Money Management

Discover which U.S. states are seeing home prices drop in 2024. Learn where to buy and how to lock in the best mortgage rates. [[{“value”:”

If you’ve been watching the housing market, you’ve likely noticed a shift. Home prices, which seemed to be on a never-ending upward trajectory, are now beginning to drop in certain states. According to data from Zillow, U.S. home prices fell by 0.03% month over month between July and August 2024 — a modest decline, but significant given that prices usually increase during this time of year. From 2000 to now, July to August has typically seen a 0.4% increase.

With affordability issues keeping buyers on the sidelines, inventory is building up, especially in some Southern and Southwestern states. As a result, homes are sitting on the market longer, and sellers are adjusting their prices to attract home buyers. As mortgage rates continue to fall, buyers in some places could find a deal.

Shopping around with multiple lenders is the best way to save money on your home loan. Click here to check out the best mortgage lenders recommended by our experts and start comparing rates.

So, where exactly are prices falling? Let’s dive into the five states where you might find better deals.

1. Texas

Texas, long a hotspot for buyers seeking more space and affordable living, is seeing home prices start to cool, particularly in markets like Austin and Dallas. During the pandemic, Texas saw a massive influx of new residents, which drove prices up sharply. But as of mid-2024, inventory has surpassed pre-pandemic levels, and the market is now experiencing some corrections.

In fact, Austin’s housing market, which was one of the fastest-growing during the pandemic, has seen home prices decline over the last few months. Active inventory is rising, buyers have more options, so prices are slowly decreasing to balance demand. In July 2024, Texas home prices experienced a 0.2% month-over-month decline, a shift from the steady growth observed over the last few years.

2. Florida

Florida’s housing market is also softening, particularly in the condo segment. After the Surfside condo collapse in 2021, new regulations were implemented, slowing condo sales. While Florida’s overall real estate market remained strong for a while, areas like Tampa and Orlando now feel the impact of rising inventory and slower demand.

Florida’s condo market, in particular, has been hit by a wave of caution, leading to price corrections in these areas. As a result, home prices, especially condos, fell after reaching unsustainable levels during the pandemic housing boom. Home prices in Florida were down 0.48% compared to last year.

3. Arizona

Arizona, especially cities like Phoenix, has been a magnet for people seeking warm weather and relatively affordable housing. But like other Sun Belt states, Arizona’s rapid price growth during the pandemic is now slowing down. Inventory levels are increasing, and builders are offering incentives like mortgage rate buydowns, which has led to a cooling effect in the resale market.

As a result, home prices in Arizona are seeing month-over-month declines for the first time in years. In August 2024, home prices in Phoenix, AZ dropped by 4.8% year over year following several years of rapid growth. Buyers have more options now, and sellers are adjusting to the new reality of a slower-moving market.

4. Louisiana

Home prices in Louisiana are starting to correct after the sharp increases seen during the pandemic. In cities like Baton Rouge and New Orleans, the number of homes for sale has risen, giving buyers more leverage and leading to price reductions.

While the overall market in Louisiana remains stable, the increased inventory is pushing prices down slightly as sellers look to attract cautious buyers who are holding out for better deals. New Orleans-Metairie saw a 0.6% month-over-month decline, a 13.7% drop since its 2022 peak, and a 4.6% decrease year over year.

5. Colorado

Colorado’s housing market is cooling off, especially in Denver, where home prices dropped 1.8% year over year in August 2024. After a post-pandemic boom drove prices up fast, the market is now stabilizing.

Fewer homes are selling too — 7,161 this past August, compared to 7,272 last year. Both buyers and sellers are paying closer attention to the details, as every deal now counts more in a more measured market.

Why are prices falling?

During the pandemic, many of these states saw extraordinary demand from buyers looking to relocate, leading to a surge in home prices. But now that migration has slowed and mortgage rates have risen significantly, fewer people can afford homes at these inflated prices. At the same time, inventory is increasing as more homes are listed for sale, further dampening price growth.

Additionally, builders in these states ramp up supply to meet demand, creating a cooling effect in the resale market. Meanwhile, regions like the Northeast and Midwest, with less new construction, are seeing fewer price drops since existing homes remain in high demand.

