If you live in Chicago, IL, you’re familiar with the dynamic and multifaceted art scene. The city offers an unparalleled journey through human creativity, like world-renowned museums that house timeless masterpieces to cutting-edge galleries. But Chicago’s artistic landscape doesn’t stop at visual arts – it resonates with the music and dancing, spanning genres from blues to jazz, contemporary, and hip-hop.
Whether you’re touring apartments in Chicago, looking for homes for sale, or needing new recommendations, this Redfin article has you covered. Join us as we explore what makes Chicago a haven for art enthusiasts and cultural explorers alike. We’ll make recommendations on the top spots to visit and places to explore. Let’s get started.
Chicago museums to explore
Chicago’s museums offer a captivating journey through history, culture, and creativity, showcasing diverse art, science, and innovation. Here are a few of the top museums in the city.
The Art Institute of Chicago
The Art Institute of Chicago is a cornerstone of the city’s vibrant art scene, holding a revered status among locals and visitors. Its extensive collection spans centuries and continents, offering a rich artistic expression from ancient to contemporary times. With masterpieces by renowned artists such as Grant Wood’s “American Gothic” and Georges Seurat’s “A Sunday on La Grande Jatte,” the museum is an invaluable educational and cultural resource. Its commitment to showcasing diverse cultures and artistic genres solidifies the Art Institute’s pivotal role in shaping Chicago as a hub of creative inspiration and exploration.
Museum of Contemporary Art Chicago
This museum catalyzes conversations around contemporary issues and artistic evolution by showcasing works from established and emerging artists across various mediums. Its role in fostering artistic experimentation and encouraging dialogue makes the Museum of Contemporary Art Chicago a vital and transformative force within the Chicago art scene.
Lively Chicago art festivals to check out
Known for hosting exceptional art festivals, Chicago showcases diverse artistic expressions and fosters a vibrant atmosphere of cultural celebration. Here are a few of the top art festivals in the city.
Millennium Art Festival
“The Millennium Art Festival provides a wonderful opportunity for people to interact with the artists and see spectacular, unique, hand-made pieces from artists all over the country,” shares Amy Amdur, CEO of Amdur Productions. “When attending these fests, we suggest planning ahead by visiting our website to get acquainted with the various artists and their work and the surrounding neighborhood. We encourage attendees to make a full day of it by enjoying a variety of activities at the fest, as well as exploring the unique shops and restaurants that are just steps away.”
Printer’s Row Art Fest
Nestled in the historic Printer’s Row neighborhood, the Printer’s Row Art Festival transforms the streets into a dynamic gallery where skilled artisans proudly display their handcrafted treasures. From intricate hand-bound books to mesmerizing woodblock prints, visitors can immerse themselves in the tactile beauty of the creative process.
Must-see Chicago galleries
From contemporary innovation to classical mastery, Chicago galleries showcase an array of artworks that mirror the city’s dynamic spirit and cultural diversity. Here are a few of the best.
Bridgeport Art Center
“There are two expansive art galleries situated on the third and fourth floors of the Bridgeport Art Center,” reveals Karen I. Hirsch, a local photographer. “Moreover, individual artists within the building graciously unveil their studios to the public. Adding to the building’s allure is the Chicago Maritime Museum, nestled on the lower level.”
Blue Moon Gallery
Lynne, a publisher of the Fox Valley Art BEAT, an art news site, suggests visiting the Blue Moon Gallery. “The owner of Blue Moon Gallery, Kendra Kett, curates beautifully, choosing local artists who know what sells well and prices it right. Although the gallery looks deceptively small from the street, once inside, it is open, airy, and bright with soothing colors, a salon approach to display, tabletop art, high ceilings, and even clerestory windows filling the length with natural light.”
Local Chicago artists to Look into
Chicago boasts a wealth of exceptionally talented local artists, whose creativity and innovation contribute to the city’s thriving artistic landscape. Check out a local favorite below.
Plein Air Painters Chicago
“Did you know you can see art depicting Chicago being made by professional artists every Saturday morning from April through October,” says Mary Longe, a local artist. “Each weekend, 10-30 members of the renowned Plein Air Painters Chicago paint a neighborhood. You can watch, bring your own easel, or purchase art as it’s being completed by some of Chicago’s most talented artists. Iconic and compelling scenes are painted in oils, watercolors, pastels, gouache, casein, and acrylics.”
Chicago architecture that can’t be missed
Chicago’s architecture is integral to the city’s art scene, blending aesthetics and functionality to create a dynamic urban canvas. A great way to see the iconic Chicago landscape is through tours like the Chicago River Boat Architecture Tours. There you’ll be surrounded by historic and modern day buildings. Here are a few spots to keep in mind.
Chicago Riverwalk
“Immerse yourself in Chicago’s artistic scene by strolling down the Chicago Riverwalk,” suggests Christiane Sola, the Chicago School of Musical Arts co-founder. Enjoy the breathtaking architecture and local musicians performing along the route, creating an unforgettable urban gallery. An array of restaurants and bars and stunning waterfront views invite locals and tourists to savor Chicago’s boundless expression of art and vibrancy.”
Willis Tower
The Willis Tower is a monumental piece of architecture that significantly enriches the Chicago art scene. Once the world’s tallest building, its soaring silhouette seamlessly merges form and function, becoming an iconic representation of the city’s artistic spirit. The tower’s distinctive design, with its bundled-tube structure and imposing presence, has inspired countless artists to capture its essence through various mediums, from paintings to photographs.
Diverse Chicago dance communities to discover
The dance scene in Chicago resonates with performances, fusing jazz, ballet, and diverse movements that showcase the city’s artistic energy. Here are a few great spots to enjoy.
The South Side Jazz Coalition
The South Side Jazz Coalition hosts jazz jams, pop-up concerts, and the popular Jazz’n On The Steps in the beautiful Woodlawn neighborhood. Festivals will be happening in Bronzeville and Englewood through October, as live music is “the happening” on the south side of town.
Scottish Country Dancing
Feel like venturing further afield? Head to Naperville. Participate in a lively class with Chicago Scottish Country Dance, a group that meets every Tuesday evening to learn and enjoy this social set dancing from Scotland.
Other ways to dive into Chicago’s art scene
Chicago is teeming with many shops showcasing vintage items, art, and records that further add to the diverse art scene. One way to learn about the city is taking a trip through the shops.
