It’s pricey to borrow to buy a business, car or home these days. Interest rates are expected to fall in coming years — how much is up for debate.
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Aug. 7, 2023
Dr. Alice Mills was thinking of selling her veterinary practice in Lexington, Ky., this year, but she decided to put the move off because she worried that it would be difficult to sell in an era of rising interest rates.
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“In a year, I think that there’s going to be less anxiety about the interest rates, and I’m hoping that they’re going to go down,” Dr. Mills, 69, said. “I have to put my faith in the fact that the practice will sell.”
Dr. Mills is one of many Americans anxiously wondering what comes next for borrowing costs — and the answer is hard to guess.
up sharply from 2.7 percent at the end of 2020. That is the result of the Federal Reserve’s campaign to cool the economy.
The central bank has lifted its policy interest rate to a range of 5.25 to 5.5 percent — the highest level in 22 years — which has trickled out to increase borrowing costs across the economy. The goal is to deter demand and force sellers to stop raising prices so much, slowing inflation.
But nearly a year and a half into the effort, the Fed is at or near the end of its rate increases. Officials have projected just one more in 2023, by a quarter of a point, and the president of the Federal Reserve Bank of New York, John C. Williams, said in an interview that he didn’t see a need for more than that.
“We’re pretty close to what a peak rate would be, and the question will really be — once we have a good understanding of that — how long will we need to keep policy in a restrictive stance, and what does that mean?” Mr. Williams said on Aug. 2.
The economy is approaching a pivot point, one that has many consumers wondering when rates will come back down, how quickly and how much.
several years before rates return to a level between 2 and 3 percent, like their peak in the years before the pandemic. Officials do not forecast a return to near zero, like the setting that allowed mortgage rates to sink so low in 2020.
That’s a sign of optimism: Rock-bottom rates are seen as necessary only when the economy is in bad shape and needs to be resuscitated.
In fact, some economists outside the Fed think that borrowing costs might remain higher than they were in the 2010s. The reason is that what has long been known as the neutral rate — the point at which the economy is not being stimulated or depressed — may have risen. That means today’s economy may be capable of chugging along with a higher interest rate than it could previously handle.
A few big changes could have caused such a shift by increasing the demand for borrowed money, which props up borrowing costs. Among them, the government has piled on more debt in recent years, businesses are shifting toward more domestic manufacturing — potentially increasing demand for factories and other infrastructure — and climate change is spurring a need for green investments.
could hover around 4 percent, while those who expect them to be lower see something more in the range of 2 to 3 percent, said Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics in Washington.
That is because some of the factors that have pushed rates down in recent years persist — and could intensify.
“Several of the explanations for the decline in long-term interest rates before the pandemic are still with us,” explained Lukasz Rachel, an economist at University College London, citing things like an aging population and low birthrates.
Jeanna Smialek writes about the Federal Reserve and the economy for The Times. She previously covered economics at Bloomberg News. More about Jeanna Smialek
A version of this article appears in print on , Section B, Page 1 of the New York edition with the headline: Puzzling Out When Rates Will Decline. Order Reprints | Today’s Paper | Subscribe
HousingWire’s Mortgage Rates Center showed Optimal Blue’s 30-year fixed rate for conventional loans at 7.18% on Wednesday, compared to 6.98% the previous week. At Mortgage News Daily on Thursday morning, the 30-year fixed rate for conventional loans was 7.34%, up 29 basis points from the previous week.
Several mortgage loan officers told HousingWire they were quoting rates between 7.2% and 7.5% on Wednesday.
Home loan rates usually follow the 10-year treasury yields due to their long terms. In early August, the U.S. Treasury announced higher-than-expected debt supply, while rating agency Fitch Ratings downgraded the credit quality of the U.S.
For some economists, it explains why the 10-year treasury yield climbed to 4.28% on Monday, 28 basis points higher than the previous Monday.
“As a country, we are issuing a lot of debt to finance our deficit. In the short-term, the bond buyers aren’t at the prices, so yields went up after a bad auction last week,” Logan Mohtashami, HousingWire’s lead analyst, said. “Also, the economy is much stronger than anyone thought, so rates are staying up longer too. Bond buyers are mindful of this.”
Mohtashami said that the U.S. economy will be in an environment where it doesn’t have a lot of bond buyers versus the supply coming in, “thus making it harder for mortgage rates to go lower.”
In a recent report, Patrick Saner, head of macro strategy at the Swiss Re Institute, discarded a looming bond crisis or issues around U.S. creditworthiness. He said factors like deficits and government bond supply did not cause the uptick in yields. The driver was a market reassessment of the nominal “neutral rate” due to inflation persistence.
“Increases in longer-dated yields are usual at the end of hiking cycles. Yet, sustained and rapid increases have only ever occurred when the Fed funds rate was at 0%, which isn’t the case right now,” Saner said in the report. “For longer-dated yields to go even higher, a reacceleration of core and wage inflation is probably needed.”
What to expect from the Fed?
On Wednesday, the Fed released the minutes from its July meeting when it increased rates by 25 bps. The document shows that officials are concerned with the cumulative effects of past monetary policy tightening on the economy. The Fed started to increase federal funds rate at the beginning of 2022.
But participants of the Fed also mentioned upside risks to inflation, including those associated with scenarios in which recent supply chain improvements and favorable commodity price trends did not continue. They also have concerns that demand and the labor market continue strong.
“With inflation still well above the Committee’s longer-run goal and the labor market remaining tight, most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy,” the document states.
In fact, consumer demand is still a source of pressure on U.S. prices.
Jiayi Xu, a Realtor.com economist, said that despite still high prices and elevated interest rates, July’s retail sales data showed consumer spending continues to increase solidly as demand is being boosted by high wage growth.
“While this robust data might alleviate worries about an imminent recession, it could give rise to concerns that interest rates might stay elevated for an extended period,” Xu said in a statement. “Meanwhile, it is worth noting that the Fed is moving cautiously to ensure that the effects of earlier rate hikes are fully revealed. As a result, the Fed may opt to take another “wait-and-see” strategy in the upcoming FOMC meeting, which may help potentially mitigate the recent upward trajectory of mortgage rates.”
Regarding the labor market, George Ratiu, chief economist at Keeping Current Matters, said that while employment momentum is moderating, there is still a gap of 3.8 million between the number of open positions and unemployed people looking for work. The upside: a firmer financial foundation for households. The downside: amid solid wage gains, the Fed remains hawkish on the outlook for taming inflation this year.
“With inflation still a primary concern for the Fed, real estate markets can expect borrowing costs to stay elevated,” Ratiu said in a statement.
Relative Strength Index, or RSI, is a momentum indicator used to measure a stock’s price relative to itself and its past performance. Developed by technical analyst J. Welles Wilder, the Relative Strength Index focuses purely on individual stock price movements to identify trading trends for a specific security, based on the speed and direction of those price changes.
RSI allows swing investors to compare the price of something to itself, without factoring in the performance of other stocks or the market as a whole. Investors use RSI to pinpoint positive or negative divergences in price for a security or to determine whether a stock is overbought or oversold.
The RSI indicator is useful in technical analysis, which revolves around finding trends in stock movements to determine optimal entry and exit points. Understanding what the Relative Strength Index measures and how it works is central to a technical trading strategy.
What Is RSI in Stocks?
The Relative Strength Index is a rate of change or momentum oscillator that tracks stock price movements. You can visualize it as a line graph that moves up or down, based on a stock’s price at any given time. The Relative Strength Index operates on a scale from 0-100. Where the RSI indicator is within this range can suggest whether a stock has reached an overbought level or if it’s oversold.
RSI is not the same thing as Relative Strength analysis. When using a Relative Strength Comparison (RSC), you’re comparing two securities or market indexes to one another to measure their relative performance. 💡 Quick Tip: Investment fees are assessed in different ways, including trading costs, account management fees, and possibly broker commissions. When you set up an investment account, be sure to get the exact breakdown of your “all-in costs” so you know what you’re paying.
