Core Insights - High mortgage rates have led to increased popularity of adjustable-rate mortgages (ARMs), reminiscent of the 2008 housing crisis [1][10] - Improved lending standards are reducing risks associated with ARMs, making them a viable option for homebuyers [2][13] Group 1: ARM Usage Trends - The usage of ARMs has risen significantly, with about 10% of borrowers opting for them in September, compared to 6% post-2008 crash [4][10] - In October, ARMs accounted for 25% of home purchases, up from 16% the previous year [4] - The demand for ARMs surged after mortgage rates increased by over three percentage points in 2022, reaching above 7% [6] Group 2: Financial Implications - A five-year ARM offered an initial rate of 5.58%, compared to 6.37% for traditional loans, potentially saving borrowers around $200 monthly on a $400,000 loan [7] - The current environment has made ARMs more attractive as short-term interest rates have declined, leading to better introductory rates [8] Group 3: Risk Management - Stricter credit standards are now in place, with lenders evaluating borrowers' credit ratings against current mortgage rates, reducing the risk of defaults [13][14] - Most ARMs now have fixed terms of 5, 7, and 10 years, and borrowers are underwritten to the fully indexed rate, making them less risky than pre-2008 loans [14]

[Music] Investors are sorting through a mixed picture of updates on the labor market, but our next guest still optimistic on the road ahead for the economy and markets. Bank of America senior investment strategist Lauren Sanfalippo joins me here now to discuss. Lauren, it is good to see you.Let's start in the macro. Lauren, uh, you're all calling for real GDP growth to accelerate nominal over 5%. What gives you the confidence to make that call.>> Well, I think we'll find out more on Thursday on the inflatio ...

By STAN CHOE, AP Business WriterNEW YORK (AP) — The U.S. stock market is slipping on Tuesday following mixed data on the economy’s strength, which did little to clear uncertainty about where interest rates may be heading. The S&P 500 fell 0.6% in afternoon trading and remains a bit below its all-time high set last week. The Dow Jones Industrial Average was down 342 points, or 0.7%, as of 12:45 p.m. Eastern time, and the Nasdaq composite was 0.3% lower.Treasury yields eased a bit, following a larger initial ...

Employment Data & Economic Outlook - November jobs report indicates employers added 64,000 jobs [1] - The unemployment rate edged up to 46% from 44% [1] - The economy is weaker than desired, based on backward-looking data [3] Federal Reserve & Monetary Policy - The Federal Reserve faces a conundrum regarding cutting rates in light of the job numbers [3] - Persistent inflation, partly due to tariffs, complicates the decision to lower interest rates [4] - Lowering interest rates could exacerbate inflation, while increasing them could worsen unemployment [5]

Let’s ponder for a moment what might happen to interest rates in 2026. The past 12 months have been quite an economic ride: Historic in some respects, hyberbolic in others. New York Fed President John C. Williams thinks the next 12 will provide fewer bumps on Wall Street and Main Street. “If I had to choose one word to describe 2025, it is uncertainty,’’ Williams said Dec. 15 in prepared remarks. “What’s striking is that despite all the uncertainty, the U.S. economy has shown considerable resilience and ...

Do you think that this really changes the needle in any way. Well, Lisa, you stole my opening line. I was going to do a little hat tip to our friend and colleague, Jonathan Ferro.He always says the first reaction is not always the right reaction. And you said that at the top of the hour there at the top of the segment. You know, the headline was what the markets were reacting to, the little bit higher than expected unemployment rate.I think you guys in the earlier segment decomposed that pretty well the lab ...

The U.S. stock market has had an interesting year in 2025. The focus point has been between surging AI investments, President Trump’s quickly changing tariff policies, higher-for-longer interest rates, geopolitical risks and defense stocks, and increasing economic uncertainty in aI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifyin ...

CBC team coverage uh this morning involves Steve Leeman as well as Rick Santelli. Rick Santelli, let's go to you. You're standing by at the CME.Let's get straight to the numbers. But Mike Santelli, by the way, is out the NY. But Rick, get the numbers, please.>> Yes. October and November for the big job job jobs report. The only thing is it's not Friday.Here we go. November's number comes in at 64,000. 64,000 on non-farm.And if we look at average hourly earnings, they are up onetenth up onetenth of a percent ...

European stocks look set to open lower on Tuesday as investors await cues from key U.S. data and central bank decisions. The delayed monthly jobs report for November along with the October retail sales report will be in the spotlight today, while the consumer price index for November is scheduled to be released on Thursday. The data could impact the outlook for interest rates after the Federal Reserve's monetary policy meeting last Wednesday showed significant differences of opinion about further rate cuts ...

Market Overview - US stock futures are struggling to recover from a losing session as investors await the delayed November jobs report, which is crucial for interest rate decisions in the upcoming year [1][3] - Dow Jones Industrial Average futures are slightly below the flatline, S&P 500 futures have decreased by 0.1%, and Nasdaq futures have fallen by 0.2% [1] Employment Data - The November nonfarm payrolls report is expected to show a modest increase of 40,000 jobs, with the unemployment rate projected at 4.4% [4] - This report is significant as it will influence the Federal Reserve's policy decisions regarding potential rate cuts next year [4][5] Corporate Developments - Ford is set to take a $19.5 billion charge as it shifts focus away from electric vehicles, which has positively impacted its shares in premarket trading [5][16] - Roku shares increased by 4% following an upgrade from Morgan Stanley, while Gitlab shares fell by 3% after a downgrade by KeyBanc [6] - Zillow's stock dropped by 2% in premarket trading after a significant decline of 8% on Monday, attributed to Google's announcement of testing real estate listings in search results [6][7] Nasdaq Trading Hours - Nasdaq is seeking SEC approval to extend trading hours to 23 hours during weekdays, which would allow for an additional trading session from 9 p.m. to 4 a.m. ET [8][9] - This move is seen as a response to growing interest in trading US stocks outside traditional market hours, potentially increasing liquidity and allowing for real-time reactions to market developments [10][12] Cryptocurrency Market - Bitcoin has dropped below $86,000, indicating weakening investor sentiment and a shift deeper into bear market territory [13] - The cryptocurrency has been trading within a range of $85,000 to $94,000, with low volumes and a lack of interest noted across crypto markets [14][15]