Your future. If youre looking to buy a home and need to take out a mortgage. Its more expensive. Mortgage rates have been on the rise since the start of the year and have been taking off in the last week. Will they continue the climb and what does it mean for home buyers and sellers this spring in our reporter has answers. The timing couldnt be worse. Just as the spring Housing Market officially kicks off this president s day weekend. These are steep prices. Mortgage rates are moving higher. And buyers were already facing higher prices amid competition. There is not enough homes to go around for people looking to buy. The half Million Dollar denver home went on the mechanic on thursday and three offers by monday with nearly 100 people touring the home in between. I thought i was kind of at a higher price point where it would be a little bit easier to get a place without competition. But i put down two offers and both times been beaten out by cash offers. Another bedroom here. Now rising rates part of the rush. In the short term, i strongly believe thats causing a lot more buyside demand. As people get into a home before Interest Rates get to a point they cant afford a home they would like. The average rate on the 30year fixed moved 4. 5 this week. Still historically low but buyers over the past years have gotten used to rates in the 3 rage preponderates havent been at 5 since 2011. A 5 rate causes more than a quarter of the home buyers to slow plans. Just 6 sthoe said they would drop plans to buy. About one fifth of consumers said 5 would cause them to urge with more urgencicy. Another fifth said they would consider more affordable areas or just buy a smaller home. Rates have definitely been volatile. And could wobble slightly lower in the short term. But the transigentliry for the accurate long time is higher. Supply is still tight and demand is so strong right now its unlikely to take the heat off an already superhot Housing Market. So diana if youre having buyers who some drop the plans to buy or buy more affordable areas what happens to the rental market . Will you see a rush into leonarding. You may see more people who decide not to buy right now. Remember rents are incredibly high making it harder to afford the down payment to save for the down payment. You may see more rent and those into the Housing Market will have to look cheaper. All right, thank you. You know the rising rates may not be great news for home buyers but for savers its a different story. Senior personnel finance correspondent sharon joins me now mp lets talk about Mortgage Rates we were talking about. Why are they rising so quickly when we talk about the fed raising rates. Lets talk rising Interest Rates and how it affects consumers across the board, whether a saver or a borrower. Rising rates occurs because great things are happening. People are spending more, hiring more and also seeing Companies Investing more. Thats a good thing for the economy. We dont need ultralow Interest Rates to make the economy better because its getting better. But the flipside again, two sides of every coin, is that we also see overall prices rice, inflation creeping up. To really curb that thats when the fed steps in and says were having Interest Rates rice a little bit here. Are we talking about what you pay on credit card . Is that going to change what students pay for student loan debts . Its going to really affect any type of borrowing you do where the Interest Rate varies. Thats important. The good news is savers will get a little bit more on savings. And i do mean a little bit more. If 1. 5 saving rate on the savings account doesnt excite you it should because its higher. If you shop around bank rate. Com, deposit accounts. Com you can find the higher rates. Thats good. The other thing to think about is tying up money a little bit longer. Put it in a short term cd for a year or so pennsylvania rate as high has 2 . If youre able to save this is a good time to pay down debt with the savings you accumulate process. Thats important to remember as well. I was a kid and being taught to save in a savings account you could actually see a difference with the interest accrual at the end of year. Its been hard to see that a long time. It has. Lets talk about the credit cards and anything elsewhere youd have a variable Interest Rate. Well, when you look at credit cards youre actually going to see a rate to rate comparison there. If the fed raises rates by a quarter point your Interest Rate on the credit card is going up. 25 as well. Its direct. And that in a thousand dollars balance thats extra 2. 