How Does the RSI Indicator Work?
The Relative Strength Index operates on a range from 0-100. As stock prices fluctuate over time, the index can move up or down accordingly. Traders typically use the RSI to track price movements over 14 periods (i.e. trading days), though some may use shorter or longer windows of time.
When the RSI indicator reaches 70 or above, it could mean the underlying asset being measured is overbought. An RSI reading of 30 or below, on the other hand, suggests that the asset is oversold. The length of time a stock remains in overbought or oversold territory depends largely on the strength of the underlying trend that’s driving price movements.
The Relative Strength Index can throw off different patterns, depending on whether stocks are in a bull market or bear market. Investors compare the movements of the RSI indicator with actual price movements to determine whether a defined pricing trend actually exists and, if so, in which direction it might be heading. Analyzing moving averages for the stock can help determine the presence of a clear pricing trend.
Recommended: 5 Bullish Indicators for a Stock
RSI Formula
Here’s what the Relative Strength Index formula looks like:
RSI = 100 – (100 / (1 + RS))
In this formula, RS represents the ratio of the moving average of the tracking period’s gains divided by the absolute value of the moving average of the tracking period’s losses.
Here’s another way you might see the Relative Strength Index formula displayed:
RSI = 100 – [100 / ( 1 + (Average of Upward Price Change / Average of Downward Price Change ) ) ]
The RSI formula assumes that you’re able to follow a stock’s pricing changes over your desired tracking period. More importantly than that, however, is knowing how to make sense of Relative Strength Index calculations, which investors often display via a stock oscillator.
Interpreting RSI Results
Reading the Relative Strength Index isn’t that difficult when you understand how the different ranges work. Depending on where the RSI indicator is for a particular stock or market index, it can tell you whether the market is bullish or bearish. You can also use the RSI, along with other technical analysis indicators, to determine the best time to buy or sell.
Above 70
An RSI reading of 70 or higher could indicate that a stock is overbought and that its price might move back down. This could happen through a reversal of the current price movement trend or as part of a broader correction. It’s not unusual for stocks to have an RSI in this range during bull market environments when prices are rising. If you believe that the stock’s price has reached or is approaching an unsustainable level, an RSI of 70 or higher could suggest it’s time to exit.
Below 30
When a stock’s RSI reading is 30 or below, it typically means that it’s oversold or undervalued by the broader market. This could signal a buying opportunity for value investors but it could also indicate the market is turning bearish. It’s more common to see RSI readings of 30 or below during downtrends when stock prices may be in decline across the board.
40 to 90 Range
During bull markets, it’s not uncommon to see the Relative Strength Index for a stock linger somewhere in the 40 to 90 range. It’s less common to see the RSI dip to 30 or below when prices are steadily moving up. An RSI reading of 40 to 50, roughly the middle of the 0-100 scale can indicate support for an upward trend.
10 to 60 Range
In bear markets, or those filled with fear, uncertainty, and doubt, it’s more common to see the Relative Strength Index hover somewhere in the 10 to 60 range. It’s not unusual for stocks to reach 30 or below when the market is already in a downward trend. The middle point of the RSI can act as a support point, though the range shifts slightly to between 50 and 60.
Common RSI Indicators
Relative Strength Index indicators can help investors spot pricing trends. That includes identifying up and down trends, as well as sideways trends when pricing levels consolidate. The reliability of these indicators often hinges on the current phase of a stock or the market as a whole. When reading RSI indicators, it’s important to understand divergence and swing rejections.
Divergence
A divergence represents a variation or disagreement between the movement of the RSI indicator and the price movements on a stock chart. For example, a bullish divergence means the indicator is making higher lows while the price movement is establishing lower lows. This type of divergence can hint at increasing bullish momentum with a particular stock or the greater market.
A bearish divergence, on the other hand, happens when the indicator is making lower highs while prices are establishing higher highs. This could indicate that investor sentiment is becoming less bullish.
Swing Rejections
A swing rejection is a specific trading technique that involves analyzing RSI movements when pushing above 30 or below 70. Swing rejections can be bullish in nature or bearish.
For example, a bullish swing rejection has four parts or steps:
• RSI is at an oversold level
• RSI moves above 30
• A dip is recorded without rating as oversold
• RSI passes its recent high
Meanwhile, a bearish swing rejection also has four parts or steps:
• RSI reaches an overbought level
• RSI drops below 70
• RSI hits new highs without dropping back to overbought levels
• RSI passes recent lows
Swing rejections make it possible to utilize divergence indicators to spot bullish or bearish trends in their earliest stages. 💡 Quick Tip: How to manage potential risk factors in a self-directed investment account? Doing your research and employing strategies like dollar-cost averaging and diversification may help mitigate financial risk when trading stocks.
Is RSI a Good Indicator to Use?
Yes, in certain circumstances. Relative Strength Index can be a good indicator to use in technical analysis, as it can make it easier to detect when a stock or the broader market is overbought or oversold. Understanding how to interpret RSI and its correlation to price movements could help you spot buy or sell signals and detect bull market or bear market trends.
That said, RSI also has some limitations. For example, the RSI can produce false positives or false negatives when bullish or bearish trends don’t align with the way a stock’s price is moving. Like other technical analysis indicators, it’s not an exact way to gauge the market’s momentum. So if stocks are hovering somewhere in the 40 to 60 range, it may be difficult to decipher whether the mood is bearish or bullish.
When using RSI, it’s helpful to incorporate other technical analysis indicators to create a comprehensive picture of the market. Exponential moving average (EMA), for example, is a type of moving average that uses the weighted average of recent pricing data to draw conclusions about the market.
Traders often use RSI in conjunction with other trend indicators, such as the Moving Average Convergence Divergence, the Stochastic Oscillator, or the Volume-Weighted Average Price.
RSI vs MACD
Moving Average Convergence Divergence (MACD) is a technical analysis indicator that investors may use alongside RSI. This indicator can help them determine when to buy or sell, based on the correlation between two moving averages for the same security.
Specifically, it requires looking at a 12-period moving average and a 26-period moving average. To find the MACD line, you’d subtract the 26-period from the 12-period, resulting in a main line. The next step is creating a trigger line, which is the nine-period exponential moving average of the main line. The interactions between these two lines can generate trading signals.
For example, when prices are strongly trending in a similar direction the main line and trigger line tend to move further apart. When prices are consolidating, the lines move closer together. If the main line crosses the trigger line from below, that can produce a buy signal. If the main line crosses the trigger line from above, that can be construed as a signal to sell.
While RSI and MACD are both trend indicators, there are some differences. Relative Strength Index measures the distance between pricing highs and lows. So you’re looking at the average gain or loss for a security over time, which again usually means 14 periods. The MACD, on the other hand, focuses on the relationship between moving averages for a security. It’s a trend-following signal that, like RSI, can indicate momentum.
RSI vs Stochastic Oscillator
The stochastic oscillator is a momentum indicator for technical analysis that shows where a stock’s closing price is relative to its high/low pricing range over a set period of time. The stochastic oscillator can also be used to track pricing for a market index.
Central to the use of the stochastic oscillator is the idea that as a stock’s price increases, the closing price inches closer to the highest point over time. When the stock’s price decreases, the closing price lands closer to the lowest low. Investors use this indicator to determine entry and exit points when making trades.
However, investors interpret RSI and stochastic oscillator readings differently. For example, with a stochastic oscillator, a reading of 20 or below generally means a stock is oversold, versus the 30 or below range for RSI readings. When used together, Relative Strength Index and stochastic oscillators can help with timing trades to maximize profit potential while minimizing the risk of losses.
Can You Use RSI to Time the Crypto Market?
Stocks are not the only asset class for which investors use the RSI. Investors also use the Relative Strength Index to assess conditions in the crypto markets and whether it’s time to sell or continue to HODL.
