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CNBC
14 hours ago
- Business
- CNBC
3 key money moves to consider while the Fed keeps interest rates higher
In minutes released this week from the Federal Reserve May meeting, central bank policymakers indicated that an interest rate cut isn't coming anytime soon. Largely because of mixed economic signals and the United States' changing tariff agenda, officials noted that they will wait until there's more clarity about fiscal and trade policy before they will consider lowering rates again. In prepared remarks earlier this month, Fed Chair Jerome Powell also said that the federal funds rate is likely to stay higher as the economy changes and policy is in flux. The Fed's benchmark sets what banks charge each other for overnight lending, but also has a domino effect on almost all of the borrowing and savings rates Americans see every day. Since December 2024, the federal funds rate has been in a target range between 4.25%-4.5%. Futures market pricing is implying virtually no chance of an interest rate cut at next month's meeting, and less than a 25% chance of a cut in July, according to the CME Group's FedWatch gauge. It is more likely the Federal Open Market Committee won't lower its benchmark rate until the Fed's September meeting. With a rate cut on the backburner for now, consumers struggling under the weight of high prices and high borrowing costs aren't getting much relief, experts say. "You don't have to wait for the Fed to ride to the rescue," said Matt Schulz, chief credit analyst at LendingTree. "You can have a far, far greater impact on your interest rates than any Fed rate cut ever will, but only if you take action." Here are three ways to do just that: With a rate cut likely postponed until September, the average credit card annual percentage rate is hovering just over 20%, according to Bankrate — not far from last year′s all-time high. In 2024, banks raised credit card interest rates to record levels, and some issuers said they'll keep those higher rates in place. "When interest rates are high, credit card debt becomes the most expensive mistake you can make," said Howard Dvorkin, a certified public accountant and the chairman of Rather than wait for a rate cut that may be months away, borrowers could switch now to a zero-interest balance transfer credit card or consolidate and pay off high-interest credit cards with a lower-rate personal loan, said LendingTree's Schulz. "Lowering your interest rates with a 0% balance transfer credit card, a low-interest personal loan or even a call to your lender can be an absolute game-changer," he said. "It can dramatically reduce the amount of interest you pay and the time it takes to pay off the loan." Start by targeting your highest-interest credit cards first, Dvorkin advised. That tactic can create an added boost, he said: "Even small extra payments can save you hundreds in interest over time." Rates on online savings accounts, money market accounts and certificates of deposit will all go down once the Fed eventually lowers rates. So experts say this is an opportunity to lock in better returns before the central bank trims its benchmark, particularly with a high-yield savings account. "The best rates now are around 4.5% — while that's down about a percentage point from last year, it's still better than we've seen over most of the past 15 years," said Ted Rossman, senior industry analyst at "It's well above the rate of inflation and this is for your safe, sleep-at-night kind of money." Here's a look at other stories impacting the financial advisor business. A typical saver with about $10,000 in a checking or savings account could earn an additional $450 a year by moving that money into a high-yield account that earns an interest rate of 4.5% or more, according to Rossman. Meanwhile, the savings account rates at some of the largest retail banks are currently 0.42%, on average. "If you're still using a traditional savings account from a giant megabank, you're likely leaving money on the table, and that's the last thing anyone needs today," said Schulz. Those with better credit could already qualify for a lower interest rate. In general, the higher your credit score, the better off you are when it comes to access and rates for a loan. Alternatively, lower credit scores often lead to higher interest rates for new loans and overall lower credit access. However, credit scores are trending down, recent reports show. The national average credit score dropped to 715 from 717 a year earlier, according to FICO, developer of one of the scores most widely used by lenders. FICO scores range between 300 and 850. Amid high interest rates and rising debt loads, the share of consumers who fell behind on their payments jumped over the past year, FICO found. The resumption of federal student loan delinquency reporting on consumers' credit was also a significant contributing factor, the report said. VantageScore also reported a drop in average scores starting in February as early- and late-stage credit delinquencies rose sharply, driven by the resumption of student loan reporting. Some of the best ways to improve your credit score come down to paying your bills on time every month and keeping your utilization rate — or the ratio of debt to total credit — below 30% to limit the effect that high balances can have, according to Tommy Lee, senior director of scores and predictive analytics at FICO. In fact, increasing your credit score to very good (740 to 799) from fair (580 to 669) could save you more than $39,000 over the lifetime of your balances, a separate analysis by LendingTree found. The largest impact comes from lower mortgage costs, followed by preferred rates on credit cards, auto loans and personal loans.