Explore some of Chicago’s popular shops
Mady from Renegade Craft, the leading showcase of independent craft and design, encourages you to “Kick the day off by sifting through records at Reckless Records, then head to Renegade vendor Demolition Collective’s storefront for a different kind of vintage sifting. Get your aura photographed by the loveliest Aura/Iris, then check out Gucha Gucha’s creative studio and shop. End the day with a visit to Co-Prosperity, an “experimental cultural center” that will inspire you to apply to Renegade yourself.”
A rental agent is your personal guide in the world of real estate rentals. While we often associate real estate agents with home purchases, rental agents specialize in helping you find the perfect apartment or house to rent. They’re the experts who know the rental market like the back of their hand, equipped with a deep understanding of local neighborhoods, rental trends, and available properties.
In this article, we’re diving into the world of rental agents and how they can be the game-changer you didn’t know you needed for your next living space. So, whether you’re a first-time renter or a seasoned tenant, let’s uncover how a rental agent can transform your search for your next apartment or house.
Should you use a real estate agent to find your next rental?
Using a real estate agent to find your next apartment or home offers many advantages that streamline the process and enhance your overall experience. These professionals possess in-depth knowledge of the local rental market, which can help them find properties that align with your preferences and budget. In highly competitive markets such as Los Angeles, New York City, Miami, and Boston, the role of rental agents becomes paramount in the quest to secure an apartment. However, it’s worth noting that rental agents are not exclusive to these larger cities; they are also present in smaller cities, offering valuable assistance to those seeking lease accommodations.
7 key ways a rental agent can help you
Navigating the rental market can be a challenge, but with a skilled rental agent by your side, you’ll have a seasoned expert to guide you. From finding the right apartment or house to handling negotiations and paperwork, here are the key ways a rental agent can make your renting journey a breeze.
1. Tailored property searches
A rental agent will curate a list of rental options that match your preferences, saving you time by presenting choices that align with your needs and budget.
2. Local expertise
With in-depth knowledge of the area, your agent will provide insights into neighborhoods, schools, transportation, and amenities, helping you make an informed decision.
3. Protection from scams
Rental agents prevent you from scams by verifying ownership, checking landlords, and ensuring legally sound leases, creating a safe rental process.
4. Schedule property viewings
Say goodbye to endless property visits. Your agent can schedule and coordinate viewings for you, ensuring you see the most suitable options without the hassle.
5. Communicate with landlords on your behalf
These agents act as intermediaries, communicating with landlords on your behalf to address queries, negotiate terms, and facilitate effective communication throughout the rental process.
6. Assist with lease negotiations
Leave the negotiating to the pros. Rental agents are skilled at securing favorable lease terms, rental rates, and other terms on your behalf.
7. Help you through the application process
Through the application process, rental agents provide the necessary forms, explain requirements, and assist with document submission.
How much do you pay real estate agents?
The cost of a real estate agent for rentals can vary based on factors such as location, market norms, and the specific services offered. Typically, you can expect to pay around one month’s rent or a percentage of one year’s rent. So if you rent an apartment in Tallahassee for $2,000 a month, you could pay anywhere between $2,000 to $2,400 if the agent takes 10% of the annual rent. However, practices can differ from region to region, so clarifying the terms and fees with the agent before entering into any agreements is essential. Consulting with the agent or agency upfront will help you understand the cost structure and any potential fees associated with their services in your market.
Where can you find a real estate agent that works with rentals?
You can find agents through various channels. A common approach is to search on reputable real estate agency websites, where agents often list their specialties and contact information. Additionally, requesting recommendations from friends, family, or colleagues who have recently rented properties can yield reliable referrals. Ultimately, online research, word-of-mouth referrals, and attending local events can help you find an excellent real estate agent to assist you in your apartment or home search.
The bottom line
In a nutshell, rental agents are your go-to resource for a stress-free renting experience. They’ve got your back, whether it’s finding the right place, protecting you from scams, or handling all the paperwork. So, whether you’re on the hunt for your first apartment or your rental dream house, partnering with a rental agent could be the key to a smoother, safer, and simpler renting experience.
The new week begins with bond yields at the highest levels since 2007 in what has been a broadly linear uptrend since late July. Up until that point, rates had been holding in a narrow range for months more than 50bps below current levels. If the Fed was/is “data dependent,” and if the most recent NFP/CPI reports were arguably bond-friendly, why has the trend been so unfriendly?
Data has indeed mattered, but the bond market’s strategic shift has mattered more. In early July, markets returned from the Independence Day holiday to find a hawkish Fed Minutes release on Wednesday and a glut of unfriendly data on Thursday (including that ADP that came in at 497k). This culminated in the first of two “apprehensive and defensive” sell-offs highlighted in the chart below.
In both cases, the selling pressure was driven by data and the Fed in the run up to NFP. In both cases NFP helped calm the bond market’s nerves with CPI solidifying the friendly bounce in the following week. In the most recent example, the post-CPI resolve lasted only a few hours before bonds were blasting back toward the previous week’s highs. At the time, losses were exacerbated by Treasury supply concerns and foreign central bank selling in China/Japan.
Fed policy is hurting long-term rates due to the yield curve. Short-term rates are now high enough to hold mostly flat. Until now, stronger data was able to do more to push Fed rate expectations (and 2yr Treasury yields) rapidly higher. Higher rate expectations + the reality of tighter policy were like offsetting penalties for longer-term rates, thus allowing them to remain in a range. But with the Fed shifting gears on short-term rates, bond market influences have a more direct impact on longer-term rates–all at a time when supply is increasing, foreign governments are selling, and the Fed is saying it’s fine cutting short-term rates in the future while continuing to shrink the balance sheet.
To all of the above, add the fact that other economic data suggests the economy continues to chug along. Some of the data suggests things are quite a bit stronger than expected. The balance of all the available econ data adds general pressure (i.e. it supports the strategic shift to higher rates).