Cryptocurrency traders may use RSI to gauge momentum for individual currencies. Again, they’re looking at the highs and lows to get a sense of which way prices are moving at any given time. The RSI indicator can help with choosing when to buy or sell, based on previous price movements.
The same rules apply to crypto that apply to stocks: An RSI reading of 70 or above means overbought while a reading of 30 or below means oversold. Likewise, a reading above 50 signals a bullish trend while a reading below 50 can signal a bearish trend. Investors can also use a bearish divergence or bullish divergence to spot a pullback or an upward push.
As with stocks, however, it’s important to remember that RSI is not 100% accurate.
Recommended: Crypto Technical Analysis: What It Is & How to Do One
The Takeaway
RSI can be used to pinpoint positive or negative divergences in price for a stock or to determine whether it’s overbought or oversold. If you’re interested in technical analysis and trending trading, RSI can be a useful metric for making investment decisions.
The RSI is just one tool that you can use to devise a strategy for your portfolio. There are other less technical tools you can use as well when you’re starting to build a portfolio.
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At last glance, the 30-year fixed mortgage was back above 7%, depending on the data source.
Prior to late July and early August, the popular loan product could be had for closer to 6.5%. Or even in the high 5s if paying points.
And forecasts from prominent economists pointed to rates making their way back to the 5s, or even the 4s by next year.
Then rates suddenly reserved course and continued their upward climb, challenging the high levels seen last November.
The question is, why are mortgage rates so high? And why aren’t they coming down if the Fed is done hiking and inflation is abating?
Blame the Resilient Economy for High Mortgage Rates
As a quick refresher, good economic news tends to lead to higher interest rates.
And bad economic news typically results in lower interest rates.
The general logic is a hot economy requires higher borrowing costs to slow spending, otherwise you get inflation.
Meanwhile, a cool economy may require a rate cut to spur more lending and get consumers spending.
Unfortunately, the economy continues to defy expectations, in spite of the many Fed rate cuts already in the books.
Since March of 2022, the Fed has raised their key fed funds rate 11 times, from near-zero to a range of 5.25-5.50%.
This was deemed necessary to battle inflation, which had spiraled out of control, causing the prices of everything, including single-family homes, to skyrocket.
While the Fed has more or less signaled that it’s now in a wait-and-see holding pattern, mortgage rates have continued to march higher.
The reason is hot economic data, whether it’s the CPI report, jobs report, retail sales, etc.
Sure, some of these reports have come in better than expected recently, but it’s never convincing enough to result in a mortgage rate rally.
On top of that, Fitch recently downgraded the credit rating of the United States, citing “expected fiscal deterioration over the next three years,” along with growing government debt.
Nobody Believes the Inflation Fight Is Over
While the Fed doesn’t set mortgage rates, its own fed funds rate does dictate the general direction of long-term interest rates such as those tied to home loans.
As such, rates on the 30-year fixed (and every other type of mortgage loan) increased markedly since early 2022.
Those 11 rate hikes translated to a more than doubling of the 30-year fixed, from around 3% to 7% currently, as seen in the illustration above from Optimal Blue.
It was further exacerbated by a widening of mortgage rate spreads relative to the 10-year Treasury.
And while the Fed appears to be satisfied with its rate hikes, they’re still watching the data come in each month.
Without getting too convoluted here, nothing has convinced Fed watchers that a rate cut is in the cards anytime soon.
Simply put, this means mortgage rates may need to stay higher for longer, even if the Fed is done hiking.
Compounding this higher-for-longer narrative is the U.S. deficit and their larger-than-anticipated borrowing costs, which will require selling more bonds.
This puts additional pressure on interest rates as the supply of bonds grows and their associated rates increase.
But that’s just the latest sideshow. The overarching theme is that the economy remains too hot, unemployment too low, and consumer behavior not much changed.
Despite much higher borrowing costs, whether it’s a mortgage, a credit card, a HELOC (whose rates are up about 5% from 2022 thanks to the increase in the prime rate), the economy keeps chugging along.
There has yet to be a recession and the stock market has been resilient. In other words, there’s really no reason to lower interest rates and reduce borrowing costs.
Why would the Fed do that now, only to risk another surge in inflation? Or another home buying frenzy.
What Would Lower Mortgage Rates Mean for the Housing Market Today?
Let’s consider if mortgage rates finally did trend lower in a meaningful way.
Despite some short-term victories over the past year, they’re pretty much back near their 20-year highs.
If they did happen to fall back to say the 5% range, what would what mean for the housing market?
In case you haven’t heard, Zillow expects home prices to rise 5.5% this year after beginning the year with a decidedly bleaker -0.7% forecast.
This figure is “roughly in line with a normal year,” despite those 7% mortgage rates.
But what would happen if rates came down to 5%? Would we see a return to bidding wars and offers well over-asking?
Would home price appreciation reaccelerate to unhealthy levels again?
The answer is most likely yes. And this kind of sums up why the Fed isn’t going to just start cutting its own rate anytime soon.
All their hard work would be in vain if inflation notched higher again and their so-called housing market reset became awash.
Even if a rate cut does come as early as 2024, it might only be a 0.25% or something relatively insignificant, which may not move the dial on mortgage rates much.
Like the Fed, mortgage lenders (and MBS investors) are defensive as well. This explains why it has been really hard to see a meaningful mortgage rate rally in 2023.
Even when a jobs report or CPI report comes in cooler than expected, it quickly gets overshadowed by something else.
And that’s just the nature of the trend right now, which isn’t a friend to mortgage rates.
This will eventually change, but it could take longer than expected for mortgage rates to finally reverse course.
Similar to how they stayed low for so long, they may remain elevated well beyond the rosy forecasts indicate.
The Federal Housing Finance Agency’s move toward advanced credit scores represents a big change for two mortgage-related government-sponsored enterprises and home finance. While many in the mortgage industry fear that the planned timeline for implementation isn’t sufficient, those who have worked with those measures in other industries share the FHFA’s more optimistic view.
“They’re going to have two years to do this, it’s not like they were given a week,” said John Ulzheimer, a professional witness who previously worked in the credit reporting and scoring industry. “It’s a matter of prioritizing programming and risk management resources.”
That said, it’s a bigger deal for the mortgage industry than others to shift to FICO 10T and VantageScore 4.0, those outside of it acknowledge.
“It’s a pretty considerable change,” Ulzheimer said. “The entire industry is going to catch up on basically two decades of technology when they flip the switch.”
The move to advanced scores is more complex for the FHFA because it is less a lender-by-lender decision but involves a large player that serves as a central hub for many stakeholders, said Joanne Gaskin, vice president of scores and data analytics at FICO.
“There’s a difference in how the mortgage industry is interconnected, versus the credit card lenders, where there’s one party that has to make the decision,” she said. “With mortgage lending, you’ve got the originator, GSEs, investors, and maybe there’s a broker, rating agency or private mortgage insurer. It’s just much more complex.”
But this isn’t the first time the mortgage industry has had to deal with a change in the broader credit reporting system and some of that past experience is somewhat heartening because it boosted leads for home loans.
Consumer Financial Protection Bureau found increases in first-lien mortgage inquiries during the first quarter after medical collections records were removed from the credit reports from the three main bureaus. Inquiries also went up during the last quarter in which a medical collection tradeline gets reported.
With the change estimated to remove one medical collections tradeline from 22.8 million people and remove all such records for 15.6 million, it appears it likely has or is creating a group of more mortgage-ready customers in cases where that’s enough to raise their scores sufficiently.
That suggests VantageScore’s claims that it could bring in at least 10 million mortgage customers in line with FHFA use of the model and FICO’s estimate for a 5% increase also could materialize, depending on the execution.
Granted the medical collections change was much different than the larger transition underway at the FHFA, the former being a largely a matter for the credit bureaus rather than the mortgage industry, for one. And mortgage professionals interviewed for this series had mixed opinions about whether it made a difference as far as borrower interest.
