Homeowners usually refinance to save money. If you can reduce your interest rate by 1% or more, that could be enough incentive to refinance. Yet given elevated rates, you probably won’t be able to secure a significantly lower rate than your current one. That doesn’t mean a refi isn’t a good idea for other reasons, like changing your term length or home loan type.
Both 15-year fixed and 30-year fixed refinances saw their mean rates trail off this week. The average rate on 10-year fixed refinance also slumped.
Millions of homeowners refinanced when mortgage rates hit record lows at the start of the pandemic. However, in today’s high-rate environment, most refinance demand is for cash-out refinances to help consolidate debt or fund other major expenses, according to Matt Graham of Mortgage News Daily. For those considering a refinance, Graham recommends getting in touch with a loan originator, keeping an eye on daily rate changes and making a game plan to capitalize on the next big drop in rates.
About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.
Refinance rates for homeowners
Many homeowners are facing the same disadvantages as everyone else in the housing market right now: elevated mortgage rates, limited available inventory and expensive homes.
If you decide to refinance, make sure to compare rates, fees and the annual percentage rate — which reflects the total cost of borrowing — from different lenders to find the best deal. Here’s a table with the average refinance rates reported by lenders across the country. We track refinance rate trends using information collected by Bankrate:
Today’s refinance interest rates
Product
Rate
A week ago
Change
30-year fixed refi
7.69%
7.74%
-0.05
15-year fixed refi
6.95%
7.05%
-0.10
10-year fixed refi
6.97%
7.11%
-0.14
Rates as of Dec. 1, 2023.
Where refinance rates are headed
In early November, a dip in mortgage rates motivated some prospective buyers to come off the sidelines and apply for home loans. Refinance applications also picked up slightly over the last few weeks, but they still remain well below historical averages, according to the Mortgage Bankers Association. Experts predict that both purchasing and refinancing activity won’t come back into full swing for a while.
“High interest rates and house prices have dampened demand, particularly in the refinancing market, which is currently at a standstill,” said Carlos Garriga, senior vice president and research director at the St. Louis Federal Reserve.
Mortgage rates surged steadily throughout much of 2022 and 2023 as the Federal Reserve carried out aggressive interest rate hikes to slow inflation. With inflation now going down, the Fed has held off on further rate hikes to evaluate the impact on price growth and the labor market.
It’s widely expected the Fed will hold interest rates steady until mid-2024, which can help mortgage rates stabilize. Once the central bank begins to actually cut rates, there should be more sustained downward movement.
“It’s very difficult to forecast movements in the mortgage rate, but we expect significantly less rate volatility in the coming year relative to 2022,” said Matthew Walsh, housing economist for Moody’s Analytics.
Even if rates return to 7% — a considerable decline from recent peaks — it could still be hard for homeowners to find many compelling or profitable reasons to refinance, said Keith Gumbinger, vice president of the mortgage site HSH.com.
Instead of a traditional rate-and-term refinance, homeowners might instead opt for a cash-out refinance, which allows them to tap into their home equity with a lower interest rate than other types of borrowing, according to Logan Mohtashami, lead analyst at HousingWire. “This would make sense only if it benefits the homeowner with a lower total cost of living because credit card interest rates are so high,” said Mohtashami.
How to find personalized refinance rates
The rates advertised online often require specific conditions for eligibility. Your personal interest rate will be influenced by market conditions as well as your specific credit history, financial profile and application. Having a high credit score, a low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates. To get the best refinance rates, make your application as strong as possible by getting your finances in order, using credit responsibly and monitoring your credit regularly. And don’t forget to speak with multiple lenders and shop around.
Refinancing can be a great move if you get a good rate or can pay off your loan sooner, but consider whether it’s the right choice for you at the moment.
30-year fixed-rate refinance
The average 30-year fixed refinance rate right now is 7.69%, a decrease of 5 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance so it can be a good option if you’re having trouble making your monthly payments. However, a 30-year refinance loan will take you longer to pay off and will typically cost you more in interest over the long term.
15-year fixed-rate refinance
For 15-year fixed refinances, the average rate is currently at 6.95%, a decrease of 10 basis points compared to one week ago. Though a 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan, you’ll save more money over time because you’re paying off your loan quicker. Also, 15-year refinance rates are typically lower than 30-year refinance rates, which will help you save more in the long run.
10-year fixed-rate refinance
The current average interest rate for a 10-year refinance is 6.97%, a decrease of 14 basis points compared to one week ago. A 10-year refinance typically has the lowest interest rate but the highest monthly payment of all refinance terms. A 10-year refinance can help you pay off your house much quicker and save on interest, but make sure you can afford the steeper monthly payment.
Is now a good time to refinance?
Generally, it’s a good idea to refinance if you can get a lower interest rate than your current interest rate, or if you need to change your loan term. When deciding whether to refinance, consider other factors, including how long you plan to stay in your current home, the length of your loan and the amount of your monthly payment. And don’t forget to factor in fees and closing costs, which can add up.
With mortgage refinance rates at current heights, the number of refinancing applicants has shrunk. If you bought your house when interest rates were lower than today, there is little financial benefit to refinancing your mortgage. However, homeowners can’t time the market. Regardless of where rates are headed, decide if refinancing makes sense based on your financial situation and goals.
The latest baseline increase in conforming loan limits has enabled loan originator Dave Krichmar’s client to make a 5% down payment instead of 10%.
The self-employed homebuyer found an $800,000 home in Texas, but with the conforming loan limit for 2023 being $726,200, the buyer needed a jumbo loan or a bank statement loan. Those loan types would require a larger down payment of at least 10% of the home’s value, or $80,000, which would stretch his budget too thin.
“With the latest Federal Housing Finance Agency (FHFA) announcement, he could qualify for a conforming loan paying a 5% down payment of roughly $40,000 rather than $80,000 – which could have put him on the sideline. Now he is off the sideline because a 5% down payment is completely doable,” said Krichmar, a mortgage banker at Legend Lending Corporation.
Based on annual changes to an index of national home prices, conforming loan limits for mortgages backed by Fannie Mae and Freddie Mac on one-unit properties will be $766,550 in 2024. For high-cost areas, the loan limit is $1.149 million.
Rising home prices also prompted the Federal Housing Administration (FHA) to adjust its loan limits — with the “floor” FHA loan limit for one-unit properties increasing to $498,257 in most parts of the country.
