Monday, December 23, 2024
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Economic Uncertainty and Inflation Impact Retirement Prospects for Americans

2024-05-13  |  economy retirement 

... ssion poses the most immediate challenge to their retirement portfolio over the next 12 months, and over half (53%) of non-retired investors expect interest rates to be increased 12 months from now. These factors are forcing investors to consider a difficult reality — that the concept of an accessible and absolute retirement is no longer a realistic post-career possibility. More than a quarter (27%) of all non-retired investors would likely be forced to return to the workforce at some point due to inadequate savings if they retired in the next 12 months, and 1 in 5 (19%) non-retired inv...

Consumers Perceive Less Buying Power Despite Lower Inflation

2024-04-10  |  consumers economy 

...  He referenced the anticipation surrounding the Federal Reserve's potential interest rate cuts later this year, noting, "Our survey found that only one in three Americans believe that lower interest rates would significantly or moderately improve their confidence in achieving their financial goals."This prevailing uncertainty affects all facets of Americans' financial lives, including how they manage essential versus discretionary spending. For instance, during tax season, a period often seen as an opportunity for financial reprieve, the survey revealed that 80% of those expecting a tax refund...

Households Face Financial Pressures but Remain Hopeful

2024-04-09  |  consumers economy 

... s amid the prevailing circumstances."It's encouraging to see the resilience of both the American people and economy as we emerge from a year marked by uncertainty, continued inflation, high interest rates, and shifting geopolitical dynamics," remarked Paul LaPiana, the head of MassMutual's brand, product, and affiliated distribution. "Adhering to sound financial practices daily, like saving diligently, reducing indebtedness, and diversifying investment portfolios, lays a solid foundation for a secure financial future."Key findings from the survey include:RENEWED FINANCIAL OPTIMISM: Compared to...

Home Prices Remain Resilient

2023-06-01 17:00:00  |  housing interest rates 

... t level since August but is down from 102.5% a year earlier.To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-mortgage-rates-up-home-sales-down...

Credit Union Loan Account Balances Rising

2023-06-01 11:00:00  |  credit unions lending 

... ropping significantly anywhere from 6 to 12 months prior to a serious delinquency event.Serious delinquency rates remained generally stable among credit unions quarter-over-quarter (QoQ), with 60 DPD+ delinquency rates coming in at 0.79% in Q1 2023, seasonally down from 0.83% in Q4 2022. 60+ DPD delinquency was up YoY from 0.50% in Q1 2022.To learn more, visit the Q2 Credit Union Market Perspectives Report....

End-to-End, Third-Party Operating Models Deployed by Wealth and Asset Managers Are Transforming the Industry

2023-06-01 15:00:00  |  asset management 

... 22—smaller asset managers with less than $300 billion in AuM saw a more pronounced increase to 78%. CIRs for larger wealth managers have been stable at 71%, while smaller wealth players, with AuM below $150 billion, on average suffered a steep increase to surpass 82% in 2022. Technology spending has been a key driver of increased CIRs. The average share of technology in total operating expenses reached over 15% across both wealth and asset managers in 2022, up from 13% five years earlier. Over the same time frame, IT spending has particularly been on the rise in application development (+25%...

Three-Fifths Of Americans Living Paycheck To Paycheck

2023-02-28  |  consumers 

... noted, "it may not be enough to balance their finances." "Massive credit card debt is carried by customers of all income levels, and if debt interest rates rise, they may soon equal the savings balances of all consumers living paycheck to paycheck1. Now is an excellent moment for consumers who want to reduce their overall debt load to think about consolidating and/or refinancing their debt into an installment loan." ...

Used Car Prices On The Decline

2022-09-08 10:22:34  |  economy 

... as days-to-sale tick up lately, dealers are cutting prices - by hundreds of dollars for nearly-new cars - to keep sales going in the face of rising interest rates and other economic headwinds that weaken demand. "The situation is developing, but we advise consumers to be ready to act quickly once they locate a vehicle that meets their requirements and to keep a watchful eye out for any potential price drops that may occur in the near future. Buyers frequently discover that they now have more negotiation power with the dealer. However, some brands' pricing in August remained steadfastly ...

