real estate

Weekly Wrap: Coinbase IPO Sets Record As GameStop Strengthens Finances, Housing Steadies, and More Are Going Green

April 17, 2021 By Max Erkiletian Leave a Comment

Coinbase debuted with a bang. In addition, GameStop helped its bottom line by shedding debt. Meanwhile, new home construction is trending up and so is ESG investing.

COINBASE IPO

The much anticipated Coinbase IPO exceeded expectations. The stock, which trades as COIN, closed Friday at $342 a share.

The reference or projected opening price of COIN was $250. However, the actual opening price jumped to $381 and closed at $321.28 Wednesday.

Coinbase functions as an exchange on which investors buy and sell cryptocurrencies. Subsequently, many buyers choose to hold cryptocurrencies as an investment. As a result, Coinbase also offers a digital wallet.

Coinbase Revenue Sources

Coinbase charges fees for transactions. One is a flat rate or percentage of each transaction. The other is the margin, up to two percent of each transaction. Other sources of income include:

Coinbase Commerce – provides payment processing for online merchants.
Coinbase Card- a Visa debit card that converts cryptocurrencies to U. S. dollars for purchases.
USD Coin– Coinbase’s cryptocurrency that is tied to the U. S. dollar.

Cainbase took the unusual route of offering its IPO as a direct listing. That saves money in that the listing does not go through an investment bank as most IPOs do.

GameStop Continues Wild Ride

GameStop’s longest losing streak in a year ended this week. And though many analysts were pressing the sell button, the stock rallied on important news. It closed at $154.69 Friday.

GameStop announced Tuesday it will use cash to pay off $216.4 million in corporate notes by April 30. Those notes are the last of the company’s long-term debt. That spurred a buying surge and the stock rose 18 percent Wednesday.

The retailer made several other moves to strengthen its financial position. It announced that it plans to sell up to 3.5 million shares of stock.

Changes At The Top

CEO George Sherman forfeited 587,000 shares of stock for failing to meet performance targets Wednesday. The company is searching for Sherman’s replacement.

Ryan Cohen, former founder and CEO of Chewy, was announced as the company’s new chairman of the board Thursday. He will assume that post in June. Cohen, who has a 13 percent stake in GameStop, has been pushing the company to move more into the digital marketplace.

The Short Shift

GameStop was among the 10 most shorted stock since March 15. However, the stock had gained as much as 650 percent this year. Its 52-week high was $483 a share compared to a low of $3.77 a share.

GameStop’s meteoric price rise was triggered by social media-driven buying. Last year, many professional investors held short positions (betting the stock would drop). A surge of buying promoted largely on a Redditt forum forced short-sellers to buy the stock to limit their losses.

It is known as a ‘squeeze’ and it propelled GameStop stock to new heights.

Going Green

It’s Spring and everything is turning green — even in the world of investing.

Big banks, investment managers, ETFs, and mutual funds are all moving more and more money into ESG (environment, social, and governance) investments.

Tomorrow Saving Advice takes a look at this trend and why the SEC (Securities and Exchange Commission) is interested.

Housing

Residential real estate is still a seller’s market. However, a number of new trends are developing. Mortgage rates seem to be stable; homes in forbearance are dropping; new home starts are up; and a further ban on foreclosures is in the offing.

Forbearance

The number of homes in forbearance continues to decline. Your home is in forbearance if your lender allows you to pay a lower rate or suspends payments temporarily.

Black Knight, an analytics company, reported last week that 2.3 million mortgage borrowers remained in forbearance as of April 6. That is a decline of 228,000 over the previous week and the biggest drop in six months.

The number of homes entering forbearance also plummeted. According to Black Knight, 158,000 homes entered the program in the previous four weeks. That is a decline of 18 percent.

Additional Foreclosure Safeguards

The Consumer Protection Finance Bureau (CPFB) last week proposed a new rule to bar foreclosures on principal residences until the end of the year. The ban would apply to both private and federal mortgages.

About 1.7 million homes will come out of forbearance in September, according to the CFPB. Many of those homes will be at risk of foreclosure. The objective of the ban extension is to give lenders and homeowners time to restructure their loans if possible.

