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First we had âshrinkflation,â now we have âupflationâ. Hereâs what it means
Remember when package sizes shrank but prices stayed the same? This inflation phenomenon was soon dubbed âshrinkflation.â But thereâs a new buzzword on the block, and itâs going into the opposite direction.
US stocks finished at record highs on Tuesday
• The S&P 500 and the Nasdaq Composite, as well as shares of Amazon, Microsoft, and Apple all marched to record closing highs.
• Fed Chair Jerome Powell said a lot of progress had been made to bring inflation down toward the Fedâs 2% target, but more needs to be seen. By end of day Tuesday, markets priced a near-70% chance of a September rate cut, according to CMEâs FedWatch Tool.
What to be on the lookout for today
• Itâs a shortened trading week on Wall Street, with markets closing early today and remaining shut on Thursday for July 4.
• The Minutes from the June FOMC meeting will be released.
• Weâll also get the service sectorâs PMI report for June, the U.S. balance of trade for May, and the Challenger job cuts for June, as well as the weekly update to unemployment claims and 30-year mortgage rate.
Are you feeling left behind in this housing market?
If so, youâre not alone.
Between the rising cost of homes and the high interest rate environment, many prospective home buyers feel priced out of the market.
This is especially true for younger buyers, including Gen Z. High rent payments, student debt, and the overall higher cost of living is making it harder to save up for down payments, keeping this generation from taking their first steps toward homeownership.
If you are looking to buy right now, here are some steps that can help you feel more in control.
Reducing sticker shock
How much can you really afford? Going into the process with open eyes and the knowledge how much home you can comfortably afford can make a difference to your confidence. Use a home affordability calculator to get there.
Get the best rate. A lower interest rate can not only lower your monthly payment, but will also reduce how much interest youâll pay over the life of the loan. To get there, itâs key to shop around, nurture your credit score, and consider your options. Higher down payments or the buying of discount points can lead to reduced rates.
Be flexible. Cast a wide net when it comes to your dream neighborhood. More flexibility on location can increase your chances to find the home thatâs right for you.
Todayâs top stories
Are worker shortages the new normal?The pandemic was followed by a massive worker shortage, which drove up wages and gave many workers more bargaining power. But a new report suggests labor shortages are the new normal. And there are economic consequences.
Read more >> Going to space doesnât mean you escape money worriesAstronaut and influencer Kellie Gerardi talked about space, money and motherhood on SoFiâs YouTube series Richer Live$.
Read more >> Applying for a home loan? Hereâs what youâll needDepending on your lender and the type of loan youâre applying for, the paperwork you need to submit can vary. Hereâs what you need to know.
Read more >>Other news that caught our eye
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The U.S. government awarded Moderna $176 million to expedite the development of its bird flu vaccine. A U.S. outbreak of the virus has infected three dairy workers since March.
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Costco shoppers are complaining about leaks in the new plastic-saving rotisserie chicken packaging. The transition from a âclamshellâ container to a food service bag is expected to save 17 million pounds of plastic per year.
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A federal appeals court approved the Education Department's plan to lower monthly payments for certain student loan borrowers from 10% of their discretionary income to 5% after a Kansas judge blocked the rule last week.
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The labor market is showing signs of softening, with fewer jobs available and fewer workers quitting. A weakening of the labor market could encourage the Federal Reserve to lower interest rates sooner rather than later.
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The Federal Trade Commission has unanimously blocked a proposed $4 billion merger of Mattress Firm and Tempur Sealy.
Financial planner tip of the day
âLife insurance isnât necessarily a must-have for everyone. But if you have dependents or debt â or think you might someday â you may want to take a closer look at whether life insurance could be a financial tool to help protect your loved ones and your legacy.â
Brian Walsh, CFPÂŽ at SoFi