What should you do next?

If you’ve been waiting for the housing market to cool down before making a purchase, now might be your chance — especially if you’re looking in one of the states mentioned above. Prices are falling, and buyers have more room to negotiate, particularly as homes sit on the market longer.

But don’t wait too long! While prices are dropping in some areas, they aren’t crashing, and demand could pick up again once affordability improves or interest rates come down. It’s all about timing, so be ready to act when you find the right deal.

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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 positions in and recommends Zillow Group. The Motley Fool has a disclosure policy.

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It’s easy to overspend on great deals at Sam’s Clubs. Read on to find out how to maximize your savings and stay within your budget. [[{“value”:”

Using a membership to a discount warehouse club is one of the best ways to save money on everything from groceries to gas. Sam’s Club is one of the best membership clubs, but even the most frugal shopper knows it’s easy to go over budget when good deals surround you.

To save the most with your Sam’s Club membership, follow these simple tips.

1. Compare prices ahead of time

I don’t buy anything without doing extensive price comparisons ahead of time. I like finding a good deal, and it gives me a certain amount of satisfaction if I know I’ve done my homework before buying.

Buying in bulk at Sam’s Club can certainly save you money if you plan your meals ahead of time, but it pays to do price comparisons with other stores. For example, my family regularly buys cereal when it’s BOGO at one of the local grocery stores. We’ve had memberships to discount warehouse clubs before, but the prices still don’t beat a buy-one-get-one-free deal.

The Sam’s Club app is helpful for this and includes a savings section that lists temporary discounts on items and when they expire. My app showed $2 off a 30-pack of Oreos for the next two weeks. Sold!

Hint: An easy way to save at Sam’s Club every time you shop is to use a rewards card. Click here to see our list of top-rated cash back credit cards.

2. Make a list and stick to it

If I walk into a grocery store without a list, I look like a deer in the headlights. There are too many versions of every product, and decision fatigue kicks in pretty quickly.

Not only does a grocery list keep me focused on what I need, but I rarely get enticed by a good deal if it’s not on my list. This is where the Sam’s Club app comes in handy again. You can create shopping lists in the app, so you’ll always have them with you.

And while you’re making the list, it may be helpful to view your past receipts in the Sam’s Club app. Viewing the receipts before your next Sam’s Club run will show you which items you may have splurged on last time, so you can avoid them the next time you’re shopping.

3. Use a credit card to maximize your cash back rewards

It’s easy to spend hundreds of dollars in just one trip to Sam’s Club. Food prices jumped 10% in 2022 and another 5.8% last year, which has made saving money at any store more difficult than before.

One thing that can help make these rising costs a little easier is using a credit card that offers generous cash back rewards. I have a card that gives me 5% cash back on select purchases, 2% back at restaurants and gas stations, and 1% back on everything else. At the end of the year, I often have hundreds of dollars in cash back that I usually spend on Christmas gifts.

Of course, a rewards credit card is only beneficial if you’re able to pay off the balance regularly and don’t carry a balance with a high interest rate. But if you can do that, it can be a good way to make rising prices a little less painful.

We’ve done the hard work for you. Click here for our list of best credit cards.

4. Get the Sam’s Plus membership to earn 2% back

Sam’s Club offers two types of memberships: its standard Club membership, which is $50 per year, and its Plus membership, which is $110 per year. And while spending more money to save some money may seem counterintuitive, upgrading your membership may be well worth the price.

One of the most important perks you’ll get with the Plus membership is 2% cash back on in-club purchases, up to a limit of $500 annually. For example, let’s say you spend $3,600 on qualifying in-store purchases at Sam’s Club next year and earn 2% back with your Plus membership. At the end of the year, you’ll have $72 in cash back.

You’ll also get additional perks with your Plus membership, including free curbside pickup, extra pharmacy and optical discounts, and 50% off tire installation.

We could all use a few creative ways to save money these days. Thankfully, Sam’s Club makes it easy to do so, as long as you plan out your trips, maximize your savings with some rewards, and compare prices ahead of time. If you shop smart, you’ll feel better about splurging on those well-priced Oreos. I won’t tell.

