Money Management

Home-buying conditions aren’t nearly as good as they were a year or two ago, but that doesn’t necessarily mean you should stay away. Here’s why. 

Many people who would love to become homeowners are staying on the sidelines, and to be fair, it’s easy to see why. According to Mortgage News Daily, the average 30-year fixed mortgage rate is now 7.72%, the highest level since 2000, and home values in the U.S. have risen by 34% in the past three years alone. The average mortgage payment when buying a home has more than doubled since mid-2020.

Having said all that, it isn’t necessarily as bad of a time to buy a home as you might think. Here are three things to keep in mind when considering whether to stay out of the market or take the plunge into homeownership.

Your mortgage rate isn’t necessarily forever

Legendary investor Warren Buffett generally cautions against using any type of consumer debt to buy things, with one big exception — 30-year fixed-rate mortgages.

His primary reason is that mortgage rates can be adjusted downward if rates fall but will never increase no matter what average interest rates do. If you get a mortgage with a 7.5% APR in 2023, that’s the highest borrowing cost you’ll have to pay in the next 30 years. Even if rates continue to rise and hit 10% or more, your payment won’t rise.

On the other hand, while 3% mortgage rates are unlikely to return anytime soon, many experts believe mortgage rates will settle back into the 5% ballpark within the next couple of years once the Federal Reserve has brought inflation under control. And if this happens, you can simply contact a refinancing lender and you can end up with a lower rate and monthly payment.

In short, it’s a mistake to think of today’s higher mortgage rates as permanent. While nobody can predict the future, and it could certainly take years for rates to really cool off, there’s a strong probability that rates will be significantly lower than they are today sometime in the next 30 years and you’ll be able to refinance.

Prices could rise even further if rates drop

Many people are convinced that with higher mortgage rates, home prices are set to drop. But don’t be so sure this will happen.

The inventory of existing homes for sale is at a historic low, and a big reason is that millions of homeowners have mortgage rates of 4%, 3%, or even less, and are reluctant to lose those rates by selling. But if rates start to fall — even by one or two percentage points — prospective home buyers could come rushing back into the market, even though rates wouldn’t be low enough to encourage more people to sell.

In fact, real estate expert and Shark Tank star Barbara Corcoran recently predicted that home prices could rise by as much as 15% from the current levels as mortgage rates fall. For context, a 15% increase would mean that a home that costs $500,000 today could be worth as much as $575,000 if rates start to cool off.

Build wealth for you, not a landlord

According to the most recent Federal Reserve Survey of Consumer Finances, the average renter in the United States has a net worth of about $96,000. Meanwhile, the average homeowner has a net worth of nearly $1.1 million.

There’s a reason for this. Homeowners build equity in their homes over time by paying down their mortgage, while renters don’t get any ownership interest in exchange for their monthly payments.

Of course, homeownership isn’t right for everyone. But if you’re planning to stay in one place for the next several years at a minimum and you can comfortably afford the mortgage payments, owning a home can be a great way to grow your wealth over time.

It could still be a good time to buy

Although mortgage rates are high and home prices are far greater than they were just a few years ago, there’s still a solid argument to be made in favor of homeownership. Not only has the cost of rent increased significantly along with home prices, but pent-up demand could cause prices to soar even higher if rates take a dive. With the ability to refinance a mortgage loan if the interest rate environment cools off and much less competition in the housing market than there was a year or two ago, it could be a smart time to take the plunge into homeownership.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Not every “deal” during Prime Days will actually be a deal. Find out how to spot bargains quickly with these tips. 

Amazon’s Prime Big Deal Days are in full swing and the deals are coming in fast. So far, the headliners for day one have been discounts on Dyson and Apple products, a slew of televisions and video games, and a lifetime Microsoft Office license for only $99 (which prompted another retailer to sell it for $30).

With new deals dropping every five minutes, it’s easy to feel overwhelmed. But before you charge that Dutch oven to your credit card, run through these three tips to make sure you’re actually getting a deal.

1. Build an Amazon shopping list before Prime Day starts

One thing I hate about Prime Day is that it’s unabashedly designed to make us buy stuff we probably don’t need. An iRobot Roomba? A cordless vacuum? Please — my Hoover is still kicking it and refuses with ironfist to give up the ghost.

But one way to buy stuff you need with significant savings is to make shopping lists dedicated to Prime Days. As you come across items you want (but not at full price), add them to your list. Then, during Prime Day, scroll through it and see which items are flagged as Prime Day deals (currently marked with a red banner that says “Big Deal”).