Single Family Building Increasing

The number of single-family home construction permits issued in the first two months of the year increased 16.6 percent over the same period in 2020, according to the National Association of Home Builders (NAHB). About 164,901 permits were issued nationwide, reports the NAHB.

In addition, multi-family building permits were also up. The NAHB reported 83,110 such permits were issued across the country. That marks an increase of 17.7 percent over the 70,635 issued the first two months of last year.

What Lies Ahead

The housing market looks healthy, according to Freddie Mac’s Quarterly Forecast.

“As the economy continues to improve, we expect conditions to remain generally favorable for the housing and mortgage market,” said Sam Khater, Freddie Mac’s Chief Economist.

Higher housing prices and rising mortgage rates have the potential to slow the housing market, cautioned Khater.

Looking ahead to next year, Freddie Mac’s forecast projects:

The average 30-year fixed-rate mortgage will be 3.2 percent in 2021 and 3.7 percent in 2022.
House price growth is expected to be 6.6 percent in 2021, slowing to 4.4 percent in 2022.
Home sales are expected to reach 7.1 million in 2021, falling to 6.7 million homes in 2022.
Purchase originations are expected to increase to $1.7 trillion in 2021 before dropping to $1.6 trillion in 2022.
Refinance originations are expected to be $1.8 trillion in 2021 before falling to $770 billion in 2022.
Overall, annual mortgage origination levels are expected to be $3.5 trillion in 2021 and $2.4 trillion in 2022.

Read More

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Which City in Georgia Has the Lowest Property Taxes?

April 16, 2021 By Tamila McDonald Leave a Comment

If you own a home, you’ll likely owe property taxes. How much you have to spend to cover the cost can vary dramatically from one area to the next, so much so that they may take you off guard. Similarly, some cities can be surprisingly inexpensive in comparison to others in the state, effectively making them bargains. If you are wondering where the lowest property taxes in Georgia are, here’s what you need to know.

Cities with the Lowest Property Taxes in Georgia

In Georgia, the average effective real estate tax rate is 0.92 percent., which is moderate in comparison to the rest of the country. However, the property tax rates in Georgia do vary by county, causing some areas to be dramatically more affordable than others.

The county with the lowest property taxes in Georgia, based on its effective tax rate, is Towns County. It has an effective tax rate of just 0.42 percent, which is far below the state’s average.

Towns County is in the northern part of the state and borders North Carolina. The county is home to two incorporated cities, Hiawassee and Young Harris, the former of which serves as the county’s seat. There is also Tate City, a census-designated place, along with Alexander Mills and Hog Creek, two unincorporated communities.

Fannin County is actually a fairly close second. It has an effective tax rate of 0.44 percent and is home to cities like Blue Ridge, McCaysville, and Morganton, as well as many census-designated places and unincorporated communities.

In third is Gilmer County, which has a rate of 0.51 percent. There, you’ll find Ellijay and East Ellijay, along with many other communities.

Lowering Your Property Taxes in Georgia

It is possible to lower your property tax burden in Georgia. If you qualify for certain exemptions, you may be able to reduce the amount of your home’s value that’s taxed, making your property tax bill smaller.

Along with a standard homestead exemption, there are statewide programs for low-income seniors, disabled veterans, surviving spouses, and more. Each program has specific requirements, so you’ll need to examine each one closely to determine if you may qualify.

It’s also important to note that counties can have additional exemptions. Precisely what’s available does vary by county. Usually, you can find information about those options through the country’s tax assessor office, including any requirements, details about application procedures, and the value of the exemptions.

Planning for Your Georgia Property Taxes

If you own a home in Georgia, how much planning you need to handle to make sure your property taxes are paid varies. If you have a mortgage, your escrow account usually covers your taxes. Every month, part of your mortgage payment funds that account. Then, when your property tax payment is due, your mortgage provider makes that payment.

However, if you own your home outright, you are typically responsible for submitting property tax payments. In some cases, they are paid in a lump sum each year. In others, your annual charge is divided into two equal payments, each with its own due date.