Yahoo
a day ago
- Business
- Yahoo
Largest K-12 budget in Oregon history advances in state legislature
PORTLAND, Ore. (KOIN) – An Oregon legislative committee has approved a massive education bill that, if passed, could mark the largest K-12 school budget in state history. Senate Bill 5516 would dedicate $11.4 billion to the , which serves as the primary funding source for school districts to pay for their teachers, supplies, and maintenance. Portland has the worst housing crisis outlook, LendingTree finds 'It is our responsibility to make sure our schools are preparing Oregon's young people for their career and college pathway,' Sen. Janeen Sollman (D-Hillsboro) said. 'Increasing funding while providing clear expectations and ongoing oversight will help ensure our students and educators are getting the support they need.' The bill's advancement comes after for the 2025-27 biennium. In it, she requested more than $835 million in education — including a $600 million increase to the State School Fund to reach roughly $11.4 billion. This bill matches Kotek's recommendation. The funding, in addition to other school funds, could mean that Oregon's schools will gain 10.5% in funding over the next biennium, equating to $16.7 billion. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now It also comes as Oregon's schools face several roadblocks, such as and drops in and . 'For years I have been a strong proponent of fully funding our schools, but the data shows that our schools are not adequately meeting the needs of our kids,' Rep. Christine Drazan (R-Canby) said. 'We must reduce the regulatory burden on our schools and dramatically reform public education to give more options — and return more control — to the families of students who are not getting the education they deserve.' SB 5516 is now up for consideration by the Joint Committee on Ways and Means. If approved, it will advance to the Oregon House and Senate. Stay with KOIN 6 News as we continue to follow this story. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
a day ago
- Business
- Yahoo
Portland has the worst housing crisis outlook, LendingTree finds
PORTLAND, Ore. (KOIN) – Portland has the worst housing crisis outlook among the largest metro areas in the United States, according to a LendingTree study released Tuesday. The study analyzed housing markets in 100 of the largest metro areas in the U.S., analyzing vacancy rates, housing unit approvals and home value-to-income ratios. 'In doing so, we found that three of the five metros with the worst outlook are in the Pacific Northwest,' LendingTree study ranks Portland, Ore., Boise, Idaho, Bridgeport, Conn., Spokane, Wash. and Salt Lake City, Utah as metros with the worst housing crisis outlook. According to LendingTree, Portland ranks the worst mostly because of a lack of housing and unaffordability. 'Most notably, Portland has the fourth-lowest vacancy rate in the nation at just 4.76%. (While low vacancy rates can indicate strong demand, they can lead to a tighter housing market with higher home prices.) It also has the 13th-highest home value-to-income ratio, at 5.57. (This means median home values are 5.57 times more than the median income; the higher the ratio, the higher the unaffordability.),' LendingTree explained. Portlanders hold opposing protests over funding parks vs. police According to LendingTree, the median home value in Portland is $526,500. However, the median household income is $94,573. In addition to housing unaffordability, vacancy rates are also an issue in the Pacific Northwest, the study found. 'The vacancy rates in Portland and Boise are less than half of those in many other big metros,' said LendingTree Chief Consumer Finance Analyst Matt Schulz. 'When that happens, prices rise, making things even more expensive. Unfortunately, this isn't likely to change in many of the most troubled metros because the data shows that insufficient building is being done. That's not the case in Boise, where new permits are among the highest in the nation, but it's the case in Portland, Bridgeport and other metros with similar rankings. That doesn't bode well for the near future,' Schulz added. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now According to the study, metro areas in the Pacific Northwest have the worst housing outlook while cities in the southern United States have the best outlook. The study ranked McAllen, Texas, as the metro with the best housing outlook, where the median home value is $124,000 and the median household income is $52,281. Wilmington, N.C., Winston-Salem, N.C., Baton Rouge, La. and Augusta, Ga. round out the top five metros with the best housing crisis outlook, according to LendingTree. Beloved Portland restaurant to hold steak sale amid temporary closure 'Many of these are relatively low-income areas,' Schulz explained. 'Plus, Southern metros don't tend to be as densely packed, especially compared to their Northeastern counterparts, meaning there's more room to build and grow. More available property tends to mean lower costs.' The lending marketplace noted, some metros – including in southern states – are seeing growing housing unaffordability. These metros include Durham, N.C., Charlotte, N.C., Spokane, Washington, Boise, Idaho and Atlanta, Georgia. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Business Insider
