The Daily Money: Is it time to sell those I bonds?

It may be time to sell the I bonds you bought at record-high interest rates in 2022.

Advertisement Read in browser The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW Wed Jan 3 2024 Daniel de Visé | Personal Finance Reporter Good morning! It's Daniel de Visé with your Daily Money. The good news: Inflation has eased over the past year. The bad news? So has the variable rate on those I bonds you bought back when inflation hit a 40-year high.  The I bonds you purchased in the summer of 2022, which paid a record 9.62% in annual interest when inflation was soaring, are now paying about a third of that, Medora Lee reports. But with inflation down and interest rates up, thanks to aggressive Federal Reserve rate hikes  over the past year and a half, you've got a lot of options to earn more than those I bonds offer, investment advisers say.   "You should sell them," said Daniel Milan, investment adviser and managing partner at Cornerstone Financial Services in Southfield, Michigan.   Feb 28, 2023; Washington, DC, USA; Protestors gather outside the U.S. Supreme Court ahead of the oral arguments in two cases that challenge President Joe Biden's $400 billion student loan forgiveness plan. Megan Smith/USA TODAY How to avoid student loan debt Last year saw failed attempts to forgive student loans en masse and  a herky-jerky return to loan payments after a long hiatus. It was also a year that raised fresh questions about whether a college degree really pays off in the long run.  Despite that, Nirvi Shah reports, Americans are generally undeterred in their pursuit of higher education. The number of prospective college students creating Common App accounts to apply to schools in 2023  surged, including among those who would be the first in their families to go to college, and among students of color. A disproportionate share of the nation's  nearly $2 trillion in student loan debt  is carried by women. Black women, in particular, owe an outsize sum. Does it have to be this way? Is it possible to go to college without taking out student loans or to find a well-paid job without a degree? USA TODAY spoke with college students, graduates and dropouts about getting the skills or degrees required to become professionals, without going into significant debt. Unless a student's family can underwrite their education or secure a coveted scholarship that covers  the growing price of a degree, it's very difficult.  📰 More stories you shouldn't miss 📰 How much is the 2023 child tax credit? Here's what you need to know about qualifying. What's ahead for the US economy? A peek at inflation, interest rates, more Which EVs qualify for a 2024 tax credit? See the updated list. What does cost of living mean? How we calculate the comparison for states and cities. About The Daily Money Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you. These 5 people tried to limit their student loan debt. It wasn't easy Is it possible to go to college or get a high-paying job without student loans? Yes, but without a wealthy family or big scholarship it's difficult. READ MORE Advertisement You may want to sell those I bonds you bought. Here's why. Remember those I bonds you bought to keep up with inflation in 2022? Here's why you should consider selling them. READ MORE Economy, job growth likely to slow in 2024 but overall outlook improves The economy and job growth are expected to slow in 2024. But the outlook has improved after the Fed said it's probably done raising interest rates READ MORE How a metal can will keep your car from being stolen Crimes committed by tech-savvy car thieves using special tools purchased on the internet are contributing to a spike vehicle thefts. READ MORE Child tax credit: Here's what you need to know for this tax season Here is what you should know about the child tax credit for this year's tax season and whether you qualify for it. READ MORE See the list of electric cars that qualify for tax credits in 2024 Fewer electric car models qualify for tax credits in 2024 after new requirements kicked in on Jan. 1. READ MORE Ford recalling 113,000 F-150 vehicles for increased risk of crash Certain 2021-2023 Ford F-150 vehicles are affected by the recall, which addresses a rear axle hub bolt that may fatigue and break. READ MORE What to do if you're late for your flight | Cruising Altitude If you're late for your flight, it's not the end of the world. Here's what to do and how you can get on your way with minimal hassle. READ MORE What will the housing market be like in 2024? Here's what experts say Real estate activity will vary significantly from market to market with some top-growth areas expected to see double-digit increases, says Hale. READ MORE Only half of us expect to pay off our December credit card bill Only half of America's credit card customers believe they can pay off their December balance in full, signaling a low ebb in "credit card confidence" READ MORE Advertisement Sign up for the news you want Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you. SEE ALL NEWSLETTERS ➔ Newsletters   |    eNewspaper   |   Crosswords Follow Us Problem viewing email? 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The Daily Money: Locked-in mortgage rates slowed home sales in 2023

No other phrase defined the 2023 housing market like "mortgage rate lock-in effect" – a phenomenon that brought the industry to a standstill.