But it does show how moving some ad-hoc practices used in mortgage underwriting into credit reporting and scoring can be a natural progression.
While the medical reporting removal does have its skeptics who think its longtime inclusion in reporting and scoring may mean it has been predictive of credit concerns, mortgage lenders say they had some comfort with it because there have been some exceptions for it in underwriting.
“The Federal Housing Administration in particular and conforming markets as well have stated some conditions where medical collections don’t apply in their credit risk factoring,” said Dustin Martin, a mortgage underwriting training manager at Embrace Home Loans.
Fannie Mae, the larger of the two major government-sponsored enterprises buying U.S. mortgages and one the FHFA’s charges, has used the kind of trended data and rental payment information and on a one-off basis in underwriting.
That could give the industry some comfort in the FHFA transition. Those two types of data primarily distinguish the advanced credit scores the FHFA will be adopting and other consumer finance industries like credit cards have been using them to good effect, Gaskin said.
“We know that rental data, assuming the consumer is paying as agreed, can be a real positive,” Gaskin said, noting that the same is true for trended data, which involves tracking the payment histories in credit accounts over time rather than based on snapshots of activity.
Updating the scores is much more powerful than just using certain new data elements within them separately in underwriting, said Rikard Bandebo, chief product officer at VantageScore.
“The first thing [lenders] check is a person’s credit score, then they go through the underwriting process. So if all these people that have rental data, but it wasn’t included in the credit score yet, they can’t get past whatever the threshold is. Let’s say it’s a 620 and they had a 605. They can’t get past the point, right? That’s why so many millions of consumers are being excluded today from this system,” he said.
There are generally certain trends seen when credit measures get updated in consumer finance, according to Ulzheimer. While mortgages usually have a higher payment priority than other loan types that could cause them to differ, they’re likely to follow the same pattern.
“Normally, the way it works, when you compare score distributions from newer versions relative to older versions is there’s this flattening of the curve, where you have more people scoring in the tails and fewer people scoring in the meaty part,” said Ulzheimer.
Swiss bank UBS AG announced Monday it has agreed to pay $1.43 billion in penalties to settle a civil action alleging misconduct related to the underwriting, issuance and sale of residential mortgage-backed securities (RMBS) before the 2008 financial crisis.
The settlement with the U.S. Department of Justice (DOJ), which refers to a civil action filed in November 2018, does not bring the determination of liabilities, the DOJ said.
“The settlement has been fully provisioned in prior periods,” UBS said in a statement.
According to the DOJ, the United States filed a complaint alleging that UBS “defrauded investors” by making false and misleading statements to buyers of 40 RMBS issued in 2006 and 2007 relating to the characteristics of the loans.
Per the civil action, UBS knew that a significant number of the mortgages did not comply with underwriting guidelines designed to assess borrowers’ ability to repay and with consumer protection laws. In addition, UBS knew that property values associated with the loans were unsupported, the DOJ claimed.
“UBS was allegedly aware of these significant problems because it had conducted extensive due diligence on the underlying loans prior to the RMBS being issued to determine whether the loans were consistent with representations that would be made to investors. Ultimately, the 40 RMBS sustained substantial losses,” the DOJ said in a statement.
“The substantial civil penalty in this case serves as a warning to other players in the financial markets who seek to unlawfully profit through fraud that we will hold them accountable no matter how long it takes,” U.S. Attorney Breon Peace for the Eastern District of New York said in a statement.
The UBS settlement is the last case brought by the DOJ working group dedicated to investigating the banks’ conduct during the financial crisis, which resulted in $36 billion in penalties to banks, originations and rating agencies. It includes Ally Financial; Aurora Loan Services; Bank of America; Barclays; Citigroup; Credit Suisse; Deutsche Bank; General Electric; Goldman Sachs; HSBC; JPMorgan; Moody’s; Morgan Stanley; Nomura; Royal Bank of Scotland; S&P; Société Générale; and Wells Fargo.
The agreement comes as UBS is working to integrate the operations of Credit Suisse Group AG. It acquired the rival this year for $3.4 billion in stock after Credit Suisse faced a deposit run in March. A recent filing from UBS showed the Swiss bank took a hit of about $17 billion due to the takeover.
In the mortgage space, UBS has plans to wind down a business in its U.S. mortgage unit that focuses on “to-be-announced” (TBA) trading. The decision is part of UBS’s strategy to focus more on financing mortgage originators, per a Bloomberg report from May.
Inside: Dreaming of ways to make money fast as a woman? Stop dreaming and take action. These are genius ways of making money online and at home.
Making money fast is crucial for maintaining a comfortable lifestyle, especially in the face of rising living costs. It can be the key to financial stability, providing additional funds to support and enjoy your lifestyle.
As a woman, you need to know how to make money fast.
This isn’t just about getting rich quickly. It’s about women gaining the freedom to live independently without financial constraints.
The feeling of financial security lessens stress; not having to worry over unexpected expenses plays a big role in your overall well-being.
This is what you want to do – make money fast!
Good news! You are in the right spot and I’ll show you my favorite ways to make money online.
Get into the right mindset, ladies! Making money fast isn’t just possible, but also liberating.
How can I make easy money ASAP?
Making easy money quickly can be achieved in various ways that utilize your skills and knowledge.
First and foremost, consider your own skills and expertise, and determine whether they could apply to jobs like cake baking, childcare, bookkeeping, house cleaning, or freelance writing.
This will tell you the easiest way for you to make money quickly. For me, I prefer to trade options in the stock market. Whereas someone else may choose babysitting or dog walking.
You need to find how to make money fast and we will help you with that decision.
Why Making Money Fast is Important
1. Makes it possible to live comfortably 2. Enables you to afford the best quality of life 3. Gives you the freedom to pursue your dreams 4. Gives you the freedom to live without financial constraints 5. Provides you with security and safety 6. Freedom to give back to your community 7. Freedom to choose how you spend your time 8. Opportunity to take risks and start a business 9. Provides you with a sense of power and control 10. Live without financial worry
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Are you passionate about words and reading?
If so, proofreading could be a perfect fit for you, just like it’s been for countless of readers! Learn how you can create a freelance business as a proofreader.
Check out this free workshop!
Bookkeeping is the most stable, reliable & simple business to own. This is how to make a realistic income -either part-time or full-time.
Find out TODAY if this is THE business you’ve been looking for.
How can I make a lot of money in hours?
Making income in a matter of hours for a woman is entirely feasible with a blend of freelancing, leveraging gig economy platforms, and capitalizing on your skills or assets. Here’s a quick guide for you:
Consider freelancing: Establish your writing, graphic design, or programming services on platforms like Fiverr or Upwork.
Dive into the gig economy: Sign up for TaskRabbit, Airbnb, or Turo to start earning.
Try online tutoring or content selling: Proficient in any subject or have strong graphic design skills? Go for tutoring or sell your content.
Indulge in buying & selling: If you’re good at purchasing low and selling high, then swap clothes or furniture, or even stocks.
Take online surveys or join market research groups on sites like Swagbucks for a rapid source of income.
Remember, time management is crucial for balancing multiple streams at once. Don’t forget to schedule wisely!
How to Make Money Fast as a Woman
No matter who you are, making money can be tough. But if you’re a woman, it can feel impossible.
From getting paid less than men for the same job to having a harder time getting promoted, the deck is often stacked against us.
Just so you know that making quick money in one day won’t happen overnight.
So, I’m going to tell you the best ways to make money fast as a woman.
1. Sell Services
Selling your skills or expertise is a fast, viable way to earn money. It’s all about utilizing what you already know to provide value to others.
Identify your marketable skills, such as cake baking, freelance writing, bookkeeping or even organizing spaces.
Brainstorm which of these services people could pay for.
