Markus Andrews

If you’re a renter, the market may be shifting in your favor.
Rental affordability is improving in part because of a “construction boom” of new apartment buildings during the pandemic, according to Daryl Fairweather, chief economist at Redfin.
Here’s what to consider if you’re renting or plan to rent this year.

Vgajic | E+ | Getty Images

If you’re a renter, the market may be shifting in your favor.
As of December, the median asking rent price in the U.S. was $1,695, down 0.5% — or $8 — from November, according to a new report by Realtor.com.

The latest rent price is 1.1% lower — or $18 — from a year before, and down 3.7% from peak highs in July 2022.

We’re calling it a renter’s market.

Daryl Fairweather
chief economist at Redfin, an online real estate brokerage firm

Rental affordability is improving in part because of a “construction boom” of new apartment buildings during the pandemic, according to Daryl Fairweather, chief economist at Redfin.
“There are still units coming online now from projects that were started back in 2021, 2022,” she said.
With more new units available, some property managers are considering lowering their asking prices to attract tenants, experts say.
This means renters should have more negotiating power when it comes to the terms of their leases, Fairweather explained.

“We’re calling it a renter’s market. We think that’s going to continue for the next year,” she said.
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To be sure, the volume of newly built apartments is concentrated in some areas more than others, making rent prices decline faster in certain parts of the country.
By way of example, Austin, Texas, where the median rent is $1,394 as of December, saw some of the highest levels of multifamily housing construction over the past few years, according to Redfin. That figure is down from $1,482 in August when the median price fell 17.6% from a year prior.
Rents in Austin are likely to continue to fall as supply grows and demand balances itself out, experts say.
What you’re able to leverage as a renter will depend on what’s happening in your current market or where you plan to live.
Here are three key steps to consider if you’re on the rental market this year: 

1. Find out what other units are renting for in the area

You might live in an area that is becoming more affordable. To find out, compare what other units in the neighborhood similar to yours are renting for — it’s the “best way to arm yourself” in negotiations with your landlord or property manager, Fairweather said.  
“If your property manager is trying to raise your rent, you can come to them with information to show them that your rent shouldn’t be increased,” she said. “In some markets, it should even go down.” 

If you’ve been living in the same unit for a couple years and have consistently paid rent on time, try to use that history to negotiate for a lower monthly rent, said Joel Berner, a senior economist at Realtor.com.
A “good point to negotiate from” is to show your landlord that rent prices are coming down for similar properties but you have no desire to move ― unless you can save money elsewhere, he said.
Tenant turnover can be expensive for landlords, especially if the property sits unoccupied for a few months.

2. Negotiate any additional fees you pay

On that note, think about what other costs you pay for in addition to your rent, Fairweather said. These can be fees for parking space or access to other amenities.
Fees for amenities like a parking garage, a shared community space, an on-site fitness center or bike storage can range from $30 a month for basic offerings or one-time charges of $200 to $500, according to Apartment List.
If you see ads where other properties are calling out concessions like waived parking costs or reduced fees for an amenity, see if your landlord is willing to match that.

3. Consider teaming up with housemates

Meanwhile, if you’re living in an area that’s still “really expensive to rent,” consider splitting a larger unit with other people, Berner said.
Having roommates or housemates is a tried-and-true way to lower housing costs. It’s more effective now because the cost for larger units in some places is not growing as fast as rents for smaller units, he said.
“You can find a pretty good deal on maybe a three-bedroom apartment and split it with other folks,” he said.  More

Amid concerns over Trump’s funding freeze, colleges and universities reliant on federally-backed research grants and aid are scrambling, Morehouse College President David Thomas told CNBC.
A freeze on federal aid “would create another existential threat as great as the pandemic,” he said.

Morehouse College President David Thomas speaks during Morehouse College’s graduation ceremony, before US President Joe Biden delivers his commencement address, in Atlanta, Georgia on May 19, 2024. 
Andrew Caballero-Reynolds | Afp | Getty Images

David Thomas, the president of Morehouse College, said his office fielded a surge of calls this week from worried students and their families concerned the Trump Administration’s “federal funding freeze” would directly impact college access. 
The sudden scramble was “perhaps only rivaled by what happened in March of 2020 when we realized that the Covid pandemic was truly a threat,” Thomas told CNBC. He became president of Morehouse, one of the country’s top historically Black colleges and universities, or HBCUs, in 2018.

