Mortgage interest rates on the 15-year and 30-year mortgages are down from last week, Freddie Mac reported.

“The 30-year fixed-rate mortgage decreased again this week, with declines totaling almost a quarter of a percent in two weeks’ time,” Freddie Mac Chief Economist Sam Khater said.

For 30-year, fixed-rate mortgages, the average interest rate was 6.74% this week, a decent drop from last week when rates averaged 6.88%. Rates aren’t down quite as much as last year when they were 6.6%, on average.

Additionally, 15-year mortgages averaged 6.16%, down slightly from last week when they averaged 6.22%. These mortgages also aren’t as low as last year when they averaged 5.9%.

“Despite the recent dip, mortgage rates remain high as the market contends with the pressure of sticky inflation,” Khater said. “In this environment, there is a good possibility that rates will stay higher for a longer period of time.”

If you want to take advantage of lowering interest rates, consider using Credible to help you easily compare interest rates from multiple lenders in minutes.

HOMEBUYERS FEEL GOOD ABOUT WHERE MORTGAGE RATES ARE HEADED: FANNIE MAE

Spring likely to bring higher home prices

Warmer weather tends to bring a booming housing market as more homebuyers start looking for homes and inventory grows.

Sellers who list their homes in the spring and summer months often make more money when their home sells because the market is more competitive. A Zillow study found that June was the most profitable month for sellers. Homes listed in the first half of June sold for 2.3% more, on average, putting about $7,700 more in the pocket of sellers.

Location matters when it comes to selling power. In San Francisco, the best time to list is the second half of February, but the first half of July is the best time to sell in New York and Philadelphia.

Certain locations also boast even higher profits during warmer months. During the hottest time of the year, homes in San Jose sold for 5.5% more, boosting profits by $88,000 on an average home, according to Zillow. However, homes in San Antonio sold for just 1.9% more during the same time frame.

“Most sellers don’t have the luxury of timing the market,” Zillow Chief Economist Skylar Olsen said. “The best time to list is when it makes the most sense for their lives.” 

“Regardless of the month, sellers who list their home for sale this spring can expect plenty of interest if their home is marketed and priced right.,” she contined. “That’s why it’s more important than ever to hire a real estate agent with the experience to localize your strategy when comparable sales might be further afield.”

If you’re looking to compete with other buyers this spring, you can explore your mortgage options by visiting Credible to compare rates and lenders and get a mortgage preapproval letter in minutes.

HOMEBUYERS GAINED THOUSANDS OF DOLLARS AS MORTGAGE INTEREST RATES FALL: REDFIN

To afford homes, buyers need higher incomes than they did a few years ago

Buyers are facing a tougher market than they did a few years ago. To comfortably afford a home, buyers need to make more than $106,000 annually, another Zillow study showed. This income requirement is 80% higher than in 2020.

Monthly mortgage payments are higher than ever and have doubled since 2020. Payments average $2,188, assuming the buyer puts 10% down. With such high prices, affordability has become a major issue. In 2020, households earning $59,000 annually could afford the median-priced home without spending more than 30% of their income.

The $106,000 income needed today is well above the average household income in the U.S. The average household earns about $81,000.

Some areas are more affordable than others and require a much lower income to afford the average-priced home. Pittsburgh buyers need to earn just $58,232 to afford the average home. Memphis residents need $69,976 and Cleveland residents need $70,810.

Costlier cities like San Jose and San Francisco require much more in annual income to afford a home. San Jose requires an average annual income of $454,296 while San Francisco requires $339,864, according to Zillow.

To see if you qualify for a mortgage based on your current credit score and salary, consider using Credible, where you can compare multiple mortgage lenders at once.

15% OF AMERICANS HAVE CO-PURCHASED A HOME WITH A NON-ROMANTIC PARTNER, EVEN MORE WOULD CONSIDER IT

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

Source: foxbusiness.com

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Many travelers have France on their minds, especially with the 2024 Olympic Games coming up in Paris. And what better way to fly to any country than on its namesake airline and flag carrier?

But, is Air France actually good? Here’s our breakdown of what travelers considering flying to France or beyond need to know about Air France.

What is the Air France experience?

From booking to boarding, here’s each step of flying on Air France.

