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Wednesday, November 30, 2016

Mortgage Loan Rates at Multi-Month Highs Last Week - Yahoo Sports - Yahoo Sports


The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a week-over-week decrease of 9.4% in the group’s seasonally adjusted composite index for the week ending November 25. The MBA noted that weekly results included an adjustment for the Thanksgiving Day holiday. Mortgage loan rates rose on all types of fixed-rate loans over the past week.


On an unadjusted basis, the composite index decreased by 38% week over week. The seasonally adjusted purchase index decreased by 0.2% compared with the week ended November 18. The unadjusted purchase index decreased 34% for the week and is now 3% higher year over year.


ALSO READ: America’s Poorest Cities


The MBA’s refinance index decreased by 16% week over week and the percentage of all new applications that were seeking refinancing dropped from 58.2% to 55.1%, the index’s lowest level since June.


Adjustable rate mortgage loans accounted for 5.7% of all applications, up from 5.2% the previous week, the highest level since June. The average loan size for purchase applications reached a survey high at $312,400.


Mortgage rates have pulled back from multi-month highs of 4.25% posted the day before Thanksgiving. The noteworthy point is that mortgage rates climbed by 0.5% in just three weeks following the November elections, “a feat seldom duplicated in the history of mortgage rates,” according to Matthew Graham at Mortgage News Daily. As of Tuesday, most lenders were offering rates of 4.0% to 4.125%.


ALSO READ: Marijuana News Roundup: Trump AG Nominee Sessions No Friend to Cannabis


According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.16% to 4.23%, the highest rate since June 2015. The rate for a jumbo 30-year fixed-rate mortgage rose from 4.04% to 4.18%, its highest level since July 2015. The average interest rate for a 15-year fixed-rate mortgage increased from 3.35% to 3.48%, the highest since October 2014.


The contract interest rate for a 5/1 adjustable rate mortgage loan decreased from 3.24% to 3.23%. Rates on a 30-year FHA-backed fixed-rate loan rose from 3.90% to 4.00%, the highest level since July 2015.


Related Articles




Mortgage Loan Rates at Multi-Month Highs Last Week - Yahoo Sports - Yahoo Sports

TABLE-Hong Kong's drawndown mortgage loans fall 0.6 pct in Oct - Reuters



Fitch: Cheap Oil, Politics and Slow Reforms Keep MENA Outlook Negative



(The following statement was released by the rating agency)Link to Fitch Ratings’ Report: 2017 Outlook: Middle East andNorth Africa Sovereignshttps://www.fitchratings.com/site/re/890915HONG KONG, November 30 (Fitch) Persistent low oil prices willmaintain economic pressure on the oil exporters of MENA, which together withlimited fiscal reform and political risk, lead to a Negative Outlook for the region in2017, Fitch Ratings says in a new report. With three of the 12 MENA sovereigns (




TABLE-Hong Kong's drawndown mortgage loans fall 0.6 pct in Oct - Reuters

Saturday, November 26, 2016

schedule-for-week-of-nov-27-2016


The key report this week is the November employment report on Friday.


Other key indicators include October Personal Income and Outlays, November ISM manufacturing index, Case-Shiller house prices and November auto sales.



—– Monday, Nov 28th —–


10:30 AM: Dallas Fed Survey of Manufacturing Activity for November. This is the last of the regional Fed surveys for October.
—– Tuesday, Nov 29th—–


8:30 AM ET: Gross Domestic Product, 3rd quarter 2016 (Second estimate). The consensus is that real GDP increased 3.1% annualized in Q3, revised from 2.9% in the advance report.

Case-Shiller House Prices Indices9:00 AM ET: S&P/Case-Shiller House Price Index for September. Although this is the September report, it is really a 3 month average of July, August and September prices.


This graph shows the nominal seasonally adjusted National Index, Composite 10 and Composite 20 indexes through the August 2016 report (the Composite 20 was started in January 2000).


The consensus is for a 5.2% year-over-year increase in the Comp 20 index for September. The Zillow forecast is for the National Index to increase 5.4% year-over-year in September.



—– Wednesday, Nov 30th —–


7:00 AM ET: The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.

8:15 AM: The ADP Employment Report for November. This report is for private payrolls only (no government). The consensus is for 160,000 payroll jobs added in November, up from 147,000 added in October.