Precisely when your property taxes are due varies by county. As a result, you’ll need to check with your local assessor or review your property tax bill for details.

Once you know when you own payments, you can plan to cover them. For example, you could set aside 1/12^th of the annual amount every month, placing it into savings. Then, when your bill is due, you submit the payment from that account. That approach creates consistency, making it easier to handle.

However, if your property bill is small, that level of planning may not be necessary. Instead, if your bill supports it, you can pay the cost from your monthly income in one go.

Do you think about property taxes when choosing where to live? Would you favor the city with the lowest property taxes in Georgia over other options? Share your thoughts in the comments below.

Home Remodeling Booms In Tight Housing Markets

March 29, 2021 By Max Erkiletian Leave a Comment

With more than a third of single-family homes selling above the asking price, that new home you’ve been looking for maybe the one you’re living in now – with a few alterations.

Home Remodeling Rising

The dramatic boom in home remodeling that revved up during the pandemic has shifted into a higher gear this year and looks to accelerate for years to come.

Lock-downs, layoffs, and business restrictions shrank the U. S. economy 3.5 percent in 2020. At the same time, home improvement expenditures grew three percent, according to research by Harvard University’s Leading Indicator of Remodeling Activity (LIRA).

Home repair and remodeling expenditures for 2020 totaled $339 billion. The year 2021 will see even more growth according to researchers and industry representatives.

“With the release of new benchmark data from the American Housing Survey, we’ve raised our projection for market size in 2021 by about $4 billion, or 1 percent, to $352 billion,” says Abbe Will, Associate Director in the Remodeling Futures Program at the Center.

What Will Your Projects Cost?

There is no direct answer to how much your remodel will cost. It depends on where you live and what you want to be done.

A survey by Home Advisor, an online home repair referral service, found that American households spent an average of:

$8,305 on home remodeling,
$3,192 on home maintenance,
$1,640 on home emergencies last year.

Impact of the Pandemic

One factor triggering the boom has been Covid-19.

“There are a lot of households that were modifying their homes to their current needs – their current lifestyles during the pandemic,” says Fred Stokes, Senior Vice President, Pro Sales and Services at Lowe’s Home Improvement. “So they were looking for a space for home offices, for home classrooms, for exercise rooms, for playrooms, outdoor living where they could comfortably sit to talk to neighbors or relatives.”

With more parents working from home and their children attending school online, the remodeling boom took off.

The Housing Market Squeeze

Often, home buying is motivated by a need for more space. That has been amplified by the pandemic. However, the supply of houses for sale is down, according to Redfin, a real estate research and marketing firm.

Currently, only 644,859 homes are listed for sale in the United States, says Redfin. That is a decrease of 49.6 percent over the past year. In addition, new listings are down 17.3 percent to 484,090. That is a one and a half months supply. The result is a hike in home value and sales prices.

Homes Are Worth More

United States home values have gone up 9.9 percent, according to online real estate marketplace Zillow. Looking ahead, Zillow predicts home values will rise 11.4% in the next year.

While home values have gone up and are rising, home sale prices have jumped even more and are trending higher.

Prices Higher and Rising

“Home prices nationwide were up 14.4% year-over-year in February,” reports Redfin. “At the same time, the number of homes sold rose 5.7% and the number of homes for sale fell 49.6%.”

That 14.4 percent price increase means the median sales price of a home today is $336,159, according to Redfin.

Top 10 Metros With the Fastest-Growing Sales Price

Source: Redfin

High Demand Fuels Bidding Wars

Homebuyers are chasing prices upward and, sometimes, overtaking them.

Over one-third, 36.1 percent of homes purchased in the last year have been for more than the asking price, says Redfin.

“Homes that sold above list price likely received multiple offers,” according to a Redfin report. “A high or growing percentage of homes selling above list price indicates that the housing market is competitive and bidding wars are becoming more common.”

Supply of Single Family Homes Getting Older

“Ultimately, the home remodeling outlook is improving for 2021 and beyond,” says Caroline Blakely, president and CEO of Rebuilding Together. Her firm is a nonprofit home safety and restoration company. “Of the factors we think will support and increase all activity in the long term include the continual aging of our housing stock. Half of owner-occupied homes are at least 40 years old.”