Last but not least, there is buzz around the topic of the “neutral rate” or “R-Star” moving higher (the imaginary level of the Fed Funds Rate that keeps inflation and growth in a balanced homeostasis). Some of the proponents of said buzz think Powell will discuss this Friday in Jackson Hole. While a discussion wouldn’t be a surprise, it would be a surprise if Powell were to say something about it moving higher. If anything, there’s an opportunity for Powell to put some of the rumors to bed by reiterating recent Fed communications regarding the absence of any change in the R-Star outlook. At the very least, that would let us know how much this sentiment has affected the uptrend in yields recently.
Bay Area home prices are falling as mortgage rates climb to their highest levels in more than two decades, squeezing many house-hunters out of the market and keeping would-be sellers on the fence.
The median price of existing single-family homes dropped 5.2% to $1.26 million across the region from June to July, according to the California Association of Realtors. The decline followed steady price gains most of the year as sales picked up during the traditionally busier spring and early summer home-buying seasons.
But now, spiking mortgage rates are slamming the brakes on an already challenged local real estate market. On Thursday, Freddie Mac reported the average rate for a typical 30-year fixed mortgage rose to 7.09%, up from 6.96% last week, reaching the highest peak since 2002.
“People are just not jumping into buying a home right now at these interest rates,” South Bay real estate agent Ramesh Rao said.
Meanwhile, a 30-year fixed “jumbo” home loan — which is common for more expensive houses — averaged 7.65% on Thursday, according to Bankrate.com. In the Bay Area, a jumbo loan is a mortgage that exceeds $1,089,200.
Mortgage rates have been on a sharp upward trajectory since last year when the Federal Reserve began raising the cost of borrowing to rein in inflation. Rates have more than doubled their recent sub-3% lows, in turn boosting monthly home payments for new mortgages by thousands of dollars and squashing a record-setting pandemic real estate boom.
In November, rates briefly topped 7% before falling to around 6% in February. They’ve been trending up again since.
Despite slowing inflation, Oscar Wei, an economist with the realtors association, said rates could reach as high as 7.5% in the coming weeks before dropping to around 6.5% by the end of the year.
That will likely put more downward pressure on home prices in the near term. And even if rates decline in the months ahead, fewer people typically look for homes during the second half of the year, meaning prices should continue to soften in line with seasonal trends.
“For buyers who are interested in buying in the fall and winter, there could be some opportunities because it might not be as competitive,” Wei said. “There may be a little more negotiation power for buyers.”
From June to July, median home prices dropped 8.5% in San Francisco to $1.46 million, 3.4% in Alameda County to $1.26 million, 3.2% in Contra Costa County to $900,000, 2.7% in San Mateo County to $1.98 million and 1.4% in Santa Clara County to $1.8 million.
For more than a year now, buyers who’ve been able to stomach the steeper rates have been left with few homes to choose from. That’s partly due to the Bay Area’s chronic housing shortage. But many homeowners who might otherwise be willing to sell have also been unwilling to give up the lower rates they locked in before the recent spike.
Sellers now putting houses up on the market are often doing so reluctantly.
“It’s definitely more so out of necessity, and they’re doing so unhappily because they have a direct comparison point to just a year and a half ago,” said Montana Gabrielle Hooks, an Oakland real estate agent.
Hooks said some of her clients have been forced to sell as their employers put an end to full-time remote work. One is stuck selling a recently purchased, spacious new-build in suburban Fairfield after being required to show up to the office in San Francisco.
“They would have never have purchased it if there was even a decent chance that they had to come back to the office so soon,” she said.
LOS ANGELES — Sales of previously occupied U.S. homes fell in July to the slowest pace since January, as elevated mortgage rates and a stubbornly low inventory of homes on the market combined to discourage many would-be homebuyers.
Existing home sales fell 2.2% last month from June to a seasonally adjusted annual rate of 4.07 million, the National Association of Realtors said Tuesday. That’s below the 4.15 million pace that economists were expecting, according to FactSet.
Sales slumped 16.6% compared with July last year. It was also the lowest home sales for the month of July since 2010.
The annual sales decline was steepest in markets across the Northeast and Midwest, where sales slumped 20% or more, the NAR said.
Despite falling sales, competition for a near-historic low level of homes on the market helped drive prices higher. The national median sales price rose 1.9% from July last year to $406,700, marking the first annual increase in prices since January.
The shortage of homes for sale has kept the market competitive, driving bidding wars in many places, especially for the most affordable homes. Roughly 35% of homes sold in July fetched more than their list price, said Lawrence Yun, the NAR’s chief economist.
“At least when it comes to home prices, it looks like the housing recession is already over,” Yun said.
All told, there were 1.11 million homes on the market by the end of last month, an increase of 3.7% from June, but down 14.6% from a year earlier, the NAR said.
Homes listed for sale in July typically sold within just 20 days, with 74% staying on the market for less than a month.
All told, the number of homes on the market at the end of July amounted to a 3.3-month supply at the current sales pace. In a more balanced market between buyers and sellers, there is a 5- to 6-month supply.
The combination of high borrowing costs and intense competition for the most affordable homes on the market is keeping many first-time buyers on the sidelines. They accounted for just 30% of home sales last month, though that was up from 27% in June, the NAR said.
“There’s virtually no inventory at the lower price point,” Yun said.
The latest housing market figures are more evidence that many house hunters are being held back by a persistently low inventory of homes for sale and rising mortgage rates.
The average rate on a 30-year home loan hovered just below 7% last month and has continued climbing, reaching 7.09% last week, according to mortgage buyer Freddie Mac. The average long-term U.S. mortgage rate is now at its highest level in more than 20 years.
High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already unaffordable to many Americans. They also discourage homeowners who locked in those low rates two years ago from selling.
Mortgage rates have been rising along with the 10-year Treasury yield, lenders use to price rates on mortgages and other loans. The yield has been climbing as bond traders react to more reports showing the U.S. economy remains remarkably resilient, which could keep upward pressure on inflation, giving the Federal Reserve reason to keep interest rates higher for longer.
Let’s face it; the Internet has led to the demise of many long-standing brick-and-mortar businesses, like the yellow pages, or travel agents, to name just two that come to mind.
And now it appears as if another popular profession is at risk, real estate agents.
Yep, Google finally made a major move in the real estate realm today, announcing a $50 million investment in Auction.com, a well-established website for buying and selling real estate online.
Last year, Auction.com sold over $7 billion in real estate via more than 35,000 auctions. And since 2010, the company has reportedly sold nearly $20 billion in so-called real estate assets.
