Continued mortgage rate fluctuations, trending cash-out opportunities, and more. Stay informed with this week’s look at recent industry news.
Rates Update
Last week, Freddie Mac reported a significant decrease in mortgage rates with numbers below three percent across the board. These are some of the lowest numbers we’ve seen from Freddie Mac since September – and they should (as with all average rate changes) be taken with a grain of salt. In fact, some experts claim that the exact opposite happened and that rates actually increased over the previous week. Freddie Mac typically gathers their mortgage rate data early in the week, leaving room for error in their subsequent weekly report.
With such a volatile market in this month of November, it’s important to stay in touch with your Total Mortgage loan officer to be sure the mortgage rate you’re getting is the right one.
Low Rates and High Prices Encourage Cash-Out Refinancing
Cash-out refinance numbers are up 33 percent since last November as a result of current market trends. Even with refinancing as a whole accounting for slightly less than half of the market, the cash-out variety is making a noticeable return. Here’s why:
Mortgage rates are still at historic lows. Cash-out refinancing often results in a larger loan with a lower rate, so it’s natural to see the long-term benefits of swapping out now.
Property values are holding high. With fewer (and more expensive) options on the market, homeowners are being forced to look inward at their own properties. Pursuing a cash-out refinance could create a useful source of income for home improvements that will only increase a property’s value for a future selling date.
For full information about cash-out refinancing, read our blog or contact your Total Mortgage loan officer.
Increased Loan Limits Bring More Spending Power to Buyers
Don’t forget earlier this month, the borrowing limits for conventional loan options increased. Buyers now have access to single-family home loans of up to $625,000 (a $75,000 increase), four-unit home loans of up to $1.2 million (nearly a $250,000 increase), and more. With average market prices increasing, this is generally great news for all homebuyers who are eligible. See the full details below:
In Closing
Despite last week’s fluctuations and the ongoing upward trend, mortgage rates are still at historic lows and should remain relatively low through the end of the year. Now is still a good time to lock in a rate if you haven’t already – to get started, reach out to your Total Mortgage loan officer. For now, we’ll continue to monitor the news and keep you updated. Have a great week!
For the fifth consecutive month, pending home sales declined in March from February, down 1.2%, signaling a potential return to “much calmer” conditions, according to the National Association of Realtors.
Only the northeast region saw an increase in pending sales in March from February, according to an NAR news release based off data from its pending home sales index. But compared to the prior year, “pending sales fell for the 10th consecutive month, by 8.2%, with pending sales down across all regions.”
Lawrence Yun, chief economist for the NAR, said the dip in contract signings suggests “multiple offers will soon dissipate and be replaced by much calmer and normalized market conditions.”
He also expects higher mortgage rates to remain a key factor affecting home sales.
Yun forecasts the 30-year fixed mortgage rate will reach 5.3% by the fourth quarter, resulting in a 2022 mortgage rate average of 4.9%. The average mortgage rate should jump to 5.4% by 2023, Yun said.
“As it stands, the sudden large gains in mortgage rates have reduced the pool of eligible homebuyers, and that has consequently lowered buying activity,” Yun said. “The aspiration to purchase a home remains, but the financial capacity has become a major limiting factor.”
Mortgage servicers: If you’re not obsessed with customer service, you’re falling behind
To take full advantage of the current market conditions, lenders and servicers must obsess over customer service.
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Yun additionally expects inflation will average 8.2% for the year, “although it will start to moderate to 5.5% in the second half of this year.” As of March the higher mortgage rates and sustained price appreciation has resulted in a year-over-year increase of 31% in mortgage payments – although major Sun Belt metros such as Tampa, Phoenix and Las Vegas have seen increases closer to 50% year-over-year.
Despite that, Yun said: “Overall existing-home sales this year look to be down 9% from the heated pace of last year. Home prices are in no danger of decline on a nationwide basis, but the price gains will steadily decelerate such that the median home price in 2022 will likely be up 8% from last year.”
Renters will face similar increases, which Yun says could prompt some renters to explore ownership – although the increasing mortgage rates may price them out.
“Fast-rising rents will encourage renters to consider buying a home, though higher mortgage rates will present challenges,” Yun said. “Strong rent growth nonetheless will lead to a boom in multifamily housing starts, with more than 20% growth this year.”
Even as home inventory remains low, Yun also expects single-family homebuilders to take a cautionary approach, resulting only in a modest “boost to construction of less than 5%.”
Mortgage rates will spend the rest of the year moving mostly sideways, as inflation cools but remains above the Fed’s goal, the latest Freddie Mac economic outlook states.
“Under our baseline scenario, the unemployment rate gradually moves modestly higher, enough to slow the economy but not trigger a full-blown recession,” a blog posting authored by its Economic & Housing Research Group led by Sam Khater, chief economist, said. “In that scenario, we expect inflation to cool but remain above the Federal Reserve’s target of 2% and mortgage rates to move mostly sideways, most likely remaining above 6% through year-end.”
Starting last month, Freddie Mac moved to a qualitative forecast from the quarterly quantitative it had been providing in the past. This report was dated June 16, after the Federal Open Market Committee declined to raise short-term rates at its meeting earlier in the week.
In their prior forecasts, including for May, both Fannie Mae and the Mortgage Bankers Association have predicted the U.S. will enter into a recession in the second half of this year. Neither has publicized their June outlook yet.
With mortgage rates staying in that 6% range that put most people out of the money to refinance unless for need, that part of the market should remain muted for the rest of 2023.
This week’s Primary Mortgage Market Survey, based on applications submitted to Freddie Mac’s Loan Product Advisor automated underwriting system, put the 30-year fixed rate mortgage at 6.69%. The last time rates were under 6% was the week of Sept. 8, 2022.