This freeze on federal aid “would create another existential threat as great as the pandemic,” he said.
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Thomas’ comments come amid ongoing confusion about how a freeze on federal grants and loans could potentially impact students and schools.
A Jan. 27 memo issued by the Office of Management and Budget, which would affect billions of dollars in aid, said the pause on federal grants and loans “does not include assistance provided directly to individuals.”
Although the memo was later rescinded, the White House said a “federal funding freeze” remains in “full force and effect.” It is currently on hold amid legal challenges.

Thomas, who is also on the Board of Trustees at Yale University, said college leaders across the country have spent the better part of the week focused on “the consequences of this action.” Morehouse immediately initiated a hiring freeze in preparation for a potentially significant financial disruption.
“All of the institutions are still in limbo,” he said.

What college aid may be affected

At Morehouse College, about 40% of the student body relies on Federal Pell Grants, a type of federal aid available to low-income families.
Following the memo’s release, the Education Department announced that the freeze would not affect student loans or Pell Grants.
“The temporary pause does not impact Title I, IDEA, or other formula grants, nor does it apply to Federal Pell Grants and Direct Loans under Title IV [of the Higher Education Act],” Education Department spokesperson Madi Biedermann said in a statement.
In addition to the federal financial aid programs that fall under Title IV, Title I provides financial assistance to school districts with children from low-income families. The Individuals with Disabilities Education Act, or IDEA, provides funding for students with disabilities.
The funding pause “only applies to discretionary grants at the Department of Education,” Biedermann said. “These will be reviewed by Department leadership for alignment with Trump Administration priorities.”

But questions remain about other aid for college.
The freeze could affect federal work-study programs and the Federal Supplemental Educational Opportunity Grant, which are provided in bulk to colleges to provide to students, according to Kalman Chany, a financial aid consultant and author of The Princeton Review’s “Paying for College.”
The disruption to federally backed research funding also poses a threat to college programs and staff.

‘Lots of reasons to still be concerned’

“There are lots of reasons to still be concerned,” said Jonathan Fansmith, a senior vice president at the American Council on Education.
“The administration has made it clear the executive orders will have implications for a huge range of existing awards and grants,” he said. “Those have implications for campuses and there is no more clarity in that regard than there was before.”
At Morehouse, “a huge portion of our faculty is supported by grants,” Thomas said. “If we can’t run the college, colleges like ours will probably be forced to drastically shrink themselves or close.”
Morehouse, located in Atlanta and founded in 1867, has more than 2,200 students. 
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For 2024 returns, the child tax credit is worth up to $2,000 per kid under age 17, and decreases once income hits certain thresholds.
The refundable portion, known as the additional child tax credit, or ACTC, is up to $1,700, which you can claim without taxes owed.
However, common mistakes could delay your refund, experts say.

Getty Images

Millions of families claim the child tax credit every year — and filing mistakes can delay the processing of your return and receipt of your refund, according to tax experts. 
For 2024 returns, the child tax credit is worth up to $2,000 per kid under age 17, and decreases once adjusted gross income exceeds $200,000 for single taxpayers or $400,000 for married couples filing jointly.  

The refundable portion, known as the additional child tax credit, or ACTC, is up to $1,700. Filers can claim the ACTC even without taxes owed, which often benefits lower earners.
However, a lower-income family who doesn’t know how to claim the credit “misses out on thousands of dollars,” National Taxpayer Advocate Erin Collins wrote in her annual report to Congress released in January. 
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More than 18 million filers claimed the additional child tax credit in 2022, according to the latest IRS estimates. 
By law, the IRS can’t issue ACTC refunds before mid-February. But the Where’s My Refund portal should have status updates by Feb. 22 for most early filers, according to the IRS.  

Here’s how to avoid common child tax credit mistakes that could further delay your refund.

