Andrew "Trey" Frison, Registered Representative

08/23/2023

The Challenge of Rising Mortgage Rates

The housing market has taken a hit as mortgage rates approach 7%, leaving potential home buyers concerned about their financial plans. Here's how to handle the situation:

📈 **Higher Rates**: The average 30-year fixed mortgage rate is now at 7.09%, causing uncertainty among buyers. While some predict rates may drop by year-end, it largely depends on the Federal Reserve's actions.

🏦 **Fed's Influence**: Mortgage rates are closely tied to the 10-year Treasury yield. Even if the Fed eases rates, the "stickiness" of the 10-year yield might keep mortgage rates high.

🏠 **Coping Strategies**:
1. **Timing is Complex**: Avoid trying to time the market based on economic predictions. Instead, consider personal circumstances such as job changes, marriage, or family planning.

2. **Downsizing Expectations**: Higher rates might impact your housing budget. Be open to adjusting your price range and making compromises in terms of property features or location.

3. **Focus on Monthly Payments**: Don't be swayed just by the headline mortgage rate. Consider how it affects your monthly payment. The difference in payment between 6% and 7% rates might be more manageable than you think.

4. **Budget Management**: Ensure your mortgage payment fits into your overall budget. Adjust other spending areas if needed to accommodate the increased payment.

5. **Negotiate Rates**: While securing favorable rates is more challenging, negotiation is still possible. Check with your financial institution for discounts based on your relationship or consider moving assets to secure a lower rate.

6. **Expert Advice**: Seek guidance from financial advisers and real-estate agents to explore competitive quotes and make informed decisions.

In this uncertain environment, focusing on your personal situation, managing your budget, and exploring negotiation options can help you navigate the challenges of higher mortgage rates. Remember, flexibility and informed decisions are key. 🏡📊

Buyers should focus on what they can control rather than try to predict mortgage rates.

06/30/2023

frugalrules.com

06/29/2023

When it's about planning your retirement it's not one-size fits, several factors come into play and hence one should customise their plan rendering to goals, risk-taking and investing capacity, expected regular monthly expenditure, rising inflation, one-time expenditures such as holidays, life expectancy, etc

financialexpress.com

06/27/2023

limra.com

06/26/2023

lifehappens.org

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debt.com

06/07/2023

It involves understanding the psychology of money, creating and sticking to a budget, managing debt , investing in ourselves and our future, avoiding overspending, building an emergency fund, and planning for retirement

entrepreneur.com

06/05/2023

After a three-year pause on student loan repayments due to the COVID-19 pandemic, borrowers will be required to resume making monthly payments starting from August 30th. This development signifies a significant shift for millions of Americans who had temporarily halted their student loan payments, providing relief during a financially challenging period.

For those effected, call your servicers to confirm the details of your monthly payments so you can calculate how much you will need to cut or adjust to make room for that recurring bill.

After a three-year pause, borrowers will have to make monthly payments again starting Aug. 30.

05/25/2023

wealthmanagement.com

05/24/2023

theglobeandmail.com

05/22/2023

The Wall Street Journal article, "Inflation Hit Americans' Finances Last Year, Fed Finds," provides insights into the significant consequences of inflation on individuals' financial situations in the United States. The study conducted by the Federal Reserve sheds light on the erosion of purchasing power among households, particularly those with lower incomes and fewer assets. As inflation poses challenges to financial planning, it becomes essential to consider strategies that address its potential risks.

Read the full article here:

The share of adults who reported being worse off financially climbed to the highest since 2014, according to a Fed survey, as inflation eroded earnings and savings.

05/17/2023

Policyholders of permanent life insurance have the ability to borrow against the accumulated cash value, which comes from regular premium payments plus any interest and dividends credited to the policy

investopedia.com