Google Capital, which was formed just last year, made the investment, giving them a roughly four percent stake in Auction.com based on its $1.2 billion valuation.
As part of the investment, Google Capital will gain a seat on the board of Auction.com, along with a board observer position.
As for what Google plans to do with the investment, partner David Lawee noted in the press release that they think Auction.com can “fundamentally change” how real estate is bought and sold by leveling the playing field for smaller investors.
Lawee also seemed particularly interested in commercial real estate, meaning residential real estate agents probably don’t need to worry, yet.
At the moment, Auction.com is focused primarily on distressed real estate, such as bank-owned homes, foreclosures, notes, land, and commercial property.
So it’s not as if an everyday Joe is going to use Auction.com instead of their neighbor who also happens to be a real estate agent.
Google Real Estate Coming Soon?
At the moment, there isn’t a “Google Real Estate” division at Google, at least not publicly. In fact, some random guy seems to own the domain name GoogleRealEstate.com.
There is a Google Real Estate team, but I believe they focus on Google’s own properties, keeping the Zen for employees by creating beautiful campuses.
And if anything, Google took a step back from real estate in recent years. In 2011, the company pulled real estate listings from Google Maps, citing low usage as a reason, along with other “excellent property-search tools” that were readily available.
So is this another experiment for Google, or the beginning of a major foray into real estate?
After all, companies like Zillow, Redfin, and Trulia are making big money, with two of the three publicly traded and Redfin soon to be.
Could we soon see local real estate listings in Google’s search results, or back on maps? Or something even more robust? Only time will tell, but either way, I don’t see the real estate agent going away anytime soon.
At the end of the day, you need a physical human to help navigate the oft-confusing process, at least for now.
Sure, buyers are doing a lot more of the legwork nowadays thanks to those real estate listings websites, but someone still needs to negotiate and handle the paperwork.
However, major players in the field should be on notice now that Google has pledged a decent chunk of change toward real estate.
Prepare yourself to explore the charming small towns of Kentucky, where a tapestry of rich history, welcoming communities, and one-of-a-kind experiences seamlessly intertwine. Spanning from historic districts to natural wonders, each town boasts a distinct character just waiting to be uncovered. Delve further to reveal the allure of thirteen of Kentucky’s small towns, coupled with insightful glimpses into their unique qualities.
1. Grayson, KY
Median sale price: $165,000
Walk Score: 69
Living in Grayson is a tranquil small-town experience with close-knit community bonds. Residents can enjoy picturesque landscapes and a slower pace of life, often participating in local events like the Grayson Memory Days festival. The town’s warm hospitality and relaxed ambiance create a welcoming environment for families and individuals seeking a peaceful lifestyle.
Homes for sale in Grayson, KY
Apartments for rent in Grayson, KY
2. Stanford, KY
Median sale price: $200,000
Walk Score: 48
Stanford invites you to embrace its small-town charm and unique offerings. The town’s historic district showcases its well-preserved architecture and local shops. Wander through the local parks and green spaces that offer tranquility and recreational opportunities. Whether you’re strolling through historic streets or participating in town celebrations, Stanford captures the essence of Kentucky’s welcoming spirit.
Homes for sale in Stanford, KY
Apartments for rent in Stanford, KY
3. Elkton, KY
Median sale price: $167,500
Walk Score: 39
The local parks and green spaces like the Elkton-Todd County Park provide Elkton residents the opportunity for relaxation and outdoor enjoyment. Elkton’s commitment to its community is reflected in events like the Todd County Fair. So whether you’re enjoying serene retreats or engaging in town traditions, Elkton is the perfect place to check out.
Homes for sale in Elkton, KY
Apartments for rent in Elkton, KY
4. Midway, KY
Median sale price: $557,500
Walk Score: 58
Moving to Midway means you’ll be surrounded by district features of architecture, local boutiques, and art galleries. Midway also has a great sense of community that is celebrated through events like the Midway Fall Festival. Residents also have the chance to relax at one of the many green spaces provided.
Homes for sale in Midway, KY
Apartments for rent in Midway, KY
5. Jackson, KY
Median sale price: $230,000
Walk Score: 53
Jackson welcomes you to experience its scenic beauty and warm community spirit. The town’s connection to nature is reflected in its parks and outdoor spaces, offering opportunities for picnics, hiking, and outdoor recreation. Discover the local shops and markets that showcase the town’s unique character.
Homes for sale in Jackson, KY
Apartments for rent in Jackson, KY
6. Ledbetter, KY
Median sale price: $78,500
Walk Score: 12
Residing in Ledbetter provides a picturesque experience surrounded by the beauty of nature, as the town is nestled near the scenic shores of the Ohio River. Life here revolves around outdoor activities such as fishing and boating, with the Ledbetter Park being a popular spot for family picnics and gatherings. The community’s strong spirit is evident in events like the Riverfest Celebration, where locals come together for live music, delicious barbecue, and a strong sense of camaraderie along the riverbanks.
Homes for sale in Ledbetter, KY
Apartments for rent in Ledbetter, KY
7. Sturgis, KY
Median sale price: $85,000
Walk Score: 52
Living in Sturgis, KY offers a glimpse into quintessential Southern living, where tradition and community thrive. The annual Sturgis Fair captures the town’s lively spirit, featuring rodeo events, carnival rides, and a showcase of local crafts.
Homes for sale in Sturgis, KY
Apartments for rent in Sturgis, KY
8. Verona, KY
Median sale price: $519,950
Walk Score: 23
Settling in Verona presents a tranquil suburban experience, blending modern comforts with a hint of rural tranquility. Residents enjoy the proximity to the sprawling Verona Vineyards, where leisurely wine tastings and scenic views provide a relaxing escape. The tight community bonds are evident during the annual Verona Day festival, filled with local vendors, live music, and a strong sense of togetherness.
Homes for sale in Verona, KY
Apartments for rent in Verona, KY
9. Plano, KY
Median sale price: $269,900
Walk Score: 12
Plano beckons you to discover its small-town allure and local highlights. The town’s sense of unity is celebrated through local events and gatherings that bring residents together. Explore the local parks and green spaces that provide opportunities for relaxation and outdoor activities. Plano’s connection to its community is reflected in events like the Plano Days Festival.
