Tuesday,
March 14, 2023
Market recap
Dow Jones
31,819.14
-90.50 (-0.28%)
S&P 500
3,855.76
-5.83 (-0.15%)
Nasdaq
11,188.84
+49.96 (+0.45%)
Top Story
President Joe Biden is working to boost trust in the financial system, assuring the public that the banking system is secure after Silicon Valley Bank (SVB) and Signature Bank both closed over the weekend.
Here’s a breakdown of Biden’s remarks, the market’s reaction, and how this could affect the Fed’s interest rate strategy.
US stocks were mixed Monday as the Silicon Valley and Signature Banks’ closures continue to impact Wall Street
• Goldman Sachs (GS) no longer expects the Fed to hike interest rates at its next meeting on March 22nd. That said, markets are only pricing in a roughly 46% chance of holding rates flat, with the remaining 54% betting on a 25-basis-point hike.
• Gold rallied north of $1,900 while the benchmark US 10-year yield fell to 3.5%. Both moves marked levels not seen in nearly a month, as investors flocked to safer assets.
• Pfizer (PFE) announced it would acquire Seagen (SGEN) in a deal worth about $43 billion.The move is aimed at extending the company’s reach into cancer-treating drugs, combining Seagen’s technology with Pfizer’s scale and strength.
What to be on the lookout for today
• The year-over-year inflation rate will be released for February. Inflation slowed just slightly to 6.4% in January from 6.5% in December. However, it has remained stubbornly high for the past year or so. The Fed has already committed to raising interest rates as high as needed until inflation is back under control.
• Blade Air Mobility (BLDE) will give investors an update on its short-distance flight business. Notably, Blade is pivoting to “electric vertical aircraft” which could reportedly provide quiet, comfortable flights across mid-sized distances for small numbers of travelers.
What credit score is needed to buy a house? The number depends on the lender and type of loan.
What credit score do you need to buy a house? If you are trying to acquire a conventional mortgage loan, a loan not insured by a government agency, you’ll likely need a credit score of at least 620.
With an FHA loan, 580 is the minimum credit score to qualify for the 3.5% down payment advantage. Applicants with a score as low as 500 will have to put down 10%.
Lenders like to see a minimum credit score of 620 for a VA loan.
A score of at least 640 is usually required for a USDA loan.
A first-time homebuyer with good credit will likely qualify for an FHA loan, but a conventional mortgage will probably save them money over time. One reason is that an FHA loan requires upfront and ongoing mortgage insurance that lasts for the life of the loan if the down payment is less than 10%.
Credit scores aren’t the only factor that lenders consider when reviewing a mortgage application. Here is the mortgage loan process explained in 11 steps.
And if you want to understand the factors that affect your credit score and what you can do to influence them, sign up for credit score monitoring with Credit Insights by SoFi. You can track your score at no cost and earn cash rewards every time it goes up.
Today’s top stories
The TikTok generation’s soft spot for printed books, bookstores, and libraries is more than just a poetic coincidence. Almost 70% of Americans between the ages of 18 and 29 read printed books, compared to just 42% for ebooks. Read more >> High earners are signing leases over deeds – for more reasons than just one. As inflation takes a bite out of Americans’ wallets and mortgage rates remain sky-high, renting is becoming popular. Here’s what this means for the housing market. Read more >> When are a worker’s “peak earning years,” and what happens after they’re past? Let’s take a closer look at the average income by age in the US, according to the Bureau of Labor Statistics. Read more >>Not-so-breaking news
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Rivian (RIVN) is looking to end its exclusive deal with Amazon (AMZN) after the ecommerce giant ordered fewer EVs than expected. Despite only purchasing 10,000 vans so far, Amazon is still committed to buying 100,000 vans from Rivian by 2030.
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Chick-fil-A plans to spend $1 billion to expand into Asia and Europe. The chicken restaurant wants to open its first international locations by 2026, with locations in five international markets by 2030.
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Labor shortages and supply chain issues at a Kentucky bakery have led to a shortage of Girl Scout cookies. Opportunists are taking advantage of the shortage by reselling cookies online at marked up prices.
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Generative AI is booming, but the high cost of computing could keep the AI industry grounded. Unlike traditional software, this technology gets more expensive to run as more people use it.
Financial planner tip of the day
“IRAs offer individuals an opportunity to save money for retirement in a tax-advantaged plan, without relying on an employer-sponsored plan like a 401(k). In addition, with a few different types of IRAs to choose from, it’s likely that many people will find an account that fits with their needs and goals.”
Brian Walsh, CFP® at SoFi