This is my spouse’s trick and it pays off immensely. Outside of Prime Days, she constantly adds big ticket items we can’t afford at full price, along with necessities we have on subscribe-and-save, like cat food. The list accumulates and, during Prime Day, we scan it to find deals that match what we really want.

It’s not foolproof. For instance, I wanted new Airpods to replace a set that won’t stop playing music intermittently between my ears (everything I own is possessed, like my printer). I didn’t add the Airpods to a shopping list and, frankly, missed the big sale on them. But it is a way to filter deals by what you want, not to mention curb spending.

2. Compare deals with shopping apps

Let’s say you find a Prime Day deal on something you need. How do you know it’s actually a deal, that is, the lowest price you can find on the web?

One way is to download a third-party shopping app. This will compare the deal with other retailers that are selling the same product. For instance, I use the Capital One Shopping App. This app, which you can add as an extension to your browser, will look for better deals automatically. If it finds a better price, it will tell you how much you can save. Better yet — the app integrates with Amazon pages and will tell you instantly if there’s a cheaper price.

In my experience, the app often finds the best deals on eBay, which may mean buying the product used. But it can still come in handy as it will compare Amazon’s prices with over 30,000 online stores.

3. Analyze price histories

Little known fact: The “savings” that Amazon advertises aren’t always honest. In fact, according to a study published in Marketing Science last year, some sellers will inflate list prices ahead of sales to make it seem like you’re saving more than you actually are.

For example, let’s say a seller normally sells vacuums for $200. During Prime Day, they decide to sell them for $175. In the weeks leading up to Prime Day, they inflate the price to $225. This makes it seem like you’re getting a 22% discount, when in reality your savings are more like 12.5%.

One way to check if the discount is real is to look at its price history. Several apps and browser extensions can help you do this but my favorite is camelcamelcamel. This app (also a free website) will show you a product’s price history as a graph. Normally, a product’s price will be a steady horizontal line, with some occasional upticks. If you notice a steady line with a major uptick in the weeks before Prime Day, it might be an attempt to inflate savings.

Amazon Prime Days can help you save money but be on your guard

All in all, these tips can help you spot real Prime Day deals from the noise. Not every deal will be right for you, even if the savings seem great. Stay on your toes, and avoid getting roped into “deals” that may not have the best impact on your finances.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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Sam’s Club is one of the world’s largest retailers. Here’s how to become a member and shop at a discount. 

As one of the world’s largest retailers, Sam’s Club is on a mission to up its game. For members, the trick is to be aware of any new Sam’s Club benefits that become available, and to adopt as many money saving moves as possible. Here are seven of them.

1. There’s rarely a reason to pay full price for a membership

Let’s face it; Sam’s Club offers incredible discounts on its membership prices on a fairly regular basis. For example, through Oct. 15, the price of a Club card is slashed from $50 to $15. And the $110 Plus card is only $55.

Even if you miss out on these deals, you’ll often find Sam’s Club membership discounts on sites like Groupon. If you’re thinking about joining Sam’s Club, keep your eyes peeled for specials.

2. Pull out those Walmart gift cards

Although Sam’s Club is part of the giant Walmart world, it’s surprising how few of us know that Walmart gift cards can be used on Sam’s Club purchases. What’s special about that? Far more consumers shop at Walmart than the members-only Sam’s Club each year. That means folks are more likely to pick up Walmart gift cards to give as gifts.

If you happen to receive a Walmart gift card, remember that you have the option of saving money at Sam’s Club by using it online or in-store.

3. Take advantage of freebies

You know that you can practically eat your body weight in samples by simply strolling around Sam’s Club, but were you aware of the amount of free stuff you can snag by scanning your membership card at a “Freeosk” kiosk located in stores?

Samples are sometimes something as small as a coupon. And sometimes, you get a free, full-sized product, like a photo book or mug.

4. Don’t pay for prescription drugs when you can get them for free

Chances are, long-time Plus card members are well aware of their access to select free prescription drugs. If you have not yet been introduced to the program, here are the details. Select Sam’s Club Pharmacies around the country offer these 10 generic prescription drugs for $0:

AmlodipineDonepezilEscitalopramFinasterideLisinoprilMetforminMontelukastPioglitazoneSertralineVitamin D2 50,000 IU

Members in Arizona, California, and Minnesota do not have access to free drugs due to laws in their states, but they can purchase any of the drugs listed for $2 for a 30-day supply.