Remember, you can tap into both physical tasks, like house cleaning or pet-sitting, and digital ones, like creating digital printables or offering consulting in your field of expertise.
Expert Tip: Launch your service with a few testimonials, helping to build trust with potential customers from the get-go.
2. Freelance
Freelancing is a savvy way for women to stack up earnings fast, offering flexibility and complete control over the workload. It’s a ticket to dodge conventional office politics and punch above your earning potential.
Start by identifying your freelance niche. You can be a writer, graphic designer, or anything you’re skilled at. Many people use their transferable 9-5 skills to side hustle.
Then, create your profile on platforms like Fiverr, Upwork or Guru – be sure to showcase your accolades.
Set your rates, then start connecting with clients looking for your talent.
Remember, success in freelancing is driven by quality and consistency. So, sharpen your skills and always exceed your client’s expectations.
Freelancing may start as a side gig, but with dedication, it can grow into a full-time job.
3. Become a Product Reviewer
Being a product reviewer is an intriguing job opportunity for those who enjoy sharing candid feedback about their experiences with various products.
As a product reviewer, you are required to assess products often sent to you from diverse companies.
Your role involves providing a comprehensive review that could range from making an unboxing video to writing a detailed article about the product’s features and performance.
This kind of job requires an unbiased perspective and the capacity to articulate your thoughts and experience in a detailed, user-friendly manner.
Companies value this form of direct feedback as it provides them with significant data about their product’s strengths and weaknesses as perceived by an end-user.
4. Virtual Assistants
As a woman, becoming a virtual assistant could be your fast lane to earning a substantial income.
This is especially a great option if you’re excellent in organization and time management along with the need for flexibility.
For many becoming a virtual assistant with no experience is possible. And very lucrative.
Finally, for your best shot at success in this field, taking a course to improve your learning curve is extremely helpful.
Potential to earn up to $43,000 per year.
5. Sell Your Crafts
Ladies, have you thought of turning your love for crafts into a profitable venture?
Find out what crafts are in demand. The higher the demand, the more profitable it would be to make and sell these crafts.
Remember, profitability hinges on what you sell and how much you sell. Happy crafting!
While you are limited on what you can earn by what you can make, it is possible to make money doing something you absolutely enjoy.
6. Stock Trading
Stock trading may seem daunting but it can be a quick route to financial independence, especially for women.
With the right tools, information, and mindset, you can swiftly navigate the market and amplify your earnings. In fact, this is something Teri Ijeoma did herself.
Educate yourself on the basics before you invest. This is exactly what I did and my investment has paid off.
Always be aware of the risks involved in stock trading and proceed cautiously. However, building up an investing education is a wise decision.
Learn how fast can you make money in stocks.
7. Babysit
Babysitting is a versatile side hustle offering flexible hours and good earning potential.
It’s an ideal opportunity if you’re seeking quick, extra income and enjoy children.
Obtain optional certifications like CPR and first aid to enhance your appeal. Visit platforms like Care.com, Sittercity, or Urbansitter to create your profile and connect with clients.
8. Transcriber
One field that remains highly overlooked is transcription.
A transcriptionist listens to audio files and converts them into written documents.
Gain a thorough understanding of the industry. Check out this free webinar to get the basics right.
Consider specializing in legal or medical transcription. These niches often fetch higher wages.
You could easily make $3000-$4000 monthly, working on your own schedule.
Remember, practice and precision can help you achieve a lucrative transcription rate.
9. House Cleaning
Cleaning can be a rewarding gig, especially if you like tidying spaces.
Despite recognizing the need for a clean home, many people often struggle to find the time or energy to routinely clean their homes. This is where the prospect of a housecleaning business arises.
Busy homeowners, parents juggling work and childcare, elderly individuals needing assistance, and even businesses needing regular cleaning services are all potential clients for a housecleaning business. This demand provides a consistent income flow for those offering cleaning services.
In fact, individuals transitioning into this field of work can negotiate their wages with clients, potentially earning more than $15 an hour based on the complexity and demands of the job.
10. Sell Printables on Etsy
Selling printables is an effective and lucrative method to generate passive income.
Once printables such as planners, calendars, and journals are designed, created, and listed for sale on platforms like Shopify or Etsy, they can consistently produce income without requiring continual input or maintenance.
According to several experts, one of the keys to making substantial profits from printables is to differentiate your products.
Building upon this idea of making money from printables, the free Printables Workshop by Gold City Ventures offers comprehensive insights into the process of creating and selling aesthetically pleasing printable products online. This accessible course can be an excellent starting point for beginners looking to navigate the printables market.
Selling printables on Etsy might be the perfect venture for you!
11. Dog Walking
Looking for a fun-filled way to make some quick bucks?
Dog walking could be the right side hustle for you, especially if you’re an animal lover.
Easy to find jobs for dog walking.
Suitable for people with flexible schedules.
Offers an active way to earn money.
Option to select your rates with platforms like Rover.
High demand especially due to increasing pet adoptions and busy pet owners.
You can work when you need to and not take clients when you don’t want too.
12. Make Money Blogging
Blogging is a popular and prevalent way to earn money. Many blog owners are women who want the flexibility to earn significant money at their own pace and schedule.
Earning money through blogging allows you to focus on something you’re passionate about. Any topic that can provide value to an audience can be blogged about. Targeting a niche that has been overlooked by existing blogs can increase your blog’s potential earnings.
Starting a blog doesn’t require formal training, but it does require a willingness and ability to write effectively for an audience.
By employing monetizing avenues, like affiliate marketing and advertising, a blogger can boost their earning significantly.
Despite the vast number of existing blogs, the industry is very accommodating toward new voices, especially female voices. Thus, knowing how to monetize a blog can offer women many opportunities.
Remember, blogging is not just about earning fast bucks, it also needs consistent efforts. It’s rewarding but can start slow.
13. Ride-Sharing
Ridesharing is an excellent opportunity for women looking to make fast money. With apps like Uber and Lyft, you can earn an income simply by offering transportation services.
Here are a few tips to increase your earnings:
Consider driving during peak hours, weekends, or during special events to cash in on higher demand.
Choose busy locations such as city centers and nightlife spots to increase your chances of getting rides.
Maintain good customer service and ensure safe driving to uphold your rating and receive more ride requests.
14. Office Cleaning
Considering the hustle and bustle of the daily grind, office cleaning can be an untapped treasure trove for women seeking quick cash. Given the high demand and flexible hours, it’s an ideal source of extra income.
You must identify office premises needing cleaning services. Reach out to the owners or management, and propose your services.
Think about offering your services to offices in your local area. It’s a fast way to make extra money while managing your other commitments.
15. eBay Arbitrage
Looking to earn some quick money? eBay Arbitrage could be the game-changer you need.
Aimed mostly at women who love shopping, it’s about buying products cheaply and selling them on eBay for a profit.
First, hunt for bargains in thrift stores, sales, or online markets.
Go with high-demand items; electronics, collectibles, or brand sneakers are a good start.
Then, create your eBay store and list your finds at a competitive but profitable price.
Track each item’s demand through keyword research and buyers’ reviews.
Remember to calculate potential profits inclusive of shipping costs and eBay fees.
Armed with the right strategies, you can start earning with eBay in no time!
16. Freelance Writing
Did you know your writing passion can become a quick buck-making engine? That’s right, freelance writing is a gold mine you ought to tap.
First, identify a writing niche you love. It’s easier to excel when you’re passionate about your work.
Continually hone your writing skills. The more you practice, the better you become and the more valuable your skills. Finally, don’t be shy to market your skills. Reach out to small businesses and startups—they often need freelance writers.
Remember, quality over quantity will earn you a solid reputation in the long run. Now, go turn those wordy wonders into wealth!
17. Online Surveys
Curious about making a quick buck? Engaging in online surveys can be a fast money-making method just for you!
You don’t earn a huge amount per survey but when taking multiple surveys, it will add up fast.