The increases in conforming and FHA loan limits will help certain homebuyers, including younger buyers with little cash saved and a small window of borrowers who were on the cusp of not being able to apply for an FHA or conventional loan due to lower floor FHA loan limits or baseline conforming loan limits.
“By increasing the maximum loan amount, the change means that more borrowers will be able to get conforming loans instead of jumbo mortgages, which often are harder to qualify for. It might open the door for homeownership just a touch wider for a few buyers who would have had trouble securing jumbo loans,” said Holden Lewis, a home expert at NerdWallet.
Who benefits from higher loan limits?
The latest increases in the FHA loan limits will move the needle a little bit, noted John Palmiotto, chief production officer at The Money Store.
“It can squeeze them into maybe a better property than they previously could [afford] so there’s a bit of an opportunity there,” Palmiotto said.
Amid a high interest-rate environment, FHA loans have become a popular option for borrowers who have lower FICO scores or need to qualify with a slightly higher debt-to-income (DTI) ratio.
Mandatory mortgage insurance premiums were reduced to 55 basis points (bps) for most borrowers in February, and FHA loans tend to come with lower interest rates than conventional loans while the difference in interest rates could often be offset by the greater number of fees — including the MIP charges
Demand for FHA loans has risen over the past year to comprise 26.3% of all new-home purchase applications in October 2023, the highest share of FHA new-home purchase applications made in a decade, according to the Mortgage Bankers Association(MBA).
Millennial homebuyers — about 28% of all buyers—who don’t have as much cash saved to be able to buy at a higher price point will benefit most from higher FHA loan limits.
“They will be more comfortable than the baby boomer generation taking out a larger mortgage to get what they want. They’ve seen massive real estate appreciation; they’ve seen it as a great investment vehicle,” Palmiotto noted.
The increase in conforming loan limits are also expected to help some borrowers who would have otherwise needed a jumbo mortgage.
“A lot of people shop for homes based on a price range. So they’re able to just push a little bit further towards what they want, which may be doable,” Krichmar said.
“I’m in the San Francisco/San Jose/Oakland area in California, so we have the high balance conforming loan limit as well, which is going up to $1.149 million. For sure, that will help a lot of people who might not be qualified for [a] jumbo [loan]. Some people don’t have the ability to put up to 20% down,” said Brady Thomas, branch manager at American Pacific Mortgage.
How higher loan limits might move the housing market needle
Economists at Fannie Mae project home prices to increase by 2.8% on an annual basis in 2024. Meanwhile, economists at Capital Economics are expecting an annual increase of only 1.5% next year.
The MBA has a more optimistic view on home prices, expecting a 4.1% increase.
The FHFA’s increase for conforming loan limits in 2024 follows a formula that tracks increases in national home prices. The FHFA cited an average 5.56% increase in home prices across the country from the third quarter of 2022 to the third quarter of 2023.
But 2024’s higher conforming loan limits should enable more homebuyers to take advantage of conventional financing in 2024, noted Peter Idziak, senior associate of residential mortgage law firm Polunsky Beitel Green.
“I expect the increase in conforming loan limits will provide support for continued appreciation in home prices as more potential homebuyers are able to take advantage of federally-backed financing. In non-high cost areas, this support should be especially evident in the $725,000 to $955,000 price range, which roughly corresponds to the 95% to 80% [loan-to-value (LTV)] ratios based on the new limits,” Idziak said.
However, loan originators and housing professionals are skeptical the new changes will move the needle much to resolve widespread affordability issues.
“It’s not a big enough movement that it’ll draw that amount of attention. What price range is it affecting? It’s only affecting someone who was wanting to buy an $800,000 home but could only buy a home of $750,000. That’s a small window. For somebody who’s buying a $1 million home and $600,000 home, it’s not making a drastic change,” Krichmar said.
It’ll help around the edges, allowing people to buy at lower down payment amounts who normally wouldn’t be able to with a down payment for jumbo loans of at least 10% and as much as 20% of the home’s purchase price.
The heightened limits enable a larger pool of prospective homebuyers to secure financing with more favorable terms, which could potentially sustain housing demand and market activity, said Orphe Divounguy, senior macroeconomist at Zillow Home Loans.
“Nevertheless, the overall impact remains contingent on various economic factors, interest rate trends and localized housing dynamics.” Divounguy added.
For affordability to improve and homeownership to expand, mortgage rates will have to come down. Current high rates are creating an inventory lock-in effect because sellers with existing low-rate mortgages don’t want to give those loans up for a much higher rate on another property.
“I think rates will have a big impact because, one, they affect buyer affordability, and two, they affect inventory. So I don’t think that the increase that FHFA announced […] is going to have a huge impact because it was already expected and kind of part of [how] our market works,” Thomas said.
Another day of modest to moderate gains, but this time without the same sort of obvious cause and effect relationship seen with yesterday’s Waller comments. That’s not to say that Fed comments weren’t helpful–simply that they put in more of a team effort as opposed to an individual standout performance. The gains mean that a sideways trend is now becoming a downtrend in rates. That is a welcome development, but should it change anything about how you interact with the rate market? The answer can depend on how strong that relationship is currently. Either way, it’s a short-term consideration. Next week’s data has the potential to influence longer term considerations.
GDP, 1st revision, Q3
5.2 vs 5.0 initial
GDP Final Sales
3.7 vs 3.5 initial
09:02 AM
Slightly stronger overnight with a micro bounce on the GDP revision. 10yr still down 2bps at 4.305. MBS up 2 ticks (.06).
10:31 AM
Solid gains into the 10am hour but giving some up now. 10yr down 3.5bps at 4.29 and MBS up an eighth.
02:48 PM
Broadly sideways at best levels. MBS up 5 ticks (.16). 10yr down 4.3bps at 4.278.
Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.
AI’s impact on the job market and society is a topic of much debate. However, its potential to assist businesses in making informed decisions is undeniable. Artificial intelligence (AI) has permeated various aspects of our lives, sparking discussions about its possibilities and challenges. Will we witness the realization of AI’s capabilities in the upcoming year? SAS, a frontrunner in AI and analytics, has enlisted the insights of executives and experts from across the organization to forecast trends and pivotal developments in AI for 2024. Here are some of the forecasts they have put forward.