“On the home purchase side, we expect mortgage originations to stay flat this year,” Freddie Mac said. “Purchase originations will start to strengthen later this year as home sales stabilize, and they will resume modest growth in 2024.”
Home sales should remain negatively affected by high mortgage rates and the slowing economy. But a bright spot so far this year is the entry-level segment.
“Despite the substantial affordability challenges, first-time home buyers continue to come to the market and have contributed to an increase in homeownership rates,” Freddie Mac said.
To support its argument, the government-sponsored enterprise pointed to the below-median family income homeownership rate, which at the end of the first quarter was 53.4%, up from 48% in 2016 according to the Census Bureau’s Housing Vacancy Survey.
Over the same time frame, the above-median income rate increased just 0.8 percentage points.
“As of the first quarter of 2023, 87% of the 3.1 percentage point increase in the overall homeownership rate since 2016 can be attributed to the growth in the below-median family income homeownership rate,” Freddie Mac said.
One quarter of home buyers say they’re planning to move from their current residence, with many saying the COVID-19 pandemic has convinced them to relocate to smaller towns and cities.
Redfin reported last week that its database of more than one million house hunters shows that a record 27% are looking to move to a different metro area from the one they currently reside in.
And it’s not only Redfin that has noticed this trend. Last week, realtor.com released its own report showing that more than half of home searchers in the nation’s 100 largest metros are focused on homes in the suburbs of those areas. Indeed, listing views of homes in the suburbs in May dramatically exceeded those from one year ago. But the migration to the suburbs is not a new trend, as it actually began accelerating prior to the pandemic, according to realtor.com’s director of economic research Javier Vivas.
“After several months of shelter-in-place orders, the desire to have more space and the potential for more people to work remotely are likely two of the factors contributing to the popularity of the burbs,” he said.
In addition, homes in smaller towns are getting more attention too. Redfin said that page views for listings in towns with 50,000 or less residents saw traffic grow by 87% in the last year. That’s almost four-times the 22% annual increase in views of listings in cities with 1 million+ residents.
“While there has been a huge increase in the number of people looking online at homes in small towns, the long-term impact of the pandemic on people actually moving from one part of the country to another remains to be seen,” Taylor Marr, a Redfin economist, said. “People are starting to take the plunge and move away from big, expensive cities, though most of them were probably already considering a lifestyle change. The pandemic and work-from-home opportunities that come with it are accelerating migration patterns that were already in place toward relatively affordable parts of the country. But for many people, the lure of large homes in wide open spaces will be passing a dream fueled by coronavirus-induced isolation.”
The largest net outflow of Redfin searchers in April and May was in the cities of Los Angeles, New York and San Francisco, which means more people are moving out of those areas than moving into them. Moreover, Phoenix; Sacramento, Calif.; Las Vegas; and Dallas saw the highest net inflow of users in the same months. Homes in those metros also tend to be more affordable than in the coastal regions.
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
“Mortgage credit availability decreased for the third consecutive month, as the industry continued to see more consolidation and reduced capacity as a result of the tougher market,” said Joel Kan, MBA’s deputy chief economist. “With this decline in availability, the MCAI is now at its lowest level since January 2013.” The Conventional MCAI dropped 2.3%, … [Read more…]
Family travel is a whole other ballgame. The strategy, gear, planning, expectations and number of times you may answer “Are we there yet?” make it an entirely different sport than solo or adults-only trips.
While traveling with kids is arguably quite different than taking a trip without a child (notice we didn’t call it a “vacation” with kids), it doesn’t have to be intimidating. In fact, there are countless ways to experience memorable moments and make lifelong memories with your kids, whether you hike the mountains of Machu Picchu or ride the newest coaster at Disney World.
Related: TPG’s 10 top family vacation destinations
To make the journey a little easier, we’ve compiled our 43 favorite family travel tips. Whether you’re traveling with infants, teens or some of both, these tried-and-true tips are bound to ease travel headaches and ensure your family travels are as fun and carefree as possible.
Travel tips for infants and toddlers
Having a baby does not mean the end of your time as a traveler. It may cause you to temporarily pause your adventures, and it will certainly change how you travel. But traveling with a baby is still worth the effort.
While it’s true that your baby may not remember the details of your trips during the first few years, quality time together is invaluable. You will always remember their first big vacations.
Some travel is often easier with a small, snuggly baby than with a growing, active toddler, so don’t be afraid to plan something while your little one is still young.
Use the right travel stroller
If you plan on traveling with a stroller, you want one that is lightweight and easy to maneuver through the airport or rough terrain, if necessary, once you reach your destination.
Related: These are the 13 best travel strollers for your next trip
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If you choose to gate-check your stroller, foldability isn’t as important. Instead, prioritize protecting your stroller from dirt and damage by investing in a stroller with a bag. For long layovers, you can request to have your gate-checked stroller delivered to you between flights so that your baby has a safe and comfortable place to rest while you navigate the airport. Just ask the gate agent when you check your stroller.
Baby-wear
To keep your hands free and your baby snuggled, you may choose to baby-wear through the airport or on a flight (though most airlines don’t allow it during takeoff and landing).
The Transportation Security Administration rules state that infants may be carried in a sling or carrier while going through the walk-through metal detector, so you shouldn’t have to remove them for security — at least, according to the rules.
If it’s not too hot, baby carriers and slings also come in handy at theme parks, which allow baby-wearing on many family-friendly attractions. Just be sure you ask about safety restrictions before you ride.
Breastfeeding mamas should consider carriers that allow easy access for on-the-go nursing, such as those in sling or wrap styles.
Consider a Doona
If you don’t want to lug both a car seat and a stroller and your baby weighs between 4 and 35 pounds, you’re in luck: The Doona can serve the function of both. It transforms very easily from a stroller to a car seat and back again, all while your baby is strapped in.
Because of their convenience, Doonas are great for flights, cab rides, Uber rides and, frankly, any part of your busy life with a baby.