  • Making reservations: If you’re determined to fly Air France, you can head straight to Air France’s website to search and book your flight. However, you’ll usually be better served by searching through a flight aggregator such as Google Flights. After finding a good fit, Google Flights will link you to Air France for booking.

  • Check-in: Air France’s online check-in opens 30 hours before departure — except for flights from Atlanta or Detroit, for which check-in opens 24 hours before departure. Check-in closes 60 minutes before departure for Air France flights departing the U.S. 

  • Boarding: Air France groups passengers into five zones for boarding. Elite members and premium cabin passengers board in Sky Priority zones 1 and 2, while economy passengers are grouped into zones 3 through 5.

(Photo courtesy of Air France)

  • In-flight experience: Air France offers an extensive library of movies and TV shows to help pass long-haul flights, with free headphones provided. Food and drink options will vary based on your service class and flight length. Air France offers Wi-Fi on 90% of its aircraft fleet, with three different speed options available for purchase.

Different fare types listed on Air France’s website.

Air France reviews

Airlines understandably showcase their best elements in advertisements. So, that’s why it’s important to get advice from independent sources on just how good an airline is — and Air France is generally regarded as one of the best airlines in the world in independent award ratings.

In the Skytrax World Airline Awards for 2023, Air France was voted #7 in the world — placing the airline ahead of stalwarts Cathay Pacific Airways, EVA Air and Korean Air. While it didn’t take top honors in any individual field, Air France scored high marks in the Skytrax 2023 rankings in the following areas:

  • World’s Best First Class (#2).

  • Best Airline in Europe (#2).

  • Best Airline Staff in Europe (#2).

  • World’s Best Business Class (#7).

  • World’s Best Premium Economy (#8).

  • In-Flight Entertainment (#10).

  • World’s Best Economy Class (#16).

  • World’s Cleanest Airline (#19).

  • Best Airport Services (#20).

However, Air France failed to land in the top 20 for Best Airline Cabin Crew Worldwide and finished outside the top 10 in the world’s most family-friendly airlines.

Other independent rating awards won by Air France include Business Traveler USA’s Best First Class in the World and the World Traveler Awards’ Europe Leading Airline 2023.

Air France safety record

According to AirlineRatings.com, Air France’s safety rating is 7 out of 7 stars. Air France hasn’t had a fatal crash in the past 10 years.

This is an improvement from recent audits. In a 2022 blog post, AirlineRatings explained that it downgraded Air France’s safety rating after it was revealed that two of the airline’s pilots got into a physical fight midflight. Reportedly, cabin crew had to intervene to ensure the safety of the flight.

This incident came to light just days after the French Bureau of Enquiry and Analysis for Civil Aviation Safety (BEA) released a report indicating that Air France’s pilots weren’t rigorous about following safety procedures.

Air France’s loyalty program

Air France shares a loyalty program with Netherlands-based KLM Royal Dutch Airlines and smaller airline Transavia. The joint loyalty program is called Flying Blue.

Despite being a European-based loyalty program, Flying Blue partners with most major U.S.-based transferable point programs, including:

Flying Blue used to use a convoluted pricing scheme for award redemptions based on the origin and destination of the flight. However, it recently standardized award rates. While Flying Blue doesn’t publish award rates, travelers have found that Flying Blue award rates between the U.S. and Europe now start at:

  • 20,000 Flying Blue miles in economy.

  • 35,000 Flying Blue miles in premium economy.

  • 50,000 Flying Blue miles in business.

Air France often runs monthly award discount programs that can reduce the cost even more. However, be wary if you see award rates that seem too good to be true. In December 2023, Air France ran a flash sale that discounted business class awards to Europe to just 13,500 Flying Blue miles one-way plus $250 in taxes/fees.

Unfortunately, the Flying Blue director later got cold feet and canceled award fares for most of the 2,500 travelers who took advantage of the deal.

Who should avoid Air France?

Not every airline is suitable for every traveler. Here are a few examples of what kind of travelers should find another airline to fly:

  • Travelers who want to visit Australia, New Zealand or parts of Southeast Asia. Air France operates an incredible route network to almost 200 destinations across over 80 countries. However, it doesn’t fly everywhere in the world. Air France’s route map doesn’t extend to Australia, New Zealand or parts of Southeast Asia like Malaysia.

