal, Twain’s hometown along the banks of the Mississippi River, stands as a testament to the author’s influence, with the Mark Twain Boyhood Home and Museum preserving the legacy of one of America’s greatest literary minds.
Meanwhile, amidst the picturesque Ozark Mountains, Branson serves as a haven for enthusiasts of live entertainment. Earned the moniker “Live Music Show Capital of the World,” Branson is home to several theaters that put on a variety of performances, ranging from soul-stirring country music to Broadway-style shows.
The Ozarks’ scenic beauty forms a breathtaking backdrop, creating an immersive experience that seamlessly blends the allure of nature with the captivating world of live entertainment. In this harmonious fusion, Branson invites visitors to witness a symphony of talent against the stunning backdrop of the Ozark’s natural splendor.
Missouri’s dedication to education is exemplified by its prestigious institutions of higher learning, including the University of Missouri system with campuses in Columbia, Kansas City, St. Louis and Rolla. These universities are catalysts for groundbreaking research across various disciplines. The flagship institution, the University of Missouri–Columbia, spearheads research initiatives in agriculture, medicine, engineering and journalism, contributing significantly to the state’s intellectual capital.
In the realm of research, Missouri remains at the forefront of advancements, with a focus on agricultural innovation, healthcare breakthroughs and collaborative efforts in technological advancements. These endeavors not only elevate Missouri’s status as a center for smart folks to unite but also position the state as a leader in fostering innovation and driving economic development.
In St. Louis, the Gateway Arch dominates the skyline as a towering testament to architectural ingenuity and the spirit of westward expansion. Crafted by Eero Saarinen, this stainless steel masterpiece stands at an awe-inspiring height of 630 feet, offering panoramic views of the city and the meandering Mississippi River. Those seeking a journey through history can embark on a tram ride to the pinnacle, where the significance of this iconic structure comes to life.
For outdoorsy types, Missouri’s natural beauty cannot be overstated with hiking, fishing and camping all being popular pastimes. If you’re asking “What is Missouri known for?” the Ozarks are going to come up at some point. These iconic mountains provide a scenic backdrop for outdoor enthusiasts, offering opportunities for exploration and adventure under the shining Missouri sun.
Missouri stands as a dynamic and multifaceted state, offering a wealth of experiences for residents and visitors alike. From the towering Gateway Arch to the lively theaters of Branson, from the rich flavors of St. Louis-style ribs to the warmth of Midwestern hospitality, Missouri’s allure lies in its ability to blend history, culture and innovation seamlessly.
As we wrap up our tour of the diverse landscapes and cultural landmarks of the Show-Me State, it becomes clear that Missouri is more than just a geographic location; it is a testament to the spirit of the heartland, where tradition and modernity coexist.
Missouri is waiting for you, with stunning apartments for rent, ready to weave you into the state’s unique cultural fabric. When you’re ready to start your search, start with Rent.
Source: rent.com
If you’ve been sitting on the housing market sidelines because of sky-high mortgage rates, there’s good and bad news heading into 2024. The good? Mortgage rates are expected to drop in the new year. The bad? They probably won’t drop as much as you’d like.
“The pandemic was too hot; 2023 was too cold,” says Odeta Kushi, deputy chief economist at First American Financial Corporation, a title insurance and settlement services provider. “2024 won’t be just right, but it will be heading in a normalizing direction.”
Mortgage rates climbed for most of 2023, reaching nearly 8%—a level not seen in two decades. Though a far cry from the double-digit highs of the 1970 and 80s, for hopeful buyers, those rates crushed affordability. And for would-be sellers, they had a lock-in effect. Homeowners who might have otherwise sold instead stayed put not wanting to lose existing—much-lower—interest rates.
Keeping with many other housing economists, Kushi expects mortgage rates to decline in 2024—but only a modest amount. Should those predictions ring true, the question is whether the drop will be enough to shift housing affordability in the right direction.
The consensus among industry professionals is that mortgage rates will gradually decline across 2024. Here’s where experts are predicting mortgage rates will land by the end of 2024:
Source | Projected 30-year mortgage rate (by end of 2024) |
Mortgage Bankers Association | 6.1% |
Fannie Mae | 6.5% |
Realtor.com | 6.5% |
Redfin | 6.6% |
National Association of Realtors | 6 to 7% |
At the close of 2023, the average rate on a 30-year fixed-rate mortgage was 6.61%, according to Freddie Mac. While that’s about average historically—and down more than a full percentage point since rates peaked at 7.79% in October—such high rates were unthinkable just two-years ago.