Think twice about flying with a lap infant
Most airlines allow children younger than 2 to fly as lap infants instead of purchasing separate seats for them.
The cost savings can be hard to pass up, and during those early months when the little one is nursing or sleeping a lot, it can be the easiest way to go. However, if your baby is fussy or you are flying solo, you may feel more comfortable keeping them in their car seat. If they can sleep through anything or you have someone you can split baby-care duties with, you may have more success flying with a lap infant.
If you do purchase a seat for your baby, there are dozens of portable car seats out there that are much easier to travel with than the bulky car seat you may have at home.
Get a car seat just for travel
The Cosco Scenera is a perennial favorite when it comes to travel car seats. At around 10 pounds and only $50 to $60, this car seat is a winner for travel when you need something easy and affordable. It’s rated for rear-facing little ones weighing between 5 and 40 pounds or forward-facing kiddos weighing 22 to 40 pounds.
Another model to consider is the WAYB Pico portable car seat, which was recommended by several TPG readers.
Use a car seat on the plane
Every kid is different, but if your little one sleeps well in a car seat in the car, they may do the same on a plane. If your kids are generally comfortable in car seats and have their own seat assignments on the plane, consider bringing the car seat on board for a secure flight experience.
Related: Car seats that are airline approved
Bring a Boppy pillow if you’re holding an infant
TPG’s senior director of engineering Mitchell Stoutin recommended using a Boppy nursing pillow for long flights with an infant. In addition to being handy for nursing, it gives your baby a comfortable place to rest. He also advised stashing your Boppy in a vacuum Ziploc bag to save space when not in use.
Sign your kids up for frequent flyer programs
Once you make the transition to buying your child a seat — either because they turn 2 or because you think having a separate seat will work best for your family — sign them up for a frequent flyer account and let the miles start rolling in.
No minimum age requirements exist for kids, so enroll them while they’re young to maximize their earnings.
Related: Earning frequent flyer miles for your kids just got a little easier
Board last
Most airlines let families with young children board early in the process, but as long as your family has assigned seats, you don’t need to worry about rushing to board before others.
Instead, have one parent get all the gear ready and board first while the other waits as long as possible before bringing the baby on board. This will help minimize the amount of time you have your little one in tight quarters, reducing the likelihood of a meltdown or further disrupting their schedule.
Pack your carry-on strategically
Think about everything you may need to easily access for yourself and your baby before organizing your carry-on. That way, you don’t forget any of your must-have items or struggle to find them while on board.
Consider packing food, diapers and extra outfits for at least twice as long as you think you’ll need them for your little one while in transit. Don’t forget to also bring clothes, snacks and drinks for yourself so you have everything you need.
As a general rule of thumb, it’s a good idea to have enough essentials to survive at least 24 hours off of what you bring on board, as you never know what is going to happen.
Bring large Ziploc bags and black trash sacks
Avoid packing a suitcase without tossing in a few Ziploc bags, grocery bags or trash bags. They can be used to stash snacks and store wet or dirty clothing.
As TPG executive editor Scott Mayerowitz shared, large black garbage bags can also work as blackout shades in a pinch.
Related: The best family beach vacation destinations to kick off summer
Find a space in your hotel for the baby to sleep
In the best-case scenario, you’ll have accommodations with at least two bedrooms so your baby has a dark, quiet place to sleep while you relax without disturbing them. However, there are times when having multiple rooms isn’t possible.
If you only have one bedroom, try putting a crib in a hotel closet or bathroom to achieve the same result.
Travel with gear that will help your baby sleep in the hotel
When it’s time for the baby to sleep, there are numerous sleep tents, shades and white noise machines to choose from. Here are a few of our most trusted options:
You don’t always need to buy new gear for a successful trip, though. One reader suggested using painter’s tape to cover outlets as a quick, cost-effective way to baby-proof your hotel room.
Related: These are the best New York City hotels for families to check out
Have diapers and essentials shipped to your final destination
While you need plenty on hand for that first day or two, you can purchase what you need from Amazon and have it shipped directly to your destination instead of traveling with an entire week’s worth of needed items like diapers and wipes.
Alternatively, you can use a service like Shipt or Instacart to have essentials delivered to your hotel or home rental after you arrive.
Pack the snacks
This is true for all ages but especially applies when traveling with infants.
Don’t ever assume anything baby-appropriate will be available while you are in transit. The last thing you want is the stress of scrambling to find what you need at the last minute.
To avoid this potential headache, pack enough formula, snacks and more so you have whatever your little one may need to stay happy and content.
Related: How to pack — and prepare — for travel with a baby
Travel tips for preschoolers
The good news is that when kids are old enough for preschool, they don’t need quite as much sleeping and transportation gear.
With preschoolers, you’ll want to pay particular attention to toys and activities that will keep them entertained, night lights that will help keep the “scaries” away and a few other important travel essentials.
Bring mess-free toys
When choosing toys to pack for a flight or road trip, keep in mind that you don’t want anything that will create a mess or get lost easily, such as Legos or slime.
For mess-free coloring, we love Crayola Color Wonder Markers and coloring pages. If you’re taking a long flight or road trip, consider suction toys that can stick to a car or airplane window.
Related: 14 mistakes parents make when traveling with kids
Pack hidden toys to reveal during your trip
A surefire way to keep your child content for extended periods of time is to hide some toys until your travel day arrives so they feel new and exciting. You can even wrap them up or dole them out periodically throughout your trip — we recommend packing one toy for each hour of a flight — to add an element of surprise.
Try visiting a dollar store or dollar aisle in a store to dial up the surprise factor. Trust us, the $5 investment will pay off in spades.
Related: Your guide to flying with kids of every age
Consider an inflatable booster seat
If your child has graduated to a booster seat (congrats!), there are inflatable and fold-flat booster seats available that are easier to haul when traveling by car.