Know if you have a ‘qualifying child’

One child tax credit mistake is not knowing eligibility.
The rules can be “very confusing,” according to Tom O’Saben, an enrolled agent and director of tax content and government relations at the National Association of Tax Professionals.
To claim the child tax credit or ACTC, you must have a “qualifying child,” according to the IRS. The qualifying child guidelines include:

Age: 17 years old at the end of the tax year
Relationship: Your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister or a descendant of these
Dependent status: Dependent on your tax return
Filing status: Child is not filing jointly
Residency: Lived with you for more than half the year
Support: Didn’t pay for more than half of their living expenses
Citizenship: U.S. citizen, U.S. national or a U.S. resident alien  
Social Security number: Valid Social Security number by tax due date (including extensions) 

You may avoid some eligibility errors by filing via tax software or using a preparer versus filing a paper return on your own, O’Saben said. Tax software typically includes credit eligibility, which can minimize errors.

Missing Social Security number

Typically, parents apply for a Social Security number in the hospital when completing their baby’s birth certificate. But it can take one to six weeks from application to receive that number, according to the agency, which can create time pressure for families with a new addition around tax season.
Filing a tax return and claiming the child tax credit before receiving the Social Security number is a mistake, O’Saben said.
“I have seen [the child tax credit] denied for people who have filed before they got the Social Security number for a dependent,” he said. “And there’s no going back.”
If you don’t have the number before the tax deadline, you should request an extension, which gives you six months more to file your return, O’Saben explained.
However, you still must pay taxes owed by the original deadline. More

Social Security benefits may be reduced in the next decade due to a financing shortfall, if Congress fails to act sooner.
A new survey asked Americans what changes they would make to fix the program.
Most respondents would be willing to raise taxes for some or all Americans in order to keep benefits the same or increase them.

Halfpoint Images | Moment | Getty Images

It’s no secret that Social Security faces a long-term financing gap.
If nothing is done by 2035, 83% of combined benefits will be payable if Congress does not act sooner to prevent that shortfall, according the latest projections from the program’s trustees.

What’s more, new legislation, the Social Security Fairness Act — which increases benefits for more than 3 million workers who also receive public pensions — is expected to move that depletion date six months sooner.
A new survey asked more than 2,200 Americans — most of who expect Social Security to be an important part of their monthly retirement income — how they would solve the problem.
Most respondents, 85%, said they would prefer benefits remain the same or are even increased — even if that means raising taxes for some or all Americans, according to the survey from the National Academy of Social Insurance, AARP, the National Institute on Retirement Security and the U.S. Chamber of Commerce in collaboration with Greenwald Research.
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“They’re willing to pay more, not to get extra benefits for themselves, but just to close the financing gap to prevent indiscriminate across the board benefit cuts,” said Tyler Bond, research director for the National Institute on Retirement Security.

Meanwhile, 15% of respondents said they would prefer tax rates not increase, even if that means benefits are reduced.

What changes Americans would prefer

The survey used a tradeoff analysis to let respondents pick the policy changes they would not only prefer to see — but also for which they would also be willing to pay.
The results found a combination of changes was preferred by most respondents, regardless of their political affiliation, income, age or education.
The most popular policy option with respondents was eliminating the payroll tax cap for individuals earning more than $400,000.
For 2025, employees and employers pay taxes toward the program on up to $176,100 in earnings. Once high earners hit that cap, they stop contributing Social Security payroll taxes for the year.
The change would reapply payroll taxes starting at $400,000 in earnings. Individuals affected would not receive additional benefits.
A second policy option that was nearly as popular was raising the payroll tax rate. Currently, employees and employers each pay 6.2% toward Social Security. The change would raise that to 7.2%.

Other changes favored by respondents aim to make benefits more generous by adjusting the annual cost-of-living adjustment to more accurately reflect the spending habits and inflation affecting older Americans; providing a caregiver credit for people who stop working to take care of children under age 6; and providing a bridge benefit to workers in physically demanding jobs to help soften cuts for claiming early.
The least popular change was to reduce benefits for people with higher incomes. That would affect individuals with $60,000 or more in annual retirement income excluding Social Security, and married couples with $120,000 or more.
Taken together, the changes would close Social Security’s funding gap and result in a minor 1% surplus, according to NIRS’ Bond.
Notably, other changes that have been suggested elsewhere — raising the retirement age, across-the-board benefit increases and changing taxation of benefits — were not selected by the survey respondents.

