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For most college hopefuls, issues with the FAFSA forced a practical approach to this year’s complicated admission season.
One recent study found that 76% of students said the financial aid amount awarded to them, and the overall financial aid process, was the top driver in their choice about where to go to college.
These high school seniors all chose the best offer over the best school.

Ramon Montiel-García, 18, a graduate of KIPP Northeast Denver Leadership Academy in Colorado.
Credit: Ramon Montiel-García

Ramon Montiel-García, a newly minted high school graduate from KIPP Northeast Denver Leadership Academy in Colorado, was accepted to his first-choice school, Wheaton College in Massachusetts. 
However, with a sticker price of nearly $80,000 per year, including tuition, fees, and room and board, Montiel-García, like many college hopefuls, needed financial aid to bring the cost down.

But also like his peers, Montiel-García struggled with the new federal financial-aid application.
Although his parents have lived in the U.S. since 2001, they are both undocumented and don’t have Social Security numbers, which was one of the many issues that dogged users of the Free Application for Federal Student Aid. In the meantime, Montiel-García honed a back-up plan.
His FAFSA application was ultimately accepted in late April — well after the late December launch following another monthslong delay. Still, he said the aid package he received from Wheaton was not enough to make ends meet.
“I would have to have paid $11,000 a semester, which is still a lot of money for me and my family,” he said.
Instead of attending Wheaton, Montiel-García instead enrolled at the nearby University of Colorado in Denver. He plans to live at home to keep costs down.

“I’m kind of disappointed I wasn’t able to go to that school, but maybe it was for the best,” he said.

The FAFSA is still an obstacle

Even in ordinary years, how students choose a college largely hinges on the amount of financial aid offered and the breakdown among grants, scholarships, work-study opportunities and student loans.
However, in 2024, a botched FAFSA rollout heightened the critical role of aid in college choices. Because of problems with the new form, financial aid award letters were delayed and some high school seniors, like Montiel-García, had trouble applying for any aid at all.
As of June 28, only 46% of new high school graduates have completed the FAFSA, according to the National College Attainment Network, or NCAN. A year ago, that number was 53%.

Submitting a FAFSA is one of the best predictors of whether a high school senior will go on to college, NCAN also found. Seniors who complete the FAFSA are 84% more likely to enroll in college directly after high school, according to an NCAN study of 2013 data. 
The FAFSA serves as the gateway to all federal aid money, including loans, work study and grants, the latter of which is the most desirable kind of assistance because it typically does not need to be repaid.

FAFSA issues forced hard choices

About three-quarters, or 76%, of students said the financial aid amount awarded to them, and the overall financial aid process, were the top drivers in their choice about where to go to college, according to a survey by Ellucian and EMI Research Solutions conducted in March.
That outpaces parental influence, location, campus culture — and even the degree programs offered.
“This year, we are just seeing such deep concerns around college costs, more than in the past couple of years,” Robert Franek, editor-in-chief of The Princeton Review, which recently ranked colleges by how much financial aid is awarded, told CNBC. “There is a stress level that is palpable.”
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Higher education already costs more than most families can afford, and college costs are still rising. Tuition and fees, plus room and board, for a four-year private college averaged $56,190 in the 2023-2024 school year; at four-year, in-state public colleges, it was $24,030 per year, according to the College Board.

Experts predicted that problems with the new FAFSA would weigh heavily on enrollment, although it was initially unclear how much of a role it would play in decisions between schools.
Ellucian’s study found that 44% of the 1,500 students surveyed said they’d switch their top-choice school if offered just $5,000 more in aid.
“It’s a surprisingly small amount when you look at the total cost,” Ellucian CEO Laura Ipsen said of the difference that award money made in the decision-making process.

The FAFSA’s impact on decision-making

The challenge this year “was not only about the financial aid piece, which is huge, but comparing different offers coming in at different times,” said Eric Greenberg, president of Greenberg Educational Group, a New York-based consulting firm. “It did have a big impact on the way people made decisions.”
In previous years, financial aid award letters were sent out at about the same time as admission letters, meaning students had several weeks to compare offers ahead of National College Decision Day, the deadline for most admitted students to decide on a college.

Because of the extensive delays this year, some students won’t get their final financial aid award letter until the end of August, the U.S. Department of Education said in a recent update.
Andrea Garcia, 18, is still waiting on that letter although she already committed to Emory University in Atlanta — and put down a deposit. Because her parents, like Montiel-García’s, are also undocumented, she said the aid application process was problematic from the start.
“My parents were very stressed and, in a way, felt kind of guilty because of the system,” she said.
As for now, Garcia is still considering her fallback, which entails staying closer to her home in Denver: “If Emory doesn’t fit my financial needs, I will enroll in a regional school that offers a full ride.”
Because of such delays, some students may even start their fall semester before they get key information about how much that’s going to cost, according to higher education expert Mark Kantrowitz.
This also marks “the first admission” by the Education Department that the FAFSA won’t be fully functional until after the start of the 2024-25 award year, which began July 1, he said.