Homes for sale in Plano, KY
Apartments for rent in Plano, KY
10. Clinton, KY
Median sale price: $151,500
Walk Score: 38
Discover the local parks and green spaces in Clinton that offer opportunities for relaxation and outdoor enjoyment. With easy access to the scenic Kentucky Lake, residents often indulge in boating, fishing, and lakeside picnics. Clinton’s sense of unity shines through events like the Hickman County Heritage Days, where residents can learn about the town’s past.
Homes for sale in Clinton, KY
Apartments for rent in Clinton, KY
11. Augusta, KY
Median sale price: $275,000
Walk Score: 52
Augusta welcomes you to experience its small-town charm and rich heritage. The town’s historic district features well-preserved architecture and local shops. Augusta’s sense of community is reflected in events like the Augusta Art Festival. Whether you’re strolling through historic streets or participating in town celebrations, Augusta captures Kentucky’s charm.
Homes for sale in Augusta, KY
Apartments for rent in Augusta, KY
12. Stearns, KY
Median sale price: $178,000
Walk Score: 15
The town’s connection to nature is evident in its outdoor spaces, offering opportunities for hiking, camping, and outdoor exploration. Discover the local shops and markets that showcase character in Stearns. Stearns’ sense of unity is celebrated through attractions like the Big South Fork Scenic Railroad celebrating the town’s past. Whether you’re exploring the great outdoors or participating in town festivities, Stearns captures the essence of Kentucky’s natural beauty.
Homes for sale in Stearns, KY
Apartments for rent in Stearns, KY
13. Greenup, KY
Median sale price: $142,500
Walk Score: 36
Greenup invites you to explore its warm community atmosphere and local treasures. The town’s sense of unity is evident in local events and gatherings that bring residents together. Nature enthusiasts can explore the lush Greenbo Lake State Resort Park, while history buffs can immerse themselves in the fascinating tales at the Greenup County Museum.
Homes for sale in Greenup, KY
Apartments for rent in Greenup, KY
Wrapping up small towns in Kentucky
From historic districts to natural retreats, each small town in Kentucky invites you to immerse yourself in its local charm and celebrate the warmth of community spirit. Whether you’re drawn to historic architecture, outdoor leisure, or engaging events, Kentucky’s small towns offer a rich variety of experiences waiting to be explored.
Step into the world of Iowa’s small towns, where rich history, picturesque landscapes, and warm communities create an inviting tapestry of experiences. From outdoor adventures to local heritage, each town boasts its own unique character. Join us as we embark on a journey to explore the allure of 11 small towns in Iowa.
1. West Point, IA
Median sale price: $102,000
Walk Score: 36
West Point invites you to embrace its small-town ambiance and local offerings. The town’s connection to history is reflected in landmarks like the Santa Fe Depot Museum. Explore the local parks and green spaces, offering a serene escape from daily life. Whether you’re uncovering historical gems or participating in town celebrations, West Point captures the essence of Iowa’s welcoming spirit.
Homes for sale in West Point, IA
Apartments for rent in West Point, IA
2. Wayland, IA
Median sale price: $160,000
Walk Score: 28
Living in Wayland is a rural landscape that is perfect for outdoor enthusiasts, offering opportunities for hiking, birdwatching, and peaceful contemplation. Discover the Crooked Creek Park, which provides a natural retreat for residents and visitors alike. Wayland’s sense of community is celebrated through local gatherings and events.
Homes for sale in Wayland, IA
Apartments for rent in Wayland, IA
3. Danville, IA
Median sale price: $195,400
Walk Score: 17
Nestled amidst rolling hills and sprawling farmlands, living in Danville, means waking up to serene sunrises and enjoying leisurely strolls along the scenic trails of Geode State Park. The small town of Danville has a historic district, featuring charming architecture and local shops. Explore local parks and green spaces that offer recreational opportunities.
Homes for sale in Danville, IA
Apartments for rent in Danville, IA
4. Underwood, IA
Median sale price: $267,500
Walk Score: 11
The town’s scenic beauty is showcased in its parks and outdoor spaces, offering opportunities for picnics, nature walks, and outdoor play. Discover the Underwood community events that foster a strong sense of togetherness. Whether you’re enjoying nature’s tranquility or participating in town celebrations, Underwood captures the essence of Iowa’s peaceful charm.
Homes for sale in Underwood, IA
Apartments for rent in Underwood, IA
5. Maxwell, IA
Median sale price: $157,000
Walk Score: 38
Residing in Maxwell, IA offers a serene escape from the hustle and bustle of city life. The town’s community spirit shines through its local events and gatherings, fostering a sense of unity. The town’s proximity to the scenic Skunk River allows for leisurely outdoor activities like fishing and hiking.
Homes for sale in Maxwell, IA
Apartments for rent in Maxwell, IA
6. Armstrong, IA
Median sale price: $212,500
Walk Score: 23
Living in Armstrong presents a quintessential small-town experience. The town’s tight-knit community fosters strong relationships, where locals share a genuine sense of belonging. The picturesque landscape and nearby Five Island Lake offer opportunities for outdoor adventures like boating, fishing, and hiking.
Homes for sale in Armstrong, IA
Apartments for rent in Armstrong, IA
7. Victor, IA
Median sale price: $144,000
Walk Score: 33
Victor invites you to explore its peaceful surroundings and welcoming atmosphere. Discover the local parks and outdoor spaces that offer opportunities for relaxation and leisure activities. Victor’s sense of community shines through events like the Victor Fun Days, where there will be crafts, live music, amazing food and more. Whether you’re enjoying quiet retreats or participating in town celebrations, Victor captures the essence of Iowa’s serene charm.
Homes for sale in Victor, IA
Apartments for rent in Victor, IA
8. Redfield, IA
Median sale price: $178,000
Walk Score: 21
Known for its welcoming demeanor, Redfield offers a quiet and peaceful lifestyle with strong ties among its residents. The town’s proximity to the Raccoon River Valley Trail invites outdoor enthusiasts to enjoy biking and hiking adventures. Redfield beckons you to discover its small-town warmth. The town’s sense of unity is reflected in local events and festivities that bring residents together.