  • Travelers who want to visit Asia. Particularly for travelers based on the U.S. West Coast, it will be an excruciatingly long journey to Asia via Paris. For example, flying from San Francisco to Seoul takes more than 23 hours. Other airlines can fly you to Asia in almost half of that flying time.

  • Travelers who are Francophobes. Air France is unabashedly French, from serving French wines to French being the primary language spoken onboard. If you’re not a fan of French culture, it’s best to find another airline that serves your destination.

Final thoughts on flying Air France

Air France is generally ranked as one of the best airlines to fly — particularly in first class. Its loyalty program partners with many U.S. point programs and can offer excellent redemption rates, making it an appealing option to fly to Europe.

However, its Flying Blue loyalty program has been known to backtrack on deals that it offers to travelers. Even so, Air France can be a great option when traveling from the U.S. to Europe.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:

Source: nerdwallet.com

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Wrightson’s analysis of Fed financial statements revealed that from January 1 to January 24—just before the rate hike took effect—the BTFP saw a substantial $38.6 billion increase in usage, rising from a year-end level of $129.2 billion. Wrightson ICAP economist Lou Crandall explained: “Banks in many districts found the concessionary terms of the program too … [Read more…]

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Key takeaways

  • Jumbo loans are large-amount mortgages, generally used to buy more expensive properties.
  • The size of a jumbo varies by geographic location, but it generally means a loan of more than $766,550 in most parts of the U.S. (as of 2024).
  • The interest rates on jumbo loans are different (usually higher) than those on regular, conforming mortgages.
  • Jumbo loans have stricter criteria for borrowers: a higher credit score, larger income/assets, and bigger down payments.

A jumbo loan is a mortgage for an amount that exceeds the standard loan size, as set by the federal government. If you’re buying a mansion — or just a regular home in a highly pricey neighborhood — you’ll need an extra amount of financing to get it.

It’s not just the principal amount, though: Everything on these mortgages can be super-sized. Let’s look at what jumbo loans are, and when you need one.

What is a jumbo loan?

As the name implies, a jumbo loan covers a larger-than-normal loan amount. More specifically, a jumbo loan is any mortgage that exceeds an area’s conforming loan limits, which are set yearly by the Federal Housing and Finance Agency (FHFA).

Many mortgage lenders offer jumbo loans up to $3 million or $5 million. You might be able to find jumbo loans in even higher amounts, especially if you work with a mortgage broker who specializes in them.

Jumbo loans can be used for primary residences, investment properties and vacation homes.

How do jumbo loans work?

Despite their “nonconforming” status, jumbo loans aren’t much different from traditional mortgages when it comes to the way they work. The payment schedules and other details are generally the same. Borrowers can get fixed- or adjustable-rate jumbo mortgages with various term options.

However, the interest rates on jumbo loans often differ from their conforming loan counterparts. Historically, they’ve been higher; however, the gap has closed of late. As of April 1, 2024, the 30-year jumbo rate was 7.06 percent, according to Bankrate’s survey of national lenders, vs. 6.93 percent for the traditional 30-year fixed loan. Part of the reason for this is an increase in guaranteed fees charged on conforming loans to lenders by Fannie Mae and Freddie Mac.

The maximum size of a jumbo loan varies by your mortgage lender and location, as does the exact qualifying guidelines. Because the market for jumbo loans is smaller, you might need to shop around a bit more to find one. It’s usually beneficial to work with a mortgage lender who specializes in them.

Jumbo loans vs. conforming loans

Most loans are conforming loans, meaning they conform to, or follow, specific criteria followed by Fannie Mae and Freddie Mac, the government-sponsored enterprises that buy most U.S. home loans. Jumbo loans do not adhere to these criteria; hence, they fall into the financing category of nonconforming loans.

You’ll have more buying power with a jumbo loan than with a conforming loan, but you’ll pay more in interest since your balance is bigger. To qualify for a jumbo loan, you’ll need a higher credit score — and possibly a higher income, down payment or more assets — than you would for a conforming loan. For example, U.S. Bank calls for a minimum 740 credit score to be considered for a jumbo loan versus 620 for a conforming loan.

Jumbo loan limits

You need a jumbo loan if you want to finance a property that costs more than a certain amount the FHFA sets for your state each year. If a mortgage exceeds the FHFA’s conforming loan limit, market-makers Fannie Mae and Freddie Mac won’t back or purchase it, thus making it a riskier proposition for a lender.