8:30 AM ET: Personal Income and Outlays for October. The consensus is for a 0.4% increase in personal income, and for a 0.5% increase in personal spending. And for the Core PCE price index to increase 0.1%.


9:45 AM: Chicago Purchasing Managers Index for November. The consensus is for a reading of 52.0, up from 50.6 in October.


10:00 AM: Pending Home Sales Index for October. The consensus is for a 0.8% increase in the index.


11:00 AM: The New York Fed will release their Q3 2016 Household Debt and Credit Report


2:00 PM: the Federal Reserve Beige Book, an informal review by the Federal Reserve Banks of current economic conditions in their Districts.



—– Thursday, Dec 1st —–


8:30 AM ET: The initial weekly unemployment claims report will be released. The consensus is for 253 thousand initial claims, up from 251 thousand the previous week.

ISM PMI10:00 AM: ISM Manufacturing Index for November. The consensus is for the ISM to be at 52.3, up from 51.9 in October.


Here is a long term graph of the ISM manufacturing index.


The ISM manufacturing index indicated expansion at 51.9% in October. The employment index was at 52.9%, and the new orders index was at 52.1%.


10:00 AM: Construction Spending for October. The consensus is for a 0.6% increase in construction spending.


Vehicle SalesAll day: Light vehicle sales for November. The consensus is for light vehicle sales to decrease to 17.8 million SAAR in November, from 17.9 million in October (Seasonally Adjusted Annual Rate).


This graph shows light vehicle sales since the BEA started keeping data in 1967. The dashed line is the October sales rate.



—– Friday, Dec 2nd —–


8:30 AM: Employment Report for November. The consensus is for an increase of 170,000 non-farm payroll jobs added in November, up from the 161,000 non-farm payroll jobs added in October.

The consensus is for the unemployment rate to be unchanged at 4.9%.


Year-over-year change employmentThis graph shows the year-over-year change in total non-farm employment since 1968.


In October, the year-over-year change was 2.36 million jobs.


A key will be the change in wages.







schedule-for-week-of-nov-27-2016

Mortgage Lenders Struggle to Adapt to Rapidly Rising Interest Rates - Wall Street Journal


The rapid rise in interest rates since Election Day is taking a toll on the mortgage market, and lenders are scrambling to adjust.


Since Donald Trump’s surprise victory, average rates for a 30-year, fixed-rate mortgage have leapt by more than half a point, to 4.18% on Wednesday. Rates still remain low by historical standards, but are now at their highest level since June 2015, according to MortgageNewsDaily.com.


The fast rise…




Mortgage Lenders Struggle to Adapt to Rapidly Rising Interest Rates - Wall Street Journal

Thursday, November 24, 2016

no-honeymoon-for-trump-and-news-media


WASHINGTON – It’s back to Twitter barbs at the “nasty” and “unfair” news media.


Two weeks after his election, Donald Trump’s relations with the press are as contentious as ever.



There is no honeymoon between the US president-elect and news organisations after a bruising campaign where the candidate dubbed journalists “thieves and crooks” and was himself labelled a “liar” on the news pages.



The Republican billionaire resumed his onslaught Monday during a closed-door session with high-ranking television executives where, despite expectations of fence-mending, he reportedly gave them a dressing-down over their coverage of the 2016 race.


On Tuesday, Trump cancelled then rescheduled a meeting with the New York Times, firing off a fresh broadside over what he called “nasty” coverage by his hometown daily.


The property tycoon, who has not held a news conference since his election, complained that the terms of the interview “were changed at the last minute,” an account the Times disputed.


Both Team Trump and the newspaper later confirmed the meeting was back on, after the two sides agreed on an off-the-record session with the paper’s publisher followed by an on-record interview.


The Times later reported that Reince Priebus, the incoming White House chief of staff, had misinformed Trump – telling him the terms had changed – in an apparent bid to prevent the interview, fearing he might face questions he is unprepared to answer.




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Trump announced he would meet the influential daily after all in an upbeat tweet saying, “Look forward to it!”


But that followed a stream of hostile early morning tweets assailing what he called a “failing” paper for continuing to “cover me inaccurately and with a nasty tone!” .


The dust-up with the Times came a day after Trump held an off-the-record chat with television executives and news anchors, with comments filtering out indicating Trump’s displeasure over coverage.


New Yorker editor David Remnick, citing sources attending the session, said Trump complained that NBC News used unflattering photos showing his double chin, and asked for “nicer” images.