Generative AI will augment (not replace) a comprehensive AI strategy
SAS, with a recent commitment of $1 billion to AI-powered industry solutions, emphasizes the growing significance of generative AI in organizational strategies. In 2024, organizations will shift towards integrating this technology to complement industry-specific AI strategies.
In banking, simulated data for stress testing and scenario analysis will help predict risks and prevent losses. In health care, that means the generation of individualized treatment plans. In manufacturing, generative AI can simulate production to identify improvements in quality, reliability, maintenance, energy efficiency and yield.
Bryan Harris, Chief Technology Officer, SAS
AI will create jobs
Although introducing new AI technologies in 2024 and beyond may lead to temporary disruptions in the job market, it will also ignite the creation of numerous new jobs and roles, thereby contributing to economic expansion.
In 2023, there was a lot of worry about the jobs that AI might eliminate. The conversation in 2024 will focus instead on the jobs AI will create. An obvious example is prompt engineering, which links a model’s potential with its real-world application. AI helps workers at all skill levels and roles to be more effective and efficient.
Udo Sglavo, Vice President of Advanced Analytics SAS
AI will enhance responsible marketing
While AI holds the potential for optimizing marketing and advertising initiatives, it is essential to recognize that biased data and models can yield skewed outcomes.
As marketers, we must consciously practice responsible marketing. Facets of this are awareness of the fallibility of AI and alertness to possible bias creeping in. In SAS Marketing, we are implementing model cards that are like an ingredient list, but for AI. Whether you create or apply AI, you are responsible for its impact. That’s why all marketers, regardless of technical know-how, can review the model cards, validate that their algorithms are effective and fair, and adjust as needed.
Jennifer Chase, Chief Marketing Officer, SAS
Financial firms will embrace AI amid a Dark Age of Fraud
Even as consumers show increased vigilance against fraud, fraudsters use generative AI and deepfake technology to refine their multitrillion-dollar trade. Phishing messages are becoming more sophisticated, and imitation websites appear remarkably authentic. With simple online tools, a criminal can replicate a voice after just a few seconds of audio.
We are entering the Dark Age of Fraud, where banks and credit unions will scramble to make up for lost time in AI adoption – incentivized, no doubt, by regulatory shifts forcing financial firms to assume greater liability for soaring APP [authorized push payment] scams and other frauds.
Stu Bradley, Senior Vice President of Risk, Fraud and Compliance Solutions, SAS
Shadow AI will challenge CIOs
CIOs previously faced challenges with ‘shadow IT’ and will now encounter ‘shadow AI’ – solutions utilized by or developed within an organization without official approval or monitoring by IT.
Well-intentioned employees will continue to use generative AI tools to increase productivity. And CIOs will wrestle daily with how much to embrace these generative AI tools and what guardrails should be put in place to safeguard their organizations from associated risks.
Jay Upchurch, Chief Information Officer, SAS
Multimodal AI and AI simulation will reach new frontiers
The next step in generative AI is the combination of text, images, and audio into one model. This is called multimodal AI, which allows for the simultaneous processing of diverse inputs.
An example of this will be the generation of 3D objects, environments and spatial data. This will have applications in augmented reality [AR], virtual reality [VR], and the simulation of complex physical systems such as digital twins.
Marinela Profi, AI/Generative AI Strategy Advisor, SAS
Digital-twin adoption will accelerate
Organizations can refine operations, enhance product quality, boost safety measures, improve reliability, and decrease emissions through digital twins.
Technologies like AI and IoT [Internet of Things] analytics drive important sectors of the economy, including manufacturing, energy and government. Workers on the factory floor and in the executive suite use these technologies to transform huge volumes of data into better, faster decisions. In 2024, the adoption of AI and IoT analytics will accelerate through broader use of digital-twin technologies, which analyze real-time sensor and operational data and create duplicates of complex systems like factories, smart cities and energy grids.
Jason Mann, Vice President of IoT, SAS
Insurers will confront climate risk, aided by AI
After years of waiting, climate change has evolved from a potential threat to a real and urgent danger. The global insurance industry faced more than $130 billion in losses from natural disasters in 2022, putting immense pressure on insurers worldwide. In the United States, insurers face scrutiny for increasing premiums and pulling out of heavily affected states like California and Florida, leaving millions of customers in a difficult position.
To survive this crisis, insurers will increasingly adopt AI to tap the potential of their immense data stores to shore up liquidity and be competitive. Beyond the gains they realize in dynamic premium pricing and risk assessment, AI will help them automate and enhance claims processing, fraud detection, customer service and more.
Troy Haines, Senior Vice President of Risk Research and Quantitative Solutions, SAS
AI importance will grow in government
AI will soon have an impact on government workforces. Governments struggle to attract and keep AI experts because of their high salaries, but they will actively seek out this talent to support regulatory efforts.
And like enterprises, governments will also increasingly turn to AI and analytics to boost productivity, automate menial tasks and mitigate that talent shortage.
Reggie Townsend, Vice President of the SAS Data Ethics Practice
Generative AI will bolster patient care
In 2024, organizations will continue to advance health and enhance patient and member experiences by developing AI-powered tools for personalized medicine. These tools will include patient-specific avatars for clinical trials and the generation of individualized treatment plans.
Additionally, we will see the emergence of generative AI-based systems for clinical decision support, delivering real-time guidance to payers, providers and pharmaceutical organizations.
Steve Kearney, Global Medical Director, SAS
Deliberate AI deployment will make or break insurers
In 2024, a top 100 global insurer will face closure due to prematurely implementing generative AI. Insurers are rapidly introducing autonomous systems without customizing them to their business models. They aim to use AI for expedited claims processing to counteract recent poor business performance. However, following layoffs in 2023, the remaining workforce will need more support to oversee AI’s ethical and widespread implementation.
The myth of AI as a cure-all will trigger tens of thousands of faulty business decisions that will lead to a corporate collapse, which may irreparably damage consumer and regulator trust.
Franklin Manchester, Global Insurance Strategic Advisor, SAS
Public health will get an AI boost from academia
The COVID-19 pandemic has made it evident that safeguarding our population will necessitate exceptional technology and collaboration. Public health embraces technological advancements like never before.
Whether overdoses or flu surveillance, using data to anticipate public health interventions is essential. Forecasting and modeling are rapidly becoming the cornerstone of public health work, but the government needs help. Enter academia. We will see an increase in academic researchers carrying out AI-driven modeling and forecasting on behalf of the government.
