Strategies for Managing Debt in a Changing Market | Weekly Business Briefs w/ Martin Perdomo

What if the key to affording your dream home lies in understanding the intricate dance between interest rates and home prices? This week, we tackle the relentless rise in home prices despite falling mortgage rates and explore why the housing market remains out of reach for many. We'll dissect the Federal Reserve's upcoming interest rate cuts and discuss what truly needs to change to make the housing market accessible for everyone. Get ready to uncover actionable insights that might just help you navigate this turbulent market.

Ever wonder why your credit card debt isn't shrinking despite potential Fed rate cuts? We're breaking down the harsh reality of skyrocketing credit card interest rates and the limited relief that rate cuts provide. Tune in to learn essential debt management strategies like balance transfers and credit card counseling that can help you regain control of your finances. Plus, as Election 2024 heats up, we delve into how Vice President Kamala Harris's staunch support for the Afghanistan withdrawal could impact her debates against Donald Trump. This episode is packed with the vital information you need to stay informed and ahead of the curve in business, finance, and politics.

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Transcript

Speaker 1: 0:29

It's Wednesday, august 28th 2024, and it's time to get down to business and dive into the top three news in this week's weekly business brief. First up, with home prices soaring, are you getting left behind? The US housing market has been a rollercoaster ride this year, with high mortgage rates and home prices keeping many buyers on the sidelines. Homeowners have also been hesitant to sell, fearing to lose their low mortgage rates. However, anticipation of interest rate cuts by the Federal Reserve has breathed new life into the market, with mortgage rates falling and home sales increasing. Despite these positive developments, affordability issues persist.

Speaker 1: 1:14

Positive developments affordability issues persist. Home prices continue to rise, making it difficult for many potential buyers to qualify for a mortgage. The housing supply also remains insufficient to meet demand, further limiting affordability. While lower mortgage rates may provide some relief, a significant drop is needed to make a substantial difference. Other factors, such as the Fed's actions and the overall housing market dynamics, will also influence the future of home prices. So, despite the fact that interest rates are have gone down or are going down, this article suggests is that we need prices also to go down because of affordability. I kind of agree with that. However, I don't know that that will be what will occur with the market. This market has been very weird since the interest rate hike has begun. While we've seen some flattening in some markets, some decreases in some market, overall, the overall market year to date is up about 4%, so I don't know that we're going to see a major decrease in price. I do agree, though, that we do need both. We need interest to go down and we need prices to come down in order for it to be affordable again in the US, but we'll see what the government does about fixing this really big issue that we have in the housing market.

Speaker 1: 2:30

Next up, fed rate cuts are coming, and here's why your credit card debt won't disappear. The Federal Reserve is likely going to cut interest rates in September, which might give some breathing room to those drowning in credit card debt. With an average credit card interest rate skyrocketing from 16% in 2022 to over 21.5 today and total credit card debt surpassing one trillion dollars, any rate cut is a welcome change, but before you start celebrating, remember that even a fed rate cut might only shave off a tiny fraction of your interest rate, probably not enough to make a big dent into those balances. Instead of waiting for the Fed to save the day. It's time to take control of your debt. Consider transferring your balances to a 0% APR card if your credit score allows it, or start throwing more cash to those balances to pay them off faster, even if you can only pay a bit more than minimum. Do it, it'll help you get out of debt sooner. And if things are really tight, don't be afraid to look into credit card counseling for some guidance. Bottom line, take action and don't rely on the Fed for major relief.

Speaker 1: 3:41

Guys, I'm a big proponent of no one's coming to save us. We have to figure out ways to improve ourselves and improve our lives and improve our situations. Don't be afraid to go and get some credit card counseling if that's what you need. Don't be afraid to go and look. There's some offers out there. You could get 0% APRs. I actually saw one. I think Chase is offering one. That's not a promotion for Chase, but I think there's many different banks, different credit card companies that are offering them. You can go to zero and then get really disciplined and just pay down. By all means, this is not financial advice. It is just a strategy, a thought. What I would do if I were in those shoes and this week on Election Watch 2024,.

Speaker 1: 4:23

As Harris doubles down on Afghanistan exit, will it cost her in the next debate with Trump? Vice President Kamala Harris is firmly backed President Biden's decision to withdraw US troops from Afghanistan, despite facing heavy criticism, particularly from Donald Trump. Harris called Biden's choice to end America's longest war courageous and emphasized that the US can still effectively combat terrorism without having troops on the ground. However, trump and his supporters have slammed the Biden-Harris administration, labeling the chaotic withdrawal as one of the worst foreign policy failures in US history. Harris, who has been closely tied to Biden's decision-making process on this issue, continues to support the administration's actions even as the political fallout lingers.

Speaker 1: 5:12

The aftermath of the withdrawal has continued to haunt the Biden administration, with ongoing debates over accountability for the deaths of 13 American service members and abandonment of military equipment. That's a shame. While the administration admitted that mistakes were made, including underestimating the situation on the ground, they also pointed fingers at Trump's agreement with the Taliban. They also pointed fingers at Trump's agreement with the Taliban. As Trump and Harris gear up for upcoming political debate, the Afghanistan withdrawal is likely to remain a contentious topic, especially with Harris positioning herself closely with Biden's decision. I got no opinions on this, guys. Leave me your thoughts. Tell me what you think in the comments. Love to hear what you think as it pertains to this situation, with harris's position on the afghanistan war, are we pulled out of that war? And this has been your weekly business brief. I'll see you guys next week.