Top news articles for financial advisors and personal finance
Week of 7/4
This week's recap focuses on current mortgage rates, alternatives to a traditional 30-year fixed mortgage, and AI as a tool for financial advisors.
Mortgage Rates Fall to 5.30%, Reflecting Recession Fears (Orla McCaffrey, The Wall Street Journal)
This week, mortgage rates saw their biggest decline so far this year to 5.30% for a 30-year fixed rate mortgage. The fall is likely due to fears of a recession as the 10-year Treasury yield also fell to the lowest level in a month. Read more about how this affects buyers and how despite this dip, mortgage rates are still very high for most Americans.
Fed’s Waller Backs 75 Basis-Point Rate Hike at Meeting This Month (Craig Torres, Bloomberg)
The Fed plans to raise rates by 75 basis points this month, and again by 50 basis points in September due to high inflation rates. Read more for details on comments from Federal Reserve Governor Christopher Waller.
Three Reasons Home Buyers Are Considering Adjustable-Rate Mortgages (Veronica Dagher, The Wall Street Journal)
With mortgage rates significantly higher than they were earlier this year, adjustable-rate mortgages are becoming increasingly popular. While in early January, only 3% of mortgages were ARMs, in late June, they accounted for 9.5% or mortgages. Read more about when ARMs might be right for your clients and the risks associated with them.
A 3% Mortgage? Leveraging Your Stocks To Buy A Home (Alexis Leondis, Financial Advisor Magazine)
With high mortgage rates, some individuals are turning to using investment as collaterals to get lower rates than a traditional mortgage. These rates can be as low as 3% compared to the 5%+ on a traditional mortgage. Read more about whether this mortgage could be right for your clients and how they should be used.
How artificial intelligence became financial advisors' favorite new tool (Frank Gargano, Financial Planning)
AI is changing the financial advisor toolkit by allowing advisors to have more continuous monitoring and providing clients with tools they can use to manage their accounts. Read more about how some advisors and firms are using AI to leverage their time and achieve scale like never before.