Half of Americans Have Less Than One Month Of Emergency Cash

2022-09-08 09:09:36  |  consumers 

... emergency needs. CEO of the NFEC Vince Shorb said, "The poor and middle class are suffering greatly as a result of years of failing economic policy due to high inflation, rising interest rates, and the early effects of the crisis. I'm concerned about what will happen to people who don't have emergency funds saved up. The world as we know it can alter overnight, as we have lately seen. The time to get ready is now because these catastrophes frequently occur without warning. We urge everyone to act proactively to safeguard themselves and their loved ones and be prepared to help their neighb...

Can Declining Customer Satisfaction Help Curb Inflation?

2022-08-09  |  economy inflation customer experience CX UX 

... n quality, especially in services, inflation is probably far greater than stated. The traditional remedy for reducing inflation and calming an overheated market is to raise interest rates. But the current economic climate poses unusual difficulties, according to Claes Fornell, the ACSI's creator and the Emeritus Distinguished Donald C. Cook Professor of Business Administration at the University of Michigan. Prices may continue to rise if demand exceeds supply due to shortages, shipping issues, labor shortages, or other supply issues. Perhaps paradoxically, client pleasure will then be less ...

Will The Housing Bubble Burst?

2022-07-28 10:00:00  |  housing 

... ational Composite Index reporting a 19.7% annual gain in May, down from 20.6% in April. But the Federal Reserve and other central banks are increasingly hiking interest rates as they fight rampant inflation. Because of this, bond yields and mortgage rates have skyrocketed, which has decreased demand for mortgages and home purchases. According to mortgage company Freddie Mac, the average interest rate for a 30-year mortgage was 5.54 percent last week, more than twice as high as the rate of 2.76 percent from one year ago. On July 27, the Mortgage Bankers' Association reported i...

Inflation Concerns Slowing Middle-America Spending

2022-07-14 12:00:00  |  consumers economy 

... g major purchases. Overall, more than one-third (38%) have already delayed a major purchase due to rising interest rates, including the biggest hike by the Fed in nearly 30 years. Still, about the same percentage (39%) say they plan to take a vacation in the next 12 months. Many rethinking future financial plans. Forty-two percent say they plan to work longer before retirement, and three-quarters (75%) of employed middle-income Americans say they don’t think they have enough saved to retire comfortably, up 10 percentage points since March. In addition, one in five plan to find a higher ...

Millennials Want Financial Advice, Not Trophies

2022-05-04 12:00:01  |  advice demographics 

... r of the Natixis Center for Investor Insight. “This generation has enjoyed a long bull market with low interest rates and little inflation for much of their adult lives. They also saw how 9/11, the tech bubble, and the global financial crisis crushed many in their parents’ generation. They’ve known what loss looks like and want to protect their interests as they see risks rise and their finances grow more complex. The good news is that Millennials not only recognize the value of advice, but they trust their financial advisors almost much as they trust themselves.” Natixis IM’s res...

Consumer Confidence Lower in April

2022-04-26 12:00:00  |  consumers 

... t." "Still, purchasing intentions are down overall from recent levels as interest rates have begun rising. Meanwhile, concerns about inflation retreated from an all-time high in March but remained elevated. Looking ahead, inflation and the war in Ukraine will continue to pose downside risks to confidence and may further curb consumer spending this year." Present SituationConsumers' appraisal of current business conditions was mixed in April. 20.8% of consumers said business conditions were "good," up from 19.6%. Conversely, 21.9% of consumers said business condit...