Filling the gap with other sources of aid

Greenberg advises the students he works with to explore other sources of merit-based aid, as much as possible.
For Ky-mani Murphy, 18, that approach is what made the difference.
The high school graduate from Riverdale Park, Maryland, secured enough additional funding from the Maryland College Aid Processing System to afford his top choice school: Towson University.
“I really wanted to go to Towson,” he said.
But after his award package from the school was delayed and then came in below his expectation, Murphy said he nearly lost hope.
“At that point, I was like, ‘Wow my going to college might not work,'” he said.
With the added state-based aid, Murphy is on track to join Towson’s freshman class this fall with plans to study computer science.
“I am just really grateful that I have the opportunity to go to a good college,” he said. “I am really excited to see what’s going to come.”

‘I didn’t want to obtain a lot of debt’

For most students, though, the FAFSA fallout comes on top of an already complicated college admission season and concerns about student loans forced a compromise.
Right from the start, Chase Hartman, 18, said he was more focused on scholarships than even the college applications themselves. Still, the recent graduate was accepted into 17 schools, including his top choice, Duke University.
“I did get accepted into Duke, but I was only able to get a year’s worth of scholarships,” he said. Ultimately, that was the deciding factor.
Hartman, who is from Tampa, Florida, qualified for the state’s Bright Futures college scholarship program as well as a Lombardi award, which brought his in-state cost of attendance to the University of Florida down to essentially zero. He’ll start there in the fall.
“I didn’t want to obtain a lot of debt in my undergraduate education, because I am also considering going to law school or getting my MBA,” he said.

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Walmart trailers sit in storage at a Walmart Distribution Center in Hurricane, Utah on May 30, 2024.
George Frey | Afp | Getty Images

Dividend-paying stocks can enhance investors’ portfolio returns and provide certainty in shaky markets.
Investors can track Wall Street analysts’ ratings to select stocks of dividend-paying companies that have attractive growth prospects, which could boost earnings and cash flows to support higher dividends.

Here are three attractive dividend stocks, according to Wall Street’s top experts on TipRanks, a platform that ranks analysts based on their past performance.
Northern Oil and Gas
This week’s first dividend stock is Northern Oil and Gas (NOG). The company engages in the acquisition, exploration and production of oil and natural gas properties, mainly in the Williston, Permian and Appalachian basins.
NOG paid a dividend of 40 cents per share for the first quarter, reflecting an 18% year-over-year increase. The stock offers a dividend yield of 4.1%. The company also enhanced shareholder returns through stock buybacks worth $20 million in Q1 2024.
NOG recently announced an agreement to acquire a 20% undivided stake in the Uinta Basin assets of XCL Resources for $510 million. The deal will be made in partnership with SM Energy.
Reacting to the news, RBC Capital analyst Scott Hanold reiterated a buy rating on NOG stock with a price target of $46. Following discussions with management, the analyst noted that similar to NOG’s strategy in the Permian and Williston Basins, there is a possibility of further expansion in the Uinta Basin through additional deals.

