Latest news with #LendingTree
CNBC
6 hours ago
- Business
- CNBC
The Fed held interest rates steady, but some credit card APRs keep going up. Here's why
Even with the Federal Reserve on the sidelines, credit card rates are edging higher. In June, credit card interest rates rose for the third straight month, hitting the highest level since December, according to a recent report by LendingTree. Now, the average annual percentage rate is just over 20%, according to Bankrate. For new cards, the average APR is up to 24.3%, according to LendingTree. "These are crippling rates that are compounding your debt at such a fast clip," said certified financial planner Clifford Cornell, an associate financial advisor at Bone Fide Wealth in New York City. Here's a look at other stories affecting the financial advisor business. Credit card rates stayed stable for years after the introduction of the Credit CARD Act, which passed in 2009, but shot up after the Fed started raising rates in 2015. In the decade since, APRs roughly doubled from 12% to where they stand today. Most credit cards have a variable rate so there's a direct connection to the Fed's benchmark. It follows that credit card rates spiked again along with the central bank's string of 11 rate hikes starting in March 2022. Although the Fed cut its key borrowing rate benchmark three times in 2024 and has held its benchmark steady since December, banks continued to raise credit card interest rates to record levels — and some issuers said they'll keep those higher rates in place. "This unfortunate trend could continue in coming months," said Matt Schulz, LendingTree's chief credit analyst. Card issuers are mitigating their exposure against borrowers who may fall behind on payments or default, according to Schulz. "This is a sign of banks trying to protest themselves from the risk that is out there in these uncertain times," he said. But it's also a two-way street. "When there is uncertainty in the market, this often results in consumers seeking new credit to ensure they are prepared for any future financial hurdles," said Charlie Wise, senior vice president and head of global research and consulting at TransUnion. That also has the effect of driving issuers to increase APRs. "If more balances in the hands of riskier borrowers, those rates will trend higher," Wise said. Only consumers who carry a balance from month to month feel the pain of high APRs. And higher APRs only kick in for new loans, not old debts, as in the case of new applicants for credit cards. But for those currently struggling with sky-high interest charges, even an eventual Fed rate cut may not provide much relief. "The reality is you could drop the fed funds rate by two full basis points and all you are doing is lowering your interest rate from 22% to 20%," Wise said — "that's not a material difference." 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, Schulz advised. "The truth is that people have way more power over the rates they pay than they think they do, especially if they have good credit," Schulz said. The better your credit, the lower the rate you may get offered for a new card account. Cardholders who pay their balances in full and on time and keep their utilization rate — or the ratio of debt to total credit — below 30% of their available credit, can also benefit from credit card rewards and a higher credit score, experts say. That paves the way to lower-cost loans and better terms going forward.
Business Insider
8 hours ago
- Business
- Business Insider
Meet America's typical live-at-home 20-somethings
In 2023, around 40% of younger Americans lived with their parents. Living with mom and dad is a popular safety net for Gen Zers who face steep housing costs, expensive higher education, and a shaky job market. "If you have the luxury of being able to move back home and pay less for rent, groceries, and other basic bills and put some money away in an emergency fund or towards other big financial goals, it can be a really big deal," Matt Schulz, chief consumer finance analyst at LendingTree, told Business Insider. BI examined the demographics of America's live-at-home young adults — the 42% of 18- to 30-year-olds who lived with at least one parent — using the 2023 American Community Survey, available from the University of Minnesota's Integrated Public Use Microdata Series. So, who made up that 42%? The charts below show the young adults who were more likely to be living at home. A majority of young adults living with at least one parent were men Over half of young adults living with at least one parent were men, while just under half of young adults not living with a parent were men. There's also a cultural element to multigenerational living. Pew Research Center found Black, Hispanic, and Asian young adults in the US were more likely than white young adults to live with their parents. Young adults living with at least one parent were more likely not to be in school The share of young adults living with at least one parent in the household who were in school was about double that of those living on their own — 39% compared to 20%. They're less likely to have a college degree Fourteen percent of young adults with at least one parent in the household had a bachelor's degree as their highest educational attainment, compared to 27% of those without a parent. Single young adults were more likely to live with at least one parent More young adults without a parent in the household were married than those living with at least one parent. Nearly all young adults living with at least one parent were never married or single, at 96%. They're not stay-at-home kids; they're more likely to be working than not Almost two-thirds of young adults with at least one parent in the household were employed, compared to 82% of young adults without a parent in the household. The share of young adults living at home who were out of the labor force — that is, neither employed nor looking for work — was nearly double that of those living on their own. While many were employed, they weren't earning as much as those not living with a parent On average, employed young adults with at least one parent in the household weren't working as many hours or making as much money as their peers who didn't have a parent in the household. According to Pew Research Center researcher Richard Fry, who authored a recent report on where in the country younger Americans live with their parents, young people are more likely to live with their parents when jobs are hard to come by and wages are stagnant. Pew previously found the share of people living in multigenerational households surged during the Great Recession and continued rising afterward. Living at home can also mean being disconnected from work and school There are those who choose to live at home for family connection and financial convenience, and there are others who don't have a choice. So-called disconnected youth who aren't employed or in school made up about 11% of the 16 to 24 age group in 2022, per a 2024 report from the research firm Measure of America. This cohort was more likely than their peers to live in poverty, lack health insurance, and receive government aid. Minorities and young people of color have higher rates of disconnection. "These are creative young people who, for a whole host of reasons, haven't had the opportunities or the support they've needed to explore what they want to do and figure out how to transition to adulthood in a way that's exciting for them," said Megan Millenky, a senior research associate at MRDC who studies youth development.
