Top news articles for financial advisors and personal finance
Week of 6/27
Each week, we are giving you Sora’s weekly report highlighting the top insights and relevant articles for financial advisors and personal finance. This week's recap focuses on security-based loans, competition in the credit card industry, college savings plans, mortgage rates, and benefits to considering a prenup for your wealth.
Mortgage Rates Drop After Three Weeks of Increases (Orla McCaffrey, Wall Street Journal)
The average 30-year fixed mortgage rate fell to 5.70% this week, down from 5.81% last week. Though this is good news, it still poses the issue that income is falling behind the rise in inflation. Families are seeing fewer pay raises and more frequently are feeling the financial strains of high rates. According to Realtor.com the average median price home is seeing an $800 increase in mortgage payments. Read more to stay up to date about the current mortgage environment.
Why Some Home Buyers Are Turning To Securities-Based Loans (Edward Hayes, Financial Advisor Magazine)
With competition in the housing market as fierce as it is, all cash offers are sometimes key to winning the bid on the home. Securities-based loans offer the opportunity for a buyer to get access to cash and make a bid on a home without mortgage contingencies. Read more about what the benefits and drawbacks of these securities-based loans are.
Reinventing credit cards: Responses to new lending models in the US (Amit Garg, Diana Goldshtein, Udai Kaura, Roshan Varadarajan, McKinsey & Company)
For the past few decades, credit cards have been a large source of unsecured lending in the United States. But their market position is gradually being undermined by the growth of point-of-sale (POS) financing offerings that combine installment lending with the convenience of card payments. Read more to understand how newer lending models could displace credit card lending.
66% Of Parents Worried About Paying For Children's Education, Survey Says (Joyce Blay, Financial Advisor Magazine)
66% of parents with children who planned to go to college reported that they were worried about paying for their children’s education, with half of respondents only having saved $15,000 or less. Read more about the findings of the survey that underscores how important it is to have a college savings plan for your clients.
Prenups are Rare. Here's Why That's Bad for Wealth Management (Lynnley Browning, FinancialPlanning)
With weddings in full swing post pandemic, financial advisors recommend that couples get a prenup especially as life brings many situations that couples won’t be able to foresee. Read more about why it might be best for your clients and/or their children to consider getting a prenup.