Long history of strong public support

The new report coincides with another report released by NIRS this week that analyzed Social Security polling over more than four decades and found public support for the program remains strong.
“Not only do people consider Social Security a really important program, but they really want to make sure we’re spending enough on the program so that it can be there when people are ready to collect their benefits,” Bond said.
Notably, confidence that Social Security benefits will still be available tends to increase as people get closer to retirement age, he said. More

The Federal Reserve held rates steady at the end of its two-day meeting Wednesday despite pressure from the White House.
High interest rates have affected all sorts of consumer borrowing costs, from auto loans to credit cards. 
For consumers, it generally won’t get less expensive to carry credit card debt, buy a house or purchase a car.

The Federal Reserve announced Wednesday it will leave interest rates unchanged as inflation continues to run above the Fed’s 2% mandate.
The move comes after the central bank cut its benchmark interest rate by a full percentage point last year and in the wake of President Donald Trump’s comment during his first week back in office that he’ll “demand that interest rates drop immediately.”

The latest CNBC Fed Survey showed expectations for only two rate cuts later in the year, the same number penciled in by Federal Reserve officials in their recent forecasts.
“While inflation concerns have significantly abated, they still remain,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion. “As a result, it is quite possible that there will be fewer rate cuts over the course of next year than anticipated only a few months ago.”
For consumers struggling under the weight of high prices and high borrowing costs, that means there will be little relief to come. It also means Trump may further challenge the Fed’s independence.
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Inflation has been an ongoing issue since the pandemic, when price increases soared to their highest levels since the early 1980s. The Fed responded with a series of interest rate hikes that took its benchmark rate to its highest level in more than 22 years.

On the campaign trail, Trump said inflation and high interest rates are “destroying our country.”
The federal funds rate, which is set by the U.S. central bank, is the rate at which banks borrow and lend to one another overnight. Although that’s not the rate consumers pay, the Fed’s moves still affect the borrowing and savings rates they see every day.
The spike in interest rates caused most consumer borrowing costs to skyrocket, putting many households under pressure.
Even though the central bank has already started cutting its benchmark rate and more rate reductions are on the horizon, consumers won’t see their borrowing costs come down significantly, according to Greg McBride, Bankrate’s chief financial analyst.
“The rate cuts are not going to be big enough or often enough to do the heaving lifting for you,” he said.
From credit cards and mortgage rates to auto loans and savings accounts, here’s a look at where those rates could go in 2025.

Credit cards

Since most credit cards have a variable rate, there’s a direct connection to the Fed’s benchmark. In the wake of the rate hike cycle, the average credit card rate rose from 16.34% in March 2022 to more than 20% today — near an all-time high.
Annual percentage rates will continue to come down as the central bank reduces rates, but they are only easing off extremely high levels. With only a few potential quarter-point cuts on deck, APRs aren’t likely to fall much, according to Matt Schulz, chief credit analyst at LendingTree.
“Anyone hoping for the Fed to ride in as the cavalry and rescue you from high interest rates anytime soon is going to be really disappointed,” he said.
Try consolidating and paying off high-interest credit cards with a lower-interest personal loan or switching to an interest-free balance transfer credit card, Schulz advised: “A 0% balance transfer credit card can be an absolute lifesaver.”

Mortgage rates

Although 15- and 30-year mortgage rates are fixed, and tied to Treasury yields and the economy, anyone shopping for a new home has lost considerable purchasing power, partly because of inflation and the Fed’s policy moves.
The average rate for a 30-year, fixed-rate mortgage is now just above 7%, according to Bankrate.
Going forward, McBride expects mortgage rates to “spend most of the year in the 6% range,” he said. But since most people have fixed-rate mortgages, their rate won’t change unless they refinance or sell their current home and buy another property. 

Auto loans

Even though auto loans are fixed, payments are getting bigger and less affordable because car prices have been rising along with the interest rates on new loans.
The average rate on a five-year new car loan is 5.3%, according to January data from Edmunds compiled for CNBC.
“With the Fed signaling that any rate cuts in 2025 will be gradual, affordability challenges are likely to persist for most new vehicle buyers,” said Joseph Yoon, Edmunds’ consumer insights analyst.
“The average transaction price of a new vehicle remains near $50,000, driving average loan amounts to record highs,” he said. “Although further rate cuts in 2025 could provide some relief, the continued upward trend in new vehicle pricing makes it difficult to anticipate significant improvements in affordability for consumers in the new year.”  