Used Vehicle Prices Expected to Climb to Record Highs

2021-07-06 09:08:22  |  transportation 

... a buying environment for people on the fringe of being able to afford new car ownership," said Caldwell. "Average loan terms are already quite long and interest rates are relatively low on average, so the consumer really has to make up the difference in price." Edmunds experts advise consumers who are considering making a purchase over the Fourth of July weekend or later this summer to make a concerted effort to shop around their trade-in, which can be done for free on sites such as Edmunds. According to Edmunds data, the average trade-in value for used vehicles climbed to $2...

Demand For Second Homes is Cooling to Pre-Pandemic Levels

2021-06-10 08:52:09  |  housing interest rates 

... ion destinations, at least part of the time. But with offices reopening and life returning to some semblance of normal, people are less focused on fleeing to the beach or the lake." Source: Redfin...

Out of Town Movers Reshuffling to Larger, More Affordable Homes

2021-06-08 12:00:00  |  housing 

... nt to live. A larger house with an office or chef's kitchen, or a home with lower monthly payments in sunny Arizona, became extremely alluring. All the while, interest rates kept dropping, adding fuel to a scorching-hot housing market and boosting shoppers' buying power. Home appreciation was supercharged in 2020 by massive demand and limited supply, driving typical home values up 8.4% ($20,716) over the course of 2020, compared with 3.7% growth ($8,791) in 2019. Tucker said the trend could contribute to convergence in home prices, as people move away from the priciest cities and toward...

TD Ameritrade Investor Movement Index Trends Slightly Lower in April

2021-05-10 12:00:01  |  investing 

... hile jobless claims dropped sharply during the period and reached the lowest point since the beginning of the pandemic. The Federal Reserve also held interest rates near zero and announced plans to continue to support the economic recovery. Source: TD Ameritrade, Inc. ...

Bullish Sentiment Hits Pre-Pandemic Levels

2021-04-13 12:00:01  |  investing pandemic 

...  of StreetWise, the E*TRADE quarterly tracking study of experienced investors. Results indicate investor views across the market and the economy improved: “Despite investor unease as interest rates shot higher over the last quarter, optimism grew as the market hit new all-time highs, vaccines increased, stimulus measures continued, and earnings estimates are high,” said Mike Loewengart, Managing Director of Investment Strategy at E*TRADE Financial. “But while the market is running hot, investors should keep a watchful eye on their portfolios to see if now is a good time to rebalance...

Homeownership Remains Affordable For Average Workers Despite Price Spikes

2021-04-01 12:00:01  |  housing real estate 

... ...

Home Prices Hit an All-Time High of $370,000 in March

2021-04-01  |  housing real estate 

... to the more than 200,000 new listings deficit over the previous two months relative to the 2017 to 2019 average for the same time period. Rising interest rates have yet to deter buyers, or perhaps, they are pushing them to act quickly. Either way, the typical home spent 54 days on the market in March, six days less than last year. Homes are selling even faster in the 50 largest U.S. metros, spending an average of 39 days on market. Buffalo, N.Y., saw the greatest decline in days on market, with homes selling in just 29 days on average, 30 days faster than last year. Homes also are selli...

Millennials More Likely To Have Emotional Connection To Their Home

2021-03-30 12:09:00  |  housing 

... f security might be superficial. 80% of retired American homeowners are funding their retirement through social security and 70% with a pension — just 2% used funds from selling their home to fund their retirement. More than half (55%) of working age homeowners are planning to fund their retirement through social security and 36% with a pension — 59% are planning to fund their retirement with a 401(k). 89% of retired homeowners are confident in the amount of money or assets they had saved by the time they were retired. 68% of working-age homeowners are confident in the amou...

Mortgage Rates Jump Up

2021-03-25 19:08:19  |  housing interest rates 

... ect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey. Source: FreddieMac ...

Consumers Split On Proactive Advice From Their Financial Institutions

2021-02-23 15:00:00  |  advice banking 

... reach Unattractive savings and loan interest rates Competitive offers 2) Trust is most important to customers. 66% of customers tell banks “be honest with me” — if you make a mistake, be honest with me about it, and correct it. 59% say “deliver on your promises” — if you promise to deliver a payment in two days, make sure I can access the funds in two days. If you promise to protect my data, don’t fail. 3) Gen X and Millennials are willing to pay more to receive personalized recommendations to improve their financial well-being. 35% of survey r...