Hanold said the deal was in line with NOG’s strategy of collaborating with high-quality operators like SM Energy to capture lucrative opportunities. “This is NOG’s fourth large JV [joint venture] and meaningfully adds to its diversity, returns, and inventory runway,” he said.
The analyst boosted his 2025 earnings per share and cash flow per share estimates by 11% to 12% and increased his free cash flow per share forecast by 10%, given that the XCL deal is significantly accretive. He thinks that the solid free cash flow outlook could enable NOG to hike its base dividend. Hanold estimates a 10% to 15% increase in dividend in 2025.    
Hanold ranks No. 23 among more than 8,900 analysts tracked by TipRanks. His ratings have been profitable 67% of the time, delivering an average return of 26.7%. (See NOG Stock Buybacks on TipRanks)  
JPMorgan Chase
JPMorgan Chase (JPM), the largest U.S. bank by assets, is the next dividend pick. Last month, the bank announced its plans to increase its dividend by about 9% to $1.25 per share for the third quarter of 2024. JPM offers a dividend yield of 2.2%.
JPM highlighted that this potential increase in the Q3 dividend would mark the second dividend hike this year. In March 2024, the bank announced an increase in its dividend to $1.15 per share from $1.05. Moreover, JPM’s board has authorized a new share repurchase program of $30 billion, effective July 1, to boost shareholder returns.
Recently, RBC Capital analyst Gerard Cassidy reaffirmed a buy rating on JPM stock with a price target of $211. The analyst cited several reasons for his bullish investment thesis, including a strong management team, JPM’s impressive business lines that rank among the top three in the banking space and a robust balance sheet.
“We believe that as the company builds economies of scale in its consumer and capital markets businesses, it will realize enhanced profitability by taking market share from its weaker competitors,” said Cassidy.
The analyst also highlighted JPM’s well-diversified business model that derives revenue from Consumer and Community banking (41% of Q1 2024 revenue), Corporate and Investment Banking (32%), Asset and Wealth Management (12%), Commercial Banking (9%) and Corporate (5%).
Cassidy ranks No. 128 among more than 8,900 analysts tracked by TipRanks. His ratings have been successful 63% of the time, delivering an average return of 14.7%. (See JPM Stock Charts on TipRanks) 
Walmart
Finally, we will look at big-box retailer Walmart (WMT). Earlier this year, the company increased its dividend by 9% to 83 cents per share. This increase represented Walmart’s 51st consecutive annual hike.
In the fiscal first quarter, WMT returned $2.73 billion to shareholders through $1.67 billion in dividends and $1.06 billion in share repurchases. With a payout ratio of 37.5%, the company sees the possibility of further growth in its dividend.
Recently, Jefferies analyst Corey Tarlowe reiterated a buy rating on WMT with a price target of $77, saying that the stock remains his firm’s top pick. The analyst thinks that Walmart is in the early phase of its artificial intelligence and automation journey.
Tarlowe thinks that AI and automation could help double the company’s operating income by fiscal year 2029 compared to fiscal year 2023, delivering more than $20 billion of incremental earnings before interest and taxes. The analyst expects the increased operating income to be driven by several factors, including automation efficiencies, advertising, theft mitigation and autonomous driving.
Among the recent AI developments, the analyst highlighted WMT’s strategic investment and partnership with Fox Robotics, which provides the world’s first autonomous forklift. He also mentioned the deployment of automatic receipt verification arches at Sam’s Club as part of the company’s AI strategy. 
“Overall, we expect WMT to command an increasingly large share of customer spending through bolstered omnichannel capabilities, partnerships, and services,” said Tarlowe.
Tarlowe ranks No. 266 among more than 8,900 analysts tracked by TipRanks. His ratings have been successful 67% of the time, delivering an average return of 19.7%. (See WMT Technical Analysis on TipRanks) 
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A logo sign outside of a facility occupied by Smith & Nephew in Austin, Texas.
SIPPL Sipa USA | AP

Company: Smith & Nephew (SN.-GB)

Business: Smith & Nephew is a British portfolio medical technology company that operates worldwide. The company develops, manufactures, markets and sells medical devices and services. Its segments include Orthopedics, Sports Medicine and Ear, Nose and Throat, as well as Advanced Wound Management. Its Orthopedics segment includes a range of hip and knee implants to replace damaged or worn joints, robotics-assisted and digital enabling technologies, as well as trauma products used to stabilize severe fractures and correct hard tissue deformities. Its Sports Medicine and ENT businesses offer advanced products and instruments used to repair or remove soft tissue. Its Advanced Wound Management portfolio provides a comprehensive set of products to meet broad and complex clinical needs.
Stock Market Value: ~9.6 billion British pounds (11 pounds per share). The stock also trades in the U.S. as an American depositary receipt under the ticker “SNN.”

Activist: Cevian Capital

Percentage Ownership:  5.11%
Average Cost: 9.68 pounds
Activist Commentary: Cevian Capital, founded in 2002, is an international investment firm acquiring significant ownership positions in publicly listed European companies, where long-term value can be enhanced through active ownership. Cevian Capital is a long-term, hands-on owner of European-listed companies. It is often called a “constructive activist” and is the largest and most experienced dedicated activist investor in Europe. Cevian’s strategy is to help its companies become better and more competitive over the long term, and to earn its return through an increase in the real long-term value of the companies. The firm’s work at companies is typically supported by other owners and stakeholders.

What’s happening

Cevian acquired a 5.11% position in the company because the firm thinks that Smith & Nephew operates a fundamentally attractive business. The investor thinks there could be significant potential upside from improving the operating performance of the company’s businesses.