Here are the top legit survey platforms:
Use your free time wisely. Take surveys during work breaks or leisure hours.
Redeem points for PayPal cash or gift cards.
18. YouTube Channel Building
Building a YouTube channel can be an interesting and rewarding venture.
It provides an incredible platform to share your content, express your creativity, and engage with a global audience. Whether you want to showcase your talents, teach something unique or simply entertain, having a YouTube channel opens up many opportunities.
Effective engagement with your audience is vital.
Last but not least, patience is something you will need in abundance. Building a successful YouTube channel takes time, so don’t lose hope if you’re not seeing immediate results.
Remember, there’s no limit to what you can achieve with your YouTube channel. It all comes down to how creatively you can use this platform to engage with your audience and grow your presence.
19. Bookkeeper
In our increasingly digital age, online bookkeepers are in high demand, with more businesses choosing to move their financial operations to the online platform. This shift in business operations has created a robust opportunity for those trained in bookkeeping to tap into the market and earn income while working from the comfort of their homes.
To be successful as web-based bookkeeper, you need to be well-organized and have previous experience dealing with numbers. However, even without a formal accounting education, individuals can take advantage of online learning platforms like Bookkeepers.com to learn and sharpen their bookkeeping skills for free.
Becoming a virtual bookkeeper is not just a fantastic full-time job opportunity; it’s also an excellent side hustle for women and mothers proficient with numbers. It provides flexible hours and allows the freedom to work from anywhere, making it ideal for those juggling multiple responsibilities.
The financial compensation for an online virtual bookkeeper is quite significant. On average, bookkeepers can earn at least $50000 a year helping business owners manage their finance and bookkeeping online.
20. Start a Dropshipping Store
Dropshipping is a viable option with low startup costs that lets you run an online store without handling any physical products.
There is still plenty of time to get into the dropshipping business.
Start by deciding what products to sell. Find a niche you’re passionate about for a higher chance of success.
Remember, a successful dropshipping venture involves effective marketing as well. So invest time and effort into perfecting your advertising tactics.
21. Do Clerical Work
Clerical work offers flexible, remote opportunities for women to make quick money.
With adequate admin experience and internet access, you can explore roles like Virtual Assistant, Online Data Entry Professional, or Court Transcriptionist.
This is one of the best non phone work from home jobs.
Experts tip: Perfection and punctuality are key. Attention to detail and meeting deadlines can make you stand out.
22. Resell Clothes
Reselling clothes online is a savvy way to turn your clutter into cash, especially if you love digging for hidden gems.
It’s a popular method for fast cash flow, with Poshmark and Facebook Marketplace being perfect platforms. One of my friends is very successful with this!
Begin with your own closet, and sell kids clothes they have outgrown too.
Reinvest your earnings, by buying second-hand clothing to resell can boost your profits.
Don’t forget quality. Run a quick check for authenticity and brand labels.
Visuals sell. Stage items and capture high-res photographs.
Providing a great customer experience is key, ensuring prompt shipping and maintaining politeness.
Play your cards right, you could earn anywhere between $100 to $1,000 a month or even reach a six-figure yearly income.
23. Do Home-Based Child Care
Home-based child care is a viable option to earn money, leveraging the natural maternal instincts and caregiving skills of many women. It can be a lucrative side hustle and a means to financial independence.
This is especially a great avenue to pursue when you are already at home raising your own children.
Make sure to follow any state regulations about running a daycare out of your home.
Begin by determining the number of children you can handle at a time, taking care not to overbook.
24. Podcasting
Podcasting is a wonderful opportunity for delivering narratives. It enables you to weave compelling stories while inspiring, instructing, or simply entertaining your listeners.
The unique format of podcasting lets you connect with your audience on a personal level. They listen to your voice, engage with your thoughts, and feel a stronger connection to you.
By starting a podcast, you are joining an increasingly popular trend, with the global number of podcast listeners has grown to 464.7 million listeners in 2022 (source).
Podcasting also opens up doors for networking and collaboration. You can invite experts, artists, or like-minded individuals as guests on your show, thus expanding your network.
There’s a potential to earn from podcasting. With affiliate marketing, sponsorships, and advertising, the commercial possibilities of podcasting are extensive.
25. Merch by Amazon
“Merch by Amazon” is a print-on-demand service that allows you to design and sell your merchandise.
It’s a great money-making alternative as it offers massive exposure and doesn’t require any upfront costs.
One of the significant advantages of using Merch by Amazon for passive income is that you are not required to maintain inventory or deal with shipping. Amazon handles these aspects, allowing you to focus on the creation process and customer satisfaction.
Amazon’s royalty system ensures that you get paid instantly whenever your merchandise is purchased. This allows you to earn money passively with every sale.
When your designs meet the current market trends and the preferences of your customers, they are more likely to be popular, leading to an increase in sales, hence, higher passive income.
26. Become an Influencer
Becoming an influencer is a smart, quick way for women to make money. While most people just stumble upon becoming an influencer, you can decide to pursue this avenue.
With earning potential that is unlimited, this opportunity is flourishing, requiring no specific degree or job experience.
Remember, platforms like TikTok, Instagram and YouTube reward new, engaging creators.
Dedication and consistency could lead you to major earnings where you make thousands for each post.
27. Work as a Translator
Having mastery in more than one language opens up a world of opportunities, particularly in the realm of translation services. The ability to translate language effectively and accurately is a skill that’s in high demand in the current globalized world.
A top benefit of being a freelance online translator is the flexible work environment. You have the freedom to choose when, where, and how much you want to work. This flexibility for work-life balance is more appealing now than ever, especially in the unsteady job market.
Freelance translators also have access to a wider client base. Unlike full-time translators who work for specific organizations or agencies, freelance translators can work with various clients from all over the world, widening their potential income streams.
The need for translators is projected to grow substantially. In the United States alone, the U.S. Bureau of Labor Statistics reports that employment for interpreters and translators will increase by 20% from 2021 through 2031, which is much faster than the average for all occupations.
Among other freelance professions, translation can often provide a more stable income.
As most sectors including education, legal, business, medical, and technological firms continue to globalize, they regularly need translators to bridge the language gap, making freelance translation services a steady income source.
31. Become a Flipper
Becoming a flipper is a high-return, low-investment way to make money fast. It involves buying low and selling high, perfect for those wanting a profitable side hustle.
Here are actionable steps to kickstart your flipping journey:
Identify items to flip: Popular options include toys, clothes, electronics, books, and furniture. Pro-tip: Sell things you have around your house to start risk free.
Choose a selling platform: Sell locally via Facebook groups or Craigslist, use reselling apps like Decluttr, or open an online store on eBay.
Price it right: Pricing items competitively garners buyer interest and maximizes profit.
Learn more: Free webinars, like Flipper University and the Flea Market Flipper, offer insights for a successful flipping business.
Remember, flipping can be more than just a side hustle; it’s a potential full-time career.
32. Micro-Tasking
Micro-tasking offers a quick way for you to earn money by completing short and simple tasks.
As its popularity grows, so does the list of platforms where you can find micro-jobs. Here are the popular platforms.
This allows your the flexibility to work whenever you want. Plus no special skills or degrees are needed.
Just note… This is not a stable income source
Tips for Finding the Best Way for You to Make Money
As you can see, there are many different ways to make money fast as a woman.
You can find the best way for you by considering your skills, interests, and the amount of time you have available.
Here are some helpful tips to make sure you are earning money quickly.
1. Identify Your Skills and Offerings
You’re already gifted, let’s transform those skills into fast cash.
Make a list of your skills, passions, and expertise; you can tap into anything from programming to knitting.
That is where you want to start.
From personal experience, I can tell you it is way easier to work on a side hustle or business when you are passionate about the topic.
Remember, the digital world is your playground, so play, innovate and cash-in.
