Bankrate

How far do wages go in your city? Bankrate’s new study shows how far the average worker's salary goes in the 25 largest U.S. metros. After adjusting for the cost of living, the five metros where workers lose the most ground are San Francisco, Los Angeles, Seattle, New York and Miami, where “real” wages fall by at least 10%. On the other hand, workers in some metro areas see a boost in their purchasing power after factoring in the cost of living. The average worker’s “real” wages in San Antonio, St. Louis, Charlotte and Detroit were the only four metros where the average worker’s wages are outpacing the cost of living. For more, please visit: https://lnkd.in/eFJ4can2

This is a winter of discontent for prospective homebuyers who face a rebound in mortgage rates and the persistent increase in home prices. Predictions abound that mortgage rates could ease this year, but that is far from certain. Mortgage rates have risen to back above 7% for a 30-year fixed. Bankrate's weekly survey of large lenders puts it at 7.19%. This confounds many folks since the Federal Reserve began reducing its benchmark rate last year. Mortgage rates in the U.S. are more closely related to the yield of the 10-year Treasury bond. Yields have risen amid resilient economic growth, expectations for fewer Fed rate cuts, and federal debt and deficit concerns. Housing affordability has been undermined by the continued rise in home prices, insufficient supply of homes for sale, and the move up in mortgage rates to the highest since last May. What can prospective buyers do? I joined NPR’s “Morning Edition” to offer a few tips, one of which is to consider waiting and continuing to save for a purchase.

The December Consumer Price Index is set to be released this week and could signal what to expect from the Federal Reserve this year. Bankrate Chief Financial Analyst Greg McBride, CFA breaks down what to expect from the inflation report.

The December unemployment report checks off several boxes satisfying hopes for the U.S. economy. The main takeaways: -The unemployment rate fell 0.1% to 4.1% -Hiring was stronger than expected with 256,000 jobs added to payrolls. -Average hourly earnings are up 3.9% over the past year, affirming the notion that the job market is not itself a key source of inflation. Here's my video on what to know about the Labor Department report:

Almost half of cardholders (48%) are carrying debt from month to month, according to a new Bankrate survey. That’s a slight improvement from mid-2024 but still up significantly from late 2021. It's clear that high inflation and interest rates have left a lasting impact. Credit card balances are up 51% from early 2021, according to the New York Fed, and rates have only nudged slightly lower after hitting a record 20.79% in August. If you're among those carrying a balance, it's crucial to take action. A balance transfer card with a 0% interest term can be a game-changer. By paying about $300 per month, you could eliminate the average credit card balance ($6,380, according to TransUnion) in 21 months without accruing interest. Contrast that with minimum payments which would drag on for 18 years and cost you about $9,400 in interest if you have the average balance and the average interest rate (20.27%). Balance transfer cards typically charge an upfront transfer fee (often 3 to 5%), but that’s well worth it if you make meaningful progress during your interest-free term. Hopefully you can knock out your entire balance before the clock expires. If not, the rate will go way up. A solid backup plan for those with lower credit scores or a lot of credit card debt (more than five or six thousand dollars) is to work with a reputable nonprofit credit counseling agency such as Money Management International or GreenPath. https://lnkd.in/eVJ8j4r2

Are you carrying a balance on your credit card? 💳 According to a new Bankrate survey, 48% of credit cardholders carry debt from month to month. Of those carrying credit card debt, more than half (53%) have been in debt for at least a year. Among credit card debtors, the causes of debt include: - Emergency/unexpected expenses (47%) - Day-to-day expenses (28%) - Retail purchases (11%) - Vacation/entertainment expenses (9%) If you are in debt and looking to pay it off, Bankrate Senior Industry Analyst Ted Rossman offers this advice: “Take matters into your own hands to pay it down as quickly as possible. If you can't pay it off right away, sign up for a balance transfer card with a generous 0% interest term. You could pay about $300 per month and knock out the average credit card balance in 21 months without owing any interest.” For more, visit: https://lnkd.in/ehehcQua

In a year-end survey by Bankrate, we found that among the top financial priorities for Americans were plans to find a new job or additional income. What are the prospects for gaining employment, or upgrading a job here in the new year? The just released JOLTS (Job Openings and Labor Turnover Survey) gives us an indication and we'll learn more in the coming days with the Labor Department's December employment report, likely capping 2024 with the jobless rate in the low 4% range and steady hiring. Here's my video update on the job openings release.

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We begin the new year with the U.S. economy benefiting from solid momentum. At the same time, there's a huge level of uncertainty associated with the global economy and the potential impacts of actions by the incoming Trump administration and Congress. There are many questions we don't have answers to. In addition, will the Federal Reserve cut its benchmark interest rate in the year ahead, and by how much? My colleague Greg McBride, CFA has some thoughts on the interest rates that are most meaningful to all of us, spanning borrowing and savings. Here's his annual outlook: https://lnkd.in/eGAWWUVK