Student loans

Federal student loan rates are also fixed, so most borrowers aren’t immediately affected by any Fed moves.
However, undergraduate students who took out direct federal student loans for the 2024-25 academic year are paying 6.53%, up from 5.50% in 2023-24. Interest rates for the upcoming school year will be based in part on the May auction of the 10-year Treasury note.
Private student loans tend to have a variable rate tied to the prime, Treasury bill or another rate index, which means those borrowers are typically paying more in interest. How much more, however, varies with the benchmark.

Savings rates

While the central bank has no direct influence on deposit rates, the yields tend to be correlated to changes in the target federal funds rate.
In recent years, top-yielding online savings accounts have offered the best returns in more than a decade and still pay nearly 5%.
“While the Fed putting the brakes on interest rate cuts stinks for those with debt, it is welcome news for savers,” Schulz said. “That means that it is still a really opportune time to shop for a high-yield savings account. Sure, you’ve missed out on the peak, but there are still plenty of good returns to be found.”

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About 25% of respondents would use a credit card to pay for an emergency and pay off the card over time, according to a new report by Bankrate.
Paying off unexpected expenses with credit should be “a last resort,” said certified financial planner Clifford Cornell, an associate financial advisor at Bone Fide Wealth in New York City.

Rainstar | E+ | Getty Images

People who use a credit card to cover an emergency expense are solving only part of the problem.
Why? Because while using a credit card for emergencies can be helpful in the short term, carrying a balance can lead to significant interest charges if not paid off quickly. 

About 25% of respondents said they would use a credit card to pay for an emergency expense and pay off the card balance over time, according to a new report by Bankrate. That is up from 21% in 2024.
The site polled 1,039 adults in early December.
Paying off unexpected expenses with credit should be “a last resort,” said certified financial planner Clifford Cornell, an associate financial advisor at Bone Fide Wealth in New York City.
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If you don’t pay the balance off, you’re faced with high-interest rate debt. The average annual percentage rate for credit cards is now about 20%, according to Bankrate data.

Let’s say your home water heater breaks — a repair that costs $600 on average, per SoFi. If you put that cost on a credit card with a 20% interest rate, you will pay about $10 in interest if you can’t zero out the balance after a month, according to a Bankrate calculator.
Make only the minimum payments toward that debt, and it will take you more than five years to pay it off, Bankrate estimates. That means you’ll pay nearly $400 in interest.
“Using your credit card to pay for ’emergency expenses’ is just incredibly expensive,” CFP Lee Baker, founder, owner and president of Claris Financial Advisors in Atlanta. He’s also a member of CNBC’s Financial Advisor Council.
Imagine you’re paying this debt off and a new emergency comes up, compounding the problem: “While the timing of these instances can be uncertain, the inevitability of them is not,” said Mark Hamrick, a senior economic analyst at Bankrate.

Who uses credit cards for emergencies

Individuals who lean on credit cards in emergencies might not have enough savings to cover the tab, experts say.
While “there’s a reason they’re in that position to begin with,” it might not necessarily be rooted in poor financial decisions, Baker said.
“It could be someone younger who has simply not had the time to build up some emergency savings,” he said.

In fact, the same Bankrate report found that only 28% of Gen Z adults — or those of ages 18 to 28 — can pay for a $1,000 surprise expense in cash.
Instead, the group is more likely to pay an unexpected cost with a credit card and pay it off over time.
About 27% of Gen Z adults will finance an emergency on a credit card, compared with 25% of millennials, or adults ages 29 to 44, according to Bankrate data provided to CNBC. 
To compare, 25% of Gen X — adults ages 45 to 60 — would pay for an unexpected cost with a credit card while 21% of baby boomers — those ages 61 to 79 — would do the same. 

Experts urge individuals to create an emergency fund, whether that means putting away even a small amount in a separate account every month. 
Advisors suggest that people should aim for three to six months’ worth of living expenses in case you have big unexpected expense, suffer from a job loss or face major medical bills. But saving that much money “can be a very daunting task,” Baker said.
Instead, “think of it like a ladder” and break it down into smaller, achievable goals to gain momentum, he said.
In the end, “having that cash reserve will really provide a lot of peace of mind,” Cornell said.