While there are several options currently on the market, the BubbleBum inflatable booster seat is a TPG reader favorite.
Use a stroller
Should you find yourself covering lots of miles on your trip, having a stroller can come in handy, even if you don’t normally use one at home.
For example, at a large theme park like Disney World, you may find yourself needing a stroller until your kid is 6, 7 or even 8 years old if you are moving quickly and want them to easily keep up (or if you know they will fall asleep before you are ready to call it a night). This may mean renting one when you get there, though you may prefer to have your own if you’re doing more than spending time at Disney.
Get stroller straps
Because it isn’t socially acceptable to AirTag children (though they do come in handy for finding lost luggage), we instead suggest getting stroller straps that bigger kids can hold on to while you push younger children in the stroller. We’re particularly fond of the Tagalong Stroller Accessory.
Preschedule car service from the airport
If you need car seats or want to be sure you have a ride waiting for you when you land, Uber and Lyft now both have options for prescheduling a ride if you need one.
While the best service depends on where you are going, one option to try is Blacklane. Consider having your driver meet you inside at baggage claim if you’re traveling with a lot of gear.
Pack a night light
For kids who are afraid of the dark, night lights may come in handy. This affordable nightlight is small, sleek and easy to pack.
If you are going on a cruise and don’t have access to traditional power outlets, TPG senior travel editor Erica Silverstein suggests bringing along battery-operated tea lights instead.
Travel somewhere with a kids club
A magical milestone in travel is when your child turns 3 and is potty trained, as this unlocks access to a variety of kids clubs.
Whether you’re on a Disney cruise (like the new Disney Wish cruise ship, pictured below) or at a resort with a kids club (some of which are free to use), children’s clubs are great for preschoolers.
By going somewhere that caters to younger children, you’ll be able to get a well-deserved break while the kiddos are taken care of.
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Plan down days and afternoon rest
Even if your preschooler has dropped daily naps at home, it’s still smart to build some downtime into your vacation schedule. This is especially important because it’s likely that their sleep schedule will be a little off while you’re traveling and that your vacation will be more action-packed than what they’re used to at home.
To help your overtired kid adjust, plan a relaxing pool day or take an afternoon break in your hotel room to keep crankiness at bay.
Travel tips for elementary-age kids
As kids get older, they can do more while on vacation with less help, but the tried-and-true tricks for keeping them entertained may no longer work.
Because their brains are developing and becoming more complex, elementary-age kids will need to have access to more activities while they’re away from home. As a result, you’ll need to adjust your strategy for vacations so they continue to have a good time.
Use packing cubes for the family
This tip applies to all age groups but can be especially helpful when your child starts taking more of an interest in choosing their own clothes. By relying on packing cubes, you can keep clothing for every member of your family organized while saving space.
If you decide to use packing cubes, there are a couple of good methods to choose from.
You can have a packing cube for each day of your trip and put your family’s clothing for each day in one cube. This works well if you will be making multiple stops and don’t want to pack and unpack everything.
You could also pack each family member’s clothing in a separate packing cube, which is helpful when you are encouraging kids to get dressed on their own and choose their own outfits.
Leave 1 day free in the schedule
We’ve already covered the importance of leaving some flex time in the afternoons, but if you are traveling for more than a long weekend, we highly recommend leaving an entire day unscheduled. That way, the kids can either rest and chill or you have the ability to say yes to something they spot along the way.
Depending on your child’s interests, you may want to use your free day for activities like splashing around at a water park, checking out some animals at a zoo, enjoying an epic ice cream-tasting adventure or spending more time at the kids club.
The key is to leave this day flexible so you can cater some activities to what your kid is enjoying the most.
Take advantage of your hotel’s club lounge
Club access can be invaluable when traveling with kids.
If you stay in a club-level room at a hotel, you’ll often have daily access to breakfast, snacks and drinks. An added bonus is that the club can serve as a gathering spot for enjoying more time (and often gorgeous views) with them.
Related: Can you use a World of Hyatt club lounge access award for someone else?
Plan trips with another family
This is the age where having other kids around really starts to matter.
If at all possible, try planning the trip to at least overlap with time spent with cousins or friends. Doing so will virtually guarantee the kids will have a better time, which means you will, too.
For these types of trips, you may want to look into finding a good vacation home rental.
Related: Why the best big family vacation may be skiing
Travel tips for tweens and teens
Traveling with tweens and teens is completely different than traveling with younger kids — something you probably know all too well if you are currently living with them.
At this age, kids are well on their way toward becoming full-fledged adults. As a result, they deserve a taste of the space, privacy and independence that comes along with adulthood.
Build an activity bag
It’s easy to assume the phone will do the trick, but TPG editor Kristy Tolley is a proponent of custom activity bags to keep kids (including older ones) occupied on long trips.
For your activity bag, consider anything from snacks to quiet toys to new games for their Nintendo Switch to art supplies — whatever will keep them entertained while you get to your final destination.
Double-check downloaded content
Wi-Fi on airplanes can be quite finicky. Even if you pay for it, there’s never a guarantee it’ll work for the entirety of your flight. Because of this, download movies, music, games and more to your device (or your child’s) before your trip.
When downloading movies or TV shows, turn to multiple sources like Netflix, Disney+ and Apple. That way, if you run into issues with one provider, you still have content from the others.
Also, remember that messaging others is free on many flights, so be sure your teen has the airline app downloaded if you want them to be able to keep using services such as iMessage while in the air.
Enroll your child in TSA PreCheck
Until they turn 13, kids traveling with a parent or guardian with TSA PreCheck will be allowed to go through the expedited security line even if they themselves don’t have TSA PreCheck.
Even after they turn 13, kids 17 and younger can typically use the TSA PreCheck lines with their parent or guardian as long as the teen has the indicator on their boarding pass.