Homes for sale in Redfield, IA
Apartments for rent in Redfield, IA
9. Colo, IA
Median sale price: $185,000
Walk Score: 25
Surrounded by picturesque farmlands, Colo offers a tranquil and peaceful environment. The town’s sense of unity is celebrated through local events and gatherings that foster a strong sense of community. Colo’s commitment to its residents is evident in events like the Colo Crossroads Festival. Living in Colo means embracing the simplicity of rural life while cherishing the connections forged within the town’s friendly and supportive community.
Homes for sale in Colo, IA
Apartments for rent in Colo, IA
10. Long Grove, IA
Median sale price: $593,960
Walk Score: 25
Long Grove invites you to explore its unique charm and local treasures. Known for its historic architecture and scenic landscapes, the town exudes a tranquil ambiance. The annual Long Grove Strawberry Festival is a highlight, bringing the community together to celebrate local traditions and flavors. Living here means relishing in the beauty of the countryside, preserving the town’s historical character, and cherishing a strong sense of community identity.
Homes for sale in Long Grove, IA
Apartments for rent in Long Grove, IA
11. Sully, IA
Median sale price: $136,000
Walk Score: 34
Sully’s connection to its residents is celebrated through local events and gatherings that bring neighbors together. Explore the local parks and green spaces that offer opportunities for relaxation and outdoor enjoyment. Sully’s commitment to its community is evident in events like the Sully Freedom Fun Run/Walk.
Homes for sale in Sully, IA
Apartments for rent in Sully, IA
Wrapping up small towns in Iowa
From historic districts to outdoor retreats, each town invites you to immerse yourself in its local charm and celebrate the warmth of community spirit. Whether you’re drawn to historic streets, natural beauty, or engaging gatherings, Iowa’s small towns offer a rich tapestry of experiences waiting to be explored.
During the initial wave of the banking crisis in March, I published “Truist: Immense Unrealized Bond Losses Threaten Core Equity Stability.” At the time, Trust Financial Corp. (NYSE:TFC) had suffered the most significant drawdown among the top-ten US banks. Roughly five months ago, I was among the few analysts with a definitively bearish outlook on the bank, while many had viewed it as a dip-buying opportunity. My perspective was that although TFC’s “bank run” risk was low, the vast extent of its off-balance sheet losses left it with little safety for a potential rise in loan losses. Further, I expected that growing net interest margin pressures would substantially lower the bank’s income over the coming year, potentially compounding its risks.
Since then, TFC has declined by an additional ~11% in value and recently retraced back near its May bottom, associated with the failure of the Federal Republic. I believe the most recent wave of downside in at-risk banks is a notable signal that the market continues to underestimate systemic US financial system risks. Of course, following TFC’s most recent bearish pattern, I expect many investors to increase their position, viewing the company as significantly discounted. Accordingly, I believe it is an excellent time to take a closer look at the firm to estimate better its discount potential or the probability of Truist facing much more significant strains.
Estimating Truist’s Price-to-NAV
On the surface, TFC appears to have considerable discount potential. The stock’s TTM “P/E” is 6.3X compared to a sector median of 8.7X. Its forward “P/E” of 7.7X is also below the banking sector’s median of 9.3X. TFC’s dividend yield is currently at 7.2%, nearly twice as much as the sector median of 3.7%. Finally, its price-to-book is 0.66X, considerably lower than the sector median of 1.05X. Based on these more surface-level valuation metrics, TFC appears to be around trading around a 25% to 35% discount to the banking sector as a whole. Of course, we must consider whether or not this apparent discount is pricing for the bank’s elevated risk compared to others.
Importantly, Truist is one of the most impacted banks by the increase in long-term securities interest rates, giving the bank huge unrealized securities losses. Based on its most recent balance sheet (pg. 12), we can see that Truist has about $56B in held-to-maturity “HTM” agency mortgage-backed-securities “MBS” at amortized cost, worth ~$46B at fair value, giving Truist a $10B loss that is not accounted for in its book value. That figure has remained virtually unchanged since its Q4 2022 earnings report through Q2 2023; however, it will rise with mortgage rates since higher rates lower the fair value of MBS assets. Truist’s Q2 report also notes that all of its HTM MBS securities are at due over ten years, meaning they’re likely ~20-30 year mortgage assets that carry the most significant duration risk (or negative valuation impact from higher mortgage rates).
Significantly, the long-term Treasury and mortgage rates have risen in recent weeks as the yield curve begins to steepen without the short-term rate outlook declining. See below:
From the late 2021 lows through the end of June, the long-term mortgage rate rose by around 4%, lowering Truist’s MBS HTM assets fair value by ~$10B, while its available-for-sale securities lost ~$11.9B in value (predominantly due to MBS assets as well). Accordingly, we can estimate that the duration of its securities portfolio (almost entirely agency MBS) is roughly $5.5B in estimated losses per 1% increase in mortgage rates. Since the end of June, mortgage rates have risen by approximately 35 bps, giving TFC an estimated Q3 securities loss of ~$1.9B. Around $1B should show up on TFC’s balance sheet and income, while ~$900M will remain unrealized based on its current AFS vs. HTM portioning.
For me, we must value TFC accounting for both. Total unrealized losses and estimated losses based on the most recent changes in long-term interest rates. That said, should mortgage rates reverse lower, Truist should not have that $1.9B estimated securities loss in Q3; however, should mortgage rates continue to rise, the bank should post an even more considerable securities loss. At the end of Q2, Truist had a tangible book value of $22.9B. After accounting for unrealized losses, that figure would be around $12.9B. After considering the losses associated with the recent mortgage rate spike, its “liquidation value” is likely closer to $11B. Of course, Truist has a massive ~$34B total intangibles position due to goodwill created in its acquisition spree over the past decade. Although relevant, I believe investors should be careful in accounting for goodwill due to the general decline of the financial sector in recent years.
While much focus has been placed on unrealized securities losses, the risk associated with those losses is vague. Truist can borrow money from the Federal Reserve at par against those assets, partially lowering the associated liquidity risk. However, the Fed’s financing program is at a much higher discount rate (compared to deposit rates) and only lasts one year, so it is not a permanent solution. Further, the unrealized securities losses are on held-to-maturity assets, meaning it will recoup the losses should the assets be held to maturity. Of course, that means it may take 20-30 years, and Truist may need that money before then.