50 op that balance. What you need to look is look at the rate on the credit card and see if there are different ways to lower the rate. One way to look at it might be to do a Balance Transfer to a zero rate card pap. Thats one thing can you do. But those are often teaser rates and also the Balance Transfer could incur a fee as well. You have to see what costs whats cost effective. This is an area where all parts of debt could combine to make it more expensive monthtomonth. Is there one factor you look at . One of the things you look at is the variable rate, whether a credit card or home equity line of credit, adjustable rate mortgage, anything that shifts relative to rate tied to the feds rate. That impacts you. That could also impact the student loan borrows looking for the lower rate possible. Saying going with a private variable rate lone, thats going to change. Thats one area people might want to shop around look and see whether or not its possible to enroll for auto debit to lower the rate. See if you can get a shorter repayment term. Make the payments prior to graduation. People how can i do that im in school but thats a good way to lower the rate. The other thing, fixed rate loans, wherever you go a fixed rate is a better place to be. Sharon thank you so much for great advice. Sure. Now here is a look at whats making news into a new week on the money. As we mentioned inflation may be rearing its ugly head. Thats a big deal. The Consumer Price index which measure attention what americans pay on a monthly basis for everything from rent to clothing increased by. 5 last month. More than expected. Rising inflation could mean the economy is running hotter and the Federal Reserve may increase Interest Rates. The markets seem to shrug off the news. The dow with triple digit gains on monday, wednesday and thursday and recovering recent losses. The nasdaq and s p 5500 followed suits. Stocks mixed on friday. Retail sales fell in january down 0. 3 of they had been expected to increase 2 penalties. Sales fell at furniture stories and hardware stores. Maybe due to spending fatigue after the strong Holiday Shopping season and bad weather across the nation. Up next we are on the money. Is your child addicted to social media . Tips on what to do and how to prevent it. And later for more than 100 yeerps ll bine has had a lifetime return policy for any item. But now its a different story. Here is look at how the stock market ended this week. With its hightech cameras and radar, contemporary cockpit, 360 Degree Network of driverassist technologies, and sporty performance, whats most impressive about the glc . All depends on your point of view. Lease the glc300 for just 449 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. When this guy got a flat tire in the middle of the night. Hold on dad. Liberty did what . Yeah, Liberty Mutual 24hour roadside assistance helped him to fix his flat so he could get home safely. My dad says our insurance doesnt have that. Dont worry i know what a lug wrench is, dad. Is this a lug wrench . Maybe . You can leave worry behind when liberty stands with you™. Liberty stands with you™. Liberty mutual insurance. Monuments a day honestly do you check creditor phone . Dozens . Fab hundreds . What about your kids . One report by Common Sense Media found that 50 of teens feel addicted to their phones. So what can parents do if they think their children are spending too much time on their phone sns joining us is the author of social media wellness, helping betweens and teens thrive in an unbalanced digital world. Im a mom and trying to think about ways to introduce this. Because they have to master it for the modern world. But why is there an addiction in the first place. Its really not the smartphone itself thats addictive. Its more of the applications and how we use them. When we think about social media, so much of it is created on this feedback loop of notifications. And they want to promote engagement. When theyre promoting engagement they create this system where we always want to be online. And it can create this fear of missing out if were not online. This happens for adults as well as kids. Also it trains us for immediate gratification, you get some reward in the reward center of the brain when you get a thumbs up or like or whatever comment back to a post that youve done. In your research, did you find there is a right age to give a phone to a kid. It really depends on who your child is is and what your family situation is. But what i find more and more problematic is more parents are giving kids the old smartphone as a hand me down. And i recommend incremental usage. Give them a flip phone first. Have them only use it during certain times. So that you give an and establishing good habits. Are you finding any parents who say, no, i am not giving my child a phone. More and more im finding parents are waiting until the 8th or 9th grade for a smartphone. But before then maybe for commuting reasons, maybe in an after school sport they get an flip phone for access in emergencies. Because pay phones arent available. Well thats true. What steps can parents take to keep children from becoming reliant or even technically addicted to not just the device bush dsh did you but the screens themselves and the apps. The most important they can do is, consistent about taking dale and weekly detox times. Every night the phone comes out of the room. A lot of kids say i use the phone as the alarm clock. I say do to the drug store and buy an alarm clock. The other piece is every week there should be a few hours where kids arent on screens. Because it creates this opportunity to be off line. You think that. And you think the phone might be safe in the kitchen overnight plugged in. But, you know kids have minds of their own and the ability to get up and unplug the phone. Are there apps to monitor the usage. There are apps