Attendees said they were taken aback at the tone from the president-elect, who repeated claims of insulting and inaccurate coverage.


“I really am offended,” one of them was quoted as saying. “This was unprecedented. Outrageous!” Far from sobered by his heavy new responsibilities as head of state, one participant was quoted as saying Trump “is the same kind of blustering, bluffing blowhard as he was during the campaign.”


Trump spokeswoman Kellyanne Conway offered a different version, calling the meeting “cordial” and “productive,” adding that “there was no need to mend fences.”


US news organisations dug into a host of Trump controversies as he campaigned for the world’s most powerful office.


These included allegations by women that he had harassed or sexually assaulted them, his past failures as a real estate developer and indications that he avoided paying taxes for years.


The Republican pushed back hard – charging the election was being “rigged by corrupt media pushing completely false allegations and outright lies” and colluding to hand victory to Democrat Hillary Clinton.


Trump’s latest clashes with the media would seem to foreshadow a stormy relationship when he moves into the White House in January.


“I think he wants to scare them,” said Lucy Dalglish, dean of journalism at the University of Maryland: “He wants to chill them. He is retaliating. He feels he was not treated fairly and he is trying to get them to cower. But that’s the last thing you want to do with some of these people.”


Some groups have already complained Trump has not yet guaranteed “pool” media access, as has been customary in recent history, where a small group of journalists accompanies the president-elect on all public events and meetings.


“It’s not the media that needs this, it’s the pubic, and he doesn’t seem to understand the role that an independent, freely functioning media plays in a democracy. And not to recognise that role is troubling,” said Dalglish.


Joel Kaplan, associate dean of journalism at Syracuse University, agreed that the media and Trump are in uncharted waters.


“There is no precedent for the relationship between Trump and the press,” Kaplan said.


“Even those (presidents) who didn’t have the best relationship going in understood the role of the press and tried to court individual members.” Kaplan noted that Trump’s hand is helped by a deepening distrust of the news media by the US public, but claimed that should not be a reason to change coverage of the White House.


“I don’t think the general public can have a much lower opinion of the news media and honestly, the news media shouldn’t care,” he said.


“The role of the news media is to inform the public. Once that happens, the public is responsible for what it does with that information.”





no-honeymoon-for-trump-and-news-media

agencies-issue-final-rule-on-method-to-adjust-thresholds-for-exempting-certain-consumer-credit-and-lease-transactions-and-announce-2017-thresholds


Consumer Financial Protection Bureau

Federal Reserve Board of Governors


For release at 1:00 p.m. EST

November 23, 2016


Agencies Issue Final Rule on Method to Adjust Thresholds for Exempting Certain Consumer Credit and Lease Transactions and Announce 2017 Thresholds



The Federal Reserve Board and the Consumer Financial Protection Bureau (CFPB) today issued a final rule detailing the method that will be used to adjust the thresholds for exempting certain consumer credit and lease transactions from the Truth in Lending Act and Consumer Leasing Act.


The Dodd-Frank Act requires that the exemption thresholds in the Truth in Lending Act and the Consumer Leasing Act be adjusted annually based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The calculation method adopted in the final rule will allow the thresholds to keep pace with the CPI-W. Among other clarifications, the final rule details that if there is no annual percentage increase in the CPI-W, the agencies will not adjust the exemption thresholds from the prior year.


The final rule also applies the calculation method to the thresholds for exempt credit and lease transactions for 2017. The thresholds will remain at $54,600 based on the CPI-W in effect on June 1, 2016.


The protections of the Truth in Lending Act and the Consumer Leasing Act generally apply to consumer credit transactions and consumer leases at or below the thresholds. However, private education loans and loans secured by real property (such as mortgages) are subject to the Truth in Lending Act regardless of the amount of the loan.


The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 generally transferred rulemaking authority under the Truth in Lending Act and the Consumer Leasing Act to the CFPB. However, the Federal Reserve Board retains authority to issue rules for certain motor vehicle dealers. Therefore, the agencies are issuing these notices jointly.


The attached notices will be published shortly in the Federal Register.