Dr. Meghan Schaeffer, National Public Health Advisor and Epidemiologist, SAS
At SAS Innovate, April 16-19, 2024, in Las Vegas, you have the opportunity to discuss with SAS executives, gain insights into their forecasts, and delve into the newest developments in AI and analytics. Secure your spot to receive updates on the conference and take advantage of early-bird pricing.
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Mihaela Lica Butler is senior partner at Pamil Visions PR. She is a widely cited authority on public relations issues, with an experience of over 25 years in online PR, marketing, and SEO.She covers startups, online marketing, social media, SEO, and other topics of interest for Realty Biz News.
We get asked frequently by founders what the available funding options are.
One such option is Dreamit. We had the chance to ask Andrew Ackerman, the managing Director of their UrbanTech program, a few questions about their upcoming accelerator class.
What are some of the things that startups can gain by going through the program?
Dreamit is specifically designed for the pre-series A startup with traction. The benefits startups get from the program can really be broken out into 3 categories: customers, capital & coaching.
Most VCs and accelerators talk about the customer introductions they can make for startups in their portfolio. Dreamit takes it to the next level with our two-week, multi-city “Customer Sprint” process. These are curated, one on one, sit down at a conference table meetings with C-suite decision makers at over 70 top players in Construction, Development, Property Management, et. al. that can shave 3-6+ months off the typical 9-12 month enterprise sales cycle.
Demo days may (arguably) still work for some pre-seed accelerator programs but if you are raising a $5M-$10M Series A round (or even a $2M-$4M Seed extension), raising it in $50K increments from angels is just not going to cut it. So instead of Demo Day “startup theater”, Dreamit takes the startups in our program on a two-week, bi-coastal “Investor Sprint” where they meet the institutional VCs who can lead these rounds, in their offices, for 20-minute, one-on-one meetings.
In terms of coaching, each of Dreamit’s 3 verticals are run by Managing Directors with successful exits under their belts and who have deep experience in their respective industries. But don’t take our word for it; ask our alumni… many of who have gone through traditional pre-seed accelerator programs in the past and can talk to the Dreamit difference.
What are some of the big successes that you guys have had with startups in the program?
Dreamit has worked with over 300 startups since our founding in 2008. In the past 6 months, we’ve had 4 high profile, successful exits including LevelUp (acquired by Seamless), Adaptly (acquired by Accenture), Trendkit (acquired by Cision), Houseparty (fka, Meerkat, acquired by Epic Games). We were also early investors in SeatGeek.
What trends in real estate are you most excited about?
The single biggest trend is completely unrelated to tech: it is the increased willingness on the part of the traditional real estate community to embrace rather than resist innovation. The increased recognition of the necessity of piloting with startups to gain an edge in the increasingly competitive real estate environment has, quite literally, changed everything.
On the tech side, improvements in speech recognition and natural language processing are changing everything from finding an apartment, to booking showings, submitting maintenance requests, controlling your smart apartment and much, much more. Equally impactful but much less flashy is the increasingly interoperable data layer underpinning the industry. There has never been more real estate data available and it is finally in a form that, with more than a little bit of effort, can be combined with other data sources in ways that unlock insights and business models that could not have existed a mere 2 years ago.
What kinds of startups are you searching for your upcoming program?
Good ones. Allow me to elaborate: Really, good ones.
Kidding aside, we look for what I call “corporate ready” startups with solid, demonstrable traction selling unique solutions to large and extremely painful problems. Is that too much to ask?
What are your customer partners looking for in proptech startups? How have their needs changed over the past couple of years?
One of the reasons our 70+ partners make the bi-annual Customer Sprints a regular part of their innovation calendar is that they know that the startups we bring them already have “product-market fit” and are run by founders who understand what it takes to successfully sell to and work with large corporate clients. Nothing reassures a multinational construction firm like Skanska that a startup is ready to work with them like a traction slide with logos of other big GCs like Turner, Suffolk, and other national contractors.
In truth, their needs in that respect have not changed that much, but they are more willing to prioritize working with startups to solve their problems than ever before.
Thanks, Andrew. Applications for Dreamit’s Fall 2019 program are open now. For those founders interested…
Penny stocks offer a unique glimpse into the lesser-seen side of the stock market. These stocks, tied to small and sometimes obscure companies, present a blend of opportunity and challenge, attracting investors with their potential for high returns despite inherent risks.
In the history of penny stocks, there are tales of spectacular gains and equally dramatic losses, reflecting their unpredictable nature. This market segment appeals to a certain type of investor: one who is not just willing to take on risk, but who is also keen on conducting thorough research to unearth potential opportunities in overlooked corners of the market.
This introduction to penny stock trading aims to strike a balance between the excitement of potentially lucrative investments and the sober reality of the risks involved. As we delve into this topic, we’ll explore both the allure and the cautionary aspects of trading in penny stocks, offering insights for those curious about this intriguing area of finance.
What are penny stocks?
Penny stocks are defined by the Securities and Exchange Commission (SEC) as shares issued by small or micro-cap companies for any amount below $5 per share.
They typically trade on the over-the-counter (OTC) or dark market. But you may find some on U.S. securities exchanges, foreign exchanges, and in rare cases, on major stock exchanges.
They are designed for investors who can withstand a high level of risk, as the low price point is a tell-tale sign of bigger issues going on within the company. It could be anything from cash-flow issues to impending bankruptcy or fraud. You could also be dealing with a startup with little to no track record or a company with management woes.
Profit Potential in Penny Stocks: What to Expect
Penny stocks, often trading below $5 a share, can seem like a gateway to quick profits in the stock market. They’re attractive because of their low entry cost and the dream of buying a stock for pennies today that might be worth dollars tomorrow. However, it’s crucial to temper expectations with reality.
While there are occasional stories of penny stocks skyrocketing in value, these are more the exception than the rule. The overall success rate for investors in penny stocks is generally lower than in more traditional stock investments, largely due to their volatility and the opaque nature of many companies represented in this segment.
Navigating the Risks: The Realities of Penny Stock Investments
When considering penny stocks, it’s important to understand the risks involved. These stocks are known for their low liquidity, which means it might be difficult to sell your shares at the optimal time.
Moreover, the penny stock market is often a playground for manipulative tactics like ‘pump and dump’ schemes. In such scenarios, stock prices are artificially inflated through misleading or overly optimistic statements, only to be sold off by insiders at a profit, leaving other investors with losses.