out there to help with usage. For example, r pact is an app that allows parents to turn off social media apps after a a certain hourt. Circle by disney which is a device that works through the wifi system that also allows to you monitor and turn things off to give it a bed time. I got to ask, my dad didnt have a tv in the house growing up he thought it rotted our brain. And i work in television. Rebellious. But it too much tv a concern. Here is whats challenging with television right we can watch confidential o television on the phone. Are we using the smfrp or watching television . We can share a clip online. And so there is all the different ways we use television. But the thing we have to think about and how smartphones and social media are different, is that we get in constant stream of content. Right. Thats new but also personalized based on the likes and what we have watched before. So there is all this stuff coming at us that is filtered based on personal preferences. Then you arent getting exposed to diversity which is important. Big picture here. Youve done a lot of talking and writing and research. Do you think any of the fears are overblown. What i often say is that social media isnt god or bad but 80s tool for communication. But what is a problem is that we as adults dont fully speak the language kids are speaking. And we need to. I got to say as a parent one of the problems is that we if my phone is around im not fully present with my children. But you have to set it aside. Thank you so much i appreciate your time. Thank you for having me up next, on the money. Retailer l. L. Ben has had a generous lifetime guarantee on anything you buy from them. Maybe it was a little too generous. Later of an an old friend gets a makeover. Makeover. This is probably we had long deployments in iraq. Makeover. Tim really grateful that usaa was able to take care of my family we had long deployments in iraq. Really great. are you ok . they always thank you for your service, which is nice because as a spouse you serve too. Were the hayles and were usaa members for life. See how much you could save with usaa by bundling your auto and home insurance. Get a quote today. For more than a century l. L. Bean has had an unlimited lifetime return policy. But theyve just changed the rules. Now you can return any item within one year of purchase, and you must have a receipt. J. Bayer is author of how to keep commerce and avoid complaints. L. L. Bean ive known and loved since childhood. But this made a lot of news even a lawsuit from a customer what do you think. Its a reasonable change. But the problem was they were going to garage sales and buying old l. L. Bean stores and taking thoeps items and flipping them and making a job out of this. They said enough is enough. I would say that the policy that they now have in place is exceptionally reasonable and fair. Its just it feels unfair compared to what they had previously. For one thing because they were really putting men behind their products. They were saying if youre in the happy over the lifetime of this product well return it. But if you looked at the fine print it said over normal wear and tear whatever. I know because i had returned l. L. Bean boots i thought should have lasted longer than a season and returned them and they gave back, no questions asked. So what was the breaking point for l. L. Bean . Because over the years there had to have been a lot of people who bought from l. L. Bean knowing they were buying quality products. Because, look the guarantee was there. Thats just it. From a Customer Service standpoint this doesnt bother me too much. From a word of mouth it bothers me a tremendous amount. What they have done is taken a trigger something that set them apart in the marketplace and given it away and said were not doing that. Were like everybody else. And then that is a very big move. Either the amount of revenue they were losing on these somewhat bogus returns was exceptionally large, larger than we might major just decided perhaps incorrectly that customers dont care that much about a Lifetime Warranty versus a oneyear warranty versus proof of purchase or no proof of purchase. Perhaps they miscalculated this was part of the brand of durable products and goods. What happens to on the reputation in face of increasing competition globally . I looked at a lot of customer comments on the Facebook Page after they announced this. And i say they didnt handle it well either. It was just a letter from the chairman and said making the change. There wasnt anything humor empathetic about it. But there was a lot of customer comments that say we no longer have a reason to shop at your store versus everybody else who sells essentially the same goods. And i completely concur. They had a difference. And they gave it away. 250 million is nothing to sneeze at. And i think the reason they thought they could get away with it is that rei did the same thing in 2013. Rei used to have a Lifetime Warranty. In 2013 they went to a oneyear program. Almost exactly word for word the same what l. L. Bean has done. Apple has a 14day return policy. Amazon has 30 days. Is one year still too generous. Thats the funny thing. If we flipped the script and sated its not a 