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Added on the 24/05/2019 07:38:58 - Copyright : Wochit
Ending a six-month run of spiraling demand, sales of existing homes in the US contracted in November. It's being read as a signal that rising prices and historically low supply is finally slowing the housing market's rally. According to Business Insider, the National Association of Realtors says home sales fell 2.5% last month to a seasonally adjusted annual rate of 6.69 million. The median price for existing homes fell to a six-month low as well, dipping month-over-month to $310,800 from $313,100. Even so, the pace is still up 25.8% from the year-ago period.
In March, the US Federal Reserve's lowering of interest rates fueled a housing boom. According to Business Insider, the Federal Housing Finance Agency says that the explosion shows no signs of subsiding. A seasonally adjusted index of prices rose 1.7% in September from the prior month, and prices jumped 7.8% from their year-ago period. Mortgage rates hit their thirteenth record-low of the year last week. The average 30-year fixed-rate mortgage rate fell to 2.72% from 2.84%. However, experts say the good times in the housing market aren't likely to last forever. We expect some moderation in the pace of housing starts in the face of the rapidly escalating health crisis, a faltering recovery, and softening labor market gains. Nancy Vanden Houten, Lead US economist, Oxford Economics
The price of US housing in the third quarter of 2020 saw the biggest year-over-year jump since 2013. Markets Insider reports the median price for a single-family home rose 12%, mainly fueled by record-low mortgage interest rates. But there's a downside: Not every American is benefitting from the rally. In fact, Q3 saw the proportion of first-time homebuyers drop to just 31%. That's the lowest share in over 30 years. As home prices significantly outpace median family income growth, more Americans have been pushed out of the housing market and have had to delay homeownership.
If you've managed to get your bachelor's degree, congratulations! And if you're thinking about grad school, get your piggy bank out and start saving. According to Business Insider, getting a master's degree or Ph.D. in your chosen field can be a smart career move, but it can also be a financial time bomb. If you want to go to grad school five years from now, start saving. First, research schools, tuition, and determine your monthly and annual living expenses. Research any benefits your company may offer for free or subsidized tuition, and look into state programs and scholarships. Still paying on student loans from your undergrad degree? Refinance them now, when rates are low. Finally, if you have five years to save, consider using a 529 plan. If you want to start sooner, a high-yield savings account may be better.
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