Further, Truist has a substantial residential mortgage portfolio at a $56B cost value at the end of Q2 (data on pg. 48). Those loans had an annualized yield of 3.58% in 2022 and 3.77% in 2023; since the yield did not rise proportionally to mortgage rates, we know the vast majority of those loans are likely fixed-rate long-term. Since they’re not securities positions, Truist need not publish their changes in fair value; however, should Truist look to sell its residential mortgages, they would almost certainly sell at a similar total discount to its MBS assets, considering its yield level is akin to that of long-term fixed-rate mortgages before 2022. I believe the unrealized loss on those loans is likely around $10B.
The rest of Truist’s loan portfolio, worth $326B at cost, is predominantly commercial and industrial ($166B), “other” consumer ($28B), indirect auto ($26.5B), and CRE loans ($22.7B). Excluding residential mortgages, all of its loan portfolio segments have yields ranging from 6-8% (excluding credit cards at 11.5%), with those segments’ total yields rising by around 3-4% from June 2022 to 2023. Accordingly, it is virtually certain that most of its non-mortgage loans are either short-term or fixed-rate since their yields rose with Treasuries, meaning they do not likely face unrealized losses based on the increase in rates.
Overall, I believe that if Truist were to liquidate its assets, its net equity value for common stockholders would be roughly zero, technically $1B. That figure is based on its current tangible book value, subtracting known unrealized losses on securities (~$10B), estimated recent Q3 realized and unrealized losses (~$1.9B), and estimated unrealized mortgage residential loan losses (~$10B). While the bank does have some MSR assets, worth ~$3B, that are positively correlated to rates, I do not believe that segment will offset unrealized losses in any significant manner. Together, those figures equal its tangible book value and would lower the total book value to about $34B. However, in my view, intangibles are not appropriate to account for today because virtually all banks have lost value since its 2019 merger, making its goodwill an essentially meaningless figure.
From a NAV standpoint, TFC is not trading at a discount and is most likely trading at a significant premium. Further, based on these data, Truist is, in my view, seriously undercapitalized. Although TFC posts a CET1 ratio of 9.6%, which is also relatively low, its common tangible equity would be essentially zero if its loans and securities were all accounted for at fair value. To me, that is important because most of its losses are on ultra-long-term assets so it may need that lost solvency sometime before those assets’ maturity. Further, even its 9.6% CET1 ratio is close to its new regulatory minimum of 7.4%, so a slight increase in loan losses or a realization of its estimated ~$22B in unrealized losses would quickly push it below the regulatory minimum.
Truist Earnings Outlook Poor As Costs Rise
To me, Truist is not a value opportunity because it is not discounted to its tangible NAV value. Even its market capitalization is around 65% above its tangible book value, which does not account for its substantial unrealized losses. However, many investors are likely not particularly concerned with its solvency, as that could not be a significant issue if there are no increases in loan losses, declines in deposits, or sharp NIM compression. If Truist can maintain solid operating cash flows, that could compensate for its poor solvency profile.
Of course, TFC cannot continue to try to expand its EPS by increasing its leverage since it is objectively overleveraged, nearly failing its recent stress test. On that note, poor stress test results are essential, but “passing” is somewhat inconsequential, considering most of the recently failed banks would have passed with flying colors, as the test does not account for the substantial negative impacts of unrealized losses on fixed-income assets. That is likely because, when “stress testing” was designed, it was uncommon for long-term rates to spike with inflation as it had, and banks had much lower securities positions compared to loans. Thus, it is quite notable that TFC nearly failed a test that does not account for its substantial unrealized losses.
Looking forward, I believe it is very likely that Truist will face a notable decline in its net interest income over the coming year or more. Fundamentally, this is due to the decrease in Truist’s deposits, total bank deposits, and the money supply. As the Federal Reserve allows its assets to mature, money is effectively removed from the economy; thus, total commercial bank deposits are trending lower. Truist’s deposits are trending lower in line with total commercial banks. I expect Truist’s deposits to continue to slide as long as the Federal Reserve does not return to QE. As Truist competes for a smaller pool of deposits, its deposit costs should rise faster than its loan yields. Today, we’re starting to see the spread between prime loans and the 3-month CD contract, indicating that bank NIMs are declining. See below:
Truist’s core net interest margin has slid from 3.17% in Q4 2022 to 3.1% in Q1 2023 to 2.85% in Q2. Truist’s deposits (10-Q pg. 48) have generally fallen faster than its larger peers, so it needs to increase deposit costs more quickly. Over the past year, its total interest-bearing deposit rate rose from 14 bps to 2.19%, with the most significant rise in CDs to 3.73%.
Notably, Truist has increased its CD rate to the 4.5% to 5% range to try to attract depositors. However, the bank continues not to pay any yield on the bulk of its savings account products, causing a sharp increase in customers switching toward the many banks which pay closer to 5% today. Over the past year, the bank saw around $10B in outflows for interest-bearing deposits and about $25B from non-interest-bearing deposits, making up for those losses with new long-term debt and CDs. Problematically, that means Truist is rapidly losing more-secure liabilities to more fickle ones like CDs and the money market. While this effort may slow the inevitable decline of its NIMs, it will also increase Truist’s solvency risk because it’s becoming more dependent on less secure liquidity sources as people move money between CDs more frequently than opening and closing savings accounts at different banks.
Truist also faces increased expected loan losses due to a rise in late payments last quarter. That trend is correlated to the increase in consumer defaults and the sharp decline in manufacturing economic strength. See below:
Consumer defaults remain normal, but I believe they will rise as consumer savings levels continue to fall and should accelerate lower with student loan repayments. The low PMI figure shows many companies face negative business activity trends, increasing future loan loss risks on Truist’s vast commercial and industrial loan book. Of course, Truist also has a notable CRE loan portfolio, which faces critical risks associated with that sector’s colossal decline this year.
The Bottom Line
Overall, I believe Truist has become even more undercapitalized since I covered it last. I also think Truist faces an increased risk of recession-related loan losses and has a more sharp NIM outlook. Even more significant increases in mortgage rates recently exacerbated strains on its capitalization, while its low savings rates should cause continued deposit outflows. Further, its increased CD rates should create growing negative net interest income pressure.