106yearold company its a start up. Its offering goods and services and have a oneyear return policy no questions asked and lifetime for defects, we would be praising them for the generosity of the policy. Wed say this is extraordinarily generous policy. What makes it difficult is that theyve taken something away. If they started from scratch wed aits extraordinary. Its great to talk to you, thank you for your time. Thanks so much. Up next on the money a look at the news the week ahead. And the Dunkin Donuts of the uture. Future. The n store that will get your cup of skre to you even faster. This is laura. And butch. And tank. And tiny. And this is lauras mobile dog grooming palace. Laura can clean up a retriever that rolled in foxtails, but shes not much on articles of organization. Articles of what . So, she turned to legalzoom. They helped me out. She means we helped with her llc, trademark, and a lot of other legal stuff thats a part of running a business. So laura can get back to the dogs. Would you sit still . This is lauras mobile dog grooming palace and this is where life meets legal. Its abor it isnt. Ence in 30,000 precision parts. Its inspected by mercedesbenz factorytrained technicians. Or it isnt. Its backed by an unlimited mileage warranty, or it isnt. For those who never settle, its either mercedesbenz certified preowned, or it isnt. The mercedesbenz certified preowned sales event. Now through february 28th. Only at your authorized mercedesbenz dealer. Here are the stories coming up that could affect money this week. Monday marks president s day a holiday. The markets closed. 66 years ago john glenn became the First American astronaut to orbit the earth. And wednesday we see how many existing homes were sold in the month of january. And the minute from the fed meeting will be released. On thursday the Economic Indicators comes out. Thats a chance to predict Economic Conditions six months from now. Its also national martha day. Bottoms up to the tequila lovers outs there. It was back in 1950, the first Dunkin Donuts opened. Now 68 years later, in the same new england town, Dunkin Donuts is testing the Concept Store of the future. Kate rogers went to quincy massachusetts for the coffee run and met the boss behind the brew. Its about the new Dunkin Donuts. The coffee wars are on Dunkin Donuts plans to win. Part of the strategy a new Concept Store unvafld last month meant to cater to consumers on the go looking for value. Its modern, convenient with the drive through, and love the paper cups. Dunkin donuts is focusing on a bench first policy. Slimmed down the menu and focus on the persons. Outside the first ever mobile only drive through lane. We did the drive through one day. That worked out great. Theyre quick. In the stores that have drive throughs about 75 of our sales. As they say in boston we are wicked class. A Innovation Lab is next door printing out lat tai was coffee extract. You look good. Theyll be rolling out 1,000 new stores over the next three years. 90 of them outside of the northeast where Dunkin Donuts has a stronghold. Franchisesees will be able to visit the Concept Store to see what who might work well and build on it. So far in quincy customers seem impress zbld very efficient. Its a little different. Looks good. Contessa, the idea is to have about 50 or so Concept Stores rolled out in the next three years. And the coffee wars are heating up. Starbucks is pushing more of the mobile and loyalty rewards programs. Then you have mcdonough offering 1 coffee no matter the size. Everybody is stepping up the game across the space. Here is my question. They put a picture of you on your latte. How did that happen . So unfortunately i didnt get to see that. But i was pleasantly surprised when they brought it over. They said its like Screen Printing using coffee extract on the top of the lattes to do that. They havent figured out if theyll make it to customers in store. It would take a little bit longer than the customer eye who wants ob quick. But its a good innovation. And some analysts have given all the innovation they have going on that the 3 rise in store sales over the next three years might be conservative and Dunkin Donuts could grow more. Thats the show for today. Im contessa braer. Thank you for joining us. Becky is back next week and well talk guaranteed income. Should low income americans get a monthly check not from the government . Each week keep it right here. We are on the money. Have a great one. Well see you next weekend. Male narrator so much can happen in 125 seconds. Mcgrath goes out. Thats a shocker right there. Narrator history can be repeated. Oh oh i have to respect every obstacle out there. Oh no not again sam sann, out. Narrator hearts can be broken. I definitely never want to let my son down. Oh oh [air horn blows] i know your son has been the motivating factor for you. Oh, my god. Narrator walls can come tumbling down. Can she be the first . Come on, meagan. Thats what im talking about meagan martin, the first woman ever to complete the jumping spider. What she did was phenomenal. Narrator tonight, the clock starts anew. Fresh faces. All my life ive been working to overcome obstacles
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