2 days ago
- Business
- Business Insider
4 ways to shrink your debt payments when your wallet feels stretched
Carrying debt can feel like a massive weight. When you owe money to lenders, it can be difficult to save and invest — both of which are important steps to reaching financial milestones like retirement. And yet many Americans are in this position: Total household debt hit $18.04 trillion in the fourth quarter of 2024, according to data from the Federal Reserve Bank of New York. A recent report from Lending Tree found that on average, Americans put $1,597 a month toward paying off debt. When you're paying for housing, utilities, groceries, and more, allocating a chunk of your budget to paying back lenders isn't easy. Debt can be an important part of a healthy financial life, especially when it's used to fund things that will grow in value or increase your earning potential, such as a house or an education. But holding debt — especially high-interest debt like credit card debt — can be extremely stressful. While the long-term goal is usually to be debt-free, there are steps you can take now to shrink your debt payments and give your budget a little room to breathe. 1. Negotiate with your creditors The terms of your loans may seem set in stone, but they could actually be negotiable. "If you have private loans and are having trouble paying, the loan servicing company is often happy to work with you," says Catherine Valega, financial advisor and founder of Green Bee Advisory. "Start by calling them and discussing your options." Valega says to say you're calling to ask for more lenient loan servicing terms, then explain to them what is impeding you from being able to make payments — such as losing your job or having medical bills. Tell them you've created a budget of your basic needs, not wants. Using that budget, identity and tell them how much you have left each month to pay toward your loans. 2. Consider refinancing Refinancing a personal loan allows you to pay off your existing loan with a new one, essentially replacing that existing loan with one that ideally has better terms. "Refinancing can be a good option for lowering your payments and lowering your interest rate," says Kassi Fetters, financial planner and founder of Artica Financial Services. She recommends checking the options at your local credit union when refinancing your loans or credit card debt. Keep in mind that if you refinance to a loan with better rates but a longer repayment period, you may increase the total amount of interest you'll pay over time. 3. Consolidate your debt Debt consolidation loans replace multiple debt payments with a single one, and you may be able to snag a lower rate and monthly payment this way. "While it can definitely make paying back loans easier, be sure to fully understand the new interest rate and payment, and compare it to the sum total of the other payments," Valega says. If you're dealing primarily with credit card debt, you may want to consider transferring your balance to a 0% APR credit card. The catch here is that companies only give you a certain amount of time with the 0% APR, often between a year and 18 months. After that time period is up, the rate will increase, so you want to be sure you can pay off the debt before that happens. 4. Seek professional help For borrowers who are really struggling, debt relief companies (also referred to as debt settlement companies) can negotiate with lenders on your behalf to reduce the total amount you owe. When debt gets overwhelming, debt settlement could be a lifeline that stands in the way of declaring bankruptcy. Debt settlement companies step in to negotiate with your creditors, asking them to settle for less than you originally owed. This option enables you to enroll multiple debts, make a single monthly program deposit, and get a concrete timeline (usually 24-48 months) for when all your enrolled debt will be resolved. Note that most debt settlement companies require unsecured debts of at least $7,500 to be eligible for the program. That's not to say debt settlement companies are a perfect solution: You'll pay a fee for their services, your credit score can suffer, and there's no guarantee that the company will actually be able to get you a lower balance — ultimately, it's up to your creditors. If you want to tackle the debt yourself, you can also seek out credit counseling agencies or other nonprofit resources that offer debt consultations with no fee. If you decide to go with a debt relief company, check that it's verified with the Association for Consumer Debt Relief, the International Association of Professional Debt Arbitrators, or the Consumer Debt Relief Initiative. By law, debt relief companies can't charge upfront fees. If a company tries to charge you before negotiating with your creditor and getting your approval on the settlement, choose another company instead.