Self-Directed Investors Changed Their Strategy As A Result Of Covid

2021-02-22 14:00:00  |  investing demographics 

... lations (27%) and interest rates (24%). Broker dealers: For their online brokerage accounts, at 66% more investors said an easy to use web and desktop platform is an essential feature than any other, followed by real-time market data (61%) and commission-free trades (60%). 39% identified customer support by phone as the most essential feature, 38% want a free mobile trading app, and 35% are looking for advanced trading features, such as charting and stock screeners. A free mobile trading app is essential for more than half of investors 40 and under (52%) vs. fewer than 1 in 3 (31%) invest...

January Home Sales Climb

2021-02-17  |  real estate 

... nounced as what we saw in the back half of 2020, but it was solid by any objective measure – and it signals that 2021 could be an historically good year for housing. Uncommonly low interest rates, the ascent of the millennial homeowner and the prospect of working from anywhere are converging to shape a housing market unlike any other. We could see mortgage rates begin to inch up soon, so now might be an ideal time for homebuyers and sellers to make their move and take advantage of the favorable conditions." Although the growth in sales moderated a bit, other key metrics showed the afteref...

American Consumers Turn to Stock Market amid Pandemic Restrictions and Stimulus

2021-02-09  |  investing 

... , but the rise of individual investors tells a broader story about spending habits during COVID-19," said Denise Dahlhoff, Senior Researcher at The Conference Board. "Trends like low interest rates and declining debt concerns—alongside below-normal spending on vacations and out-of-home entertainment due to pandemic restrictions—have left a portion of Americans with more disposable income and fewer ways to spend it. Stocks, which continue to yield strong returns, have become an increasingly attractive option for these consumers." Additional insights from the inaugural US Consumer Dynamic...

Mortgage Rates Move Little in Latest Survey

2021-01-22 15:00:00  |  mortgage interest rates 

... e now seeing rates fluctuate a bit as political and economic factors drive Treasury yields higher. However, we forecast rates to remain relatively low this year as the Federal Reserve keeps interest rates anchored near zero for a longer period of time, if needed until the economy rebounds.” 30-year fixed-rate mortgage averaged 2.77 percent with an average 0.7 point for the week ending January 21, 2021, down from last week when it averaged 2.79 percent. A year ago at this time, the 30-year FRM averaged 3.60 percent. 15-year fixed-rate mortgage averaged 2.21 percent with an average 0....

Auto Sales to Jump in 2021

2021-01-21 14:00:00  |  transportation spending 

... he average transaction price for a new vehicle hit an all-time record high of $40,573. Edmunds analysts expect this number to go up as affluent consumers benefiting from lower interest rates and healthy stock and housing markets continue buying bigger, more expensive new trucks and SUVs. At the same time, more affordable options in the new car market are growing increasingly scarce as automakers shutter their car lines, which Edmunds experts say will create a barrier to entry for many consumers and force them into the used car market. COVID-19 vaccines will help keep auto sales steady but w...

Vaccine Deployment To Accelerate Economic Growth

2021-01-15  |  economy 

... of home sales. However, in our view, a modest slowdown in the sales pace is unlikely to prevent year-end 2021 home sales from being higher than 2020," Duncan concluded. Source: Fannie Mae...

Pandemic Bolsters Financial Acumen

2021-01-12  |  debt credit cards 

... card debt has long topped $1 trillion in this country and was trending up before the pandemic, but the survey shows nearly 1 in 5 people say, "I'm paying more attention to the interest rates on my credit cards." Nearly 1 out of 5 now rethink how they make large purchases, saying they're more willing to buy used cars and other pre-owned big-ticket items. A quarter of American adults have nothing saved for retirement, according to the U.S. Federal Reserve, but only around 15 percent of survey respondents reported, "I'm not ignoring retirement savings like I once did." Other survey findi...