Behind the scenes

Smith & Nephew is a global leader in medical technology. The company develops and sells medical devices and services across three segments, maintaining a dominant global market position in each: Orthopedics, Sports Medicine and ENT, and Advanced Wound Management. Smith & Nephew is well known for its product quality and its brand perception is very strong. In addition, the company operates in fundamentally growing and consolidated markets with good competitive dynamics. In general, there is very predictable customer behavior as well as stable market shares for the industry leaders. In 2023, the company generated $5.55 billion in revenue, of which 40% came from Ortho, 31% from Sports Med and 29% from Wound. However, the profitability profile is quite different. After allocating overhead Ortho only has 11% operating margins, while Sports and Wound have twice that with 22% operating margins.

Despite its leading market position and the favorable industry dynamics, Smith & Nephew has not generated shareholder value for many years – down 44% since Jan. 1, 2020 and off by 33% since its Jan. 1, 2021 post-Covid price. This is not surprising, and the reason seems obvious: operating margins in its largest business, Ortho. In 2019, Ortho had operating margins of 23%, which declined to 13% in 2020. They are now at 11% today. This is due to self-inflicted issues relating to supply chain management, logistics and manufacturing causing back orders and either the implants or the required tools not being at the right place at the right time. This issue is somewhat unique to Ortho as it is a much more complicated business than Wound and Sport and requires the timely delivery of not only a variety of sizes of implants, components and devices for each procedure, but also the specific tools associated with the procedure. Another major contributor to the company’s missteps is that Smith & Nephew has seen a significant amount of management turnover over the past five years.
Management has now released a 12-point plan of which a major component is fixing Ortho to regain momentum and win market share. While this is a step in the right direction and this management team may be able to successfully implement this plan, it is not going to happen with continued management turnover. It is impossible to implement a long-term operational plan when there is a new CEO every few years. This is a company that clearly needs an activist, but the good news is that Cevian is the perfect activist for a company like this. The two things Smith & Nephew needs more than anything is a long-term mindset and operational improvements. Cevian is a long-term activist – the firm’s average holding period is four to five years, but often it will hold positions for eight to 10 years – with an operational performance focus. The firm has extensive history of helping companies improve operations either as an active shareholder or board member. There is no reason why the company should not be able to boost the operating margins of the Ortho division at least back to its pre-pandemic level and maybe even higher, closer to peers like Stryker and Zimmer Biomet.
We expect that Cevian would look to assist in this endeavor from a board level because they take board seats in most of their activist positions. Currently, Cevian’s professionals serve on the boards of 10 portfolio companies in six different countries. Given the firm’s experience and the fact that it is the company’s second-largest shareholder, we would expect that Cevian would be able to get a board seat here the way it does in most of its engagements – amicably or by invitation.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. More

The Biden administration’s new affordable repayment plan for student loan borrowers, as well its debt cancellation package, are at risk from legal attacks.
Amid the anxiety-provoking news for borrowers, here’s what relief they can still count on.

Alexandra Pavlova | Getty Images

The Biden administration’s efforts on student loan forgiveness have repeatedly been met with legal challenges. The Supreme Court struck down President Joe Biden’s first attempt at wide-scale forgiveness last summer.
Now, its new income-driven repayment plan (the Saving on a Valuable Education plan known as SAVE) is partially suspended after Republican-led states, including Arkansas, Florida and Missouri, filed lawsuits against it earlier this year. And experts say Biden’s do-over effort at delivering sweeping debt forgiveness is almost certain to face similar opposition.

Amid all the anxiety-provoking news, here’s what relief student loan borrowers can still count on — at least for now.

Most of SAVE plan is still in effect

The Biden administration rolled out the SAVE plan in the summer of 2023, describing it as “the most affordable student loan plan ever.” Indeed, the terms of the new income-driven repayment plan are the most generous to date, making it controversial among critics of debt forgiveness. So far, around 8 million borrowers have signed up for SAVE, according to the White House.
Specifically, SAVE comes with lower monthly payments than any other IDR plan, and leads to quicker debt erasure for those with small balances. Some people can get their debt cleared after just 10 years, whereas the other IDR plans typically only lead to that relief in 20 years or 25 years.
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In late June, two federal judges in Kansas and Missouri temporarily halted significant parts of SAVE, after a number of red states argued that the Education Department overstepped its authority and essentially was trying to find a roundabout way to forgive student debt after the Supreme Court blocked its sweeping plan in June 2023.

Since then, the Biden administration successfully appealed one of the injunctions against SAVE. As a result, most of the program remains in effect for the time being.
Many borrowers enrolled in SAVE should benefit from the reduction of monthly bills to 5% of their discretionary income, compared with the 10% or more requirement under other IDR plans. The government also covers any unpaid interest each month for SAVE enrollees.
“Borrowers enrolled in the SAVE plan can still access its considerable benefits, including undergraduate loan payments cut in half, as well as protection against interest accruing if borrowers are making their monthly payments,” U.S. Department of Education Secretary Miguel Cardona said in a statement.