If you have a credit card that reimburses fees for TSA PreCheck, you can recoup the cost of your child’s application. Note that Clear continues to work to bring kids through until they turn 18.
Related: Why you should get TSA PreCheck and Clear — and how you can save on both
Consider connecting rooms
The days of squeezing two or three kids into one queen-size bed are probably long gone once they reach their teenage years. Not to mention, trying to have the whole family use one bathroom is an ordeal you likely won’t want to go through.
To keep the peace, consider reserving connecting hotel rooms.
With connecting rooms, you’ll have double the beds, bathrooms and storage space. Plus, teens and tweens will have the space and privacy they need without you being too far away to keep an eye on them.
Related: Big news for families: Hilton to guarantee adjoining rooms with ‘Confirmed Connecting Rooms’
Let kids choose a few activities (or plan the whole day)
At this age, kids are not just along for the ride. Give them some input (and independence) by allowing them to help plan your trip. Odds are they’ll be more engaged by being involved in the planning.
Bring a friend
While planning trips with other families is a good strategy with elementary-age kids, by the time kids are teens, just bringing along one of their friends could be sufficient.
To keep the costs down, consider using an airline companion certificate to bring along that friend without spending extra.
Go somewhere with a teens club
If you are visiting a resort or destination where you may be going light on activities, lean into places that have a space just for teens.
Cruise ships are fantastic when it comes to this, as they often have kid-focused spaces divided into pretty distinct age ranges. For example, Disney Cruise Line has a club for kids ages 3 to 12, another for those between 11 and 14 and then one for teens ages 14 to 17.
By taking advantage of clubs that are broken up into designated age groups, your teen can have plenty of fun without the annoyance of hanging out with younger kids.
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Related: Child turning 18? Here’s everything you need to know before the next time they travel
General family travel tips
Some family travel tips transcend age groups.
Regardless of how old your kids are, where you’re traveling or how you’re getting to your vacation destination, there are a few tips you’ll always want to keep top of mind.
Utilize airport lounges
Airport lounges are becoming more and more kid-friendly, as they offer dedicated family rooms with toys and kids shows on TV, plus food that will please picky eaters. Additionally, if you have a long layover or are dealing with flight delays or cancellations, you’ll be much more comfortable waiting in a lounge instead of at your gate.
You can purchase a day pass to many lounges but may be able to get yourself and your family in for free with certain credit cards or airline status. For example, The Platinum Card® from American Express grants the cardmember and one guest complimentary access to Priority Pass lounges and access to Centurion and Escape lounges, though complimentary guest access depends on how much you spend annually.
Related: Best credit cards for airport lounge access
Upgrade to a suite
Similar to springing for connecting rooms, upgrading to a suite will buy you additional space and, sometimes, a pullout sofa that adds another sleeping option.
You’ll also have more room for your family’s belongings and areas for relaxing and dining so your kids don’t spend all their time jumping, eating and lounging on the beds.
Check for reciprocal zoo and museum memberships
If you have a membership to your local zoo or museum, you may be able to use reciprocal benefits for free or discounted entry to other zoos and museums that you can visit on vacation.
This information is usually available on your zoo or museum’s website, but you can also check lists on the Association of Zoos & Aquariums’ page about reciprocal admissions or on the North American Reciprocal Museum Association website.
Get a travel tracker that doubles as a memento
There are so many unique travel souvenirs you can get that also serve as keepsakes for remembering your child’s travel “firsts.”
These Junior Frequent Flyer flight logbooks allow you to record your child’s flights while teaching them about aviation.
If a national park visit is in your future, order a standard or junior National Parks Passport and collect stamps every time you visit a new park.
Don’t forget important medicines
When you are away from home, you have to be prepared for anything. That includes unexpected sicknesses and accidents.
Pack kid-safe and grown-up medicines, as well as Band-Aids, antibiotic ointment and other first-aid necessities in your carry-on bag so you won’t be without them if your checked luggage is delayed or lost.
Bring an extra bag
If you are traveling between a cold climate and a hot one, pack a lightweight tote bag that can fold into your carry-on so you can easily gather up everyone’s coats once on the plane. By keeping this tote tucked away until you’re on board the aircraft, you’ll enjoy an extra allowed bag, saving you the headache of trying to determine where to put bulky coats.
Get Global Entry for each family member
Unlike TSA PreCheck, which allows kids to travel with an eligible adult until they turn 18 (in most cases), anyone wishing to use Global Entry to expedite reentry into the U.S. needs to apply for the program.
Global Entry can save valuable time spent waiting in line. However, you’ll need to apply well in advance of your trip so you have time to submit your application, complete an in-person interview and await approval.
Similar to TSA PreCheck, you can use a credit card that will reimburse your child’s Global Entry application fee.
Try out the games built into many spaces
It’s easy to miss, but many resorts, theme parks and cruise ships have a hidden layer of fun that ranges from traditional scavenger hunts to interactive activities you can unlock with an iPhone or similar device.
While the youngest travelers won’t benefit from these types of experiences, they can be fun for a variety of age ranges, especially elementary-age kids and tweens.
Related: Disney World rolls out all-new MagicBand+: Here’s what this wristband can do for your trip
Bottom line
Family travel has its own built-in challenges, but it also comes with immense rewards.
By knowing all the tips and tricks to traveling with kids, having the right gear with you, mapping out a game plan and having the right attitude and realistic expectations, you can have a memorable vacation every member of the family enjoys.
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The most-read piece I ever wrote for MSN Money’s Smart Spending blog was an essay called See a penny? Pick it up! It got more than 1,657,000 hits before MSN changed blog platforms. After that, the penny essay and most of the other things I’d written went to live on a farm, where they can run and play with all the other articles.
And me? Still gleaning dropped coins. I pick up road pennies with copper coatings ravaged by traffic. I fish nickels out of puddles. I’ve spied dimes glinting across parking lots. I rescue quarters from bus-stop gutters.