Advertisement Read in browser The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW Tue Jan 2 2024 Daniel de Visé | Personal Finance Reporter Happy New Year! It's Daniel de Visé with your Daily Money. No other phrase defined the 2023 housing market like "mortgage rate lock-in effect" – a phenomenon that brought the industry to a standstill, putting downward pressure on everything from inventory levels to home sales. It signifies that 85% of current mortgage holders  are locked into sub-5%, pandemic-era mortgage interest rates, which acted as a disincentive for them to sell their home and buy another at a higher rate. Rates peaked at 7.79% in the week ending Oct. 26, according to Freddie Mac. But will things change this year? There are signs that market conditions will be improving, Swapna Venugopal Ramaswamy reports. Mortgage rates dropped steadily over the past seven weeks, averaging  6.61 % for a 30-year fixed mortgage in the week ending Dec. 28. The lower mortgage rates provided a boost to existing-home sales, which rose in November, up 0.8% from October, breaking a streak of five consecutive monthly declines, according to the National Association of Realtors. Shoppers look over holiday merchandise on display at a Target store in Orlando, Fla. John Raoux, AP Economic outlook brightens for 2024 This was the year that the post-COVID economy was finally supposed to stop defying gravity and topple into a recession. Instead, the stock market is roaring, Paul Davidson reports, fed by the growing belief that the Federal Reserve is on track to wrestle down inflation without causing a downturn, a rare feat known as a  "soft landing."   To be sure, growth is expected to slow amid the delayed effects of the Fed's aggressive interest rate hikes, the depletion of households'  excess pandemic savings and a pullback in federal government spending. But other factors are likely to keep the economy afloat, forecasters say, including near-record home and stock prices, a further easing of inflation to or near the Fed's 2% goal, and the central bank's tentative plans  to cut interest rates more sharply than previously anticipated. "2023 was a very good year," says Mark Zandi, chief economist of Moody's Analytics. "2024 will just be a good year." 📰 More stories you shouldn't miss 📰 In over our heads? Only half of Americans believe they can pay off their December credit card bill Runway disaster: 5 people dead, Japan Airlines plane catches fire after collision on Tokyo airport runway Is Social Security income taxable? Here's what you might owe on your benefits FAFSA alert: The long-awaited FAFSA is finally here. Now, hurry up and fill it out. Here's why. About The Daily Money Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you. Economy, job growth likely to slow in 2024 but overall outlook improves The economy and job growth are expected to slow in 2024. But the outlook has improved after the Fed said it's probably done raising interest rates READ MORE Advertisement What will the housing market be like in 2024? Here's what experts say Real estate activity will vary significantly from market to market with some top-growth areas expected to see double-digit increases, says Hale. READ MORE 5 people dead, plane catches fire after collision on Tokyo airport runway Five crew members of a Japan Coast Guard plane died, while all 379 people on the Japan Airlines plane had been evacuated, local media reported. READ MORE Only half of us expect to pay off our December credit card bill Only half of America's credit card customers believe they can pay off their December balance in full, signaling a low ebb in "credit card confidence" READ MORE Social Security benefits increasing this month. Here's the payment calendar It's the third year in a row inflation has prompted an increase in Social Security checks. Here's when you can expect to see bigger payments. READ MORE Here's how much of your Social Security benefits are taxable How is Social Security taxed in 2024? Here are the rules used to calculate how much you might owe on your benefits. READ MORE Nutramigen infant formula recalled due to potential bacteria contamination Batches of Enfamil's Nutramigen Powder, a specialty infant formula, are being recalled due to a potential bacterial contamination. READ MORE Who won the Powerball? Winning ticket snags $842 million jackpot The winning ticket was purchased in a Flint, Michigan suburb. The winner will remain unknown until they present themselves to the Michigan Lottery. READ MORE Simplified FAFSA soft launches. Why you need to complete it ASAP. The new, simplified FAFSA finally launches after a three-month delay. But now, there's no time to spare in getting it done. What you need to know. READ MORE What to know about taxes if you are retiring in 2024 It's important to be in the know when it comes to taxes and retirement. Here's some information you might find helpful. READ MORE Advertisement Sign up for the news you want Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you. SEE ALL NEWSLETTERS ➔ Newsletters   |    eNewspaper   |   Crosswords Follow Us Problem viewing email? View in browser Unsubscribe  •  Manage Newsletters  •  Terms of Service  •  Privacy Policy/Your California Privacy Rights  •   Privacy Notice  •  Do Not Sell My Info/Cookie Policy  •  Feedback

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