With annual inflation rising to 4.2%, consumers are busy with new ways of managing money and lifestyles. For those who need help with health care costs, solutions like direct primary care are becoming more popular. Others try to increase their income by betting based on events within the global prediction market. While some shoppers charge for everyday purchases, current credit card debt levels are not as high as they were in decades past.
Home financing
Market update: What it means for homebuyers
The housing market is constantly evolving, and while headlines about interest rates and the economy can seem overwhelming, the bigger picture is often more encouraging than it seems.
Recent economic reports indicate that the labor market is cooling, but remains generally healthy. Employment has slowed compared to the rapid pace of the past few years, yet unemployment remains low and the economy continues to show steady growth. As a result, experts are closely monitoring upcoming inflation and employment data for clues about when the Fed might start cutting interest rates.
What does this mean for homebuyers?
While mortgage rates continue to fluctuate, today’s market is driven more by homebuyers than refinancing homeowners. Many buyers choose to move forward despite rising prices because they realize that waiting for the “perfect” market is not always the best strategy. Life doesn’t stop at interest rates, and many people are finding opportunities that fit their goals today.
The good news is that today’s mortgage market offers more options than many buyers realize. Whether you’re buying your first home, moving, downsizing, or investing, there are financing solutions designed to meet a variety of needs and financial situations.
The market will continue to change, as it always does. If you are thinking about buying, selling, or simply want to understand what current conditions mean for your plans, Speak with a knowledgeable loan officer It can help you separate headlines from opportunities.
Sometimes the best move is not to wait for the market to change, but to understand how to make today’s market work in your favor.
insurance
Health care options to replace ACA coverage
If you’re one of the millions of Americans who haven’t renewed their health care coverage under the Affordable Care Act (ACA) because of rising costs, you may have to settle for a plan with less coverage, or even let your plan lapse. If so, you may have one or more options that can help make your healthcare needs more affordable.
Direct Primary Care (DPC) enables you to get medical care without insurance. You can make care and payment arrangements with your health care professional and pay out of pocket. A DPC plan typically covers routine care, chronic condition management, and acute care visits. You can search for a DPC provider at these two sites: DPC border and DPC Alliance.
Medical cost-sharing: Sometimes called health care sharing plans, medical cost-sharing programs are community-based models in which group members pool their money to cover everyone’s approved medical costs collectively. Some have religious affiliations.
Your workplace may offer health reimbursement arrangements (HRA) instead of health insurance. (You can also get an HRA with health insurance or use the money to pay premiums for a plan you get on your own.) Only your employer contributes to the HRA. You usually don’t have to pay state or federal taxes on money paid to you from the account for qualified health care expenses.
Source: goodrx.com
In the news
Prediction markets take off
The start of the FIFA World Cup – sometimes described as the world’s most popular sporting event – has led to increased marketing for apps like Kalshi that provide easy access to prediction markets. If you’re wondering how to get involved in the prediction market, here are some basics.
Prediction markets are just what their name says. Participants can bet on their predictions for a variety of future events, from weather to sports results.
Ease of access and variety of betting options contribute to a rapid growth rate. According to one analysis, the total value of contracts traded in prediction markets could exceed $1 trillion by 2030, representing a compound annual growth rate of about 80%.
While there are hundreds of active prediction markets, the most popular is Polymarket. It is the largest in the world, where users can bet on a variety of events, from politics to pop culture. Calci, a fully regulated exchange in the US supervised by the Commodity Futures Trading Commission (CFTC), is the second most popular exchange.
If you or a loved one are considering placing bets within the prediction market, remember that pros and cons are similar to gambling. It may not be legal in your state, so be sure to check your state’s gambling laws. Also, some markets are not as regulated as others and may be vulnerable to manipulation and insider trading.
Source: American Century.com
Credit and consumer finance
Some credit card statistics that may surprise you
With rising inflation and unpredictable gas and energy prices, more consumers are using their credit cards to manage these challenges. However, the news is not all bad, and there are some surprises as well.
For example, credit card debt has been much worse for nearly 20 years — the household record occurred during the fourth quarter of 2007, when it rose to more than $13,000. Currently, the national average credit card balance is $11,153 per household.
If you assume that younger, less experienced cardholders have larger balances, think again. People ages 30-59 have 128.38% more credit card debt than their older and younger counterparts.
Depending on where you live, inflation may affect your salary more (or less). However, the following country statistics may surprise you. For example, Hawaii is often considered the most expensive state, but its residents have the 10th lowest average amount of credit card debt. (Average credit card debt means that half of cardholders in that state owe more than this amount, and half owe less.)
States with the highest average credit card debt:
1. Alaska, $3,683
2. District of Columbia, $3,502
3. Colorado, $3,305
4. Connecticut, $3,162
5. Washington, $3,051
States with the lowest average credit card debt:
1. Iowa, $2,148
2. West Virginia, $2,261
3. Kentucky, $2,296
4. Nebraska, $2,454
5. Mississippi, $2,473
If you’re concerned about credit card debt or want to learn more about budgeting, Feel free to contact your local APM Loan Advisor.
Source: Wallethub.com
Did you know?
How to solve problems with your HOA
Homeowners’ associations (HOAs) are usually led by several residents who are elected by their neighbors. However, those elected will decide who will serve as President, Vice President, Treasurer, and any other current role(s). Each of them will have their own responsibilities.
While most HOA leaders are aware of their obligations, things don’t always go smoothly. For example, some homeowners in Texas were fined by HOAs for brown lawns, even though the county’s water rationing was in effect. A similar problem arose in Florida, but HOA fines were overturned by a state law that allows homeowners to replace water-guzzling lawns with native landscaping.
If you are an HOA member or are considering purchasing a home with an HOA, here are options for resolving HOA-related issues.
Discuss your concerns with one or more HOA board members. There may be a good reason why the HOA does not maintain common areas or enforce parking rules, such as problems hiring workers to do those jobs.
During these conversations, you may realize that one board member is the source of one or more challenges. If you can’t reach this person, you may want to work with other residents and discuss your options. As a last resort, you may want to research the steps required to remove it from the board.
Review your county’s rules and laws. Board members may not be aware that local law prohibits environmentally unfriendly HOA rules, or that these laws will override their rules almost every time.
The above options should be enough to resolve your HOA problem, but if not, you may consider taking legal action. When this happens, you and any affected neighbors will need to gather valid evidence and consider hiring an attorney who specializes in these types of cases.
Source: cedarmanagementgroup.com