According to the U. S. Census Bureau’s American Housing Survey, the median home was built in 1974. That makes the average home is 47 years old. Of course, as a house age, it needs more maintenance.

The Millenial Home Rush

Another factor in the reduction of home supplies and remodeling boom is the movement of millennials to homeownership.

“I think the main takeaway is that this was really building out of longer-term trends that we were seeing in this industry,” says Stokes. “For example, a lot of home improvement last year was driven by the movement of younger households out of urban areas into the suburbs, giving up their urban rental units and buying a home.”

A report from the National Association of Realtors (NAR) backs up what Stokes says.

The Home Buyers and Sellers Generational Trends Report finds that millennials make up the largest share of homebuyers at 37 percent.

An Uptick in Multi-Generational Homes

The same NAR report that found millennials are leading home purchases, also discovered multi-generational homes are on the rise.

The results of a paper by the U. S. Census Bureau’s Daphne Lofquist show that there were 4.3 million multigenerational households in 2020, which account for 5.6 percent of family households in the United States.

Last year 15 percent of home purchases were made to house two or more generations. Since 1990, multi-generation households have increased sixty percent, according to the U. S. Census Bureau.

Conclusion

Staying put, selling, or buying a home, you are probably in for some renovation expense and that will add fuel to the economy.

“If one million renters become homeowners,” says Blakely, “we think that will add $2 billion annually to the home improvement market on an ongoing basis.”

Weekly Wrap: Gas, Home Remodeling, Travel, GameStop, And FedCoin

March 27, 2021 By Max Erkiletian Leave a Comment

Gas prices, consumer spending on home remodeling, and travel are on the rise while GameStop continues its wild ride and the United States moves closer to issuing a digital currency.

Forecast For Gas Prices Higher

From February to mid-March, gas prices across the United States rose 40 cents per gallon to $2.86. Though prices leveled off this week to an average of $2.88 a gallon, analysts seem more price increases ahead.

“A dip in demand along with a simultaneous increase in supply and refinery utilization has contributed to slower movement in gas price increases,” said Jeanette McGee, AAA spokesperson. “On the week, 32 states had increases of only 3 cents or less. This does not mean gas prices have hit their peak, but is a positive sign for consumers.”

Supply and Demand

The prime mover in the price of gas at the pump is almost always the price of oil and consumer demand.

In 2020 demand plummeted as the pandemic raged. Oil production was exceeding demand by 3 million barrels a day, according to Forbes. High supply meets reduced demand equals lower prices.

All that changed earlier this month when OPEC+ announced at its March 4 meeting that the cartel is reducing oil production. Saudi Arabia alone has cut one million barrels of oil per day (BOPD). A barrel equals 42 U. S. gallons.

A Storm in Texas

Prior to OPEC+’s actions, U. S. refinery utilization dropped to 56 percent. That was a result in small part due to reduced demand. However, the major cause was the massive storm that hit Texas in February.

Even with the refineries recovering, experts see gas prices being elevated for the near term.

“The sustained OPEC+ production curtailment through April suggests that supply will remain constrained in the near term, even as demand continues to increase,” according to the U. S. Energy Information Administration (EIA). “As a result, EIA expects that further inventory withdrawals to meet rising crude oil demand will keep crude oil prices elevated through at least the end of April.”

Higher Prices Long-Term

Writing in Oilprice.com, David Messler, who worked in oilfields on six continents, also sees oil prices leveling off.

“For gasoline, the primary motor fuel used in the U.S. moves gradually higher in the second half of 2021, and then moderates in 2022, just below the levels of 2019,” Messler wrote. However, his long-term view is less optimistic for consumers.

“Long-term we are expecting a spike in crude prices as shrinking supplies fail to meet rising demand,” wrote Messler. If he is right, that means you will be paying more at the pump down the road.

Travel Rebounding

Around the world, people are traveling and planning to travel for leisure again. In response, hotels, airlines, and cruise ships are cutting prices, expanded bookings, and relaxing cancellation policies.