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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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Regardless of how much you know about money, it’s not always easy to save. See how one writer is attempting to put money away without effort. [[{“value”:”

It’s estimated that 1 in 5 Americans has no emergency savings, and I know how scary that can be. I’m convinced that the people who become the best money managers have lived without it at some point in their lives.

For us, it was while my husband was in grad school, our boys were young, and we were overwhelmed with bills. I was sick with worry that something would go wrong and we couldn’t cover the cost.

That may be why I continue to focus on ways to save money. I want to know that a broken pipe in the basement won’t keep me awake at night because we can draw funds from a high-yield savings account to cover the cost. The trick (I believe) is to do what you can, even if it means starting out slow. Here are some of the pain-free ways I save money each month.

Downsize spending

Flexibility is key for me. Rather than sacrifice the things I enjoy, I’ve learned to downsize my spending. Here’s a sample of what I mean:

Instead of eating out three times a week, we’ve cut back to one or two.Rather than paying for every streaming subscription under the sun, we’ve picked a few favorites.Instead of hiring a company to aerate and seed our yard each year, we pay them to aerate, then we buy seed on sale to spread ourselves.Whenever my husband and I stop for a meal, we talk about whether we’re hungry enough to order two plates. More often than not, we find something that looks good to both of us and split the meal. This way, we can also avoid food waste when we’re not really hungry.

Pay off high-interest debt and credit cards

Last night, my husband and I discussed how naive we once were about money. For example, as long as we could swing monthly payments, we didn’t worry about how much interest we paid. It wasn’t until we became uncomfortable with our debt load that we learned to pay close attention to interest charges.

Granted, we were young when it happened, but the lesson was powerful enough to alter the way we live our lives. Today, in order to avoid interest, we don’t carry a credit card balance.

We use our reward credit cards regularly, but make it a point to pay them in full before the end of the billing cycle. We’ll drive a car until the wheels fall off if it means avoiding a high interest rate. If we charge a big-ticket item like new flooring or furniture, we use a credit card with a 0% promotional rate and pay it off before the end of the promotional period.

Check out our list of the best cards that reward you for using them. Just be sure to make the most of your new card by paying it off each month.

Save automatically

We’ve discovered that it’s easier to save money that never reaches our checking account. To avoid temptation, money from our paychecks automatically goes into savings. It wasn’t much at first, but we’ve been able to increase the amount little by little through the years.

It’s interesting how quickly we became accustomed to saving instead of spending. The urge to spend was tempered by how good it felt to put money away for a rainy day — even if it wasn’t a huge amount.

Count coins

We never spend change unless we’re feeding a parking meter. We have a big bowl we put change in every day, and every few months, we cash it in. That’s money we can quickly deposit into savings.

When it comes to personal finances, we’ve found that it helps to keep it simple. If none of these tips seem very sophisticated, it’s because they’re not. They’re intentionally simple enough to fit neatly into our lives, allowing us to put money aside without feeling deprived.

A healthy life is about finding balance. While that’s often easier said than done, it is possible. If you want to challenge yourself, find small ways to save money without sacrificing everything you enjoy. You may be surprised by how doable it is.

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Dana George has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Mortgage rates have fallen significantly over the past year. Find out what you should know about refinancing. [[{“value”:”

The average 30-year mortgage rate peaked at 7.90% in late 2023, according to data from the Mortgage Bankers Association. Since that time, rates have cooled off considerably, with the average 30-year mortgage interest rate falling as low as 6.13% just a few weeks ago.

Since that time, rates have climbed back up a bit. The short explanation is that strong economic data has tempered expectations for future interest rate cuts. While the Federal Reserve is still widely expected to continue to lower its benchmark interest rate over the next year, it’s starting to look like the pace of those rate cuts won’t be as fast as many had expected after the Fed’s aggressive 50-basis-point rate cut in September.

Even after three consecutive weeks of rising mortgage rates, the average 30-year fixed-rate mortgage has an interest rate of 6.52%, still far less than borrowers were paying a year ago.

How much could you save by refinancing?

There are two main types of mortgage refinancing:

Rate-and-term: A rate-and-term refinance is when a new loan is obtained for the same amount, with the main goal of reducing the interest rate.Cash-out: In a cash-out refinance, a new loan for more than the original amount is obtained, with the borrower receiving cash at closing.

