Mortgage closing costs can decrease. Will we pay less? (June - Nova News)
Feels like just yesterday we were sharing the latest news, but it’s already a new month! While preparing to honor the fathers, let’s see what is going on in real estate and gather some insight from the current state of the economy.
HOT NEWS
36% of Americans view real estate as the top long-term investment.
Nvidia stock can continue to grow during 2024 by an estimated 24%.
The Fed holds interest rates steady.
TODAY'S TOPICS
The Consumer Financial Protection Bureau is after extra fees charged at closing for mortgages.
3 top best-performing S&P 500 stocks: Who is at the top as of June 2024?
Father’s Day: How much do Americans spend on special outings?
How an American man is good at buying winning lottery tickets.
The itsy bitsy spider can have the answer to better microphones.
QUIZ
1. How much did Americans spend on special outings for Father’s Day last year?
$3.8 billion
$1.5 billion
$4 million
$0.5 billion
2. What is the average age at which men become fathers in the US?
25
30
28
23
3. Which president signed a law making the third Sunday of June a national holiday, Father’s Day?
Franklin D. Roosevelt
George W. Bush
Richard Nixon
Jimmy Carter
(You will find the answers below)
REAL ESTATE
Current mortgage rates
30-year – 7.11%
20-year – 6.92%
15-year – 6.63%
10-year – 6.48%
Real estate news
Federal agents investigate “junk fees in mortgage closing costs.” The Consumer Financial Protection Bureau is looking into extra fees charged at closing for mortgages. While lenders can hit homebuyers with over 200 closing fees, the CFPB is zeroing in on those that have skyrocketed lately: discount points, credit report fees, appraisals, and title insurance. Learn more
36% of Americans view real estate as the top long-term investment. Real estate is overshadowing the traditional favorites like stocks and mutual funds (22%) and even the ever-reliable gold (18%). Even the safety and security of savings accounts and certificates of deposit (13%) couldn't compete with the appeal of investing in properties. Learn more
The number of active real estate agents has seen an unexpected increase. While it seems that the real estate market is slowing down, the number of active agents has increased. The growing number of active agents, coupled with their flexibility to switch brokerages, could potentially signal a stronger real estate market ahead. Learn more
U.S. ECONOMY
Inflation
Current US inflation rate – 3.3%
Unemployment
Current US unemployment rate – 3.9%
FED rate
Fed funds interest rate – 5.5%
U.S. economy news
The Fed holds interest rates steady. Officials estimate the Fed will lower rates by a quarter of a percentage point by year end. In the meantime, Americans will keep paying higher mortgage, credit card, auto loan, and other rates but will continue to enjoy higher yields in their savings accounts. Learn more
Regional banks downgrade alert. Moody’s Ratings announced that it may downgrade the debt ratings of at least six US regional banks due to their significant exposure to commercial real estate loans. The banks under review include First Merchants Corp., F.N.B. Corp., Fulton Financial Corp., Old National Bancorp, Peapack-Gladstone Financial Corp., and WaFd. Learn more
Automakers offer discounts and incentives for the first time in years. For the last 4 years, the demand was so strong that it was hard to get the car you wanted right away. Now, the market is shifting. The average interest rate on a used car reached 11.6%, which made cars unaffordable for many consumers. With higher interest rates and more cars on the lot, dealers offer discounts and incentives to avoid overproduction. Learn more
GLOBAL OUTLOOK
There are signs that the global economic outlook is improving. Inflation is falling faster than expected, and business confidence is increasing. The impact of tighter monetary policy, such as higher interest rates, is being felt in some sectors, but the overall economic activity is holding up well. The global GDP growth is projected to be 3.2% in 2025. Learn more
Inflation in Europe is decreasing, but there is still much to be done to control prices. The European Central Bank (ECB) still has 'a long way to go' to control inflation, according to its president, Christine Lagarde. Although the ECB cut interest rates for the first time since 2019, Lagarde stated that rates will need to remain restrictive to ensure price stability, despite the decrease in inflation and the expectations of reaching the 2% target next year. Learn more
STOCK EXCHANGE
Stocks recommended by experts
3 top best-performing S&P 500 stocks in June 2024 based on one-year results:
Vistra Corp (VST) – 278.51%
Super Micro Computer Inc (SMCI) – 231.55%
NVIDIA Corp (NVDA) – 184.89%
Learn more
Stock market news
Nvidia stock can grow even more till the end of 2024. Despite reaching record highs, analysts believe Nvidia stock has another 24% upside potential, fueled by the company's strong position to dominate the computing market for the next decade. Right now, Nvidia is a leader in enabling the IT industry to deliver AI services. Learn more
Record-breaking stock performance at risk due to the cooling job market. As jobs become harder to find, the stock market might be in trouble after a record-breaking first half of the year, where the S&P 500 saw its best performance in nearly 50 years for an election year. The unemployment rate has risen to 4%, and if job metrics don’t meet expectations, it could signal a larger economic slowdown. Learn more
COFFEE BREAK
Fun facts
3 top facts about Father’s Day:
Back in the day, roses were a big part of the Father’s Day celebration. Daughters gave red roses to their fathers during a special church service. Also, children used to pin roses onto their clothing.
First Father’s Day in the U.S. was celebrated in 1910. But it was officially recognized as a national holiday only in 1972.
Father's Day in the U.S. is the fourth most popular day for exchanging cards. Each year, around 72 million cards are addressed to fathers all over the country.
Fun news
An American wins a $100,000 lottery prize two years after winning $2M. John Robbins, a North Carolina man, won $100,000 from a scratch-off ticket after scoring a $2 million lottery prize in 2022. As he put it, “I was told lightning can't strike twice, but I guess it can.” Learn more
Researchers are using ideas from spiders’ webs to create sensitive microphones. This technology could also help treat hearing loss and deafness and improve other listening devices. It makes sense since spiders use their webs like giant external eardrums, sensing sounds from up to 10 feet away. Learn more
Investor of the month
Peter Lynch
Peter Lynch is one of the most successful investors in history and former manager of the Magellan Fund. Under his leadership, the fund achieved remarkable success, boasting an average annual return of approximately 29%, outperforming the S&P 500 for all but two years.
Lynch's investment philosophy emphasizes understanding the companies one invests in. What is his main investing rule? "Buy what you know." His approach resonated with investors worldwide and propelled the Magellan Fund's assets from $20 million to an astonishing $14 billion during his 13-year tenure.
QUIZ ANSWERS
A - $3.8 billion
B - 30
C - Richard Nixon
AD SPACE
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CONTENT YOU CAN’T MISS
This month’s recommended book
The Psychology of Money: Timeless lessons on wealth, greed, and happiness by Morgan Housel.
An award-winning author Morgan Housel explains how to make smarter financial decisions through 19 cases that are as grasping as they are instructive. Financial success is more about behavior than knowledge. While traditional finance focuses on formulas, real-life financial decisions are influenced by emotions and biases.
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