Occasionally I find paper money, usually one-dollar bills. This year was unusual because I found a $10 and a $20 bill along with 23 quarters, 52 dimes, 15 nickels and 288 pennies.
I can cite the particulars because I save my found money all year, in a vase that my daughter gave me when she was in third or fourth grade. She was so proud of that gift, which she found in the free box at a yard sale. I was so proud that she’d found treasure in someone else’s trash.
Which brings me to the reaction a lot of people have to my picking up pennies: Eeeewwww! That money’s DIRTY!
Well, no kidding. This year I traveled twice to Philly (where I used to live) and to Manhattan, where I reacquainted myself with this fact: No matter where you sit, stand or lean in a big city, somebody has probably urinated there.
But it’s not as though I carry these coins home in my mouth. And sorry to burst your hygienic plastic bubble, but the money you get from the bank or in change at the comic-book store is probably just as invisibly appalling as the stuff I find on the bike path.
Filthy Lucre?
Science News reported on an Australian study about bacteria found on paper money. The U.S. dollars harbored anywhere from 20 to 25,000 bacteria apiece. (Ever held a folded bill between your lips or teeth while you fished in your wallet for change? I bet you won’t do it again.)
A fungicidal agent is added to U.S. currency ink, and the metal in some of our coins has anti-microbial properties. This may be small consolation if you, like me, have ever seen people pull money from socks, shoes and bras. Or watched someone sneeze into his hand before fishing around in the take a penny, leave a penny dish.
This explains why so many cashiers have bottles of hand sanitizer at their stations. Bank employees also know that most money is unspeakably germy. They treat it all as though it came from under fresh piles of dog poo.
Helpful hint: Want to break a nail-biting habit? Go to work at a bank. When you see how dirty your hands are 8 hours of counting currency, you will never willingly touch your mouth again unless you’re wearing latex gloves spritzed with Clorox.
But folks, we’re surrounded by bugs. Doorknobs, vending machines, women’s purses, shopping carts, bus seats, yoga mats and libraries are crawling with cooties. So are our children and our pets. (Elementary schools are Petri dishes for rhinoviruses. And those of you who kiss your kitties would do well to remember that a cat’s tongue is its washcloth and also its toilet paper.)
I don’t sweat the grime on my street funds because:
I have soap and water at home and hand sanitizer in my backpack, and
I’m not picking up the coins for myself
At the end of the year I roll up my coins and deposit them, then write a check to the food bank that helped both my daughter and me when times were grim. (This year’s finds totaled $44.58 but I made the check out for $50.)
Some people don’t think it’s worth their time to stop and pick up change. Others don’t think it’s dignified to pluck coins from a vending machine coin return. I’ve even heard it said that you should leave the money for someone who really needs it.
Here’s what I think:
If it isn’t worth your time, don’t do it.
If you’re embarrassed, don’t do it.
The food bank’s constituency defines “someone who really needs it.” And according to the hunger-relief charity Feeding America, $1 provides the makings for eight meals. I keep that in mind every time I pick up a penny: Another 99 of these and eight people get to have supper.
The Bottom Line, Dime by Dime
If it’s more than a penny, so much the better. But in my experience, the one-cent piece is the one that lots of folks think isn’t worth noticing. I disagree, respectfully.
In part that’s because I’m so old that I remember penny candy. When we walked to and from school I kept a sharp eye out for stray specie. A single cent could be traded for a Squirrel Nut Zipper (the candy, not the band), a sour grape gumball, a roll of Smarties, a peppermint stick or any number of delights from our rural township’s one store. You could even get two Hershey’s Kisses for a penny. Those were the days.
More to the point, I believe in that old saw, Take care of your pennies and your dollars will take care of themselves. It’s not that I think a lone Lincoln will generally make or break the bottom line. (You must pay the rent! But I can’t pay the rent! I’m one penny short!) No, it’s that seeing dropped coins everywhere makes me wonder about our sense of what money is.
After all, it’s only a penny. Why pick it up? But pennies add up to dollars, and dollars that aren’t properly managed dissolve into tarnished coppers. One way to lose sight of the bottom line is to forget that it’s made up of small change.
Note: Sam Walton, the founder of Wal-Mart, was famous (perhaps apocryphally so) for picking up dropped coins.
Or maybe you’re one of the people for whom a few cents really will make your day, or break your heart. A common example: The supermarket shopper with five store-brand items, one of which he has to put back. Or would have to, if someone behind him in line didn’t pony up the extra 17 cents.
Best Places to Look for Coins
Under the couch cushions (duh)
In the rejected-change bin of coin-counting machines like Coinstar
Near parking meters in early springtime, as the snow melts
Under your feet at the checkout counter of just about any supermarket or drugstore
Around the self-service vacuum at car washes and gas stations
The bottom of the ball crawl at Chuck E. Cheese (or so an MSN Money reader claimed)
Beaches and playgrounds, especially if you have a metal detector
(The funniest place I ever found spare change? Under couch cushions — but the sofa in question was sitting on a street corner wearing a free sign.)
Small Expenses
I don’t pick up every coin I see. A few days ago I was getting off the bus while carrying two incredibly heavy bags. I walked right by a dime in the aisle because I couldn’t get it easily and didn’t want to hold up the line by trying.
Occasionally I’m in a hurry, or for some reason just don’t feel like stopping and reaching for a coin. Generally I tell myself, Come on, it’s for the kids — i.e., the hungry kids — and then pick up the change.
This is not my only form of charitable giving, incidentally. I give money all year long to health, social service and educational organizations. The found-coins fund is just another string in my fiddle — but why not play it for all it’s worth? That $44.58 rounded up to $50 equals 400 people not going to bed hungry.