Regulation M (PDF)


Regulation Z (PDF)









Media Contacts:
Federal ReserveSusan Stawick202-452-2955
CFPBSam Gilford202-435-7673



agencies-issue-final-rule-on-method-to-adjust-thresholds-for-exempting-certain-consumer-credit-and-lease-transactions-and-announce-2017-thresholds

Mortgage Rates Quickly Approach 2-Year Highs

Mortgage rates move abruptly higher today, bringing the average lender very close to the highest levels in more than 2 years. As it stands, rates are officially at 17-month highs, with June 26th, 2015 being the last day where rates were any higher. Prior to that, we’d have to go back to September 2014 to see anything higher. To give you an idea of how close we are to that dubious distinction, there are already some lenders whose rates are worse than June 2015’s. It’s only when we look at the broader average that we’re “not quite there yet.” Labels and statistics aside, rates are qualitatively in bad shape–relative to where they had been, at least. Several lenders who had been quoting 4.125% on top tier conventional 30yr fixed scenarios are now up to 4.25% . More aggressive lenders that had


Mortgage Rates Quickly Approach 2-Year Highs

Wednesday, November 23, 2016

lawler-table-of-distressed-sales-and-all-cash-sales-for-selected-cities-in-october


Economist Tom Lawler sent me the table below of short sales, foreclosures and all cash sales for selected cities in October.


On distressed: The total “distressed” share is down year-over-year in most of these markets.


Short sales and foreclosures are down in these areas.


The All Cash Share (last two columns) is mostly declining year-over-year. As investors continue to pull back, the share of all cash buyers continues to decline.



















































































































































































































































Short

Sales

Share
Foreclosure

Sales

Share
Total

“Distressed”

Share
All

Cash

Share
Oct-

2016
Oct-

2015
Oct-

2016
Oct-

2015
Oct-

2016
Oct-

2015
Oct-

2016
Oct-

2015
Las Vegas5.1%6.3%5.6%7.3%10.7%13.6%27.4%30.9%
Reno**1.0%4.0%2.0%3.0%3.0%7.0%
Phoenix1.8%2.7%2.0%3.6%3.8%6.3%21.0%24.6%
Sacramento2.3%4.0%2.0%3.5%4.3%7.5%14.4%17.8%
Minneapolis1.2%2.3%3.9%7.8%5.1%10.1%12.7%15.5%
Mid-Atlantic2.8%3.7%8.9%11.9%11.8%15.6%16.6%19.3%
Florida SF2.3%3.6%8.0%15.6%10.4%19.3%28.6%34.2%
Florida C/TH1.5%2.1%6.7%13.5%8.2%15.7%55.5%61.6%
Miami MSA SF3.5%5.7%8.3%17.1%11.8%22.8%29.6%33.8%
Miami MSA CTH1.6%2.5%9.1%16.5%10.6%19.0%58.8%63.9%
Chicago (city)13.0%18.3%
Spokane7.2%12.3%
Northeast Florida13.9%25.6%
Orlando29.0%36.5%
Toledo25.6%30.4%
Tucson23.4%28.1%
Knoxville22.6%25.4%
Peoria23.3%20.8%
Georgia***20.1%23.1%
Omaha16.1%15.5%
Pensacola
Rhode Island9.9%9.6%
Richmond VA8.0%9.3%16.3%17.1%
Memphis9.3%15.5%
Springfield IL**7.6%7.8%
*share of existing home sales, based on property records

**Single Family Only

***GAMLS






lawler-table-of-distressed-sales-and-all-cash-sales-for-selected-cities-in-october

national-mortgage-rates-for-nov-23-2016


About our Mortgage Rate Tables: The above mortgage loan information is provided to, or obtained by, Bankrate. Some lenders provide their mortgage loan terms to Bankrate for advertising purposes and Bankrate receives compensation from those advertisers (our “Advertisers”). Other lenders’ terms are gathered by Bankrate through its own research of available mortgage loan terms and that information is displayed in our rate table for applicable criteria. In the above table, an Advertiser listing can be identified and distinguished from other listings because it includes a “Next” button that can be used to click-through to the Advertiser’s own website or a phone number for the Advertiser.


Availability of Advertised Terms: Each Advertiser is responsible for the accuracy and availability of its own advertised terms. Bankrate cannot guaranty the accuracy or availability of any loan term shown above. However, Bankrate attempts to verify the accuracy and availability of the advertised terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. Click here for rate criteria by loan product.