While both can make good financial sense in certain circumstances, I’m going to focus on rate-and-term refinancing, since it’s fair to say that many people who bought homes in 2023 could now potentially take advantage of today’s interest rates.

So, how much could you save? Let’s say that you bought a home in late 2023 for $500,000 and got a 30-year mortgage with a 7.75% interest rate and a 20% down payment. This would give you a monthly principal and interest payment of $3,627.

If you were to refinance, the same loan with a 6.5% interest rate would lower your principal and interest payment to $3,290. In this case, refinancing would lower your monthly payment by $337.

Want to see your personalized refinancing rates? Check out our top mortgage refinancing lenders.

Consider the costs

On the other hand, it’s important to realize that deciding if refinancing is right for you isn’t as simple as figuring out how much lower your monthly payment will be. There are two big factors to keep in mind.

First, refinancing isn’t free. There are origination fees and other closing costs you’ll have to pay when refinancing, just like when you purchase a home and get a new mortgage. These costs can vary based on several factors, but it’s reasonable to expect 1% to 2% of the loan amount. So, on a $400,000 mortgage, it wouldn’t be unusual to have $6,000 or so in closing costs.

Second, keep in mind that when you refinance, you’re effectively resetting the clock on your mortgage. Let’s say that you have 27 years left on your existing mortgage and refinance to a new 30-year loan. Sure, your monthly payment would be lower, but you’ll be making those payments for three extra years. In many cases, refinancing could still be well worth it, but it’s important to consider these factors.

What if mortgage rates go even lower?

The most common question I’m asked when I suggest refinancing to a friend with a high mortgage rate is, “What if rates keep going down after I refinance?” That’s certainly a legitimate concern, and most experts are generally expecting mortgage rates to trend lower for at least the next year or so.

The key points to know are that nobody (not even the experts) knows exactly what mortgage rates are going to do. And there’s no rule that says you can’t refinance again with a top mortgage lender if rates keep going down. So don’t let the thought of future rate decreases keep you from saving money if the numbers work out in your favor today.

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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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Costo appeals to frugal shoppers, but you can still bust your budget at the store. Read on to find out how to stay on track. [[{“value”:”

Diehard members already know that saving money at Costco is easy, but it’s not necessarily guaranteed. With a long list of good deals, you can easily overspend even when trying to pinch pennies.

Luckily, you can follow a few simple tips to maximize your savings, allowing you to splurge guilt-free on the $1.50 hot dog and soda combo at the end of your Costco run.

1. Make a list and stick to it

I’m a big fan of lists. Without them, I don’t think I’d get anything done during my workday or accomplish any long-term goals. They’re also very useful for keeping me on track when I’m shopping.

It’s tempting to browse the Costco aisles looking for great deals — and you’ll certainly find them — but that’s a quick way to bust your budget, too. Instead, jot down everything you need to buy on your next Costco run — and stick to it.

Sure, you’ll miss out on a few bargain buys. But if the point is to keep as much money in your bank account as possible, passing up a few deals will be worth it.

You could be earning cash back rewards on your Costco runs. Click here to review our list of top credit cards that offer big rewards at Costco.

2. Use the Costco app to find the best deals

To ensure you’re saving the most at Costco, you should consider using the store’s app. The Costco app includes special savings sections for in-store and online deals, recent price reductions, and special treasure hunt deals.

I also like that you can view past receipts for both in-store and online purchases. One of the best ways to make sure you’re sticking to your budget is to regularly look at your spending, so viewing receipts can tell you if you’re staying on track.

As a bonus, you can create your shopping list within the app, making it easier to stick to your spending plan!

3. Fill up on Costco gas

Costco gas prices are one of the best deals around, with the warehouse club’s gas stations often selling fuel for much cheaper than local stations. For example, the Costco gas station near me is selling a gallon of unleaded gas for just $2.66 right now, compared to the gas station two blocks away for $2.99 — that’s $0.33 cheaper per gallon!

There’s no guarantee the large gap between my local station and Costco prices will always be there. But if it is, I could save $161 annually based on the average 489 gallons Americans use each year. You can even use the Costco app to view the gas prices at your local Costco store.