5. Sign up for email alerts

Another lesser-known money-saving trick is to sign up for email alerts from Sam’s Club. While it’s understandable that you don’t want to deal with one more advertisement in your inbox, signing up for alerts means you’ll receive everyday money saving insights.

While you’re at it, make a note to regularly check the Sam’s Club website’s Shocking Values page. You’ll find some truly sweet deals there.

6. Shop the perimeter

Did you know that Sam’s Club tends to place its best deals around the outside of the store and tuck its impulse buys in the center? If you’re all about finding the good deals fast, stick with the outer perimeter. And if you’re prone to impulse purchases that drain your bank account, you may even want to avoid shopping the interior.

7. Outsmart impulse buying

Another way to avoid impulse purchases is to place your order online and use club pick-up. It may seem like a small thing, but imagine if you could save an extra $15 or $20 a week in impulse buys. That’s an additional $780 to $1,040 to tuck away in your emergency savings account annually. It’s not only a painless way to save, but it’s also convenient.

Given that Sam’s Club and Costco are in direct competition, it’s easy to imagine that bargains will only get better over time. As of now, though, there are plenty of ways to make the most of your Sam’s Club membership while still saving money.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Dana George has positions in Walmart. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.

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Ready to shop Amazon’s Prime Big Deal Days but don’t have a lot of extra money to spend? Find out which deals under $20 could be worth the buy. 

Amazon’s annual shopping event, Prime Day, draws in online shoppers who love a good deal. But the deals aren’t over. Amazon has a fall sales event happening right now. On Oct. 10 and Oct. 11, Prime members can shop the Prime Big Deal Days. This sale event could incentivize you to finish your holiday shopping. Let’s take a look at a few finds you can buy for under $20.

1. Chom Chom Roller Pet Hair Remover: $19.99

Calling all parents of fur kids! Are you sick of leaving the house covered in pet hair? The Chom Chom Roller Pet Hair Remover is a reusable lint roller. Unlike other lint rollers, you can use this without having to buy refills or replacements. Prime members can buy one for $19.99.

2. SOCHOW Flannel Fleece Blanket: $13.59

It’s almost blanket season, and Amazon has what you need to get cozy. You can buy a throw-size 50″ x 60″ SOCHOW Flannel Fleece Blanket for as low as $13.59. Discounts vary depending on which color blanket you order, but plenty of affordable options exist.

3. Echo Pop: $17.99

If you’re looking for a smart speaker at an affordable price point, the Echo Pop is on sale for $17.99. Alexa powers this compact smart speaker, perfect for tiny spaces. You can play music, set timers, check the weather, and even place orders on Amazon. The Echo Pop retails for $39.99, so you’ll get a discount of 55% if you buy one during the fall Prime sale. You can treat yourself to some new tech while continuing to stay on top of your personal finance goals.

4. Swiffer Sweeper 2-in-1 Mops with Starter Kit: $12.49

Perhaps you’ve been looking for a way to make cleaning your home easier. Next on our list is my favorite household cleaning item — the Swiffer Sweeper. Prime members can buy the Swiffer Sweeper 2-in-1 Mops with a starter kit that includes one mop and 19 refills for $12.49. This deal proves you can simplify household cleaning tasks without disregarding your budget.

5. HomeTop Women’s Memory Foam Loafer Slippers: $16.59

Ready to replace your worn slippers? Ensure you find a good deal before entering your credit card details at checkout. Prime members can buy a pair of HomeTop Women’s Fuzzy Curly Fur Memory Foam Loafer Slippers during the fall sale event at a significant discount. Prices vary depending on the color you pick, but you can get a pair for as little as $16.59.

6. SUUSON Car Phone Holder Mount: $13.59

If you regularly use your phone for directions or to listen to music while you’re driving, having a car holder mount can be helpful. Otherwise, it can be harder to stay focused on the road. The SUUSON Car Phone Holder Mount costs only $13.59 during the fall Prime Day shopping event. This model fits many iPhone, Samsung, Google, and LG cellphones.

Don’t ignore savings events like Prime Big Deal Days

If you like to shop online without draining your bank account, don’t forget to check out savings events like this. You’ll need to be a Prime member to get the lowest prices on the items above. Still not a Prime member? Here are some little-known perks of an Amazon Prime membership. If you plan to shop the sale, use a cash back credit card at checkout to get rewarded for your purchases.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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