Top news articles for financial advisors and personal finance
Week of 10/10
This week's recap focuses on mortgage rates higher than the financial crisis, September’s CPI report, a student loan forgiveness loophole, and retirement concerns.
Mortgage Rates Hit 6.92%, a 20-Year High (Ben Eisen, The Wall Street Journal)
Interest rates on a 30-year fixed mortgage reached 6.92% this week, eclipsing the peak rates during the financial crises. With such high interest rates, a family looking to buy a $500,000 home will pay more than double in interest over time compared to if they had bought the same home when interest rates were low earlier this year. Families looking to buy have been forced to postpone their plans and continue renting or cut back costs in other areas of their lives to make mortgage payments. Read more about the repercussions of these high interest rates.
September Inflation Report Prices Rise Faster Than Expected (Jenna Smialek, The New York Times)
The anticipated CPI report for September has been released. Inflation is still on the rise, rents are up, and services are becoming more costly. Read September’s report above.
The Student Loan Forgiveness Loophole For High-Income Earners (Michael Durkheimer, Forbes Magazine)
In the past few weeks, student loan relief has been the talk of the town. Students earning less than $125,000 or $250,000 combined can receive up to $10,000 forgiven on their student loans. The White House mentioned that high-income earners will not benefit from student loan relief. But there’s a loophole. Read on to see how you may qualify for relief even though you don’t quite fit the income barriers.
Majority Of U.S. Retirees Fall Far Short Of Income Targets, Goldman Says (Ben Mattlin, Financial Advisor Magazine)
Retirement is a time that many work towards. It’s a time when you live off your life’s earnings and investments. A recent study by Goldman Sachs Asset Management shows “a majority of retired Americans are living on less than half of their preretirement annual income, even when Social Security is included”. Read more about what type of wording clients responded to positively.
Home Flippers Get Burned By Housing Market's Sudden Slump (Prashant Gopal, Financial Advisor Magazine)
Even just a few months ago home flippers were doing well and reaping reward rather than risk. With a nearly 2% climb in interest rates since August, flippers are hoping to just break even. Read more about the change in home flipping since earlier in the year.
