Monday,
July 29, 2024
Market recap
Dow Jones
40,589.34
+654.27 (+1.64%)
S&P 500
5,459.10
+59.88 (+1.11%)
Nasdaq
17,357.88
+176.16 (+1.03%)
Top Story
It’s Fed week! Will they or won’t they cut rates?
Market watchers and investors have a busy week ahead, with the Federal Reserve’s latest interest rate decision, blockbuster economic data points including the July jobs report, and big tech earnings.
U.S. stocks finished sharply higher on Friday
• The Dow Jones Industrial Average rose sharply on Friday and slightly on the week, but both the S&P 500 and Nasdaq Composite finished lower for the week.
• Core PCE, the Federal Reserve’s most closely watched measure of inflation, held steady at 2.6% year-over-year, and the market continues to expect a rate cut in September.
What to be on the lookout for today
• The Dallas Fed’s measure of manufacturing activity in Texas.
• In earnings, McDonald’s and ON Semiconductor will report.
Why you may not need to put 20% down to buy a house
Saving up for the down payment for a home can be a big obstacle for potential home buyers.
Maybe you heard about the 20% down payment rule of thumb, but that is not a requirement.
If you can’t get to 20%
Get assistance. There are state down payment assistance programs that can help eligible buyers with down payment and closing costs.
Smaller down payments. Qualifying borrowers can get an FHA loan for as little 3.5% down. Fannie Mae and Freddie Mac offer loan programs with 3% down payment requirements.
No money down. There are some loan options that don’t require putting any money down. A VA loan is a zero down payment mortgage guaranteed by the Department of Veterans Affairs, for example.
The flip side
However, the more money you put down the less you have to borrow, which would result in lower monthly payments. You are also more likely to qualify for a lower interest rate and better loan terms if you put more money down. Plus if you aren’t able to put 20% down, lenders will likely require private mortgage insurance (PMI) which increases your monthly housing payment.
Today’s top stories
Why are recession indicators flashing red?Certain recession indicators are sounding the alarm even though the economy is chugging along fine. What is going on?
Read more >> The state of spending: How Americans are feeling about their financesNearly four in 10 Americans said they’re having trouble paying their bills, and seven in 10 are cutting back on things like entertainment.
Read more >> How the bi-weekly savings challenge can boost your budgetIf regular savings are hard for you to stick with, consider savings challenges that can give you a plan and path to follow.
Read more >>Other news that caught our eye
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CrowdStrike said the vast majority of Windows sensors are back online after the cybersecurity firm’s massive outage.
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Delta Air Lines will reimburse passengers for out-of-pocket expenses accrued by cancellations related to the CrowdStrike outage, including rental cars, hotels, and meals.
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Chipotle found 1 in 10 locations were skimping on customer order sizes after accounts of stingy portions circulated on social media.
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Rideshare drivers will remain classified as independent contractors instead of employees in California following a ruling from the state’s Supreme Court.
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The largest HR association in the world dropped the term “equity” from its previous “inclusion, equity, and diversity” strategy, citing “societal backlash” and an aim to emphasize inclusion first.
Financial planner tip of the day
“Working on your credit involves more than just making credit card payments on time. Access your credit report from Equifax, Experian, and TransUnion and review it for accuracy. Make sure the payments you’ve made are reported as on-time, and look at your list of trade accounts to make sure there are no errors.”
Brian Walsh, CFP® at SoFi