Because the injunction against SAVE regarding expedited loan forgiveness is still active, borrowers aren’t able to get their loans excused under the plan’s expedited timeline.
The legal whiplash over the SAVE plan has been a major headache for student loan borrowers, and made it hard for them to budget, said Aissa Canchola-Bañez, policy director at the Student Borrower Protection Center.
“Borrowers shouldn’t be expected to live court judgment by court judgement,” Canchola-Bañez said. “[They] deserve relief and this is why it’s critical for the administration to finalize its debt relief rules and enact debt relief for as many borrowers as possible.”

Sweeping loan forgiveness will face lawsuits, too

The Biden administration is working as quickly as it can to finalize its so-called Plan B for loan forgiveness, which is a more targeted aid package than its first attempt, but one that could still reach tens of millions of Americans.
The U.S. Department of Education recently disclosed that it will publish its final rule on its plan sometime in October. It’s possible the department will try to start forgiving people’s debts that month.
Those who stand to benefit from the relief include borrowers who have seen their balances grow beyond what they originally borrowed and those who have already been in repayment for decades.

Yet it’s unclear how far the Education Department will get. Lawsuits are expected to follow swiftly, said higher education expert Mark Kantrowitz.
A recent Supreme Court ruling could also make it harder for Biden’s revised plan to survive those legal attacks, Kantrowitz said.
The high court in late June overruled the so-called Chevron doctrine, a 40-year-old precedent that required judges to defer to a federal agency’s interpretation of laws in question. The 6-3 ruling, which split the conservative-majority court along ideological lines, is expected to undermine the federal government’s regulatory power.
But there is some good news for borrowers, Kantrowitz said.
“The SAVE repayment plan, on the other hand, is not at risk,” he said, adding that Congress gave the U.S. Department of Education explicit authority to amend the terms of loan repayment plans for students.
In the meantime, the Education Department’s other income-driven repayment plans and the Public Service Loan Forgiveness program remain unscathed by legal drama. Consumer advocates encourage all borrowers to research what, if any, relief they may be eligible to receive. More

About 57% of polled Gen Zers are willing to buy a fixer-upper home, according to a new report by Clever Real Estate.
The median sale price of a fixer-upper house is about $283,000, according to StorageCafe, which analyzed data partner division Point2, a real estate site. That’s roughly 29% cheaper than a move-in ready home.

About 1 in 5 Gen Zers, or 22%, say a lack of affordable starter homes poses as a barrier towards homeownership, according to a new report. Some believe fixer-upper homes might be the answer to the issue.
A fixer-upper is an existing house that needs varying degrees of maintenance work and is typically offered at a low purchase price, by Redfin’s definition.

More than half, 57%, of Gen Zers polled said they are willing to put an offer in on a fixer-upper, according to a new report by Clever Real Estate. The site surveyed 1,000 Generation Z adults 18 and older; 126 of the total were homeowners.
However, some of those who went that route are already rethinking their decisions. To that point, of the 40% of Gen Z homeowners who did buy a fixer-upper, about 27% regret it, the report found. 
Given the survey’s small base of homeowners, it’s hard to say how fixer-upper regrets might play out on a larger scale. But experts say it’s not unusual for buyers of such properties to feel overwhelmed.
“A lot of them are first-time buyers; they don’t really know the true costs of homeownership and how these renovations and repairs can really be a lot,” said Jaime Dunaway-Seale, a data writer at Clever Real Estate.
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Buying a fixer-upper home can mean savings in the short term, but would-be buyers need to keep renovation costs in mind, as well as the home’s current functionality, said Marine Sargsyan, staff economist at Houzz, a home renovation and design site. For example, if your new home doesn’t have a usable bathroom that might delay your ability to move in.
“Functionality above everything. Anything you have in your house has to function,” she said. “If it doesn’t, then see how much it’s going to cost for you to replace [it].” 

‘Young buyers are having to make trade-offs’

As homeownership affordability is out of reach for many Americans, a fixer-upper home could mean short-term savings.
The median cost of a fixer-upper house is about $283,000, according to a May report from StorageCafe, which analyzed data from its sister division, Point2. That is about 29% lower than a move-in ready home, saving buyers roughly $117, 000, StorageCafe found.
“Young buyers are having to make trade-offs because housing prices are so expensive,” said Susan Wachter, professor of real estate and professor of finance at The Wharton School of the University of Pennsylvania.
Some Gen Z buyers are even willing to buy fixer-uppers with significant disrepairs or outdated features that pose great risks. Over half, 56%, of Gen Zers in the Clever Real Estate survey said they would buy a home with asbestos, a mineral fiber that can increase the risk of developing lung diseases if exposed to it.

