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What is the 30% rule? And with rent costs on the rise, does it still apply?
We’ll look at the guideline and what it means for your housing budget.
US stocks were mixed Wednesday after the release of the FOMC minutes.
• The FOMC minutes highlighted that nearly every member of the Federal Reserve committee deemed it appropriate to raise interest rates by 25 basis points. A few Fed officials even advocated for raising rates by 50 basis points, and all participants agreed ongoing rate increases would be appropriate.
• The average 30-year fixed-rate mortgage reached its highest level since mid-November at 6.62%. This marked the second week in a row with a sizable move higher, following four consecutive declines. This signals the market’s evolving response to stickier inflation and a seemingly more hawkish Federal Reserve.
• Microsoft (MSFT) announced the preview release of its new Bing and Edge mobile apps. This will include access to its latest AI chatbot. Users will be able to start chat sessions via text or voice to access instant AI-generated responses, in what CEO Satya Nadella is calling the biggest thing to happen to Microsoft in his nine years leading the company – and the largest technological leap since cloud computing.
What to be on the lookout for today
• US GDP information will be published. This will include the release of second estimates for GDP growth rate and price index for Q4 2022. In initial estimates, the US economy grew at an annualized rate of 2.9% in the fourth quarter. It grew 2.1% across all of 2022.
• Earnings reports will be released by competing pizza chains Dominos (DPZ) and Papa Johns (PZZA), as well as payment platform Block Inc (SQ) and vaccine maker Moderna (MRNA). After shining in 2021, Moderna saw its revenue decline for three straight quarters in 2022, from $6.07 billion in Q1 to $3.36 billion in Q3. Wall Street will be eager to know what the biotech company plans now, with the worst of COVID-19 seemingly in the rearview.
The best form of self-care doesn’t cost a thing. In fact, financial self-care could save you both stress and money.
Financial self-care is as important (if not more important) than traditional forms of self-care, like heading to the spa or taking a personal day off of work.
Given that 73% of Americans say money is their number-one stressor in life, practicing financial self-care and minimizing money worries may be considered one of the most healthy lifestyle habits you could adopt.
One way to reduce your financial stress is by knowing you have back-up funds in case you really need them. A healthy emergency fund stocked with at least three to six months’ worth of expenses can provide peace of mind that no matter what happens, you’ll have it covered. Here are 6 steps for starting (and keeping) an emergency fund.
Today’s top stories
It will cost an average of $29,000 to say “I Do” in 2023. Wedding costs have waxed dramatically over the past few years. If you’re planning to tie the knot soon, here are a few ways you can prepare. Read more >> Despite an early 2023 rally, some market indicators show there may be more to the story than meets the eye. SoFi’s Head of Investment Strategy looks at the relationship between cyclicals and yields and what the recent split between the two could mean for the future of the market. Read more >> A car is typically considered totaled when the insurance company determines it will cost more to repair than the vehicle is worth. Beyond that, states have their own guidelines for when a car should be declared totaled. Curious what the “total loss threshold” is where you live? We have a state-by-state breakdown. Read more >>Not-so-breaking news
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Stellantis (STLA) posted a record net profit of almost $18 billion in 2022, up 26% from last year. The owner of Jeep and Dodge also announced a $4.47 billion dividend payment to shareholders.
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Coinbase (COIN) posted a hefty loss during the fourth quarter, along with a decline in usage. However, the crypto exchange still came out ahead, compared to what Wall Street expected.
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Palo Alto Networks (PANW) beat analyst expectations and raised its full-year guidance. This marked the third consecutive quarter of profitability for the cybersecurity company.
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Starbucks (SBUX) launched a line of olive oil-infused coffee drinks in Italy. The coffee giant is hoping this unique drink will help it break into a notoriously tough coffee market.
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Pfizer’s (PFE) RSV vaccine is set to receive FDA approval by the end of the summer. The vaccine is administered to pregnant women to protect infants from the respiratory virus.
Financial planner tip of the day
“Many checking accounts charge monthly maintenance fees, but you may be able to have them waived if you can meet certain requirements. Most commonly, you can skip the monthly fees if you set up direct deposits or maintain a certain account balance.”
Brian Walsh, CFP® at SoFi