According to the latest Federal Housing Finance Agency’s (FHFA) House Price Index (HPI), home prices were up 3.9% from February 2024 to February 2025, after rising 0.1% in February.  The FHFA HPI is the nation’s only collection of public, freely available house price indexes that measure changes in single-family home values based on data from all 50 states and over 400 American cities that extend back to the mid-1970s. Click here to read the full report at the FHFA.   The post FHFA Says Home Prices Up 3.9% Year-Over-Year appeared first on Real Estate Investing Today.

Americans are purchasing one-third as many vacation homes as they were during the pandemic buying boom. High prices and mortgage rates, along with the return of in-office work, have made the prospect of owning a second home less appealing than it once was.   U.S. homebuyers took out 86,604 mortgages for second homes in 2024, the lowest level in records dating back to 2018 and down 5% from a year earlier.  This is according to a Redfin analysis of Home Mortgage Disclosure Act (HMDA) data covering purchases of second homes, primary homes and investment properties from 2018 to 2024. The term “vacation home” is used interchangeably with “second home” in this report. There are more details on methodology at the end.  While mortgages for second homes dipped to a six-year low in 2024, the rate of decline slowed substantially from the two years prior. In 2022, second-home mortgages fell 42% year …

With new listings rising and pending sales declining, Redfin agents suggest sellers set their asking price fairly from the start to attract buyers and avoid price drops.  The median U.S. monthly housing payment hit an all-time high of $2,868 during the four weeks ending May 4. That’s due to two key factors: Home-sale prices are up 1.8% year over year, and the weekly average mortgage rate is 6.76%, down slightly from mid-April but elevated well above pandemic-era lows.  Those record-high housing costs, along with widespread economic uncertainty, are stunting this spring’s homebuying season. Mortgage-purchase applications increased last week, but they’re down 6% month over month. Additionally, pending home sales are down 3.9% year over year, the biggest decline in three months. A holiday effect is also pushing down sales; Easter fell into this year’s four-week period, but not last year’s comparable period. Still, some house hunters are hitting the pavement. …

According to their “advance” estimate, the U.S. Bureau of Economic Analysis is reporting that America’s real gross domestic product (GDP) decreased at an annual rate of 0.3% in Q4 2024. Click here to read the full report at the U.S. Bureau of Economic Analysis.     The post GDP Down 0.3% in Q1 2025 appeared first on Real Estate Investing Today.

Fed decides to hold in May Although widely anticipated, the Federal Reserve didn’t change the federal funds target range at its May meeting. With the annualized pace of inflation still above its long-term goal of 2% and the Trump Administration’s power consolidation causing social and economic turmoil, the central bank continued the wait-and-see approach. “The Fed took a cautious stance due to inflationary pressures and the global economic uncertainty happening around tariffs and labor costs,” said Tim Lawlor, chief financial officer at Kiavi. “While many are hoping for clear signals of rate cuts, the data remains too mixed to take decisive actions.” Find your lowest rate. Start here How will mortgage rates react to the Fed news? Interest rates typically rise alongside increases to the fed funds rate and decline after cuts. However, mortgage rate movements varied in the immediate aftermath of the most recent Fed decisions. The day following …

If you’re thinking about selling your home but aren’t sure how to go about it in today’s market, you’re not alone. High mortgage rates, economic uncertainty, and rising costs of living have many homeowners rethinking the traditional way of selling — or avoiding it altogether. But here’s what’s different in 2025: You have real options. A growing number of sellers are exploring non-traditional paths to meet their needs for speed, flexibility, and control. Whether you want to avoid hefty commissions, skip the hassle of prepping your home, or just sell on your own terms, alternative selling models are becoming more mainstream — and in some cases, more appealing than the old-fashioned agent-and-open-house route. This guide will walk you through the most popular modern selling options, explain when working with a traditional agent still makes sense, and help you decide which path fits your goals. Check your home equity loan options. …

According to the ADP National Employment Report for April, 2025, private sector employment increased by 62k jobs and annual pay was up 4.5% year-over-year. The ADP National Employment Report is an independent and high-frequency view of the private-sector labor market based on the aggregated and anonymized payroll data of more than 25 million U.S. employees. “Unease is the word of the day. Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data…It can be difficult to make hiring decisions in such an environment”  Said ADP chief economist Dr. Nela Richardson. Click here to read the full report at ADP.     The post ADP National Employment Report – April 2025 appeared first on Real Estate Investing Today.

In Denver and Seattle, families pay nearly as much for daycare as they do for rent–and they pay much more for daycare than rent if it’s for two children. The average monthly cost of sending one child to daycare in Denver is $1,434, equal to 83% of the typical rent payment ($1,720) in that metro area. Sending two kids to daycare in Denver costs $2,867, or 167% of the typical rent payment.  In Seattle, the average cost of sending one child to daycare is $1,660, equal to 80% of that metro area’s rent payment ($2,065). For two kids, that’s $2,320 for childcare, or 160% of rent.  Minneapolis comes next in terms of where childcare costs most relative to rent. The typical daycare cost in Minneapolis is $1,186, equal to 78% of the area’s typical rent cost of $1,526 (155% for two kids). Rounding out the top five are San Francisco …

The Rule of 72 By Jeffrey S. Watson A new investing colleague and I were talking about the “Rule of 72”. I explained what it is and how easy it is to make the calculation when you don’t have to consider the sticky fingers of the taxing authority when investments are made in Roth accounts, for example. The Rule of 72 is a simplified formula to calculate how long it will take for an investment to double in value: t ≈72/r, where t is the number of periods required to double an investment in value, and r is the interest rate per period as a percentage, not as a decimal. For example, if your investment is earning 12% a year, 72 ÷ 12 = 6, which means it would take approximately 6 years for your investment to double in value. Using my financial calculator, the Rule of 72, and my ideal rate of …