Lack of Financial Knowledge Cost Americans $415 Billion in 2020

2021-01-07 12:00:00  |  financial literacy 

... ving financial knowledge can empower individuals and the Country." Deficits in personal finance capability increase people's risk of incurring bank fees, facing high interest rates on loans and credit cards, and losing money in investments. It should be noted that the survey results may represent an underestimate of actual losses, since people may lack financial knowledge but remain unaware of their lost opportunities. Source: NFEC...

Ownership More Affordable Than Renting In Nearly Two Thirds Of U.S. Housing Markets

2021-01-07  |  housing interest rates 

... ies and have risen more than wages in almost two-thirds of the nation. Home ownership is more affordable in almost two-thirds of the country following a year when the impact of declining interest rates helped counteract home prices that rose faster than rents and wages. Trends favoring home ownership show up most in suburban and rural areas with the most affordable home values, while renting remains more affordable in the biggest cities. Home ownership is more affordable than renting in counties with a population of less than 1 million, especially among those with less than 500,000 peopl...

Millennials Rush to Refinance as Interest Rates Hit Record Lows

2021-01-06  |  housing mortgages millennials 

... e of younger millennials at 24%. Both millennial sub-groups secured historically low average interest rates; 2.97% and 2.94%, respectively, for older and younger members of this demographic.Year-over-year, refinance share – the percentage of all loans closed by millennial borrowers during the month that were refinances – increased by 14 percentage points. The continued increase in refinance activity happened as the average interest rate on all 30-year loans dipped for the eighth consecutive month down to 2.97% – the lowest point since Ellie Mae began tracking the data in January 2016. ...

Health of largest U.S. corporate pension plans showed no improvement in 2020

2021-01-04 09:32:54  |  pensions retirement 

... ong government bonds, typically used in liability-driven investing strategies, realized gains of 13% and 18%, respectively. “Over the past several years, declining interest rates have erased the gains from strong investment performance,” said Monica Martin, senior director, Retirement, Willis Towers Watson. “With limited improvement in funding levels and a low interest rate environment, sponsors will want to consider the effects the pensions may have on corporate earnings and free cash flow while also considering the outlook for future investment performance.” Source: Globalne...

Homeownership Increasingly Unaffordable in U.S.

2020-12-31  |  housing 

... age and a $100,000 loan. Those expenses include property taxes, home insurance, mortgage payments and mortgage insurance. Average 30-year fixed interest rates from the Freddie Mac Primary Mortgage Market Survey were used to calculate the monthly house payments. The report determined affordability for average wage earners by calculating the amount of income needed for major home ownership expenses on a median-priced home, assuming a $100,000 loan and a 28 percent maximum "front-end" debt-to-income ratio. For instance, the nationwide median home price of $297,200 in the fourth quarter of 2020...

Mortgage Rates Remain Near Record Low Heading Into 2021

2020-12-31  |  interest rates housing 

... l upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey. Source: Freddie Mac news release...

Mortgage Rates Hit Record Low at Yearend

2020-12-28  |  interest rates mortgage 

... rrowers may still pay closing costs which are not included in the survey. Source: http://www.globenewswire.com/news-release/2020/12/24/2150517/0/en/Mortgage-Rates-Hit-Record-Low-at-Yearend.html ...

SoFI Creates Weekly Income ETF (TGIF)

2020-10-02 12:00:00  |  investing income 

... dable, and diversified investments for their portfolio," said Anthony Noto, CEO of SoFi. "TGIF can help provide our members with a means of generating consistent income at attractive interest rates, with potential for a lower level of risk than the stock market. Whether an investor is just beginning their financial journey or they have decades of experience under their belt, cultivating an income-generating component to a portfolio is an important step, and we're very proud to be offering this first-of-its-kind fund." TGIF will be sub-advised by Income Research + Management and Exponential ...


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