Yahoo
2 days ago
- Business
- Yahoo
California's Insurance Gap: Mercury Insurance Details What Homeowners Need to Know
Thousands of California Homeowners Are Underinsured LOS ANGELES, May 29, 2025 /PRNewswire-PRWeb/ -- The devastation caused by January's Pacific Palisades and Altadena wildfires served as powerful reminders of how crucial it is for homeowners to have adequate insurance coverage. In addition to the emotional toll of losing a home, the financial burden can be overwhelming — particularly for those who discover their coverage falls short. According to a recent report in the San Francisco Chronicle, a significant number of California policyholders are underinsured, meaning that they may not receive sufficient funds to rebuild a home comparable to the one they lost. Equally concerning is data from LendingTree, which reveals that of the nearly eight million residences in California, 806,600 are completely uninsured — that's 10.5% of all homeowners in the Golden State. And in some counties, such as Lake, Kings and Humboldt, for instance, the rate is even higher. "Being underinsured can turn a crisis into a financial disaster. Waiting until after a catastrophic event such as a wildfire to review your coverage is far too late," said Kelly Butler, VP and Chief Underwriting Officer at Mercury Insurance. "That's why it is essential to meet with your insurance agent at least once a year to ensure your policy reflects current replacement costs and risks." The issue of underinsurance in California is shaped by a combination of evolving market dynamics and environmental challenges. Rising construction costs, the growing threat of wildfires, and shifts in the insurance market all contribute to a complex landscape for homeowners and insurers alike. Here's a closer look at some of the key factors: Rising Insurance Costs: In wildfire prone areas, premiums have increased in response to heightened risk and construction/materials costs. This can place financial strain on homeowners, and these insureds are most likely to allow their coverage to lapse or to underinsure their properties to lower their premiums. Market Adjustments: Some insurance companies have scaled back their offerings in high-risk regions due to increased losses. As a result, some homeowners need to turn to alternatives such as the California FAIR Plan, which provides basic fire insurance coverage, when private options are unavailable. So, what was originally intended as a provider of last resort is now used by 4% of the state's homeowners, up 300% from 2018. Homeowners may need to supplement FAIR Plan policies with additional "wrap-around" policies for broader protection. Increased Wildfire Risk: The growing frequency and severity of wildfires in California have made it more difficult — and costlier — to insure homes in certain areas. This has impacted both insurance availability and affordability. Regulatory Constraints: Proposition 103, passed in 1988, requires insurers to base rates on historical losses. While designed to protect consumers by regulating how insurers set rates, it has also created challenges for insurers that need to adjust rates to account for evolving risks and rising rebuilding costs, which adds complexity to the current insurance landscape. Policy Type Matters: Understanding the difference between actual cash value and replacement cost policies is crucial. The former may not cover the full cost to rebuild, while the latter aims to replace what was lost in today's dollars, up to the policy's limits. What Can Homeowners Do? Reducing wildfire risk on your property remains one of the most effective strategies. Creating defensible space, hardening your home, and taking other fire-mitigation measures can help lower your insurance costs — and may even qualify you for discounts. But homeowners can't solve this issue alone. Broader efforts are also underway to improve the availability and affordability of insurance coverage in high-risk areas. "Fortunately, it's not all doom and gloom," added Butler. "The state is beginning to make meaningful changes. Last year, Insurance Commissioner Ricardo Lara introduced California's Sustainable Insurance Strategy, which supports more accurate pricing in wildfire-prone areas and aims to expand coverage options for homeowners who need it most." By staying informed, proactive, and working closely with their insurance providers, California homeowners can better protect their properties and financial futures — even in the face of growing environmental risks. About Mercury Insurance Headquartered in Los Angeles, Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier offering personal auto, homeowners, and renters insurance directly to consumers and through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury also writes business owners, business auto, landlord, commercial multi-peril and mechanical protection insurance in various states. Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through nearly 4,100 employees and a network of more than 6,500 independent agents in 11 states. Mercury has earned an "A" rating from A.M. Best, as well as "Best Auto Insurance Company" designations from Forbes and For more information visit or follow the company on Twitter or Facebook. Contact: PCG – Shane Smith (424) 903-3665 (ssmith@ Media Contact Shane Smith, Mercury Insurance, (424) 903-3665, ssmith@ View original content to download multimedia: SOURCE Mercury Insurance Sign in to access your portfolio
