Wealth! host Brad Smith sits down with experts on a range of personal finance topics to discuss strategies for building wealth and securing a financially...
sits down with experts on a range of personal finance topics to discuss strategies for building wealth and securing a financially secure future on Wealth!I'm Brad Smith and this is Yahoo Finance's guide to building your financial footprint.
And um you know, one of them is more from a secular perspective on, on the data center electrification infrastructure areas. Uh I think then uh the market gets a little bit more concerned and, and, you know, we see more of a risk off environment. Uh because quality has mattered in, in the Russell 2000 really is a kind of a lower quality type of, of benchmark And so, you know, it's got about 40 to 45% of the names within the Russell 2000 that, that don't make money, don't, uh, don't have earnings.
And, you know, you saw this back in July when, when the Russell uh took off on, on better growth, uh expectations, the, the pent up demand is there. Dan Sis, who is the FM investments senior portfolio manager, Dan, thanks so much for taking the time here with us today.Let's just take a step back and define this first and foremost, refinancing.
Now, in an interview with Yahoo Finance Melissa of William Raves remarked that as the fed lowers its benchmark interest rate, there's been a tremendous amount of pent up demand for people who have wanted to refinance either to consolidate a higher rate loan, home equity loan or to pay off credit card debt for home improvements.You have room room here similar to mortgages.
First step is to plug the following into a housing affordability, calculator, your household gross income, that's your annual pre-tax income, your debt think monthly payments on loans and credit cards. For this example, let's use $100,000 as the gross annual household income a bit more than the median with monthly debt servicing payments of $500.
So far in August, the read on the housing market, looking back at that month appears mixed, new home constructions are higher and home builders are more optimistic about the future as mortgage rates are dropping significantly here.Existing home sales fell more than expected in August here with her take on the market.
Well, since earlier this year, the typical home buyer will end up paying $400 less on their mortgage.It's just that people are still waiting for rates to drop more, for more inventory.There's still time, but the longer people wait, the more they're gonna end up competing against other buyers.
But there's some significant new rules from the National Association of Realtors as well that could impact that relationship or the percentage payouts as well. I mean, ballpark, what are we talking about right now in terms of the number of new homes that also need to be built out as well. A new realtor.com report shows rents across the biggest metro areas in the US are falling median rent prices for the month of August are now sitting just above $1700.Yahoo Finance housing reporter Danny Romero has the details.
Looking ahead, economists are expecting though that affordability will improve in the rental market as there has been this influx of supply that has been added to the market, which will put rental will which will put pressure on rent prices, brad.They really want to find an area where they can take their dog like a turf area specifically.
So if you have a bowling alley, people are gonna be uh they're more intrigued by those like wow factors, bowling alley and a place for fluffy.Well, you may have heard Fed Chair Jerome Powell over the last few months, repeat over and over again that the Fed is targeting a 2% inflation goal.The Federal Reserve has a dual mandate, maximum employment and price stability.The economy has made considerable progress toward the Fed's 2% goal.
Really the person who turned that thinking around was the one time Federal Reserve chair, Ben Bernanke. And so you want a little bit of a buffer uh for the fed to be able to cut interest rates when times are normal.Inflation prompted the fed to significantly tweak its policy in 2020 through something called average inflation targeting.So in other words, inflation can run a little hotter at times if it runs a little cooler other times, stubborn inflation coming out of the pandemic has reignited the debate over that 2% number.
As painful as the inflation of the COVID era has been, it would have been tremendously worse if we'd had to pay the cost in the form of much higher inflation.In order to bring that inflation back down, 51% of undergraduates finish college with student debt according to college board and it takes a borrower a little over 20 years to pay off student loans according to the education data initiative.We have Tricia Scarlata who is the JP Morgan Asset Management head of Education Savings.
And this is a major financial decision for families looking to make sure that they're also getting the bang for the buck on the other side too. That's number one folks are asking me today, you know, federal, you know, excuse me, the interest rates, the fed just dropped rates.Well, for federal loans, it doesn't mean much right now because remember that loan is locked in in the summer, but for private loans, certainly an opportunity to start looking and potentially refinance those loans.
But it's important to understand the cons the potential consequences of doing so here by converting your federal loans to private loans, you may lose some of the benefits that come with federal loans.Private loans may also have a shorter repayment period which means higher monthly payments over a shorter stretch of time before refinancing.
I mean, thinking about the total dollar figure of the expected rise in spend as well, I think it was somewhere around $3.2 trillion.So it's both and just depends which category you're in. I mean, it, it gets me every time, I guess uh as it's either showing up in my feed or even when I'm actually doing what I might think is some smart shopping online and doing some comparison shopping A I is in there somewhere as well.So previously, I think consumers didn't really trust A I, now 40% of them are saying they would use A I, they like A I helping them with what to get.
Because if you, if your appetite is diminished and you can't eat that much, you're going to have to eat the things that are really, really important.You're watching Yahoo Finance. So when we look at the, the candidates that are out there today, what you really have to keep them mind is they're across a broad spectrum.His job is to get the money down to generation uh four, his grandchildren.Now, he's also not very transparent which can cause people to be concerned.And then you have Vance and Harris in the middle and Vance, you know, started out poor, but he got a lot of the things I talk about in the book.
It's hard not to think that when they're selling hats and we've got t shirts and there's mugs and bobblehead dolls, there's industry around it.When, when pew research has surveyed them, they don't want conflict. But what's important going forward for any when he becomes president is how are we going to regulate this market?
A millennial who's lived in 4 countries in 5 years shares which places offer the cheapest childcare, food, and housing People on both sides of the aisle were surprised by the Federal Reserve cutting interest rates by fifty basis points. Is a move this significant a sign the Fed is becoming more political? On the latest episode of Capitol Gains, Yahoo Finance's Rachelle Akuffo, Washington Correspondent Ben Werschkul, and Senior Columnist Rick Newman discuss what happened at The Federal Reserve and what it means for Vice President Kamala Harris, former President Donald Trump and their respective campaigns.
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