For 2024, the limit for conforming loans for most of the continental U.S. is $766,550. In Hawaii, Alaska and certain counties where median home prices are significantly higher than average, the conforming loan limit goes up, too — as high as $1,149,825.

Because homes that cost above these sums require a jumbo loan, these ceilings are often referred to as “jumbo loan limits” — though technically, they’re the starting points for jumbos.

Loan limits by state

The table below provides state-by-state conforming loan limits for 2024. In many states, the limits vary by county, depending on how high-cost the real estate market is there.

How to qualify for a jumbo loan

Jumbo lenders typically impose stricter underwriting guidelines than conforming mortgage lenders do. Because the loans aren’t backed by Fannie or Freddie, jumbo mortgages pose more risk to the lender. Overall, if you want to take out one of these hefty loans, you will need to make sure your financial profile is very good or excellent.

There are three common hurdles borrowers must clear to get approved for a jumbo loan: income, credit score and cash reserves (for making a down payment).

Jumbo loan income requirements

Yes, it’ll help if you have a large income — and, just as importantly, if you have a low-debt-to-income (DTI) ratio, the percentage of your monthly income that goes to debt payments. If your outgo is a significant part of your incoming — like more than one-third — you might not qualify for a jumbo loan unless your credit score is excellent or you have a sizable amount of reserves or liquid assets.

Jumbo loan credit score

Higher credit scores are needed to qualify for a jumbo versus a conforming loan. You will need, at the very least, a minimum score of 700 (most likely) to qualify for one. “The average is around 740, although I have seen some as low as 660,” says Robert Cohan, president of Carlyle Financial based in San Francisco. “[But] if you’re high-leveraged and you have a low credit score, it’s going to be hard to get a jumbo loan.”

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Keep in mind:

Most jumbo loans are conventional loans (offered by private lenders, vs. a government agency). One exception is the VA jumbo loan. Active military or veterans can qualify with a significantly lower credit score, like in the mid-to-low 600s.

Jumbo loan down payment

You may have to make a significant down payment to qualify for the jumbo loan. The down payment on a jumbo loan is typically 10 percent to 20 percent (and sometimes more). “Anything lower than a 10 percent down payment and you’re probably going to pay for it in higher rates,” says Cohan (assuming you can get the loan at all). Be prepared to show enough reserves, or liquid assets, to cover between six and 12 months’ mortgage payments.

Is a jumbo loan right for me?

Jumbos are meant for buyers with a substantial stable income and ample resources. You’ll need strong credit, a low debt-to-income ratio and at least six months of cash reserves to qualify.

Research the conforming loan limits in your region. If the homes you’re interested in buying do not fall within conforming loan guidelines, a jumbo loan might be an appropriate alternative — in fact, your only alternative, if you want to live in a high-cost county.

That said, a jumbo loan is not for you if it means you must stretch your finances to the brink to get one. Or if it means you’ll end up being house broke or house poor, meaning your homeownership costs squeeze out everything else in your budget.

If you can’t qualify for a jumbo loan — or don’t want one —  you might consider a piggy-back loan arrangement, in which you take out two smaller mortgages, both conforming, instead.

Pros and cons of a jumbo loan

Jumbo loans can help you finance a large home purchase, however, you’ll pay more in interest over time than with a conforming loan. Here are some additional pros and cons:

Pros

  • Allows you to borrow more than a traditional mortgage
  • Competitive interest rates
  • Opportunity to buy a more expensive home/live in a high-cost region

Cons

  • A higher credit score is required to qualify, plus a larger annual income
  • Must have cash reserves to cover 6 to 12 months of payments
  • Higher interest rates

There may also be situations in which a jumbo loan loan makes sense. For instance:

  • If you have to live in a more expensive part of the country
  • If you see a good deal on a luxury piece of property
  • If the jumbo loan rates are close to conforming loan rates (why not get more bang for your financing buck)
  • If you have gotten, or expect to soon get, a windfall or big rise in income, so the cash reserve requirement is no problem (real estate isn’t the worst investment in the world)