If there was no recessionary potential, as indicated by the manufacturing PMI, then TFC may manage to get through this period without severe strains; however, its EPS should still decline significantly due to rising deposit costs. That said, if Truist’s loan losses continue to grow due to increasing consumer and business headwinds, its low tangible capitalization leaves it at high risk of significant downsides. If its loan losses grow or its deposits decline, it will need to realize more losses on its assets, quickly pushing its CET1 ratio below its new regulatory minimum. Personally, I strongly expect TFC’s CET1 ratio will fall below the 7.5% level over the next year and could fall even lower if a more severe recession occurs.
I am very bearish on TFC and do not believe there is any realistic discount potential in the stock besides that generated by speculators. Since there is a significant retail speculative activity in TFC and some potential for positive government intervention due to its larger size, I would not short TFC. Although TFC downside risk appears significant, many factors could create sufficient temporary upside that it is not worth short–selling. That said, I believe Truist may be the most important financial risk in the US banking system due to its solvency concerns combined with its size and scope. Accordingly, regardless of their position in TFC, investors may want to keep a particularly close eye on the company because it may create more extensive financial market turbulence than seen from First Republic Bank should it continue to face strains.
Eight times every year, the Federal Reserve’s Federal Open Market Committee (FOMC) meets to discuss and possibly alter their position on monetary policy.
There are several different courses of action they could take, the most common being quantitative easing, buying and selling government securities, and raising or lowering the federal funds rate.
Most recently, the fed’s tool of choice has been adjusting the federal funds rate.
What is the federal funds rate?
The federal funds rate is the rate at which depository institutions (banks and credit unions) charge each other for overnight deposits.
Why would they need to lend each other money? All banks are required to have a certain amount of funds in their reserves (usually 10%), and sometimes customers withdraw enough money from the bank that the bank’s reserves are below the requirement. They now have two options: to borrow money from the fed or from another bank. The federal funds rate determines how much interest a bank will have to pay for that loan.
Click here for today’s mortgage rates.
How the federal funds rate affects the economy
The federal funds rate is an important base rate that has trickle down effects on the entire economy. After all, if the federal funds rate goes up and banks have to pay more for overnight loans, then it goes to reason that they are going to have to make up the higher cost by raising their own rates. Conversely, if the federal funds rate is lowered, banks can pass lower interest rates on to their borrowers.
With the benchmark federal funds rate lowered, rates on credit cards and business loans also decline, encouraging lending for both businesses and consumers. Businesses are able invest in infrastructure and hire more employees, while consumers make more payments on credit knowing that they don’t get charged as much on the interest.
This results in more financial transactions, ultimately contributing to economic growth of the nation at large. That’s why when the Fed wants to promote economic growth they lower the federal funds rate, and when they think the economy can handle it, they raise the federal funds rate.
Mortgage rates and the Federal Reserve
Understanding mortgage rates can be tricky. The way the situation with the Fed raising and lowering rates is portrayed in the news leads many people to believe that the Fed controls mortgage rates. This is not true—the Fed does not directly set mortgage rates at all. However, that’s not to say that it has no influence over mortgage rates.
Fedspeak
At the Federal Reserve, the forward guidance “fedspeak” that officials offer up to the markets is one of the most powerful tools they have. It’s actually a little bit of the opposite of that old saying that “Actions speak louder than words.”
Generally, when a fed official comes out and gives even the slightest hint that they are in favor of rising rates, investors move away from “safe” government bonds and into riskier assets like stocks. That’s good for the economy, but it causes mortgage rates to rise.
As we’ve seen several times this year, the fed can create a buzz about raising the fed funds rate (which can drive up mortgage rates), but then retreat back from that position and not raise rates (causing rates to fall back down).
It’s this cat and mouse game of talking and not delivering that has landed the Fed in hot water, with some critics claiming the Fed has a credibility problem. Regardless of whether or not you agree with them, it’s undeniable that what the Fed says can influence markets.
Click here for today’s mortgage rates.
How mortgage rates are actually set
If the Federal Reserve doesn’t set mortgage rates, who does?
Good question.
Just as is the case with many other aspects of the economy, market forces are to thank (or blame). Most of the action takes place on the secondary market, where mortgage-backed-securities (MBS) are bought and sold.
These mortgage bonds have prices and yields that move up and down just like stocks and bonds do. If the economy is performing well, investors expect higher yields, and vice versa when the economy is under-performing. So in a way, mortgage rates are a reflection of how well the economy is doing. Specifically, the three major drivers of mortgage rates are:
Stock prices
The labor market
Inflation
As stated, when stock prices are going up, so are mortgage rates. That’s because mortgage-backed-securities are traded as bonds, and conventional wisdom says that when investors are moving money into stocks, they’re taking money out of bonds.
With a decrease in demand for bonds, prices drop and yields rise–pushing rates higher. In the event that investors flood back into bonds, the opposite will happen, causing mortgage rates to drop.
It’s not a perfect relationship, but it’s generally how the market behaves. The relationship between bonds and mortgage rates is best illustrated by the yield on the U.S. 10-year treasury note, which is the best market indicator of where mortgage rates are going.
On any given day, looking at the 10-year yield will give you a fairly accurate picture of where mortgage rates are headed. If the yield is rising, mortgage rates most likely are too, and vice versa.
With the labor market, it’s all about how high unemployment is. The Bureau of Labor Statistics (BLS) releases a monthly employment situation report that is the most-watched report on the matter. If the U.S. economy added fewer jobs than expected and the unemployment rate rises, that’s bad news for the stock market, which as we now know pushes mortgage rates lower.
Most people understand inflation as a rise in the cost of living. That’s true, but what’s really happening is the devaluing of the dollar. As the value of the dollar declines, the purchasing power of the dollar diminishes, causing prices to rise.
Mortgage-backed-securities, like every other bond, are denominated in U.S. dollars. Since investors don’t want to own assets that are losing their value over time, they move away from MBS in times of high inflation. With a decrease in demand for MBS, the yields rise, driving mortgage rates higher.
Bottom line
When you’re trying to understand mortgage rates, remember: the Federal Reserve and the federal funds rate do not control mortgage rates. There are several other economic factors at play that anyone trying to track and predict where mortgage rates are going should pay attention to.
That being said, the Federal Reserve does play a major role by influencing how the economy functions, and it’s always important to keep an ear out for what they’re saying.
1. chart via wikipedia
Carter Wessman
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.