What’s more, the lack of comprehensive financial information about these small or micro-cap companies adds another layer of risk. With less regulatory oversight compared to larger, more established stocks, it’s harder for investors to make fully informed decisions.
Making Informed Decisions
If you’re considering diving into the world of penny stocks, it’s vital to do your homework. Thorough research and a well-thought-out strategy are key. Look for penny stock companies with solid fundamentals, transparent business models, and potential for growth.
Be wary of stocks that exhibit sudden price jumps without any underlying business changes. Remember, a disciplined and patient approach, along with a readiness to react to market changes, is essential in navigating the high-risk, high-reward world of penny stock trading.
How to Get Started with Penny Stocks
Step 1: Conduct Thorough Research
Before you jump into penny stocks, it’s essential to do your homework. Start by understanding what penny stocks are and how they differ from traditional stocks. Research the companies behind these stocks thoroughly.
Look into their financial health, business models, and market potential. Pay special attention to their balance sheets, earnings reports, and any news that could affect their stock prices. Remember, information is power in the world of investing, and this is especially true for penny stocks.
Step 2: Set Realistic Investment Goals
Determine what you want to achieve with penny stocks. Are you looking for quick profits, or are you more interested in long-term growth? Setting clear and realistic goals will help guide your investment decisions and keep your expectations in check. Be aware that while penny stocks offer the possibility of high returns, they also come with a high risk of loss.
Step 3: Choose the Right Trading Platform
Select a trading platform or broker that caters to penny stock investors. Look for platforms with low fees, as penny stocks are typically low-value investments and high transaction costs can eat into your profits.
Ensure the platform provides adequate tools and resources for researching penny stocks. Some platforms may have restrictions or higher fees for trading penny stocks, so it’s crucial to read the fine print before making your choice.
Step 4: Start Small and Diversify
When you’re ready to start trading, begin with a small investment to test the waters. Penny stocks are highly volatile, so it’s wise not to put all your eggs in one basket. Diversify your investments across different stocks and sectors to spread the risk. Remember, diversification is a key strategy in mitigating risk in any investment portfolio.
Step 5: Learn from Mistakes and Stay Updated
Even the most seasoned investors make mistakes, especially in the unpredictable world of penny stocks. Take note of any missteps and learn from them. Stay updated on market trends and news that could impact your investments. Continuous learning and adapting your strategy based on your experiences and market changes are crucial for success when investing in penny stocks.
Common Mistakes to Avoid With Penny Stocks
Falling for hype: One of the biggest traps with penny stocks is getting swayed by hype. Avoid making decisions based on promotional emails or hot tips without doing your own research.
Ignoring red flags: Don’t overlook red flags like inconsistent financials, frequent changes in company leadership, or lack of transparent information.
Overtrading: Resist the urge to trade too frequently. Overtrading can lead to impulsive decisions and increased transaction costs.
Neglecting exit strategy: Always have an exit strategy for each investment. Decide in advance at what point you will sell, whether to capture profits or cut losses.
How to Find Promising Penny Stocks: Effective Strategies
Locating promising penny stocks is a nuanced process. While some penny stocks are available on major stock exchanges like Nasdaq, most are traded over-the-counter (OTC). Understanding where and how to find these stocks is crucial for potential success in this high-risk, high-reward market.
Explore OTC Markets and Major Exchanges
Most penny stocks are traded on OTC markets such as the Over-the-Counter Bulletin Board (OTCBB) and Pink Sheets, where listing requirements are less stringent than on exchanges. However, some penny stocks are also listed on larger exchanges like Nasdaq, adhering to their stricter regulations and offering slightly more stability. Familiarizing yourself with both OTC and large exchanges broadens your scope for finding potential stock picks.
Leverage Financial Information Sources
To aid in your search, utilize financial information sources like Google Finance or Yahoo Finance. These platforms provide valuable data on OTC stocks, including price movements, volumes, and company news. They are excellent starting points for initial research and tracking stock performance.
Selecting the Right Broker for Penny Stock Trading
Choosing a broker that aligns with your goals is crucial. Consider factors like fee structures, trade surcharges, volume restrictions, and trading limitations. Broker fees, especially for low-value transactions like penny stocks, can significantly impact your profits. Ensure the broker you choose allows you to trade penny stocks, as not all do.
Assessing Broker Resources and Tools
In addition to fee structures, assess the resources and tools each broker offers. Some brokers provide specialized resources for penny stock traders, such as advanced screening tools, research reports, and educational content. These can be invaluable in helping you make informed decisions.
Tips for Choosing a Broker
Compare fee structures: Look for brokers with low fees and surcharges for buying penny stocks.
Check for volume restrictions: Ensure the broker doesn’t impose restrictive trading limits that could hinder your strategy.
Research broker reputation: Choose a broker with a good reputation for customer service and reliability.
Evaluate educational resources: Consider brokers that offer educational materials and resources specifically designed for penny stock traders.
Finding the Best Broker for Your Penny Stock Investments
When it comes to choosing the best broker for penny stocks, there isn’t a one-size-fits-all answer. The ideal broker varies based on individual trading styles, preferences, and goals. Here’s a comprehensive list of the best online brokers for stock trading of 2023 can be a great starting point.
It’s important to verify that the brokers you’re considering do indeed offer penny stock trading, as not all brokers provide this service. Make sure to choose a broker that aligns with your investment strategy and provides the necessary tools and resources for penny stock investors.
Risks and Considerations of Penny Stock Trading
Before you dive into the world of penny stocks, there are some risks you should be aware of.
Trade Volume and Fees
It’s no secret. The trading volume for penny stocks is relatively low because of their risky nature, so you may find it difficult to buy and sell at the most optimal times. You also want to pay attention to the fees that brokers sometimes tack on to penny stock trades.
If you find that they are substantially higher than what you’d pay to trade regular shares, move on to brokers that don’t employ this practice.
Exchanges
If the shares aren’t listed on a major exchange, like the NYSE or Nasdaq, proceed with caution as the regulations are little to non-existent. In turn, you have much more to lose, as there’s no way to gauge how the penny stock company will perform in the short or long term with little information to go on.
Return on investment
When trading stocks, there’s no guarantee that you’ll turn a profit. In fact, the odds definitely aren’t in your favor if the company the shares are tied to is in the midst of a financial storm or rough patch.