The World Trade Organization, International Air Transportation Association, and hospitality research firm STR all agree that 2020 was the worst year in the travel business.

However, 2021 and beyond are looking much better.

Booking Increasing

According to a recent report by Tripadvisor, bookings for domestic travel are on the rise now with international travel picking up steam from May on.

The travel platform noted that about 70 percent of leisure bookings the first week in January were for domestic travel. May through August are the most popular months. Eighty percent of Americans surveyed planned at least one overnight leisure trip this year. About one-third said they were planning three or more domestic trips in 2021.

Vaccinations Fuel Optimism

The rollout of COVID-19 vaccines has been cited as the main reason people are traveling again for pleasure. Seventy-seven percent of those surveyed globally say they will travel internationally if they get the vaccine. In the U. S. the figure is 80 percent.

“Consumer appetite for travel is as strong as it has been since the start of the pandemic and, as our data shows, many people are already actively planning their next big trip – even for trips more than four months out,” said Shibani Walia, senior research analyst, Tripadvisor.

Remodeling Boom Building

Not all business suffers in a pandemic. Delivery companies are prospering with FedX and UPS posting higher earnings. Amazon and Walmart have also increased profits. And there is a boom in the remodeling industry.

The market for new homes has tightened during the pandemic. Many people found themselves priced out. They turned to remodeling in an effort to:

Make their homes more livable.
Accommodate remote work
Include other family members

Harvard University’s Center for Housing Studies, through its Lending Indicator of Remodeling Activity (LIRA), tracks home improvement trends.

Spending Up This Year

LIRA spotted the increase in home remodeling in 2020 when spending on such projects reached $339 billion. The boom is projected to continue in 2021 to $352 billion, according to LIRA.

For a detailed examination of the remodeling boom and its impact on you, your wallet, and how you live, read Monday’s article in Saving Advice.

GameStop Won’t Stop

This was the week veteran Wall Street value traders were expecting GameStop to get its comeuppance. Instead, it got renewed support and saw a continued changing of the guard.

After dipping 34 percent by the close of Wednesday, GameStop stock made up its losses Thursday. Investors started buying again at around $125 a share. The price rose 53 percent.

GameStop closed Friday at $178.84 a share, down about $5 a share.

Brutal Beginning

GameStop stock was beaten down the first three days of the week on expectations that Wednesday’s earnings report would be dismal.

Analysts expected GameStop to hit $1.35 per share on revenue of $2.21 billion. Instead, it earned $1.34 per share on revenue of $2.12 billion.

Shift to E-Commerce

One bright spot was the company’s announcement that e-commerce sales increased 175 percent last quarter. That accounted for one-third of the company’s revenue for that period.

GameStop has been shifting emphasis to e-commerce in the last five months. To facilitate that pivot, the company recently hired Jenna Owens as its new chief operating officer. She is a former Amazon and Google executive.

More good news came for GameStop Thursday. It was picked as a buy recommendation by short-term stock analyst firm Zacks Rank.

FedCoin Getting More Attention

The Federal Reserve’s interest in developing its own cryptocurrency is picking up steam.

Lael Brainard, Federal Reserve Board Governor, told a conference at the Stanford Graduate School of Business the central bank is currently exploring all aspects of digital currency,

The Fed is not alone in its interest in cryptocurrencies. Most central banks around the world are either researching or creating their own digital currencies, according to a survey by the Bank of International Settlements.

The Facebook Threat

Increasing the interest of the Fed and other central banks is Facebook’s proposal to introduce its Libra digital coin as a new global settlement currency. The idea is to back the Libra with existing monetary reserves, primarily the dollar.

It’s the idea that Libra could replace national currencies in international commerce that has drawn the interest of central banks. The fear is that a private company with that sort of monetary control could have political leverage over nations.

There Are Risks

Not referring to Facebook or Libra, Brainard noted risks in private companies having too much influence.

“Some of the new players are outside the financial system’s regulatory guardrails, and their new currencies could pose challenges in areas such as illicit finance, privacy, financial stability, and monetary policy transmission,” Brainard told the Stanford conference.