The expression nickel-and-dime in its adjectival sense means of little importance. If you think of coins in that way, they’re easy to dismiss.
As a verb, nickel and dime means to impoverish through small expenses. Minor obligations — bus fare, cough medicine, class trips — can really bust a budget, especially if you’re a 99er or a minimum-wage worker.
Yes, earning more money is preferable to washing plastic bags. But not everyone can earn more money right now. (Hello, Detroit!) If that’s you, I propose a simple three-part plan:
Pick up any coins you find
Save them in a jar
Every time you get a dollar’s worth, exchange them at the corner store and put the singles back in the jar
Congratulations! You nickel-and-dimed your way to a teeny little emergency fund!
Each Coin has Value
Picking up coins is my personal choice. I’m not saying anyone else has to do it. I’m just putting it out there as a possibility. You should do whatever works for you. What works for me is picking up the money and giving it to a food bank. That’s just how I roll, so to speak. (J.D.’s note: I’ve docked Donna’s pay for that pun.)
Even if you decide not to do this, at least pay attention to the coins in your pocket or wallet. Viewed singly they may seem insignificant. But each one has value — and power. Just ask the underemployed or the 99ers. If you’re a buck short on bus fare the day before payday, that found-coin dollar from the glass-jar EF means you can get to work. If your unemployment check isn’t due until Friday, a palmful of coins buys five packages of on-sale ramen for a week’s worth of lunches.
Neither situation is ideal. Still, be glad that a whole lot of people couldn’t be bothered to pick up those pennies before you got there.
Individuals across the country chasing the American dream of homeownership helped to push mortgage application volume up by 2.5% for the week ending April 29, compared with the prior week.
The uptick, as measured by the Mortgage Bankers Association‘s (MBA’s) Market Composite Index, was propelled primarily by purchase-application activity, as rates remain elevated, hovering in the low 5% range and a drag on refinance volume.
The seasonally adjusted purchase index rose 4.1% from the prior week, fueled by increased conventional, Federal Housing Administration (FHA) and Veterans Affairs (VA) loan-application volume. That’s a good sign for the spring homebuying season, which has seen a slow start, according to the MBA. Meanwhile, refinance applications increased by only 0.17% from the prior week.
Compared to a year ago, overall applications declined 49.7%. Interest in purchases fell 10.9%, while refinances dropped 70.7% from the prior period.
“Treasury yields eased slightly last week but remained close to 2018 highs, as financial markets await the news from the Federal Reserve on its latest plans for rate hikes and reducing its balance sheet holdings,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement.
According to the MBA, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) decreased to 5.36% this week, down from 5.37% the previous week, but still 2 percentage points higher than a year earlier. The average contract interest rate for 30-year fixed-rate mortgages with jumbo-loan balances (greater than $647,200) jumped to 4.92 percent, up from 4.89 percent the prior week.
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“The purchase market remains challenged by low levels of housing inventory and rapid home-price gains, as well as the affordability hit from higher mortgage rates that are forcing prospective buyers to factor in higher monthly payments,” Kan said.
The refinance share of all applications dipped to 33.9%, down from 35% the previous week. The MBA report also noted that the adjustable-rate mortgage share remained unchanged at 9.3% of total applications.
The FHA share of total applications increased to 11.1% from 10.6% a week earlier, and the share of VA applications rose slightly to 10.3% from 10.2%. The USDA share dropped from 0.5% to 0.4%.
The survey, conducted since 1990, covers over 75% of the retail residential mortgage applications.
European Central Bank has voted to lift borrowing costs across the eurozone.
The ECB’s governing council has voted to raise the three key ECB interest rates by 25 basis points, or a quarter of one percent.
Announcing the move, it says:
Inflation has been coming down but is projected to remain too high for too long. The Governing Council is determined to ensure that inflation returns to its 2% medium-term target in a timely manner.
Eurozone inflation was recorded at 6.1% in the year to May, down from 7.0% in April, so three times higher than its target.
Today’s changes mean that the interest rate on ECB’s main refinancing operations will rise to 4%.
The marginal lending facility (used by commercial banks for short-term borrowing from the ECB) rises to 4.25%, while the deposit facility rate (paid on commercial bank deposits left at the ECB) rises to 3.5%.
Former Bank of England governor Mark Carney has warned that governments will be paying higher rates of interest for their debt for the foreseeable future, and that mortgage holders should adjust to this new situation.
Carney told ITV’s Robert Peston:
If you have still a few years of low interest rates on your mortgage, if you fixed just at the right time as it turned out, recognise that there will be ann adjustment over the medium term.
It’s a question of degree but the direction is very clear.
The turbulence in the mortgage market has continued, with Nationwide lifting its fixed-term mortgage rates from tomorrow….
…and average rates across the market increasing again.
In the eurozone, the European Central Bank has lifted its key interest rates by a quarter of one percent.
The ECB warned that inflation is projected to remain too high for too long, as it lifted its forecasts for price rises over the next few years.
ECB president Christine Lagarde indicated that eurozone interest rates will be lifted in July too, saying:
“Are we done? Have we finished the journey? No. We’re not at our destination.
Do we still have ground to cover? Yes, we still have ground to cover.
And in other news:
pic.twitter.com/9kOKGY7FpN
— James Picerno (@jpicerno) June 15, 2023
The euro has hit a 15-year peak against the yen and a fresh four-week high against the dollar, after the European Central Bank raised interest rates and signalled that a July hike is on the cards too.
@Lagarde introduces the inflation outlook for the euro area pic.twitter.com/ToaMC5cpwh
— European Central Bank (@ecb) June 15, 2023
….and growth (down a bit this year, and next)
@Lagarde “Very likely” interest rates can be raised further at Governing council July meeting. “We’re not thinking about pausing”. @eunewsit pic.twitter.com/kftOVkVj21
— emanuele bonini (@emanuelebonini) June 15, 2023
as Mark Carney warned last night).