When shopping around for fixer-upper homes, make sure the house is safe and livable enough not to cause any health and safety issues, Sargsyan explained.
“Make sure that there is no toxin in the house,” she said.
It doesn’t take extreme deterioration for a fixer-upper to generate significant repair costs. Many of the existing homes in the U.S. were built decades ago, according to the 2022 American Community Survey by the U.S. Census Bureau. The survey found that the median age of owner-occupied homes in the U.S. is about 40 years.
“Homebuyers have to make a compromise along the way, and often it’s the age or the condition of the home,” Jessica Lautz, deputy chief economist at the National Association of Realtors, recently told CNBC.

Functionality above everything. Anything you have in your house has to function.

Marine Sargsyan
staff economist at Houzz, a home renovation and design site

About 51% of surveyed homeowners spent $25,000 or more on home renovation projects in 2023, up from 44% in 2021, according to the 2024 U.S. Houzz & Home Study. Houzz surveyed 33,830 homeowners of ages 18 and older from Jan. 19 to Feb. 27.
While cash from savings continues to be the most common way homeowners fund renovation projects, or 83%, credit card use has increased, Houzz found. About 37% of homeowners paid for their repair projects with credit cards, up from 28% who did so in 2022.

Five things to watch for in a fixer-upper house

If you’re considering a fixer-upper, ask thorough questions to the home seller or real estate agent about the property, such as when the house was built, experts say. If you get as far as the home-inspection process, line up a home inspector who can help you compile the issues with the house.
Here are five key things to pay attention to if you’re considering buying a fixer-upper house:

Roof: If it’s a leaky roof, you have to figure out how much it’s going to cost to fix, said Sargsyan. Roof repairs can be significant, and you also have to consider the damage that leaks might have caused inside the home. The median cost of roofing upgrades hovers around $12,000, according to Houzz.

Plumbing: Find out the condition of the home’s pipes and plumbing, such as where they are, where do they go, and when was the last time they were upgraded, Sargsyan said. Older pipes are more likely to break or crack if they were installed before 1980, when cast iron or clay were typical materials, according to Short Elliott Hendrickson, Inc., a building company based in St. Paul, Minnesota.

Electricity: Find out if the home’s wiring is in good condition, and when it was last updated. Older homes often do not have safety devices like ground fault circuit interrupters. Taking a look at the electric panel can also give you clues about the home’s wiring system, according to Lippolis Electric Inc., an electrical contractor company in Pawling, New York. The median spend on electrical system upgrades rose to $2,000 in 2023 from $1,800 in 2020, Houzz found. “It’s important to understand the overall capacity of your electrical because you don’t want to plug in too many things and then cause an outage for yourself,” Sargsyan said. “That’s also a big consideration.”

Walls and stairs: Make sure the walls are safe, Sargsyan said. If there are cracks in the walls and ceilings, uneven floors, and difficulty opening and closing doors could indicate underlying problems, according to Perma Pier, a foundation repair company in Texas. And if there are stairs in the house, make sure they are safe to walk on, Sargsyan said.

Overall land: Understand the overall land the house was built on, she said. Look for evidence that problems with the home stem from the surrounding land, like indications the basement has flooded or cracks. “Is there going to be some sort of surprise if it rains too much, especially with the weather changes in recent years?” she said. More

The consumer price index rose 3% in June 2024 from a year earlier, a decline from 3.3% in May, according to the U.S. Bureau of Labor Statistics.
The inflation rate has declined significantly from a 9.1% pandemic-era peak in 2022.
Households have seen relief for staples such as groceries and gasoline.

David Paul Morris/Bloomberg via Getty Images

Inflation fell further in June as lower gasoline prices combined with other easing price pressures to bring relief for consumers’ wallets.
The consumer price index, a key inflation gauge, rose 3% in June from a year ago, down from 3.3% in May, the U.S. Department of Labor reported Thursday.

The CPI gauges how fast prices are changing across the U.S. economy. It measures everything from fruits and vegetables to haircuts, concert tickets and household appliances.

Perhaps the “most encouraging” news for consumers is that inflation for household necessities has cooled dramatically, said Mark Zandi, chief economist at Moody’s Analytics.
“The prices for staples — food at home, gasoline, new-lease rents — they haven’t changed in about a year,” Zandi said. “So people are paying the same for those staples today that they were a year ago.”
The April inflation reading is down significantly from its 9.1% pandemic-era peak in 2022, which was the highest level since 1981.

However, it remains above policymakers’ long-term target, around 2%.