Back then, the Federal Reserve was holding short-term interest rates near zero to spur the pandemic-battered economy, and mortgage lenders were offering rates below 3%. This pushed up demand for mortgages from home buyers, as well as from homeowners looking to refinance existing loans. Once the Fed started raising rates to fight inflation in March 2022, though, mortgage lenders reversed course. The result was steadily rising home-financing costs, slowing home sales and essentially nonexistent refinance demand.
The year ahead is poised to be another turning point in the mortgage world. With inflation seemingly under control, the Fed has signaled it could begin cutting interest rates in 2024, likely around midyear. While the Fed doesn’t directly determine mortgage rates, it’s likely that lenders will again follow the Fed’s lead. “Our modeling suggests a gradual, steady decline,” says Danielle Hale, chief economist at Realtor.com. (News Corp, parent of The Wall Street Journal, operates Realtor.com.)
But there are no guarantees. “The primary factor for mortgage rates is ongoing improvement in inflation,” Hale says. “If we don’t see that progress on a sustained basis, we would be looking at a very different, higher interest rate environment.”
If inflation starts rising again, rates may stay higher for longer. On the other hand, if inflation falls below the Fed’s 2% target or the economy shows signs of distress, the Fed may move to lower rates sooner than anticipated.
“After a couple of years of exceedingly low rates, we may need to redefine what a normal market is supposed to look like,” says Miki Adams, president of CBC Mortgage Agency, a mortgage lender and down payment assistance provider in South Jordan, Utah.
A fall in mortgage rates is obviously good news for hopeful home buyers. But will those lower rates be a game changer? Likely not for most consumers. Here’s what we can expect falling mortgage rates to look like on the ground.
Lower rates will make mortgage payments lower, but buyers shouldn’t expect any drastic improvements in affordability. On a $500,000 loan, for example, a 7% rate would mean a monthly mortgage payment of just over $3,300. At Realtor.com’s projected year-end 6.5% rate, that payment would drop to $3,160—a difference of only $140.
If rates fall as far as MBA’s predictions—6.1% and the lowest among industry forecasts—the savings could be more notable. In that same scenario, the savings would be about $270 a month.
The high mortgage rates of 2023 haven’t just stymied buyers. They’ve also kept existing homeowners stuck in place—80% of whom have current mortgage rates under 5%.
There’s hope that lower rates in 2024 could spur some of these homeowners to enter the market, thereby increasing listings and putting downward pressure on prices. But again, experts say the impact will likely be minimal (at least from a national perspective).
“Certainly, rates dropping will help to unlock some homeowners, especially those sitting on a ton of equity,” Kushi says. “But it won’t be sufficient to unlock the majority of existing homeowners.”
Fannie Mae currently projects a 4.1% increase in home prices by the end of next year (down from 5.7% price growth this year). In some competitive housing markets, though, the impact of more listings could be felt more significantly. In Dallas, for instance, Realtor.com is projecting an 8% fall in home prices next year; over 5% in San Francisco.
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Source: wsj.com
What should you avoid saying or doing on a listing presentation? Whether you’re presenting to a good friend, a referral client or a colder lead, there are some universal mistakes you must avoid if you want to take the listing. The good news is that all of these things are easy to remember:
Early is on time, on time is late and if you’re late, you’ll lose. People have varying degrees of tolerance for an appointment showing up late, so err on the side of caution and always be early. If you miscalculate and get there too early, use that time to drive the neighborhood and become even more familiar with the streets, amenities, parks, other homes for sale and so forth. It’s better than being late!
You’re either blocking someone in or taking someone’s spot. If their teenager has to drive to soccer practice and you’re blocking them from leaving, then your appointment mojo will be messed up with an awkward interruption. Park in the street.
Politics aren’t relevant to the sale of the home, and no matter what you say, you have a 50/50 shot of being in contention. This also applies to your social media. Don’t invite conflict!
Always make it all about the client: their needs, motivation, time frame and priorities. Don’t talk about how busy you are, about a deal you’re trying to save, inspection and financing drama, or how you’re going to be out of town for two weeks. They don’t care about any of that. They care about your ability to solve their real estate needs.