The quoted rate offered by Nationwide on a 2-year fix for new borrowers, available for a £999 fee, will rise on Friday to 5.69% across most loan-to-value ratios, from 5.24% currently.
Your new forecasts show you don’t expect to reach your 2% inflation target in the next three years – so is 3% the new 2%?
Lagarde says the ECB is in the middle of its fight against inflation, and insists it will get inflation down to the 2% target, (rather than shuffling the target up to make it more achievable).
June 15, 2023
US Federal Reserve holding interest rates last night?
Christine Lagarde says today’s decision, to raise interest rates, followed analysis of the latest economic data and new staff forecasts.
Lagarde says the ECB’s decisions are ‘data-dependent’, and insists that further increases in borrowing costs will be needed.
She says:
Are we done? Have we finished the journey? No, we’re not at the destination.
Do we still have ground to cover? Yes.
Unless there is a material change to the ECB’s forecasts, Lagarde adds, the central bank is very likely to raise interest rates again in July.
And on the Fed, Lagarde says she doesn’t know the difference between a ‘pause’ and a ‘skip’ (two terms banded around to describe last night’s no-change). But the ECB is not thinking about pausing.
The Federal Reserve is pressing pause on its series of interest rate hikes designed to tame inflation – for now at least.
The Federal Reserve Open Market Committee announced Wednesday that it would leave the federal funds rate unchanged, forgoing what would have been an 11th consecutive rate hike. Those increases, which began in March 2022, have brought the federal funds rate from near zero to its current target range of 5-5.25%.
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The increases have been the central bank’s primary weapon in its fight against inflation, which crested at 9.1% in June 2022 but has since receded to 4%. Despite inflation’s recent downward trajectory, it remains well above the Fed’s long-term target of 2%. In fact, officials signaled they expect to see two more quarter-point increases.
What It Means for Retirees
While inflation’s downward trend feels encouraging, retirees and those on fixed incomes remain vulnerable as inflation is still double the Fed’s target range.
“It’s like saying, ‘He’s getting much better because he only robs four people a week and he used to rob 20 people a week.’ Inflation is a kind of robber which steals the value from retirees’ savings accounts and monthly pensions,” said Christopher Manske, founder and president of Manske Wealth Management in Houston.
“The fact that inflation is now stealing a bit less is still too much theft.”
Here are a few things retirees should be thinking about related to inflation and current interest rates:
Put Interest Rates in the Proper Context
High interest rates have made various savings vehicles, including certificates of deposit (CDs) and money market funds, more attractive. But Hao Dang, an accredited investment fiduciary at Consilio Wealth Advisors in Bellevue, Washington, says retirees should remember that the net return on their savings is barely outpacing inflation.
Yet, there is still a benefit to holding more cash at higher rates.
“Safe money can help them sleep better at night and help withstand any future sell-offs in the stock and bond markets,” he said. “If a retiree typically holds six months’ worth of expenses in cash, it could help to increase that to nine months to a year.”
And while a traditional portfolio of stocks and bonds benefits from diversification, savers can also stand to benefit from diversifying their cash position with an eye toward the future.
“Bonds are sensitive to rate hikes so if there are more rate increases down the line, there could be some losses in even the safest bonds,” Dang added.
“Enjoy higher rates while they can but start anticipating where to place cash for two to three years down the line.”
Good News for Pensions?
High interest rates not only mean better yields on bonds, they can also boost the investment returns of public pensions. In fact, a 2019 study conducted by the Federal Reserve Bank of Boston found that low interest rates often lead public pensions to assume more investment risk in an attempt to generate higher yields. This was especially true for funds that were underfunded or affiliated with states that had weaker public finances, the researchers found.
When Will the Fed Lower Rates?
If you’re expecting the Fed to lower interest rates this year, at least one heavyweight in the financial services industry says you may be setting yourself up for disappointment.
Vanguard economists say it’s far more likely that the Fed will either raise interest rates or leave them at their current target as opposed to cutting them this year. In fact, Vanguard’s model predicts that the Fed won’t start to lower rates until the middle of 2024.
“Our model suggests that it’s nearly three times as likely that the Fed will raise its target for the federal funds rate or keep it on hold this year than that it will cut rates,” Asawari Sathe, a Vanguard senior economist, said in a recent edition of Vanguard Perspective. “Our model’s output underscores our conviction that the Fed’s fight against inflation hasn’t yet reached an inflection point.”
As a result, if a saver is looking to open a new savings account or lock in a long-term CD, they’ll want to do so in the next six to 12 months, says Mark Hayes, a certified financial planner (CFP) and founder of Infinitive Wealth Advisory in Fishers, Indiana.
“Savers should consider taking action soon to lock in rates while borrowers might want to hold off,” he said.
Bottom Line
The Federal Reserve chose to leave interest rates untouched at the June meeting of the central bank’s Federal Open Market Committee. The pause comes after 10 consecutive interest rate hikes that brought the federal funds rate from near zero to its current target range of 5-5.25%. With more rate hikes potentially on the way, retirees may want to reevaluate their debt and even consider refinancing, as well as diversify their cash positions.
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Social Security and portfolio withdrawals are two vital components of a retirement income plan. But how much income do you expect to generate in retirement? SmartAsset’s retirement calculator can help you estimate how much money your portfolio
Patrick Villanova, CEPF®
Patrick Villanova is a writer for SmartAsset, covering a variety of personal finance topics, including retirement and investing. Before joining SmartAsset, Patrick worked as an editor at The Jersey Journal. His work has also appeared on NJ.com and in The Star-Ledger. Patrick is a graduate of the University of New Hampshire, where he studied English and developed his love of writing. In his free time, he enjoys hiking, trying out new recipes in the kitchen and watching his beloved New York sports teams. A New Jersey native, he currently lives in Jersey City.