Business Insider
9 hours ago
- Business
- Business Insider
Meet America's typical live-at-home 20-somethings
Your parents' basement might be looking pretty good these days. In 2023, around 40% of younger Americans lived with their parents. Living with mom and dad is a popular safety net for Gen Zers who face steep housing costs, expensive higher education, and a shaky job market. "If you have the luxury of being able to move back home and pay less for rent, groceries, and other basic bills and put some money away in an emergency fund or towards other big financial goals, it can be a really big deal," Matt Schulz, chief consumer finance analyst at LendingTree, told Business Insider. BI examined the demographics of America's live-at-home young adults — the 42% of 18- to 30-year-olds who lived with at least one parent — using the 2023 American Community Survey, available from the University of Minnesota's Integrated Public Use Microdata Series. So, who made up that 42%? The charts below show the young adults who were more likely to be living at home. A majority of young adults living with at least one parent were men Over half of young adults living with at least one parent were men, while just under half of young adults not living with a parent were men. There's also a cultural element to multigenerational living. Pew Research Center found Black, Hispanic, and Asian young adults in the US were more likely than white young adults to live with their parents. Young adults living with at least one parent were more likely not to be in school The share of young adults living with at least one parent in the household who were in school was about double that of those living on their own — 39% compared to 20%. They're less likely to have a college degree Fourteen percent of young adults with at least one parent in the household had a bachelor's degree as their highest educational attainment, compared to 27% of those without a parent. Single young adults were more likely to live with at least one parent More young adults without a parent in the household were married than those living with at least one parent. Nearly all young adults living with at least one parent were never married or single, at 96%. They're not stay-at-home kids; they're more likely to be working than not Almost two-thirds of young adults with at least one parent in the household were employed, compared to 82% of young adults without a parent in the household. The share of young adults living at home who were out of the labor force — that is, neither employed nor looking for work — was nearly double that of those living on their own. While many were employed, they weren't earning as much as those not living with a parent On average, employed young adults with at least one parent in the household weren't working as many hours or making as much money as their peers who didn't have a parent in the household. According to Pew Research Center researcher Richard Fry, who authored a recent report on where in the country younger Americans live with their parents, young people are more likely to live with their parents when jobs are hard to come by and wages are stagnant. Pew previously found the share of people living in multigenerational households surged during the Great Recession and continued rising afterward. Living at home can also mean being disconnected from work and school There are those who choose to live at home for family connection and financial convenience, and there are others who don't have a choice. So-called disconnected youth who aren't employed or in school made up about 11% of the 16 to 24 age group in 2022, per a 2024 report from the research firm Measure of America. This cohort was more likely than their peers to live in poverty, lack health insurance, and receive government aid. Minorities and young people of color have higher rates of disconnection. "These are creative young people who, for a whole host of reasons, haven't had the opportunities or the support they've needed to explore what they want to do and figure out how to transition to adulthood in a way that's exciting for them," said Megan Millenky, a senior research associate at MRDC who studies youth development. In an unsteady economy, it's unlikely that Gen Z and younger millennials' interest in living at home will fade anytime soon. And, as Millenky said, the group reflects "quite a spectrum" of America's socioeconomic ladder.
Yahoo
a day ago
- Business
- Yahoo
Is Working With a Mortgage Broker Better for Your Wallet?
