Saturday,
July 1, 2023
Top Story
The week in review
• Bullish sentiment on Wall Street has tapered at the beginning of the week following hawkish remarks from Chairman Powell and other Fed members. A number of speeches last week suggested the future of interest rate policy may be murky, despite June’s pause. Markets are now pricing a roughly 75% chance the Fed will hike rates by another 25 basis points at its next meeting.
• The average 30-year fixed-rate mortgage increased to 6.75%. Meanwhile, total mortgage application volume rose 3% compared to the previous week, driven by buyers seeking newly built homes. Applications for a mortgage to purchase a home also rose 3% for the week, the highest level since early May.
• New orders for US manufactured durable goods jumped 1.7% month-over-month in May. This follows an upwardly revised 1.2% rise in April and easily beats market expectations of a 1% decline. It also marked the third-straight month of rising orders and was largely led by a 3.9% increase in transportation equipment.
For more economic news, visit On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Only about 44% of Americans could pay for an unexpected $1,000 emergency expense.
Most people would like to have an emergency fund. But it can be hard to prioritize saving for a rainy day when the sun is out and you want to plan a beach getaway…or just pay your bills.
Most financial experts say you should have at least three to six months’ worth of basic living expenses in your emergency fund. One way to hit that target faster is to open a high-yield savings account and let compound interest do its thing.
Let’s say you open a SoFi savings account with $1,000, then add at least $1,000 a month using split direct deposit, earning you a 4.30% APY. This time next summer, you’ll have $13,283. The summer after that, your balance will grow to $26,105.
By setting up direct deposit with a SoFi high-yield savings account, your emergency fund can earn up to 4.30% APY.