You can maximize your gas savings with the right credit card. Click here to view our top gas and grocery credit cards.

4. Plan out your meals so you can buy in bulk effectively

Food prices increased by 10% in 2022 and nearly 6% last year, leaving many families’ food budgets strained. Costco is well known for its bulk food options, but buying groceries in bulk probably only saves you money if you have a large family or are smart about planning your meals.

My family regularly plans our weekly meals to use meat for two meals and ensure we have leftovers for busy nights. Using the Costco app to build your shopping list makes it easier to plan. And adding up the cost in the app will help you figure out whether the cost per meal fits into your grocery budget.

With a little planning, Costco is a fantastic place to save money. Making a list, using the Costco app, and planning your meals will help you maximize your savings on each trip, helping you bring down those stubbornly high grocery costs.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

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.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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CD rates are expected to fall in the coming year. The question is, how low will they go? Find out more here. [[{“value”:”

Certificates of deposit (CDs) have been a popular savings tool over the past year because rates have been high. But the whole reason CDs — and savings accounts — were paying so generously is that the Federal Reserve’s benchmark interest rate was elevated following a series of hikes that took place in 2022 and 2023 to battle raging inflation.

Since inflation has cooled this year, the Fed is seeking to lower its benchmark interest rate gradually. It already made one rate cut in September, and more are likely to come in the next year.

But as the Fed lowers interest rates, CD rates are going to fall — it’s just a matter of by how much. So whether a CD will still be worth opening a year from now is questionable.

What CDs are paying today

Earlier this year, you could lock in a 5% CD pretty easily. At this point, 5% CDs are harder to find now that we’re about a month past the Fed’s first rate cut of the year.

The good news, though, is that plenty of CDs are paying in the 4% range, which isn’t a bad deal at all. So it’s still a good time to put money into a CD. Click here for a list of the best CD rates available today.

What CDs may be paying in a year from now

The extent to which CD rates fall will depend on how much the Fed lowers its benchmark interest rate in the next 12 months. Without a crystal ball, it’s hard to pinpoint an exact number.

But here’s what we do know. In September, the Fed lowered its benchmark interest rate by half a percentage point. If it moves forward with six quarter-point rate cuts in the next year, which is certainly possible, then by this time next year, short-term CDs — meaning, those with a term of 12 months or less — may end up paying only about 2.5% to 3%.

However, it’ll be interesting to see what happens to longer-term CDs. In a typical economic environment, savers are rewarded with higher rates for long-term CDs than for short-term CDs due to the longer commitment.

Recently, that hasn’t been the case. Shorter-term CDs have been paying higher rates than longer-term CDs due to the fact that the Fed is expected to keep lowering rates. But by this time next year, the Fed may be done with rate cuts. So at that point, you may find that a 2-, 3-, or 4-year CD is going to pay you a higher rate than a 12-month CD.

Will longer-term CDs continue to pay 4%? That’s questionable. But it wouldn’t be surprising if, in a year from now, short-term CDs are paying 2.5% to 3% while longer-term CDs are paying 3% to 3.5%.

Will a CD make sense for you in a year?

When you’re thinking about opening a CD, you don’t want to consider just interest rates. You should also think about what you’re using the money for.

Generally speaking, CDs are a great savings tool for meeting short-term goals — ones with roughly a five-year time frame or less. But if you have money you don’t expect to use for a good number of years, then investing it could be a better bet.

Over the past 50 years, the S&P 500 has averaged a yearly 10% return, which accounts for years when the market did very well and years when stock values plunged. So if you have $5,000 to work with, you might get 3% a year out of a series of CDs, which would leave you with about $6,700 after 10 years. That’s a $1,700 gain.

But if you were to put that same $5,000 into a stock portfolio that generates a 10% yearly return for 10 years, it would leave you with about $13,000. That’s a gain of $8,000.

If you like the idea of investing your money instead of putting it into CDs, click here for a list of the best brokerage accounts to get started. But if CDs better align with your goals or comfort level, that’s okay, too. Just be prepared for the fact that they may not be paying nearly as much a year from now.

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This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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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