Loan Terms for Bankrate.com Customers: Advertisers may have different loan terms on their own website from those advertised through Bankrate.com. To receive the Bankrate.com rate, you must identify yourself to the Advertiser as a Bankrate.com customer. This will typically be done by phone so you should look for the Advertiser’s phone number when you click-through to their website. In addition, credit unions may require membership.


Loans Above $417,000 May Have Different Loan Terms: If you are seeking a loan for more than $417,000, lenders in certain locations may be able to provide terms that are different from those shown in the table above. You should confirm your terms with the lender for your requested loan amount.


Taxes and Insurance Excluded from Loan Terms: The loan terms (APR and Payment examples) shown above do not include amounts for taxes or insurance premiums. Your monthly payment amount will be greater if taxes and insurance premiums are included.


Consumer Satisfaction: If you have used Bankrate.com and have not received the advertised loan terms or otherwise been dissatisfied with your experience with any Advertiser, we want to hear from you. Please click here to provide your comments to Bankrate Quality Control.




national-mortgage-rates-for-nov-23-2016

Tuesday, November 22, 2016

10 Best Jobs for the Future 2016


1. App Developer


See Also: 10 Worst Jobs for the Future 2016


2. Nurse Practitioner


3. Information Security Analyst


4. Computer Systems Analyst


5. Physical Therapist


6. Market Research Analyst


7. Medical Sonographer


8. Dental Hygienist


9. Operations Research Analyst


10. Health Services Manager


Learn more about the 10 best jobs of the future.




10 Best Jobs for the Future 2016

Canadians Feeling More Vulnerable to Fraudsters and Identity Thieves this Holiday Season



November 22, 2016


– 81% Concerned about Protecting their Personal Data –



TORONTO, ONTARIO — (Marketwired) — 11/22/16 — Heading into the holiday season, two in three Canadians (64%) say they feel vulnerable to fraudsters and identity thieves, an increase of approximately 10% from a year ago according to a recent study by Equifax Canada (NYSE:EFX) on consumer spending habits online and in stores.


“Fraudsters and identity thieves are most active at this time of year because most of us are spending more time shopping for holiday gifts, and during this hectic time the criminals are counting on us to let our guard down,” said
John Russo, Equifax Canada’s Chief Privacy Officer. “We’re either shopping online or pulling out our credit cards or other personal identification information from our wallets in stores, which makes us a prime target for identity thieves.”


MYTH-BUSTING & CONSUMER PERCEPTIONS


Retailers were called out with 87% of consumers agreeing that retailers must do more to protect the personal data of their customers. More than half of those surveyed (56%) also believed that people who shop online for most of their purchases are most likely to become victims of identity theft and 49% said they didn’t feel comfortable using a retailer’s mobile app to make purchases. Most people now recognize that identity theft can happen to anyone. One in five Canadians, however, still believes identity theft is something that happens to other people not them.


“Fraudsters don’t discriminate, they simply prey on anyone who makes themselves an easy target,” Russo stressed. “We must also bust another myth; while it’s true most credit card companies will usually absorb the cost of any fraudulent charges you find on your statement, who is protecting consumers from people taking out a new credit card in your name that you didn’t apply for or re-directing your mail to another address? Fraudsters can do massive damage to a person’s credit reputation and financial well-being in a short amount of time, which can in turn can take an individual a long time to clean up. That is why we encourage people to be vigilant and check their credit reports regularly.”


CONSUMERS ARE DOING MORE TO PROTECT THEIR DATA


In response to fears about identity theft or fraud, 72% of Canadians said they needed to do more to protect their personal data. And, indeed they are as consumers also indicated taking the following steps:




















Shared less about self on social media87%
Used an up-to-date computer anti-virus product81%
Double-checked credit card statements79%
Shopped less online56%
Avoided using public Wi-Fi47%
Used cash more often46%
Updated security passwords43%
Used an identity theft product30%
Checked my credit report28%

BUDGET CONSCIOUS THIS HOLIDAY SEASON


Making a list and checking it twice, two-thirds (66%) of Canadians will prepare a budget for their holiday shopping. Women are more likely to budget versus men, 70% versus 62% respectively. Households with children under 18 are significantly more likely to carry their highest credit card debt during the holidays (39%), and often regret many of their holiday purchases after receiving their credit card bill (27%).


The Financial Consumer Agency of Canada (FCAC), which coordinates financial literacy initiatives across the country, is a great resource on how to make a budget and stick to it. The FCAC also offers tips on how to protect yourself from identity fraud.