There are a lot of things homebuyers have to consider when looking to buy. One of those is deciding how to get financing. For example, when considering working with a mortgage broker versus a nonbank retail lender, you might wonder what the best financial move is for your money. A mortgage broker, per LendingTree, is a third party who connects individuals with lenders, while a nonbank retail lender loans money but isn't affiliated with a bank. Check Out: Learn More: Read on for more details about choosing a mortgage broker or a nonbank retail lender. Also see how to negotiate a lower mortgage rate, according to experts. Casey Gaddy of The Gaddy Group with Keller Williams Empower Philadelphia said to think of nonbank retail lenders like taking a cab: 'They work for one company, offer one set of products and the pricing is usually fixed. You get what you get, and that's it.' He said to compare that with using a broker, which, in his opinion, is more like using Uber or Lyft. 'You've got options,' he said. 'A mortgage broker shops your loan around to different lenders to try and find you the best deal — kind of like getting multiple drivers competing for your fare. They're not tied to one bank, which means more flexibility in pricing and sometimes better service too.' A 2024 study by Polygon Research, as reported by the National Mortgage Professional, confirms what brokers have claimed for years — working with a mortgage broker can save you serious money. Borrowers who used a broker saved $10,662, on average, compared with those who worked with nonbank retail lenders. But that's not all. Read Next: It's not just long-term savings. Upfront costs are lower as well. In 2023, broker-assisted loans averaged 115 basis points upfront for a 6.58% mortgage rate, versus 148 basis points and a 6.6% rate for retail lenders, according to the study. 'Brokers usually have lower overhead than the big retail lenders, and in a lot of cases, they pass those savings on to the buyer,' Gaddy said. 'Not always — but you can ask and sometimes even negotiate. So yes, borrowers do often pay less upfront with a mortgage broker.' VA borrowers can realize big cost reductions by working with a mortgage broker as well. The study revealed an average savings of $13,432 per loan, with an interest rate of 6.26% versus 6.4% through retail lenders. Gaddy agreed that VA borrowers can benefit even more from working with a mortgage broker — especially if the broker works with VA-focused lenders. However, he recommended confirming that the broker works with VA-focused lenders so you can have access to the most competitive rates and less fees. Mortgage brokers can help underserved communities gain access. In 2023, brokered lending approval rates were 70% in Majority Minority Census Tracts (MMCTs) compared with 58% for retail lenders. In non-MMCTs, brokers saw 75% approval versus 64% for retail. Gaddy said that brokers can help level the playing field for everyone. 'Most people don't know loans get sold off on the secondary market anyway,' he said. 'But if you've got a broker fighting to get you the best rate upfront, that's less work for the borrower and more money and equity coming their way over the life of the loan — who doesn't love that?' More From GOBankingRates 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years This article originally appeared on Is Working With a Mortgage Broker Better for Your Wallet?
Fashion Value Chain
a day ago
- Business
- Fashion Value Chain
Sonatype Expands Global Operations With New India Innovation Center
Sonatype, the end-to-end software supply chain security company, has announced the opening of a new Innovation Center in Hyderabad, India – a key step in its strategy to scale global, AI-driven software development. The center will support continuous innovation and strengthen Sonatype's mission to secure modern software built on open source and AI-generated code. Sonatype Chief Product Development Officer, Mitchell Johnson, joins Abhishek Chauhan, Head of India and Senior Director of Technology, at the opening of their Innovation Center in Hyderabad With this expansion, Sonatype will continue its legacy of innovation, including the creation of Nexus Repository – trusted by over 15 million developers – and safeguarding Maven Central, the largest open source Java repository in the world. As open source and AI-generated components now make up over 80% of modern code, Sonatype's comprehensive platform uniquely protects the entire software development lifecycle from emerging threats. 'India is home to one of the largest open source and AI adoption communities in the world. By expanding to Hyderabad, we are building closer connections to the region's AI-first innovation hubs, while reaffirming our long-term commitment to scaling responsibly and sustainably,' said Mitchell Johnson, Chief Product Development Officer at Sonatype. 'With access to India's top-tier talent, we're extending our ability to better support a new generation of forward-thinking customers and partners, with greater speed, resilience, and impact.' Sonatype's Hyderabad Innovation Center will house over 200 engineers, product leaders, security researchers, and AI experts, working in a culture rooted in openness, ownership, and innovation. The center will accelerate product development, strengthen AI capabilities, and enable 24/7 global support. Leading Sonatype's strategy and growth in India is Abhishek Chauhan, newly appointed Head of India and Senior Director of Technology, who brings deep software security expertise from roles at Lending Tree and Wells Fargo. 'From Maven Central and Nexus Repository to patented AI-driven technology, Sonatype has always been on the frontier of innovation,' said Abhishek Chauhan, Head of India and Senior Director of Technology. 'I'm excited to be joining at such a pivotal moment in the company's journey and lead the team in India. With this new center, we're investing not just in technology, but in the next generation of engineering talent that will define the future of secure software.' Sonatype has been a trusted industry leader for more than two decades helping to shape global regulations and industry standards for secure software development and is a founding member of the Open Source Security Foundation (OpenSSF), a Linux Foundation project. Today, organizations in India are adapting to evolving frameworks – including CERT-IN guidelines, SBOM compliance, and the SEBI Cyber Resilience Framework. Sonatype is committed to serving as a guiding and educational partner, providing resources and tools to protect the software that underpins modern critical infrastructure. Sonatype is headquartered in Fulton, Maryland with global offices in the United Kingdom, Australia, Colombia, and now HITEC City, Hyderabad. For more information about the Sonatype India Innovation Center, visit About Sonatype Sonatype is the software supply chain security company. We provide the world's best end-to-end software supply chain security solution, combining the only proactive protection against malicious open source, the only enterprise grade SBOM management and the leading open source dependency management platform. This empowers enterprises to create and maintain secure, quality, and innovative software at scale. As founders of Nexus Repository and stewards of Maven Central, the world's largest repository of Java open-source software, we are software pioneers and our open source expertise is unmatched. We empower innovation with an unparalleled commitment to build faster, safer software and harness AI and data intelligence to mitigate risk, maximize efficiencies, and drive powerful software development. More than 2,000 organizations, including 70% of the Fortune 100 and 15 million software developers, rely on Sonatype to optimize their software supply chains. To learn more about Sonatype, please visit