While this isn’t a definitive nail in the coffin, you have to think about the time between the purchase of shares and when the penny stock price appreciates and if it’s worth the wait. This could take months, if not years.
Penny Stock Scams
Be on the lookout for scam artists that promise to make you wealthy from trading penny stocks overnight. They do this by promoting a particular penny stock heavily or issuing warnings that a particular penny stock should be avoided at all costs. Either way, these deceptive marketing tactics can drive stock prices up or down in a jiffy and wreck your earning potential.
Strategies for Trading Penny Stocks Successfully
Setting clear goals and risk tolerance
Ensure that you clearly understand your investment goals and risk tolerance before you get started. This can help guide your decision-making and ensure that you are comfortable with the level of risk you are taking on.
Using stop loss orders and other risk management techniques
Stop loss orders and other risk management techniques can help to limit potential losses in penny stock trading. These techniques can help to protect your investment and keep you from making rash decisions in the face of market volatility.
Being patient and disciplined in decision-making
Successful penny stock investors are often disciplined and patient. They take the time to thoroughly research potential investments, avoid the temptation to chase after quick gains, and stick to a well-thought-out trading plan.
Bottom Line
Penny stock trading offers a unique blend of risks and rewards, appealing to those willing to navigate its volatile waters. It’s crucial to approach this market with thorough research, a clear strategy, and realistic expectations. Remember, while the potential for high returns exists, so does the risk of significant losses.
Your Next Steps
Educate yourself further: Continuously expand your knowledge about penny stocks. Resources like financial websites, investment books, and online courses can provide deeper insights.
Stay informed: Keep up with market trends and news. Regularly visit financial news platforms and consider subscribing to newsletters focused on penny stocks.
Connect with a community: Engage with online forums or local investment groups where you can exchange ideas and learn from experienced penny stock traders.
Trading penny stocks isn’t for everyone, but with the right approach, it can be a rewarding part of your investment portfolio. Always invest wisely, understand the risks involved, and never stop learning.
Frequently Asked Questions
How much money do you need to start trading penny stocks?
It depends on the broker you open an account with. Each broker has different minimum deposit requirements for opening an account. Most of them don’t have any requirements at all.
Are penny stocks hard to trade?
Penny stocks can be volatile and unpredictable. They are also subject to market manipulation. Most active traders who trade them are day traders, and only about 10% of them are actually profitable.
Why are penny stocks risky?
Penny stocks can be highly volatile and are typically subject to greater risks than larger, more established stocks. They may also be more susceptible to fraud and manipulation, which can lead to significant losses for investors.
Is Robinhood good for penny stocks?
You can trade penny stocks on Robinhood. However, the only penny stocks supported by Robinhood are stocks that trade on either the NASDAQ or NYSE. While most penny stocks are not listed on these major exchanges, exchange-listed penny stocks are typically viewed as the safer alternative to OTC stocks.
hikesterson/Getty Images; Illustration by Issiah Davis/Bankrate
After topping 8 percent in October, mortgage rates beat a hasty retreat in November. The average rate on 30-year loans fell under 7.5 percent in Bankrate’s most recent survey of lenders.
“Market sentiment has significantly shifted over the last month, leading to a continued decline in mortgage rates,” says Sam Khater, chief economist at mortgage company Freddie Mac.
One key reason for the reversal: Investors bid down 10-year Treasury yields, the main indicator for 30-year fixed mortgage rates.
Another factor is inflation, which was down to 3.2 percent for October. While that’s still above the Federal Reserve’s official target of 2 percent, forecasters think the Fed is done raising rates, a shift that will relieve some of the pressure on mortgages.
“If the Fed signals an end to interest rate hikes and takes on a dovish tone, there may be some downward pressure on mortgage rates,” says Odeta Kushi, economist at title insurer First American. “But don’t expect any large declines in mortgage rates until inflation is much closer to the Fed’s 2 percent target or there’s a decline in economic activity.”
Mortgage rate predictions December 2023
The downward momentum in mortgage rates will be sustained, albeit modestly, as the Federal Reserve signals they are done raising interest rates and projects slower inflation in 2024. Cautious projections from the Fed about the timing of rate hikes, along with the elevated volume of Treasury issuance, will be offsetting factors that limit the extent of decline in mortgage rates.
— Greg McBride, Bankrate Chief Financial Analyst
Many forecasts now call for rates to stick in the 7 percent range, either at 7.5 or higher.
“While mortgage rates have trended down from their peak in October, they remain above 7 percent and will likely stay there for some time,” says Ruben Gonzalez, chief economist at real estate brokerage Keller Williams.
As inflation cools and the Federal Reserve stands down, rates should drift down to 7 percent, says Lisa Sturtevant, chief economist at Bright MLS, a real estate listing service in the Mid-Atlantic region.
“Part of it is the Federal Reserve is pausing on interest rate hikes,” says Sturtevant. “Of course, mortgage rates are affected by things other than what the Fed does. For example, mortgage applications are down, and lenders are competing for a shrinking pool of applicants.”
Current mortgage rate trends
After rising sharply through late October, mortgage rates have trended back down. The average rate on a 30-year mortgage was 7.4 percent as of Nov. 29, according to Bankrate’s survey. This represents a departure from 8.01 percent on Oct. 25.
Bankrate’s weekly mortgage rate averages differ slightly from the statistics reported by Freddie Mac, the government-sponsored enterprise that buys mortgages and packages them as securities. Bankrate’s rates tend to be higher because they include origination points and other costs, while Freddie Mac removes those figures and reports them separately. However, both Bankrate and Freddie Mac report similar overall trends in mortgage rates.
When will mortgage rates go down?
While the experts we talked to don’t expect rates to come down significantly this month, they do forecast an eventual easing in 2024. The Mortgage Bankers Association projects rates to fall to 6.1 percent late next year. The National Association of Realtors estimates rates will be at 6.3 percent in a year, while Fannie Mae forecasts they’ll be at 7.1 percent.
Still, mortgage rates aren’t easy to predict.
“A lot of us forecasted we’d be down to 6 percent at the end of 2023,” says Sturtevant. “Surprise, surprise, we’re not.”
One wild card has been the unusually large gap between mortgage rates and 10-year Treasury yields. Normally, that spread is about 1.8 percentage point, or 180 basis points. This year, the gap has been more like 280 basis points, pushing mortgage rates a full percentage point higher than the 10-year benchmark indicates.