If someone suspects or knows that they are a victim of identity theft or fraud, they should contact their local police and Equifax Canada toll free at: 1-800-465-7166


The online study commissioned by Equifax Canada last month, polled 1,571 Canadians ages 18-65. A probability sample of the same size would yield a margin of error of +/- 2.5%, 19 times out of 20.


To learn more about the tools to help prevent fraud and identity theft, please visit: www.equifax.ca


About Equifax


Equifax powers the financial future of individuals and organizations around the world. Using the combined strength of unique trusted data, technology and innovative analytics, Equifax has grown from a consumer credit company into a leading provider of insights and knowledge that helps its customers make informed decisions. The company organizes, assimilates and analyzes data on more than 820 million consumers and more than 91 million businesses worldwide, and its databases include employee data contributed from more than 5,000 employers.


Headquartered in Atlanta, Ga., Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor’s (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs approximately 9,400 employees worldwide.


Some noteworthy achievements for the company include: Ranked 13 on the American Banker FinTech Forward list (2015); named a Top Technology Provider on the FinTech 100 list (2004-2015); named an InformationWeek Elite 100 Winner (2014-2015); named a Top Workplace by Atlanta Journal Constitution (2013-2015); named one of Fortune’s World’s Most Admired Companies (2011-2015); named one of Forbes’ World’s 100 Most Innovative Companies (2015). For more information, visit www.equifax.com



Andrew FindlaterSELECT Public Relations

afindlater@selectpr.ca

416-659-1197
Tom CarrollEquifax Canada
MediaRelationsCanada@equifax.com

416-227-5290



Source: Equifax Canada



News Provided by Acquire Media



Close window | Back to top





Canadians Feeling More Vulnerable to Fraudsters and Identity Thieves this Holiday Season

Monday, November 21, 2016

Americans are falling short on their own retirement savings goals


(iStock)

A new survey says most Americans recognize they are responsible for funding their own retirement, but they need more help from their employers: better education, stronger incentives and help with other financial issues.


The report also says that people are falling short of their own retirement savings goals.


The Natixis 2016 Retirement Plan Participant Study polled 951 workers of all ages across the U.S. who have access to a retirement plan at their jobs. Those surveyed said on average they need $878,206 to fund their retirement in order to live 22 years in retirement, but, so far they have saved only $208,333, or 24 percent of that goal. Those totals include money in current retirement plans and other retirement accounts, including IRAs, rollover IRAs and taxable accounts.


By generation:


  • Baby boomers say they will need $934,677, but have saved only $313,981 or 34 percent of their goal.

  • Gen X-ers say they will need $810,387 but have saved only $190,998 or 24 percent of their goal

  • Millennials say they will need $869,622, and have saved $69,570, or 8 percent of their goal.

Other results:


  • 69 percent of millennials compared to 55 percent of baby boomers believe people should be required to contribute towards their retirement savings.

  • 82 percent of millennials vs. 77 percent of Gen X-ers say that employers should be required to offer retirement plans.

  • 76 percent of millennials compared to 66 percent of baby boomers say businesses should be required to provide matching funds in retirement accounts.

Other news

Trump’s election does not bode well for the consumer financial protection bureau

What Donald Trumps win could mean for the average consumer


Question of the week: We got such a huge response from last week’s question, we’ll ask it again:


Some financial planners say expenses in retirement are only 80 percent of what they are when you are working. Others say your expenses don’t go down at all. What is you experience? Send comments to rodney.brooks@washpost.com. Please include your name, city and state. In the subject line put “Retirement Expenses.”


Libby Anderson of Harrisburg, Pa.:


Husband retired last July. Our expenses have reduced somewhat, but we are in the unusual position of having a child still in college. We will be about 84 percent of our pre-retirement budget with just eliminating the mortgage and her allowance. Expect once she graduates we will be down to 80 percent.


Dale Burks of New Port Richey, Fla.:


I agree in large part with the examples put forth in your recent article but would like to contribute further.

I have told all my kids that expenses in retirement will be 100% of your working expenses IF you continue to live in roughly the same style as when working. Since you will have much more time when retired you may wish to travel more extensively and “vacation” traveling is really a rich person’s sport. Air travel can be pricey and a better level of clothing will be required.


The government sets its cost of living components with items you will probably need far less often (housing, car etc). As a result, your purchases will consume a higher percentage of your monthly expenses than before and items considered almost a necessity while working (internet, cable) may have a lower priority but if needed, take that higher percentage again.


