Category Investing

Mortgage rates in the U.S. have jumped to nearly 6.80% as of May 2025, influenced by a new trade agreement announced by President Donald Trump with the United Kingdom. This new deal has created expectations for economic growth among investors, causing the yield on 10-year Treasury bonds—an important factor in determining mortgage rates—to rise. As bond yields increase, the cost for homebuyers to borrow money also goes up, making houses less affordable for some buyers. Additionally, financial markets continue to show uncertainty due to ongoing worries about inflation, possible trade conflicts, and economic slowdowns. The Federal Reserve, which plays a key role in managing interest rates, remains cautious and has not made further rate cuts after lowering rates multiple times last year.

Understanding the stock market is essential for anyone interested in growing their wealth. Essentially, the stock market is a platform where people buy and sell shares or ownership stakes of companies. When you buy stock in a company, you become a partial owner, and the company's performance can impact the value of your shares. The stock market fluctuates based on various factors, including economic conditions, company performance, and investor emotions. Learning to read stock charts and understand market trends can help you make informed decisions about when to buy or sell. Overall, the stock market can be a powerful tool for building wealth, but it also comes with risks, so it's important to educate yourself before diving in.

Investing is a way to grow your money over time by buying assets that you expect will increase in value. For beginners, it’s important to start with the basics: understand the different types of investments, such as stocks, bonds, and mutual funds. Stocks represent ownership in a company, while bonds are loans you give to the government or businesses in exchange for interest. Mutual funds pool money from many investors to buy a diversified mix of assets. Before investing, it’s smart to set clear financial goals and create a budget to determine how much money you can invest. Always remember that all investments come with risks, so educating yourself and considering starting with a small amount can help you learn without taking on too much risk.