2. Research the Best Ways to Make Money
Now, that you know the skills and experience, look at the list above and determine which ones match up.
You will need to spend time watching a free webinar to learn more.
Compare different money-making ideas. From part-time jobs to freelancing, there’s a plethora of options. You need to pick what works best for you.
Remember, generating a consistent income requires effective strategies and the right mindset. So choose wisely!
3. Try Different Ways to Make Money – Not Just 9-5 Jobs
It’s vital to explore different money-making strategies as a woman for financial stability and independence.
Just because one avenue didn’t work out doesn’t mean you should throw in the towel.
Remember, the key to success is perseverance, so pick something you’re passionate about and stick to it. Try not to jump from one idea to another out of impatience; success takes time.
Also, as your revenue increases, start building a lifestyle business for passive income.
4. Focus on the Things You Are Good at
Unlock your financial potential by recognizing and utilizing things you’re excellent at.
To cash in fast:
Identify your standout skills. These could range from writing, fine arts, math, e-commerce to digital marketing or even passions such as sports and hobbies.
Assess the viability of earning via your skills. Research shows that the digital economy is filled with opportunities.
Exploit platforms that cater to your expertise. For freelance gigs, you can try platforms like Upwork, Fiverr, or Guru.
There are so many ways to make money online as a beginner. So, indulge in the digital playground, embrace exploration and innovation, and let your skills earn for you.
5. Find Opportunities That Allow You to Work Flexibly
You can choose when to work and when not to, rather than being constrained by a 9 to 5 workday. The flexibility to create your schedule means you can operate at your most productive times, whether that’s early in the morning or late at night.
Working from home or any location across the globe enables a better work-life balance, reducing stress and improving productivity. This is particularly beneficial for those who have families or are committed to other obligations.
When working for yourself, you may have the potential to earn more than traditional salaried roles.
Lastly, making a living from your passion is huge!
You are being paid to do what you love anywhere, anytime which is rare and precious.
6. Consider Specializing in a Niche Subject
Specializing in a niche subject can elevate your earning potential quickly, owing to smaller competition and a personalized audience.
Being a subject matter expert in a specific area can provide you with an edge over your competitors.
Specializing in a niche can help you stand out and garner a dedicated audience, ultimately leading to faster earnings.
Remember, the key to making money faster in your specialized area is persistence and patience. It may take time to build a strong following, but once you do, the financial rewards can be substantial.
Stick to your chosen area, continuously learn and improve, and consistently deliver high-quality content to make your mark in your chosen niche.
7. Take Advantage of Trending Opportunities
Jumping on trending opportunities can be a gold mine, especially for women who want to make money fast from home. These ever-evolving trends tap into various skill sets, interests, and experiences, potentially translating into a lucrative gig.
For many, it may have been TikTok when the company first started.
Remember, the digital world holds limitless potential. Just needing to innovate and execute your ideas!
8. Invest in the Right Tools and Equipment
The key to making money, either online or offline, is making an informed investment of your time into the right tools, equipment, and learning resources.
While this can initially seem like an expenditure rather than a money-making step, it is, in fact, a cornerstone of your financial growth strategy.
Investing time in learning and increasing your knowledge base is vital. This could mean spending your time reading about new insights in your area of work, attending webinars, or enrolling in online courses. The ROI of this proactive learning is immense.
Consider this an opportunity or a catalyst that speeds up your journey toward substantial income generation and financial freedom.
9. Commit to Consistent Efforts
Commitment to consistent efforts is the cornerstone of any successful endeavor, more so when running your own side hustle.
One of the fundamental principles for making money is the dedication to keep improving your craft, always learning, and always evolving.
This continual effort involves a long-term commitment to staying updated with the latest writing trends, styles, and industry standards.
With persistence and patience, the fruition of your investments will lead you toward the fulfillment of your financial dreams.
10. Utilize Social Media Platforms to Promote Your Business
Social media platforms are powerful tools for business promotion, and when used strategically, they can lead to fast monetary gains.
Understanding how to effectively utilize these platforms can drastically enhance your chances of making quick bucks.
Start by creating a robust online presence for your business on various social media platforms. Remember, consistency is key to building your brand.
Engage with your audience frequently and respond to their comments. This boosts engagement on your posts.
Post content that is engaging, relevant, and aligns with your business values.
Always monitor your performance using social media analytics to understand what works best for your audience.
Which side hustles for women have you tried?
Personally, here are the side hustles I have done or currently do:
Stock Trading as a swing trader
Online Content Creation
Social Media Influencer
Online Consulting
Pet Sitting or House Sitting
Teaching Dance Lessons
Personal Organizer
However, I know many people that have tried the ones listed above.
So ladies, which of these enticing hustles appeals to your skills and schedule the most?
FAQ
Stay-at-home moms have numerous opportunities to earn money from the comfort of their homes. Plus being able to bump up your household income while juggling parenthood is the perfect combination.
Find the best jobs for moms specifically!
Any of these opportunities requires dedication and consistent effort, but with time they can all yield substantial returns.
Thankfully, there are many ways for women to make money online.
Above we covered all of the interesting ways and many are online.
Remember, opt for an avenue that suits your skills, interests, and time availability.
Well. the answer to this will depend on who you speak with.
Personally, I find ways to build passive income with your side hustle as the best option. Then you aren’t trading your time for money.
As a woman, many opportunities are right at your fingertips. The most popular and profitable include:
Start a blog: With consistent readership, you can make thousands from ad revenue and sponsored content.
Virtual assistant: Services can fetch around $10-30/hour.
Social Media Management: Businesses are willing to pay up to $1000-2000 per month for proficient managers.
Bookkeeping: On average, freelance bookkeepers earn around $34/hour.
Selling products online: Sites like Etsy, Amazon FBA, or your own platform can earn you a substantial income with a successful shop.
Trading Stocks or Options: by improving your investing knowledge, you can quickly increase your net worth.
Remember – it all starts with a step. Your side hustle could turn into a full-time passion!
This is How to Make Money from Home as a Woman
In conclusion, as a woman, there are plenty of genius and fast ways for you to make money.
The article underlines the significance of grabbing the reins of your financial future.
Through the strategies shared – including investing in stocks, working from home, or using budgeting hacks, you can boost your income significantly.
One of the concepts, I’m big on is making sure you know how to make your money work for you.
With wise decisions and being open to possibilities, your financial independence is within reach.
Remember – the ball is in your court, so make sure to take that shot and score your financial goals. It’s high time to cash in on your potential!
Know someone else that needs this, too? Then, please share!!
Mortgage applications fell for the second week in a row as interest rates continued to climb, tempering consumer demand. Home loan application volume dropped 3.2% on a seasonally adjusted basis – 4% when unadjusted – for the week ending August 4, according to the Mortgage Bankers Association (MBA). “Treasury yields rates rose last week, and … [Read more…]
You may have watched a movie in which a character pulls out a fancy black credit card and brags about how he has access to unlimited money. The reality is that there is no such credit card. Some credit cards do come with “no preset spending limit,” but even those cards have some sort of controls and restrictions.
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Do No-Limit Credit Cards Exist?
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Where Does the Idea of No Limit Cards Come From?
To “average” people who stick to a budget and pay their bills each month, there is something aspirational about a magical no-limit credit card. If you have an average credit limit, you might wonder what it is like to not be encumbered with one. Pop culture plays into this common desire to know what it would be like to be obscenely rich and not have to worry about money.
The Myth of the Black Credit Card With No Limit
In pop culture, the no-limit credit card always seems to be black, and there are ultra-luxury black credit cards. For example, American Express has the Centurion Card, which is a black credit card that is only available by invitation. But while the Centurion card (and other similar cards) don’t come with a preset spending limit, that doesn’t mean there is no limit at all.
Recommended: What Is a Luxury Good?