Jumbo loan FAQ

  • If you would like to take out a jumbo mortgage, you’ll need to make sure your credit is very good to excellent, as a strong credit score is crucial for getting the best rates. Like any home loan, it is worth shopping around with lenders to see who might offer you the best rate. If you can put down a larger down payment — above and beyond the standard 20 percent — it may help you qualify for a lower rate as well.
  • The closing costs for a jumbo loan are similar to its conforming loan counterpart — 2 to 5 percent of the home’s purchase price. But while the percentage is the same, the property’s higher price means you’ll end up paying more in fees. For example, with 2 to 5 percent in closing costs, a loan on a $1 million dollar property could cost $20,000 to $50,000 in closing costs alone. For a $500,000 property, your costs would be half that range.
  • There are reduced tax benefits with a jumbo loan compared to a standard mortgage. For mortgages taken out after Dec. 16, 2017, the IRS allows for deducting home mortgage interest on the first $750,000 of mortgage debt, or $375,000 if you are married and file separate tax returns. So, taking out a jumbo loan could mean you will not be able to write off the entirety of your mortgage interest on federal tax returns each year. There are higher mortgage interest deductions, however, for homeowners whose mortgage was established before December 16, 2017. In that case, mortgage interest up to $1 million or $500,000 for those who are married filing separately, can be deducted on tax returns.

  • Yes, the Department of Veterans Affairs (VA) guarantees (it technically doesn’t offer) jumbo loans. The minimum financial requirements the VA sets are more lax than a conventional jumbo loan: you’ll need a 620 credit score and no cash reserves are required (though lenders may set higher requirements). If you’re a qualified buyer with your full VA entitlement, you may also not need a down payment. Bear in mind, though, that lenders may set their own stricter requirements.

  • You can refinance your jumbo loan, but it may be more difficult than refinancing a conforming loan. That’s largely because lenders have different financial requirements when it comes to jumbo mortgages, potentially limiting the pool of lenders you can work with. On top of that, jumbo loans come with higher closing costs, which makes your break-even period longer than it would with a conforming loan.

Additional reporting by Mia Taylor

Source: bankrate.com

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Sophie’s “mood tray” when decorating her family home.

Photo: Kensington Leverne

Both the Shoreditch house—which Ashby and Casely-Hayford rented for years—and the appointment-only Blewcoat showroom are front and center in Ashby’s first monograph with Rizzoli, Home, Art, Soul, along with 11 other distinctive Studio Ashby projects: think a Victorian bathhouse turned seaside villa in Brighton filled with De Gournay wallpapers in chinoiserie prints and textiles in shades of turmeric, cumin, paprika, and saffron; a San Francisco apartment where the blues of the Pacific are echoed in Murano glass and Isaac Julien prints; and a Left Bank bolthole overlooking the Seine whose 17th-century rooms were transformed in the spirit of French designer Jacques Grange.

As the book is released—and Studio Ashby celebrates its 10th anniversary—Sophie reflects on lessons from a decade in interior design, and lets Vogue in on the five common mistakes she always advises her clients to sidestep.


  1. When you’ve installed beautiful flooring, it’s natural to be reluctant to cover it up, but having a larger rug always makes a space feel more welcoming and generous. I generally suggest ordering a carpet large enough to fit all of the furniture in a room on top of it rather than something your coffee table floats on in the middle of a space.
  2. I’m always looking to create interesting geometric juxtapositions—putting an angular armchair next to a soft sofa, for example. That not only gives a room a more dynamic feel, but when you incorporate lots of different styles in a home rather than buying into one trend, your décor has more longevity, too.
  3. Lighting is deceptively tricky to get right. I typically opt for ambient over directional lights. As a rule of thumb, it’s best to avoid having any bulbs visible, whether you’re looking down into a table lamp or up into a factory-style pendant.
  4. If your house contains rooms with low ceilings—as many Victorian and Edwardian terraces do in London—paint not just the walls but the doors, the skirting board, and the ceiling the same color. It will make the space feel so much fresher and less disrupted by datums.
  5. Whatever your budget, don’t overlook the value of art, and don’t be intimidated about buying it. If you can afford to purchase original works by blue-chip artists, that’s great, but it’s not a necessity. I always recommend that people start by going to exhibitions and getting prints of the works they loved at the end.

Studio Ashby: Home, Art, Soul is out now.

Source: vogue.com