Hello,
Elvis once sang, “Home is where the heart is.” Well, according to a recent study that parsed U.S. Census data, home is also where a good chunk of the money is.
Mortgages
ResiClubAnalytics found that nearly 40 percent of owner-occupied homes don’t have a mortgage. And as you can see in the chart, that’s an all-time high.
So when you hear stories about the Federal Reserve, lower interest rates, and the housing market, keep the 40 percent figure in mind. Those homeowners may not care whether mortgage rates are 2 percent or 20 percent. They own their homes. They face a different set of decisions about the future. |
|
|
However, another cohort of homeowners were ready to pounce after the Fed’s bold decision to cut short-term rates by 0.50 percent following its September meeting. Applications to refinance home loans rose 20 percent the week ended September 20. Put another way, that was a 175 percent increase from a year ago.
Most people's primary residence plays a key role in their overall personal finances. A home is both an asset and a liability. It should not be overlooked when it comes to creating a financial strategy.
Real Estate Commissions On August 17, 2024, the National Association of Realtors, representing over 1.5 million real estate agents, agreed to a reconfiguration of their traditionally maintained fee structure as part of a $418 million settlement into antitrust claims.1 The final approval hearing is scheduled for November 26.
Realtors were usually paid around 5 to 6 percent of the total home sale price. 1 However, this restructuring means seller’s agents can no longer advertise commission fees to buyers’ agents on multiple listing services (MLS) that realtors use to list and find homes for sale. It's possible that agents representing buyers may seek compensation directly from their clients, creating an entirely new dynamic within the industry.
We hope this information provides some insight. At the same time, it's crucial to remember that every real estate transaction is unique, and this new fee structure could bring both opportunities and challenges.
But the next time we speak, let us know what’s going on with your home. We welcome the chance to hear about your ideas.
Warmly,
Your Eagle Wealth Team
This email is for informational purposes and is not a replacement for real-life advice. We encourage you to consult a real estate professional if you have questions about your home or mortgage.
These are hypothetical mortgage rates used for illustrative purposes only. They are not representative of any specific mortgage rate available.
ResiClubAnalytics.com, 2024
CNBC.com, September 25, 2024. “Mortgage refinance boom takes hold, as weekly demand surges 20%.”
FinancialSamurai.com, September 7, 2024. “Primary Residence Value As A Percentage Of Net Worth Guide” |
|
|
Upcoming Classes in BendAs you get older, it’s important to take time to focus on keeping your body and mind healthy so you can enjoy retirement. Bend Park & Recreation has some free events next week lead by physical therapy experts.
Check out classes and events on their website and posted below:
https://www.bendparksandrec.org/fitness-swim/events-workshops/?tab=2
Ask A PT Week | October 14 - 18
October is National Physical Therapy Month so we’ve invited local PT experts to join us during October 14 - 18 to address some orthopedic concerns. Whether you’re recovering from an injury or just looking to improve mobility, our team has got you covered! Don’t miss out on this opportunity for expert advice and personalized care. - Monday, October 14, 4:30 - 5:30 p.m. | Winterize Your Knees - Winter Sports Injury Prevention
- Tuesday, October 15, 8:00 - 10:30 a.m. | Adult Functional Independence Test for Optimal Aging (Pre-registration required)
- Tuesday, October 15, 12:00 - 1:00 p.m. | Lunch & Learn: Living with Arthritis
- Wednesday, October 16, 3:30 - 4:30 p.m. | Optimizing Outcomes for Total Hip & Knee Replacements
- Wednesday, October 16, 6:00 - 7:15 p.m. | Pelvic Health for Empowering You in Childbearing Years (Pre-registration required)
- Friday, October 18, 3:30 - 4:30 p.m. | Balance & Awareness – Why We Fall & How to Prevent it
Learn more details about each class at: bendparksandrec.org/fitness-swim/events-workshops/ |
|
|
The Week on Wall StreetStocks were essentially unchanged last week as geopolitical tensions added some volatility to an otherwise quiet trading week.
The Dow Jones Industrial Average was flat (+0.09 percent), while the Standard & Poor’s 500 Index ticked up 0.22 percent. The Nasdaq Composite also was flat (+0.10 percent). The MSCI EAFE Index, which tracks developed overseas stock markets, was a bit more unsettled by the geopolitical events, dropping 3.74 percent.2,3
Stocks Flat, Oil SpikesStocks posted modest gains on Monday, encouraged by upbeat comments in a speech by Fed Chair Jerome Powell. However, the modest gains pushed the S&P 500 and Dow to fresh records.4
As Middle East tensions escalated on the first day of October, stocks fell, bond yields rose, and oil prices rose as the news unfolded.5
On Wednesday, all three averages were flat. An ADP report showed higher-than-expected private sector job growth—a metric investors focus on. Oil prices continued to rise as investors watched the developments in the Middle East.6,7
Then, on Friday, stocks rallied after the Labor Department’s September jobs report topped expectations.8
Jobs Out FrontThe Labor Department’s jobs report gave investors some much-welcomed insights into the jobs market. At its September meeting, the Fed indicated it was watching the jobs market as closely as inflation, so updates on the jobs market are now considered as important as inflation reports.9
The report showed employers added 254,000 jobs, about 100,000 more than economists expected. It also showed that unemployment ticked down to 4.1 percent last month.10 |
|
|
Past performance is not a guarantee of future results. Any companies mentioned are for informational purposes only, and this should not be considered a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance.
Source: YCharts.com, October 5, 2024. Weekly performance is measured from Monday, September 30, to Friday, October 4.
TR = total return for the index, which includes any dividends as well as any other cash distributions during the period.
Treasury note yield is expressed in basis points. |
|
|
1. CNN.com, August 19, 2024. "Big changes to how you buy and sell a home go into effect today: What you need to know” 2. The Wall Street Journal, October 4, 2024
3. Investing.com, October 4, 2024
4. CNBC.com, September 30, 2024
5. The Wall Street Journal, October 1, 2024
6. The Wall Street Journal, October 2, 2024
7. The Financial Times, October 3, 2024
8. The Wall Street Journal, October 4, 2024
9. The Wall Street Journal, October 2, 2024
10. The Wall Street Journal, October 4, 2024 Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice. The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general. U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors. International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility. Please consult your financial professional for additional information. This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security. Copyright 2024 FMG Suite. |
|
|
|
|
|