“There is room for that gap to narrow,” says Sturtevant, “but I’m not sure we’ll get back to those old levels. In this post-pandemic economy, the old rules don’t seem to apply in the same ways. We’re sort of figuring out what the reset is. Investors have a different outlook on risk now than they did before the pandemic. We’re just in this weird transition economy.”
What to do if you’re getting a mortgage now
Mortgage rates are at generational highs, but the basic advice for getting a mortgage applies no matter the economy or market.
Improve your credit score. A lower credit score won’t prevent you from getting a loan, but it can make all the difference between getting the lowest possible rate and more costly borrowing terms. To help qualify for a conventional mortgage, you’ll generally need a score of 620 or higher. However, the best mortgage rates go to borrowers with the highest credit scores, usually at least 740. In general, the more confident the lender is in your ability to repay the loan on time, the lower the interest rate it’ll offer.
Save up for a down payment. Putting more money down upfront can help you obtain a lower mortgage rate, and if you have 20 percent, you’ll avoid private mortgage insurance (PMI), which adds costs to your loan. If you’re a first-time homebuyer and can’t cover a 20 percent down payment, there are specific loans, grants and programs that can help. The eligibility varies by program, but often are based on factors like your income.
Understand your debt-to-income ratio. Your debt-to-income (DTI) ratio compares how much money you owe to how much money you make, specifically your total monthly debt payments against your gross monthly income. Not sure how to figure out your DTI ratio? Bankrate has a calculator for that.
Check out different mortgage loan types and terms. A 30-year fixed-rate mortgage is the most common option, but there are shorter terms. Adjustable-rate mortgages have also regained popularity recently.
FAQ
It might seem like a bank or lender are dictating mortgage terms, but in fact, mortgage rates are not directly set by any one entity. Instead, mortgage rates grow out of a complicated mix of economic factors. Lenders typically set their rates based on the return they need to make a profit after accounting for risks and costs.
The Federal Reserve doesn’t directly set mortgage rates, but it does set the overall tone. The closest proxy for mortgage rates is the 10-year Treasury yield. Historically, the typical 30-year mortgage rate is about 2 percentage points higher than the 10-year Treasury yield. In 2023, that “spread” has been more like 3 percentage points.
Mortgage rates have jumped to 23-year highs, so not many borrowers are opting to refinance their mortgages in late 2023. However, if rates come back down in the near future, homeowners could start looking to refinance.
Deciding when to refinance is based on many factors. If rates have fallen since you originally took out your mortgage, refinancing might make sense. A refi can also be a good idea if you’ve improved your credit score and could lock in a lower rate or lower fees. A cash-out refinance can accomplish that as well, plus give you the funds to pay for a home renovation or other expenses.
A small number of subprime mortgages that are outstanding are seeing higher year-over-year delinquencies in all categories, echoing broader market trends for that credit band.
Home loans that were 30 to 59 days past due and made to borrowers with credit scores of 600 or lower had a 17.81% delinquency rate in October, compared to 15.82% a year earlier and 21.14% in January 2020, according to Vantagescore.
Borrowers in the slightly higher near-prime score band of 601 to 660 favored by some lenders that make loans outside the qualified mortgage definition had a 2.69% early stage past-due rate last month. The equivalent for those with scores in the prime 661 to 780 range was just 0.17%.
Although subprime borrowers are a relatively tiny part of the mortgage market today, they tend to be a leading indicator of current conditions.
That’s in line with conditions in consumer finance overall, where delinquencies are still historically low and fairly stable but showing small signs of pressure.
“Interest rates are high and the credit card balances keep going up,” said Susan Fahy, executive vice president and chief digital officer at Vantagescore. “That adds to the stress that consumers are feeling, and we’re definitely seeing that it’s not isolated to lower scoring consumers, but they’re the ones that they’re the ones definitely being impacted the most.”
While mortgage delinquency measures have been mixed recently, with some emphasizing that upticks tend to be in the early-stage phase, tiny increases across all past-due categories in Vantagescore’s data suggest they’re becoming increasingly consistent.
Late-stage subprime mortgage delinquencies in particular have shown a very small but steady uptick recently, rising to 2.69% in October from 1.77% a year earlier and 2.63% the previous month.
How many of these will continue to foreclosure remains to be seen given the Department of Veteran Affairs’ recent call for leniency as it bridges a transition between the end of temporary relief it offered during the pandemic and a new policy that’s pending.
VA loans have recently been a significant segment within the U.S. mortgage market but not necessarily a driver of overall trends.
Vantagescore’s standard home-loan information comes from credit bureau data reflecting all active mortgage accounts undifferentiated by factors other than score, and regardless of which provider’s measure was used at origination.
Currently, most mortgage originations employ an older FICO score because it’s used by two influential government-related loan investors. But those buyers are preparing to use new Vantagescore and FICO measures in the future due to a congressional mandate.
The effectiveness of those measures as a gauge of mortgage performance could be more important in the future if credit does continue to soften broadly.
Vantagescore declined to forecast mortgage performance, but indicated current measures do suggest limited consumer spending in other areas, given less issuance of credit cards and higher rates seen recently for existing ones.
“I think that’s definitely something to watch,” said Fahy, noting that consumers still appear to be fulfilling what’s generally a tendency to pay mortgage bills before others.
*This article was sponsored by Barndominium Life, the #1 media brand covering the barndominium space.
Back in 2016, Chip and Joanna Gaines transformed a horse barn into a modern-day living space for the Meek family in what later became known as one of the greatest Fixer Upper episodes of all time.
And while that particular renovation drew scores of HGTV fans to watch the Season 3 episode of the popular home renovation show, the barn conversion also had a lasting impact on the house design landscape, catapulting barndominiums into the mainstream — and making them one of the most hip, desirable, and fun options for dwellings to emerge in recent years.
Loved for their distinctive charm, low building costs, and versatility, these barn-like structures converted for residential use cater to a wide range of lifestyles, from those seeking a lovely country retreat to individuals looking for a contemporary urban oasis with a hint of rustic charm.
Barndominiums are having a moment
The ability to customize the living space, combined with the spacious floorplans, appeals to a diverse demographic, making barndominiums a viable option for families, professionals, and retirees alike.
And with the increasingly higher costs of housing, coupled with the never-ending rise in interest rates of the past couple of years, barndominiums have stepped in to provide a much-needed alternative to traditional homes.