While one has to start somewhere to budget retirement, the truth is the two environments can be wildly different so you should load your savings accounts as heavily as possible so that retirement becomes a fun time not one perpetually short of funds.

Joel Dunn of Chapel Hill, N.C.:


I retired at the end of 2013 at age 56; my wife retired a couple of years before me. I’m fortunate to have an excellent, stable pension. I have worked about 1/2-time since retirement (as an exec in a small software firm). I’ve also taught as an adjunct at a local university. My income is slightly higher post-retirement than before. We have not withdrawn any IRA/401K funds due to age, and because we’ve not needed them. I provide this context for my answer to your question in The Post about the direction of expense trajectory.


My youngest child finished college right when I retired; after eight years of college expenses we traded those education expenses for travel. With more time to spend, I find my budget essentially the same. No commuting expenses and no neckties to buy, but lots of opportunity to spend on hobbies. I’ve taken up HAM radio, not an inexpensive hobby. I was already a fly fisherman. You get the picture. I know I’m not typical, but then your readership is skewed toward professionals like myself.


The net? I have more time and spend the repurposed dollars easily. I think that 100 percent is right for planning, especially for relatively young retirees like myself. My wife tells me if I want to cut my hours to curtail spending.

Leslie Linfante:

I have been retired for 14 years.

My expenses have gone down for the following reasons:

1) Don’t need to save for retirement.

2) Don’t have the same car and clothing expenses.

3) Eat out less and prepare meals at home for a large savings.

4) Have time to make hard cider, and we’re enjoying that instead of buying wine.

5) Social Security is not taken out of my pension.

6) Have time and energy to be creative with gifts, so they tend to cost less.


The only expenses that have gone up:

Pre-Medicare, health insurance was through the roof (taking my entire pension).

With Medicare, it is manageable.

Travel budget is somewhat higher, but with the reduced stress of not being employed, we seem to need to “get away” less. (We both traveled extensively as young people, so we have less need to see the world than some may.)


My most recent columns:


Steps to take to ensure a satisfying retirement

Think you’re prepared for retirement? Answer these six questions

They turned their hobbies into encore careers

Planning for retirement takes work: Don’t forget these things

Are small business owners too busy to think about retirement?


Michelle Singletary’s most recent columns:


Penny-pinchers unite: Let the angst go.

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Mortgage rates move up for Monday - Bankrate.com - Bankrate.com



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    • Several benchmark mortgage rates increased today. The average rates on 30-year fixed and 15-year fixed mortgages both saw an increase. On the variable-mortgage side, the average rate on 5/1 ARMs also increased.


      RATE SEARCH: Compare mortgage rates in your area now.


      30-year fixed mortgages


      The average 30-year fixed mortgage rate is 3.96 percent, up 19 basis points over the last 7 days. A month ago, the average rate on a 30-year fixed mortgage was lower, at 3.34 percent.


      At the current average rate, you’ll pay a combined $475.11 per month in principal and interest for every $100,000 you borrow. That’s $10.86 higher compared to last week.


      You can use Bankrate’s mortgage calculator to figure out your monthly payments and find out how much you’ll save by adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.


      15-year fixed mortgages


      The average 15-year fixed mortgage rate is 3.09 percent, up 11 basis points from a week ago.


      Monthly payments on a 15-year fixed mortgage at that rate will cost around $695 per $100,000 borrowed. That may squeeze your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more quickly.


      5/1 adjustable-rate mortgages


      The average rate on a 5/1 ARM is 3.28 percent, rising 16 basis points over the last 7 days.


      These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.


      Monthly payments on a 5/1 ARM at 3.28 percent would cost about $437 for each $100,000 borrowed over the initial 5 years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.


      Where rates are headed


      To see where Bankrate’s panel of experts expect rates to go from here, check out our Rate Trend Index.


      RATE SEARCH: Want to see where rates are right now? See local mortgage rates.
























      Average mortgage rates
      ProductRateChangeLast week
      30-year fixed3.96%0.193.77%
      15-year fixed3.09%0.112.98%
      30-year fixed jumbo4.48%0.144.34%
      30-year fixed refinance4.03%0.183.85%
      Last updated: 11/21/2016




      Mortgage rates move up for Monday - Bankrate.com - Bankrate.com

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