The Money Section | Could the auto workers strike trigger a recession?

͏Also, Amazon is helping first-time homeowners. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ [The Charlotte Observer]( September 20, 2023 • Issue #51 [The Money Section] This week, we’re looking at the silver lining behind student loan payments restarting soon, why financial influencer Grant Cardone is facing a class-action lawsuit, and why high-yield savings accounts current 4-5% APYs probably won't last long. Car troubles of a different kind. [UAW]( Getty Images Thousands of U.S. auto workers have gone on strike, demanding better contracts with major car manufacturers such as Ford, General Motors, and Stellantis. This strike can potentially disrupt the auto market, given the relatively low inventory of new vehicles in the U.S. [Here’s what you need to know](. 📣 How could the strike play out? While the United Auto Workers' strike is affecting the U.S. economy, economists don’t think it could trigger a recession because the unionized auto industry is a smaller part of the national economy than in the past. But while the strike's ultimate impact depends on a variety of factors, an eight-week strike could result in [billions of income loss nationwide.]( 📈 Gas and insurance prices are affecting inflation. The annual inflation rate in the U.S. rose to 3.7% in August, driven by higher gasoline and auto insurance prices, though costs for many other items decreased. This increase isn't necessarily a cause for panic, as it's largely due to rising gas prices, which represented over half of the month's inflation increase. [Read more.]( Experts warn against student loan delinquency. [Students]( Getty Images As federal student loan payments are set to resume, many borrowers are considering not paying their loans, but experts warn of significant financial consequences. The Biden administration offers a 12-month "on-ramp" period during which missed payments won't affect credit scores, but interest continues to accrue. [Here’s what happens after the on-ramp period.]( 💰 Excessive student loan payments might also be bad? American student loan borrowers have made record payments on their loans ahead of the first official due date in over three years. According to Treasury receipts, borrowers repaid over $2 billion during a single week in September – a significant increase compared to around $400 million at the same time the previous year. [Here’s why economists aren’t thrilled about that.]( ⚠️ The Fed faces new inflation risks. As the U.S. Federal Reserve officials meet this week, they face new risks to their inflation control strategies, including an autoworkers strike, a possible federal government shutdown, and the resumption of student loan repayments. [Read more.]( Homebuyers should keep an eye on October. [Homebuyers]( Getty Images The first week of October is looking great for homebuyers, with up to 17% more active listings, potential savings of over $15,000 on home prices compared to the summer peak, and reduced competition (with 18.7% lower demand), according to recent reports. [Here’s what you need to know.]( 📉 Mortgage applications are at the lowest level since 1996. Higher mortgage rates are impacting mortgage demand, particularly for refinancing. Total mortgage application volume decreased by 0.8% in the past week, with a 5% drop in demand for refinances – 31% lower than a year ago. And while applications for home purchases increased by 1% week-to-week, they were still [27% lower than in the same period last year.]( 🏠 Amazon is helping first-time homeowners. Amazon is investing millions in helping low- and middle-income families in the Washington, D.C. region buy their first homes. This initiative is part of a $40 million effort to promote homeownership among underserved groups in D.C., Seattle, and Nashville. [Read more.]( Smart Money Move Leaving your debt behind might be easier than you think. [Debt] [Debt]Debt doesn’t have to haunt your life forever. In fact, if you have $7,500 or more in unsecured debt, a debt consolidation loan could be an effective way to pay off your balances faster – especially if you have multiple high-interest payments to make every month. These loans offer the opportunity to combine multiple high-interest debts into a single, lower-interest loan, simplifying finances and potentially lowering your monthly payment. [View our list of Best Debt Consolidation Loans to find options with A+ BBB ratings and zero upfront fees.]( The information provided in this email is for educational purposes only and is not intended as financial advice. Stories we're reading this week - [3 Signs You’re Too Casual About Debt]( - [The Scientific Reason Why You Can't Stop Going to Disneyland]( - [Identity Theft Is Rampant in 2023 — Especially in These 5 Places]( - [The Kids Don't Want to Go to College Anymore, and Why Would They]( - [No, This Is Not an Alien. Here’s Why]( - [Health Insurance Premiums Are Set to Surge in 2024]( The Money Section is written in partnership with Money Research Collective This email was sent to {EMAIL} because you are signed up to receive marketing emails or newsletters from The Charlotte Observer. If you no longer wish to receive emails of this type, you may [unsubscribe]( or [update your email preferences](. We are unable to monitor replies to this email. Please [contact customer service]( if you have any questions or concerns. [Privacy Policy]( | [Terms of Service]( | [View in Browser]( Copyright © 2023 The Charlotte Observer. All Rights Reserved. 9140 Research Drive, Charlotte, NC 28262