What to do if you need credit for an emergency

If you’re in a situation where you do not have enough emergency savings and need to rely on a credit card, “you’re going to want to pay that down as quickly as possible” to avoid high interest tacking onto the original balance, Cornell said.
If you can’t, Baker says to “absolutely avoid paying [just] the minimum.” Attempt to break the cost into two or three larger payments to avoid incurring as much interest, he said.
A third option to consider is a potential 0% balance transfer card. If you qualify, the card often allows you to pay off the outstanding balance for a set period of time with zero interest, Baker said.
“It can be a terrific opportunity, but you [have] to use it wisely,” he said. More

Chubb said it expects to see $1.5 billion in net pretax costs in the first quarter related to the recent California wildfires.
Chubb has reduced its exposure by 50% in the wildfire area, CEO Evan Greenberg said on the company’s fourth-quarter earnings call.
During the call, Greenberg touted 2024 as an “outstanding year” for the company’s business. Chubb has been making a mark by focusing on insuring more affluent customers.

Chubb CEO Evan Greenberg
Scott Mlyn | CNBC

California is a tough market for insurers — and growing more so, according to Chubb CEO Evan Greenberg.
The executive has long proclaimed that Chubb won’t write insurance where it can’t get a reasonable return for taking on risk. And it’s that approach that helped it report strong 2024 results.

“We had a great quarter, which contributed to an outstanding year. In fact, the best in our company’s history,” Greenberg told analysts on the company’s fourth-quarter earnings call.
Chubb shares are trading 3% higher on Wednesday. The stock has risen 13% over the past year, but has been under pressure this month as the Los Angeles area battled costly wildfires. Chubb, along with Allstate and Travelers, are among the publicly traded insurers expected to have some of the greatest exposure.

Stock chart icon

Chubb shares over the past year

Greenberg kicked off the company’s earnings call immediately addressing its exposure to the disaster. Right now, it expects to see $1.5 billion in net pretax costs in the first quarter.
Chubb had reduced its exposure by 50% in the areas where wildfires occurred, he said.
The state, as well as consumer advocacy groups, are preventing insurers from charging premiums that truly reflect the risks in the area, he said, explaining that the artificially suppressed prices are only encouraging people and companies to opt for riskier places to live and work.

“Frankly, it’s an unsustainable model, and one way or the other, the citizens of the state paid for the price for coverage,” he said. “California is not alone in this regard, but it certainly stands out.”

Best. Year. Ever.

Greenberg expressed confidence in Chubb’s ability to manage the risks the industry faces.
“While we’re in the risk business and there’s plenty of uncertainty in the world, we’re confident in our ability to continue growing operating earnings and EPS at a double-digit rate, tax and [foreign exchange] notwithstanding. Our earnings growth will come from three sources: [property and casualty] underwriting, investment income and life income.”
He said he expects the industry is in a period of sustained inflation – and so rates are rising just to stay steady, which may not affect margin improvement.

Why size matters

Greenberg said Chubb is positioned competitively to grow its commercial middle-market lines, which serve companies smaller than $1 billion, because there’s a lot of change in climate and catastrophe events and growth in litigation. Regional and mutual insurers “have a harder time” in this area, he said.
“They’re not equipped with the data, with the balance sheet, with depth of business in reinsurance relationships to be able to … compete the same way,” he said.
On multiple metrics, the company is seeing bragworthy growth.
P&C underwriting income rose 7% in 2024 from the prior year, with a combined ratio of 86.6%. Global P&C premiums written grew almost 10% during the same period, with life premiums jumping 18.5% in constant dollars.
During the latest quarter, Chubb reported net income of $2.58 billion, or $6.33 per share. Excluding items, it earned $6.02 per share. Net investment income rose 13.7% to $1.69 billion on an adjusted basis.
Chubb has been making its mark by insuring more affluent customers, and that contributed to its fourth-quarter strength. Premium growth in this segment rose 10%, including a 34% bump in new business, the company said.
“Premiums in our true high net worth segments, the group that seeks our brand for the differentiated coverage and service we are known for, grew 17.6%,” it added.
Homeowners pricing rose more than 12% for the quarter and ahead of loss costs.
Chubb, the market leader in crop insurance, said agriculture premiums fell a bit because of lower commodity prices and a change in the risk formula with the U.S. government.
Correction: Chubb shares were trading higher Wednesday. An earlier version misstated the day.

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