The definition of “close” is the logical ending to a great presentation. Assuming you did a great job presenting, closing is easy, conflict-free and results in a signed listing contract.
Create a reminder card with these 5 mistakes to avoid, plus your favorite affirmation for success. Keep it in your car and review it before every listing appointment. Sometimes even the smallest things can tilt the appointment in your favor…or away from it.
Seneca said that “luck is what happens when preparedness meets opportunity.” Be prepared and luck will be on your side!
Tim and Julie Harris host a podcast for real estate professionals. Tim and Julie have been real estate coaches for more than two decades, coaching the top agents in the country through different types of markets.
Source: housingwire.com
Home lending slowed to close out 2023, as borrowers appeared to take the holidays off, and markets reacted to the expectation that lower interest rates are on their way, according to the Mortgage Bankers Association.
In the final release looking at 2023 volumes, the MBA’s Market Composite Index, which tracks weekly application activity based on surveys of the trade group’s members, fell a seasonally adjusted 9.4% from 14 days earlier for the period ending Dec. 29. Compared to the last full week of 2022, incoming applications dropped by 6%. Data included a holiday adjustment, with the trade group tracking, but not publishing, survey results over Christmas week.
The swift pullback in interest rates came to a halt as well, with the main conforming average among MBA lenders edging higher for the first time in seven weeks.
“Markets continued to digest the impact of slowing inflation and potential rate cuts from the Federal Reserve, helping mortgage rates to stay at levels close to the lowest since mid-2023,” said Joel Kan, MBA vice president and deputy chief economist, in a press release.
The 30-year fixed conforming rate for mortgages rose by 5 basis points last week to 6.76% from 6.71% seven days earlier. Borrower points also increased to 0.61 from 0.55 for 80% loan-to-value ratio transactions.
While moderating rates pushed application volumes higher during much of November and December, borrowers paused at the end of the year, leading to decreases in both purchases and refinances.
“The recent decline in rates has given the housing market some cause for optimism going into 2024, but purchase applications have not yet picked up in response,” Kan said.
The seasonally adjusted Purchase Index slid 5.4% from two weeks earlier and sat 12.2% below its level from a year ago. But slowly growing inventory points to potential opportunities for lenders if recent trends continue, as sellers list more homes in response to lower rates. Recent surveys also point to solid consumer demand, particularly among first-time buyers.
Meanwhile, the Refinance Index plummeted 18.2% over the final two weeks of 2024, but climbed up 15.2% year over year “still at very low levels,” according to Kan. The share of refinances relative to overall volumes fell to 36.3%, declining from 39.4% and 39.7% the prior two weeks. Some industry leaders, though, see some hopes for a small pick-up in refinances over the coming months should rates decline as hoped.
Government-backed activity, which saw some significant jumps in the fall, pulled back over the final two weeks of the year. The seasonally adjusted Government Index declined 13.4%, and the percentage of federally guaranteed loan activity also shrank. Applications coming through the Federal Housing Administration decreased to 14.5% from 15% week over week, and Department of Veterans Affairs-sponsored volumes contracted to 14.6% from 17.3% seven days earlier. U.S. Department of Agriculture-backed applications managed to nab an incrementally larger slice of 0.5%, rising from 0.4% a week earlier.
Other 30-year mortgage rates tracked by the MBA also edged higher to finish 2024. The average contract rate of the 30-year jumbo mortgage climbed up a single basis point to 6.86% from 6.85% seven days prior. Points used to bring down the rate increased to 0.41 from 0.34.
The 30-year fixed-contract FHA-backed mortgage ended the year at an average of 6.51, also rising one basis point from 6.5% week over week. Points came in at 0.86, rising from 0.73 for 80% LTV-ratio loans.
The contract 15-year fixed rate headed in the other direction, though, falling 15 basis points to 6.26% from 6.41%. Borrowers typically used 0.73 worth of points compared to 0.5 a week earlier.
The 5/1 adjustable-rate mortgage took an even larger weekly drop of 55 basis points, falling to an average of 5.71% from 6.26%. Points remained at 0.59 from one week prior. Despite the decline, the share of adjustable-rate mortgage applications decreased to 6% of total activity from 6.3%.
Source: nationalmortgagenews.com