The Federal Reserve is expected to announce a 25-basis-point interest rate cut, lowering the federal funds rate to a range of 4.25% to 4.5%, marking the third consecutive reduction. This follows strong job growth and stable inflation data, although future cuts may be limited due to potential economic shifts under the incoming administration. Meanwhile, the crypto markets are experiencing volatility, with Bitcoin and Ethereum both seeing declines ahead of the Fed's decision.
The Fed's interest rate cuts haven't led to lower credit card APRs, as issuers adjust rates in response to new CFPB rules limiting late fees. This shift may increase rates for new borrowers, while existing balances remain unaffected unless delinquent. With credit card debt reaching a record $1.17 trillion, experts advise consumers to avoid high-rate store cards and pay balances in full to maintain financial health.
Mortgage rates are expected to stabilize around 6% as the housing market sees increased activity from buyers and sellers who have delayed transactions. Economists predict a 4% rise in median home prices in 2025, while rental prices may remain flat, allowing renters more negotiating power. However, potential economic policies could introduce volatility in both mortgage rates and home prices.
A recent survey reveals that 82% of workers who requested a raise in the past year received one, with 66% of full-time employees getting a raise regardless of whether they asked. Most raises were modest, with 51% receiving less than $5,000, while 65% are optimistic about future increases. The report highlights a disparity in asking rates between genders and emphasizes the importance of performance and promotions in securing pay raises.
Mortgage rates have stabilized, with the average 30-year fixed rate at 6.78% as of mid-November, offering some relief to homebuyers amid market volatility. Experts predict rates will remain in the 6% range into 2025, influenced by economic growth and potential Federal Reserve actions. Homeowners may benefit from refinancing, especially if they secured loans at higher rates last year, as home equity continues to rise significantly.
IAC is considering a spinoff of Angi, its home improvement marketplace, which connects consumers with local service providers. The company, which owns 85% of Angi, noted that the spinoff could enhance shareholder value, although no specific timeline has been set. Angi's revenue fell 16% year over year to $296.7 million, attributed to reduced marketing spend, but it remains profitable with earnings of 7 cents per share.
Despite a recent half-point cut by the Federal Reserve, the average credit card interest rate has only decreased by 0.13%, remaining above 20%, near an all-time high. Many credit card companies are cautious in adjusting rates due to economic uncertainties, leaving consumers with high-cost debt. Experts recommend prioritizing debt repayment and exploring options for lower rates, as those with better credit scores can secure more favorable terms.
FICO and VantageScore are the two primary credit scoring systems, akin to "Coke and Pepsi," with distinct calculation methods. VantageScore, created in 2006, considers factors like balance and available credit, while FICO, established over 25 years ago, emphasizes payment history and amounts owed. To improve credit scores, consistently pay bills on time, maintain low balances, and limit credit applications.
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