Bottom Line

It’s early and there is still a long way to go, but an upswing in travel and single-family renovations are positive economic signs. High gas prices look like they are here for a while. GameStop continues its gyrations and U. S. national cryptocurrency seems on the way.

The Weekend Financial Wrap: Your Next Job, Your Home Values, and Your New Opportunity

March 20, 2021 By Max Erkiletian Leave a Comment

If you are unemployed, your chances of getting a job are improving; your house is probably worth more, and you now have an unprecedented chance to own a valuable collectible.

You may have thought the high cost of investing in collectibles, such as art, was too expensive. However, there is a new collectible market you can afford and it is booming. We are talking about NFTs.

What Are NFTs

An NFT (Non-Fungible Token) represents ownership of a unique item on a blockchain. They can be digital files, such as GIFs, JPGs, MP3s, videos, and more, representing art, music, sports cards, and other creative works.

NFTs have grown into a sizable market. Messari, an online database for the crypto industry, estimates NFTs sales for 2021 will exceed $1.3 billion.

This month digital artist Beeple (real name Mike Winkelmann) made headlines when his digital collage sold for $69 million at a Christie’s auction. The price tag not only set a record but signaled the arrival of NFT art in the mainstream.

NFT Opportunity

Don’t have a spare $69 million to layout on an NFT? Not to worry. The average price of an NFT is about $2,000. A few sales, such as Beele’s, drive the average up. Most NFTs can be purchased well under $1,000.

Some artists regularly sell NFTs for a couple of hundred dollars or less. Sports NFTs can go for six figures, but many can be had for under $10. Then there are brands. Taco Bell recently sold a drop of 25 product NFTs for $1.60 each. Within a couple of days one of those sold again for $20,000.

Hot To Buy NFTs

First, understand that when you invest in an NFT, you are actually purchasing a token that establishes your ownership. It’s like a title to your car.

Because they are part of blockchain technology, NFTs must be purchased on specific sites. Some of the most popular include:

Rarible – The world’s largest NFT platform. It sells mostly small pieces of digital art for hundreds of dollars and less.
OpenSea – Artwork here tends to be higher priced than Rable. It also sells trading cards and domain names.
VIV3 – Here you can find a variety of art in low to high price ranges and sports NFTs.

Bottom Line on NFTs

If you want a piece of the NFT market, look for quality and rarity. The best advice is to buy what you know. If you follow sports, but do not know anything about art – stick with sports reels and cards.

Your Home Equity Has Probably Increased

If you own your home, congratulations. One of your most valuable assets has probably increased in value. That is an additional resource that makes your financial life more secure.

Home equity is the amount you owe on your mortgage versus the current value of your home. Equity in the average home has risen 16.2 percent over the last year, according to CoreLogic, a real estate analytics company.

How To Determine What Your Home Is Worth

The traditional method for finding out your home’s value is to hire an appraiser. However, that is expensive and may only be necessary if you are selling.

There are several sites online for valuing your home. Some will ask for square footage, the number of bedrooms and bathrooms, and similar information. Others will simply ask for your address.

Among the best of these sites are:

Redfin.com

Eppraisal.com

Ownerly.com

Greater Financial Security

This jump in home equity means your financial position is more secure. If you need more funds to wade through the pandemic, you could tap some of that increased equity.

This uptick in equity could moderate the recent downturn in refinancing. However, you can also use a HELOC or home equity line of credit, to access the money in your home.

Of course, if you are financially sound, you do not have to use the increased equity in your home. You can do nothing and just breath easier.

Update Your Resume

If the pandemic has put you into employment hibernation, it is time to wake up.

Jobs increased 379,000 in February, according to the Labor Department. That brought the unemployment rate to 6.2 percent. That is a small decline of .04 percent. However, economists and business consultants predict a further decline in March.

How To Stand Out in the Job Market

Increased vaccinations and reduced COVID-19 cases mean the economy is beginning to reopen. That means more jobs. Look for our article next week, “How to Make Your Pandemic Lay-Off a Plus”, for more.