“We continue to expect inflation to grind lower in the months ahead as input cost pressures ease and more tepid consumer demand makes it harder [for businesses] to raise prices,” Sarah House and Aubrey George, economists at Wells Fargo Economics, wrote in a note this week.
However, additional improvements are likely to be “slow-going,” they wrote.

Good sign for Fed interest rate cut in September

The U.S. Federal Reserve uses inflation data to help guide its interest rate policy. It raised interest rates to their highest level in 23 years during the Covid-19 pandemic era, pushing up borrowing costs for consumers and businesses in a bid to tame inflation.
Last month, Fed officials forecast they would start cutting rates by the end of 2024.
“All indications are inflation has moderated, is back close to the Fed’s target and consistent with a rate cut in September,” Zandi said.

Gasoline prices weigh on inflation

There has also been a broad pullback in prices at the grocery store.
“Food at home” prices have risen just 1.1% since June 2023, according to CPI data.
Consumers have more “breathing room” at the store amid “growing promotional activity” among retailers, while a few “major” companies recently announced price cuts “that are likely to pressure competitors’ pricing,” wrote economists House and George.

‘Core’ CPI at lowest level in three years

While annual data on inflation trends is helpful, economists generally recommend looking at monthly numbers as a better guide of short-term movements and prevailing trends.
They also generally like to examine “core” inflation readings. They strip out food and energy prices, which can be volatile from month to month.
The monthly core CPI reading was 0.1% in June, the smallest increase in about three years, since August 2021. It has declined for three consecutive months, from 0.4% in March. To get back to target, economists say the monthly reading should consistently be in the range of about 0.2%.
“Core” CPI has risen 3.3% since June 2023, the smallest 12-month gain since April 2021.

Housing is the largest component of core CPI and therefore has an outsized effect on inflation readings. It has accounted for nearly 70% of the total 12-month increase in core CPI.
Shelter inflation has moderated much slower than expected, one of the big reasons inflation has not yet fallen back to target, economists said.
The shelter index lags broader trends in the rental market due to how the government constructs it.
However, economists expect shelter to throttle back further since inflation for market rents has plummeted. For example, the annual inflation rate for new rental contracts sunk to 0.4% in the first quarter of 2024 — lower than its pre-pandemic baseline — from record highs of around 12% just two years earlier, according to Bureau of Labor Statistics data.

There were encouraging signals in the latest CPI report. Monthly shelter inflation dropped to 0.2% after being stuck at 0.4% for four consecutive months. It was the smallest monthly gain since August 2021.
“It should continue to cool off,” said Joe Seydl, senior markets economist at J.P. Morgan Private Bank.
“It just takes time,” he added.

Services inflation is the trouble spot

Inflation for physical goods spiked as the U.S. economy reopened in 2021. The Covid-19 pandemic disrupted supply chains, while Americans spent more on their homes and less on services such as dining out and entertainment.
It is a different story now. Goods inflation has largely normalized, while services is a fly in the ointment.
“The goods side looks very benign at the moment,” said Olivia Cross, a North America economist at Capital Economics. “Where there’s work to be done is in some areas of core services and in shelter.”
For example, prices for services such as motor vehicle insurance and medical care jumped a “notable” 19.5% and 3.3% since June 2023, respectively, the BLS said.

The prices for staples — food at home, gasoline, new-lease rents — they haven’t changed in about a year.

Mark Zandi
chief economist at Moody’s Analytics

A surge in new and used car prices a few years ago is likely now fueling high inflation for car insurance and repair, since it generally costs more to insure and repair pricier cars, economists said.
It also takes a long time — a year, two or even three — for higher labor costs in health care to translate to CPI readings due to a long contracting process, Zandi said. Higher pandemic-era wages in health care are now nudging up medical care CPI and will likely do so over the coming year, he said.

The services sector is generally more sensitive to inflationary pressures in the labor market such as strong wage growth.
Record-high demand for workers as the pandemic-era economy reopened pushed wage growth to its highest level in decades. The labor market has since cooled and wage growth has declined, though it remains above its pre-pandemic level.
“Inflationary pressure from the labor market has dissipated quite strongly,” Cross said.

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The Social Security cost-of-living adjustment could be 2.7% next year, according to a new estimate based on government inflation data released on Thursday.
While the pace of inflation continues to subside, retirees and other Social Security beneficiaries continue to contend with higher costs.
The Social Security COLA estimate for 2025 is not official and is subject to change.

