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By Kristin Myers, Editor-in-Chief

What's Happening Today

Good morning! It's Kristin with your daily morning digest.

Rising mortgage rates are taking a bite out of homebuying interest, as mortgage applications dropped by 5% last week, according to data out today from the Mortgage Bankers Association. Refinancing activity also took a hit last week, sinking 8% from the previous week, and 68% from the same week last year. The average rate on a 30-year fixed mortgage sat at 5.93% yesterday, after topping 6% the previous business day, its highest level since at least 2019, according to data collected by The Balance.

Higher rates are also taking a swing at existing home sale numbers, which fell 2.7% in March from the month prior and 4.5% from one year ago, according to the National Association of Realtors. The number of homes that were sold in March dropped to a seasonally adjusted annual rate of 5.77 million from the month prior, as higher prices and borrowing costs throw cold water on the hot housing market. While inventories jumped 11.8% from February, they remained relatively low, down 9.5% from last year, keeping home prices high. The median sales price for existing homes rose to $375,300, 15% higher than a year ago.

Stocks are mixed ahead of details on the U.S. economy from the Federal Reserve. The Fed is set to release its "Beige Book" later today, a report and survey on the current economic conditions in the country. The Beige Book is published eight times each year, but with inflation soaring and interest rates rising, investors and economists alike will be particularly interested in the impact these economic pressures have had on businesses and consumers thus far in 2022.

And if you missed yesterday's Instagram Live conversation with finance coach, speaker, and author Kara Stevens, you can watch the recording here to learn about building generational wealth, investing, and more. The conversation was part of The Balance's Financial Literacy Month Instagram Live series, which continues next week on Tuesday, April 26, at 12 noon Eastern, when I talk with Vivian Tu from YourRichBFF. Follow The Balance on Instagram to get updates on all of our live events this month!

- Kristin

Editors' Picks

Biden Administration To Erase Student Debt of More Than 40,000 Borrowers (Yahoo Finance)

How the Supply Chain Crunch Is Hurting California Farmers. (The New York Times)

Job Recruiting on College Campuses Roars Back to Life (The Wall Street Journal)

How To Establish a Brokerage Account for a Business (The Balance)

Can I Borrow From a Roth IRA? (The Balance)

When Should You Not Open a Roth IRA? (The Balance)

How To Destroy a Metal Credit Card (The Balance)

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Off the Charts

Since 1926, the average annual stock market return has been roughly 10%. For this reason, it's been considered a benchmark when assessing and targeting performance for long-term equity investments. However, because the 10% rule is based on decades of data, it includes many years when the stock market returned less than 10% (as well as many when it returned more). That's why it should only be used for long-term planning purposes like saving for retirement or your child's education.

For example, if your goal is to have $1 million available for retirement in 40 years and you use this rule of thumb to estimate your average annual return, you can calculate how much you need to invest in stocks to reach that goal.

Number of the Day

9.7% - That's how much home sales could slow in 2023 compared to 2022 as higher mortgage rates discourage buyers, according to a new forecast.

For The Balance's third Financial Literacy Month IG live series, we're discussing the topic of creating revenue streams through investing. Join The Balance Editor-in-Chief Kristin Myers with featured guest Vivian Tu, former Wall Street trader, and founder of YourRichBFF, on Tuesday, April 26, at 12 p.m. EST. Follow us on Instagram to get updates on The Balance's live events this month!