One of the best ways to make your application stand out is to role-play. Put yourself in the position of the hiring manager. Ask yourself what he/she is looking for. That should be evident in the job posting.

If a job post lists specific qualifications, highlight those in your resume and cover letter.

To really stand out, Do not follow the crowd. Go directly to the decisionmaker. Try to send your cover letter and resume directly to the hiring manager’s email. To find that email, you can search a couple of Chrome extensions: Clearbit and AeroLeads, or LeadFinder.

One Million New Jobs

Ian Shepherdson, founder and chief economist at Pantheon Macroeconomics, issued a note earlier this month stating the economy “could easily see a one million” increase in jobs.

“The core story here,” wrote Shepherdson, “is that the re-opening of services will be the dominating factor in payroll numbers over the next few months.”

Indeed, leisure and service jobs lead to February’s employment rise. The foodservice industry alone accounted for 286,000 more jobs. Manufacturing and retail are expected to follow.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

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End of Week Financial Wrap-Up

March 14, 2021 By Max Erkiletian Leave a Comment

Financial events this week that might have a significant impact on your life.

Your retirement account probably got a boost as the stock market hit a record high.
Refinancing a house got a little more expensive.
Individual investors continued to pour into the stock market.
If you are a Black woman, there is good news for your future.

Here is a recap of some of the most important financial stories you should know about.

Mortgage Refinancing Declines as Rates Edge Up

Spring is usually a peak season for new home sales and mortgage refinancing. Keep an eye on rising interest rates if you are considering either.

The number of Americans refinancing home mortgages dropped. Forty-three percent fewer people refinanced this week versus the same time last year.

The improving economy has moved interest rates up .03 percent on average. As a result, demand for refinancing declined.

Goldman Sachs Commits $10 Billion to Close Income Gap for Black Women

Goldman Sachs investment company announced a program called One Million Black Women. It is an effort to bridge the 15 percent earnings gap between White and Black women.

That initiative was developed with Black women’s organizations. It is being funded by $10 billion in direct investments and $100 million in philanthropic capital.

The plan will create 1.2 to 1.7 million jobs and boost annual GDP in the United States by $300 to 450 billion, Goldman predicts.

Initial investments will be made in housing, healthcare, education, access to capital, and job creation, according to Goldman.

A study by Goldman, entitled Black Womenomics, lead to the initiative.

“Largely because of lower earnings and access to capital, Black Americans are much less likely to own high-return assets than white individuals, including homes, stocks, and especially their own businesses,” the study concluded.

GameStop Rises as More New Investors Enter the Stock Market

The trend of rookie investors entering the stock market continued this week. Many of them have been drawn in by the sharp rise in GameStock shares.

It is easier than ever to enter the market. However, it is also more dangerous than ever.

The price of GameStop surged up 40 percent Wednesday. However, it dropped a few minutes later. Subsequently, the stock jumped as high as 14 percent and closed at $295.50 a share Friday, according to Business Insider.

Stock prices move on financial or news reports. However, GameStop’s price moved up and down without either. On the other hand, its price is powered by social media chatter.

Those new investors are entering the market through online trading apps such as Robinhood.

The dollar value of trading by small investors is up over 85 percent in the last year, according to Goldman Sachs.

Analysts who rate stocks on value continue to recommend selling GameStop. The March 23 earnings report may impact its price.

Dow Hits Record High; Treasuries Rise; Nasdaq Declines Slightly

The Dow Jones Industrial Average closed the week with a record high of 32,778.64. The Nasdaq dropped almost 79 points to 13,319.86. Meanwhile, the 10-year Treasury Bond hit its high yield for the year – 1.635 percent.

The bullish Dow reflects the positive outlook as the economy begins to reopen and consumer spending increases.

However, some economists fear rising bond prices may lead to inflation. Likewise, producer prices were higher than expected in February, according to Friday’s Labor Department report. That too may signal inflation.

The jump in the stock market probably bodes well for your mutual funds and retirement accounts. However, rising bond yields and consumer prices may mean goods could cost more in the near future.