A shopper scans coupons in a grocery store in Washington, D.C., on May 23, 2024. 
Tom Williams | Cq-roll Call, Inc. | Getty Images

The pace of inflation is coming down, which continues to point to a lower Social Security cost-of-living adjustment for retirees and other beneficiaries in 2025.
The Social Security cost-of-living adjustment, or COLA, may be 2.7% next year, according to an estimate from Mary Johnson, an independent Social Security and Medicare policy analyst, based on new government data released Thursday.

That inflation measure, the consumer price index — which tracks the average change in prices paid by consumers on a basket of goods and services — reached about its lowest 12-month rate in more than three years, based on June data.
Social Security adjusts benefits each year based on a subset of the CPI — the Consumer Price Index for Urban Wage Earners and Clerical Workers. The CPI-W in June was up 2.9% over the past 12 months, according to the Bureau of Labor Statistics.

The new 2.7% COLA estimate is down from Johnson’s previous prediction of a 3% benefit boost based on May CPI data. In 2024, Social Security beneficiaries received a 3.2% cost-of-living adjustment.
The Senior Citizens League, a nonpartisan senior group, estimates the COLA could be 2.63% in 2025.
Yet while the rate of price growth has come down, retirees, disabled individuals and others who rely on Social Security benefits for income are still contending with higher costs, Johnson explained.

For example, beneficiaries typically spend about half their budgets on shelter costs, a category that has stayed higher even as the rate of broader inflation has come down.
Other categories that continue to outpace the overall rate of inflation include food, electricity, and hospital and outpatient medical services, according to Johnson.
The average grocery item with prices tracked by the CPI jumped by 24% from 2020 to 2023, according to The Senior Citizens League.
More from Personal Finance:Here’s why housing inflation is still stubbornly highMore Americans are struggling even as inflation coolsFive strategies to help build a better budget
To be sure, the estimate for the Social Security cost-of-living adjustment for 2025 is subject to change. It may go up or down a bit from the current estimate, Johnson predicts.
The Social Security Administration officially determines the cost-of-living adjustment by comparing the third-quarter CPI-W data for that year to the third quarter of the previous year. If there is a percentage increase from one year to the next, that determines the COLA. However, if there is no increase, there is no COLA.
“I don’t think we’re going to erase any COLA this year,” Johnson said. “I think your danger for that is going to be next year, especially if there’s some recessionary trends going on.”
The agency typically announces the cost-of-living adjustment for the following year in October. More

The Treasury Department and the IRS announced the collection of more than $1 billion in tax debt from high-income individuals over the past year.
In September, the IRS announced plans to expand its scrutiny of those making more than $1 million annually with more than $250,000 in recognized tax debt.
However, the funding enacted in 2022 that is allowing the IRS to pursue its plans still has its critics, particularly among congressional Republicans.

Internal Revenue Service Commissioner Danny Werfel testifies before the House Appropriations Committee on Capitol Hill in Washington, May 7, 2024.
Kevin Dietsch | Getty Images News | Getty Images

The U.S. Department of the Treasury and the IRS on Thursday announced what they called a “major milestone” of collecting more than $1 billion in tax debt from high-income individuals over the past year.
With tens of billions in new funding, the IRS announced plans in September to expand its scrutiny of those making above $1 million annually with more than $250,000 in recognized tax debt.  

“The IRS has collected $1 billion from millionaires and shown that it can successfully launch strategic new initiatives and achieve the greatest return on investment,” Treasury Secretary Janet Yellen told reporters during a press call.
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If funding is sustained, IRS investments in enforcement, technology and data could generate up to $851 billion through 2034, the agencies estimated in February.
The infusion of IRS funding, enacted via the Inflation Reduction Act in 2022, still has its critics, however, particularly among congressional Republicans.
“During the past decade, the IRS didn’t have the resources or staffing to pursue high-income earners who our compliance team knew owed taxes,” IRS Commissioner Danny Werfel said during the press call.

Werfel said unpaid taxes collected from similar earners were negligible before Inflation Reduction Act funding due to budget constraints. “The difference is really like night and day,” he said. 
The audit rate for taxpayers earning $1 million or more was 0.7% in 2019, the most recent data available, compared with 7.2% in 2011, according to the IRS.
Both the U.S. Government Accountability Office and the U.S. Treasury Inspector General for Tax Administration have recently scrutinized the IRS’ high-income audit process. While both agencies’ reports addressed its audit selection process, the Treasury report specifically called out a higher rate of IRS audits of certain high-earning filers without changes for the taxpayer.
“Our goal is always to eliminate the risk of a zero-balance-due audit,” Werfel said on the press call about the agencies’ reports.

The latest announcement comes less than one month after the IRS and Treasury unveiled plans to close what they called a “major tax loophole” used by large, complex partnerships. The crackdown could raise $50 billion in tax revenue over the next 10 years, according to the agencies. More