In fact, Google Trends shows an explosion of web searches from users interested in learning more about this alternative housing option. Starting in mid-2020, Google searches for the term “barndominium” have shot up, and have been on a roll ever since.
Where to learn about the barndo life
Naturally, the rise in popularity brought about scores of websites and blogs catering to this growing interest and teaching people how to design, build, and decorate their own barn-like structures.
But the leader in the space is the aptly named BarndominiumLife.com, a comprehensive website dedicated to celebrating the barndo lifestyle.
As the #1 media brand covering the barndominium space, the website offers a wealth of information, presented in various formats — like blog posts, videos, instructional guides, floor plans, and more — to help their readers build their dream barn-like home.
Started by a building expert with a burning passion for barndominiums, Barndominium Life has attracted a talented team of writers, designers, and contributors who willingly share their knowledge with readers across the U.S.
Their goal: to help address the pressing issue of housing availability — and to educate and accelerate the rate at which barndominiums are built.
And they’re offering all the tools one might need to get their structure off the ground, from cost overviews to design and interior inspiration and state guides (that provide relevant local resources based on your location).
They even provide granular advice to address specific pain points for barndominium owners that we didn’t even know existed, like tips on what the best cell phone signal boosters are for metal buildings.
Seeing increasing interest from people looking for housing alternatives due to the current state of the market, they expanded their services to also include pre-made building plans.
Buy barndominium plans and build your own
Starting 2021, BarndominiumLife upped the value they offer their readers by adding ready-made barndominium house plans.
With budget-friendly prices, BarndominiumPlans has a wealth of stock house plans covering the most popular barndo designs and configured for several layouts and square footage.
Shortening the process from the idea level to execution, each one of the site’s pre-made building plans offer the perfect starting point for people looking to adopt the barndominium lifestyle.
And they’ll even help their clients customize the designs with the help of their skilled designers.
BarndominiumPlan’s lead designer, Christy, holds a degree in Architecture and Interior Design and specializes in designing spaces that are both cool and functional, mixing old-fashioned charm with modern style to spectacular results.
Buying a ready-made barndominium plan costs $1,550, and they also run promotions from time to time — so make sure to stay tuned if you’re looking for a discounted rate.
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Home loan borrowers relying upon family; potential coffee shortage; stocks for increased domestic gas supply & listing trends for stocks in the classifieds space.
-Banks spurned as home loan borrowers increasingly turn to family -Potential (withdrawal) headache for coffee drinkers? -Stocks leveraged to increasing domestic supply of gas -Morgans reviews listing trends for stocks in the classifieds space
By Mark Woodruff
Banks spurned as home borrowers increasingly turn to family
The decision to buy a home is becoming increasingly dependent on accessing assistance from one’s own (wealthy) family, suggests Jarden, splitting home ownership along class lines.
Monetary assistance is material and takes the form of a (weighted average) family gift/loan of around $70,000, or 9% of median dwelling value, according to a November survey of 282 mortgage brokers by Jarden (in conjunction with Agile Market Intelligence/Broker Pulse).
The survey results support Jarden’s view that the types of buyers driving the housing market have shifted increasingly towards higher income/wealth buyers who have more cash and are less constrained by borrowing capacity.
Average monetary assistance in New South Wales is $92,000, consistent with higher dwelling prices in that state, and just $34,000 in Western Australia, observe the analysts.
Perth’s more affordable housing market is highlighted by only 9.5% of borrowers receiving family assistance, according to the broker’s survey, compared to around 15% across the other major states.
Over the last 12 months, Jarden believes the ‘bank of mum and dad’ in Australia has contributed more than $2.7bn in financial support (or 1% of new lending flows), which poses questions around potential impacts on banks from this increasing trend.
According to combined data from Corelogic and the Australian Bureau of Statistics, the ratio of home loans to housing sales has fallen to a record low of 70%, consistent with borrowers having more cash and larger deposits, highlights Jarden.
Additionally, the broker points out APRA data show the share of higher loan-to-value ratio (LVR) lending (of more than 80%) has fallen to less than 30% from more than 40%.
On the one hand, larger deposits and lower turnover increase the risk of subdued credit growth for the banks. On the other hand, the analysts note the recent trend has supported home prices and allowed new lending/credit growth to stabilise at higher levels than originally feared.
Potential (withdrawal) headache for coffee drinkers?
In a looming first world crisis for up-market latte drinkers, market dynamics suggest potential for a shortage of coffee, at least of the best quality.
We may gather from this distinction all coffee is not equal. Indeed, Central American countries, including Colombia, lead the way in producing the “best” coffee, according to XTB MENA.
Market analyst Milad Azar at XTB, explains Brazil is the world’s largest producer of arabica coffee, which is used primarily in espresso machines, while the country only ranks second for robusta-type coffee, used largely to produce instant coffee.
Most robusta is grown in Asia, mainly in Vietnam and Indonesia.
Mr Azar provides some recent context for the coffee market, one of the most active commodity markets in the world, right after oil.
Back in October, coffee prices rebounded after long-term declines, due to both declining stocks and potential El Nino impacts, which could expose coffee crops to lower yields, according to Mr Azar.
XTB expects a further rally in price by the end of 2023, given the combination of the usual seasonality in the coffee market, and now, speculators have significantly reduced the number of short positions in the market.
As for 2024, it will be difficult for price increases to continue, based on XTB’s projections for broadly equal production and demand.
However, should coffee production in Brazil not rebound, and El Nino takes its negative toll, the market may be close to a deficit for the 2023/2024 season, according to XTB MENA, and the best quality coffee (at least) may be in short supply.
Stocks leveraged to increasing domestic supply of gas
Jarden forecasts an upward trajectory for domestic gas prices and suggests this outcome would be most beneficial for the likes of Beach Petroleum ((BPT)) and Cooper Energy ((COE)), as they look to contract, re-contract or reprice existing gas supplies.
The combination of gas producers with uncontracted gas volumes, as well as gas prices subject to price reviews, should improve the economics of new gas supply, according to the broker. APA Group ((APA)), the owner of key gas pipeline infrastructure, is also expected to be another winner from greater supply.
However, significant supply risks remain, according to the analysts, as the Gas Mandatory Code of Conduct (which came into effect in July this year) has yet to pass through the Senate. Also, looming supply challenges are expected for the NSW, South Australia and Victorian markets from 2027, driven by declining Bass Strait output.
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