Pros and Cons of Cards With High Spending Limits
Here’s a quick overview of some pros and cons of high limit credit cards:
Pros
Cons
More convenient to pay for larger expenses
It may be tempting to spend beyond your means
Harder to go over your credit limit
If your card is stolen, you may be at a higher risk before you notice
A high credit limit can help your credit utilization ratio, when used responsibly
A higher credit limit could mean more debt to pay down
A higher spending limit may allow you to earn rewards like unlimited cash back
💡 Quick Tip: A SoFi cash-back credit card is a great way to earn rewards without a complicated redemption process. Even better, SoFi doesn’t place limits on the amount of cash-back rewards you can earn.
What Does It Take to Have a High Limit Credit Card?
Most credit card issuers use a variety of factors when deciding both whether to approve you for a credit card and what credit limit to extend. Here are a few factors that may come into play:
A Good Credit Score
Most cards that come with no preset spending limit are considered premium or luxury credit cards. That means that you will likely need good or excellent credit to be approved.
Recommended: 8 Tips for Maintaining a Good Credit Score
A High Income
Another factor that can help you to get a high limit on a credit card is a relatively high income. Banks generally use an applicant’s income as one factor in determining a credit limit for a card. If you have a low annual income, a bank may be hesitant to issue you a credit card with a high spending limit.
An Existing Relationship With the Bank
Many banks are interested in building a relationship with their customers, especially ones they consider to be high-value. Showing that you are a loyal customer can encourage a bank to extend you additional credit. Ways to build your relationship with a bank might include opening checking or savings accounts, taking advantage of their credit card rewards program, or responsibly using existing accounts with them.
The Takeaway
While some credit cards come without a preset spending limit, all credit cards have some limitations in place. There is no publicly available credit card that will allow you to spend and spend with no consequences. If you have a card with no preset spending limit, the issuer will decide on a case-by-case basis whether to approve each purchase.
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FAQ
Is there a credit card that has no limit?
There aren’t really credit cards with no limit at all (like you might see in the movies). But there are credit cards that don’t have a preset spending limit. Instead, the credit card issuer will evaluate your overall financial information to determine whether to approve any purchases. This might include your income, net worth, relationship to the bank, and previous spending and payment history.
How do people get no limit credit cards?
Most cards that come with no preset spending limit are luxury credit cards, which means that you’ll need to have good or excellent credit. Having a high income is another factor that can improve your odds of being approved. You might also consider strengthening your relationship with the issuing bank, like opening a checking account or other credit cards.
What does no limit credit card mean?
A no-limit credit card generally does not mean a credit card with absolutely no limit at all. Instead, many times people are referring to a credit card with no preset spending limit. When you have a card with no preset spending limit, you won’t have a specific available credit or credit limit — instead, the bank will determine whether to approve each transaction based on your overall financial information and/or past spending history.
Photo credit: iStock/Delmaine Donson
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The Federal Reserve’s recent interest-rate hikes may be affecting your wallet more than you think.
The Fed funds rate influences mortgage, credit-card, and auto-loan rates.
This means when the bank hikes rates, it becomes pricier to get a car loan or pay off credit cards.
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waged a war on inflation for over a year, and while price growth has been slowing amid the central bank’s interest-rate hikes, those hikes could be hitting your wallet.
Michelle Bowman, a Federal Reserve governor, recently said that multiple interest-rate hikes might be in store to bring inflation down to target levels, after 11 hikes in the past 12 meetings. But for many Americans, what do these rate hikes even mean, and how do they affect adults buying a home or paying off credit-card bills?
The Fed funds rate, with a target range now at 5.25% to 5.5%, is the rate at which banks and credit unions borrow and lend excess reserves to one another overnight, set by the Federal Open Market Committee. While the Fed rate itself is mostly directly relevant to banks, it acts as a benchmark for most interest rates that matter to consumers and businesses, including mortgage and credit-card rates.
From April 2020 to March 2022, the Fed funds rate was in the 0% to 0.25% range, which was implemented to stimulate economic growth and inflation after the start of the pandemic.
But to get the economy in a stabler position after inflation began to take off in 2021, the Fed hiked rates to increase the cost of credit, making loans more expensive. With higher borrowing costs, banks, consumers, and businesses may borrow less money. Because less money circulates throughout the economy, inflation — and the economy at large — tends to cool.
The rate also influences the market, as hikes often lead to drops in the stock market as investors become wary about businesses’ ability to expand profitably in an era when loans are more expensive.
Bank prime loan rates, the interest rates banks charge creditworthy customers, are typically about 3 percentage points higher than the Fed funds rate. The prime rate is the basis for mortgages, personal loans, and other major consumer loans.
Take auto loans as an example. Interest rates for two-year auto loans tend to be slightly higher than the prime rate, meaning auto loans have been between 3 and 5 percentage points above the Fed funds rate. As the Fed hiked interest rates, auto loans jumped from a pandemic low of 4.6% in October 2021 to a 2023 high of 7.5%. More than 14% of drivers couldn’t secure a car loan in June, according to the Federal Reserve, as lenders worried about rising balances and higher delinquency rates — while high interest rates and monthly car payments hurt consumers’ wallets.
Auto loans are now at about their highest point since 2007, in line with the Fed funds rate. They also remained rather stagnant during the Fed’s zero-interest-rate policy.
Credit-card rates, though much higher than the prime rate, have a similar shape. Amid the Fed’s rate hikes, credit-card rates have increased roughly 6% since January 2022, while the Fed funds rate has risen over 5%. Likewise, as the Fed kept rates near 0% at the start of the pandemic, credit-card rates stayed roughly constant. An analysis by WalletHub found the most recent 25-basis-point rate hike could cost credit-card users about $1.72 billion in additional interest charges over the next year.
In the short term, the Fed funds rate also affects Treasury yields, or the interest rate the government pays on its debt obligations. These yields influence how much consumers pay on real estate and equipment, as they set a baseline for other interest rates. These yields are determined by economic stability, interest rates, and geopolitical conditions.
The two-year Treasury yield is nearly identical to the Fed funds rate. During the height of the pandemic, both curves had a similar shape, with the Fed funds rate lagging slightly.
The 10-year Treasury yield less closely parallels the Fed funds rate but still has a relatively similar pattern. Over the past few years, the 10-year Treasury yield fell and rose roughly in line with the Fed funds rate, which suggests the long-term economic outlook is more or less improving.
Ten-year Treasury yields serve as a proxy for fixed-rate mortgages, which have trended about 2% to 4% higher than the Fed funds rate over the past decade. Mortgage rates typically move with shifts in 10-year Treasury yields. The 30-year fixed mortgage rate also changes with inflation — Fed rate hikes are done to slow inflation.
This means if you’re looking to purchase a home, a rise in the Fed funds rate indirectly pushes mortgage rates up, as the 30-year fixed mortgage rate hovers just below 7%. Those looking for a new home now have less purchasing power because of the Fed decisions and inflation. A WalletHub analysis found homebuyers with a 30-year fixed-rate mortgage would pay $11,160 more over the course of the loan than if they secured the loan before July, under the condition that the average home loan is $426,100.
For those looking to save money, certificate-of-deposit rates are another metric closely tied to the Fed funds rate. Ninety-day CD rates track almost identically to the Fed funds rate, meaning these CDs have paid higher interest rates as the Fed hikes rates.
Large corporations also are directly affected by higher interest rates, as the cost of borrowing money also follows the Fed funds rate. The yield on corporate bonds, which are issued by corporations to raise financing, has somewhat mirrored the dips and spikes of the Fed funds rate, particularly with companies that have the highest credit rating from Moody’s. This suggests that as the Fed raises rates, investors get bigger returns on corporate bonds. However, those higher rates for corporate borrowing could lead businesses to curtail investments in their operations.
All this is to say, the Fed’s decision to hike rates 11 times in the past 12 meetings may not yet show up at the grocery checkout, though such hikes have major effects on paying off credit-card debt, buying a home, and purchasing a new car.