NEW YORK — Wall Street slipped as stocks slumped worldwide Wednesday on worries about the strength of the global economy and inflation.

The S&P 500 fell 25.69, or 0.6%, to 4,179.83. The Dow Jones Industrial Average dropped 134.51, or 0.4%, to 32,908.27, and the Nasdaq composite lost 82.14, or 0.6%, to 12,935.29.

Stock markets in Asia fell even more following discouraging data on manufacturing from China. The world’s second-largest economy has not been rebounding as strongly as many investors had hoped. That raises worries when economies around the world are contending with still-high inflation and much higher interest rates than a year earlier.

Wall Street has been able to weather such concerns pretty well recently, largely because of gains for a handful of tech companies and others getting swept up in the buzz around AI. The S&P 500 managed to close out May with a modest gain.

But some of the air seeped out of those big winners on Wednesday. Nvidia, whose chips are helping to power the surge into AI, dropped 5.7% for its first fall since it gave a monster forecast last week for upcoming sales.

Worries are also rising for the larger U.S. economy, which has slowed under the weight of much higher interest rates. The Federal Reserve has raised rates at a furious pace since early last year in hopes of getting inflation under control. But high rates work by hurting the economy and hitting prices for investments.

“We see this as a race for weakness between inflation and economic activity,” said Tony Roth, chief investment officer at Wilmington Trust.

Either inflation needs to break lower to return to the Fed’s target, which would allow it to go easier on interest rates, or the economy will fall into recession. Roth said both the economy and inflation have remained strong for longer than he expected: “It’s a very slow race to the bottom.”

A report released Wednesday morning bolstered expectations for the Federal Reserve to hike rates at least one more time. It showed employers advertised more job openings than expected, the latest signal of a job market that’s remained remarkably resilient.

While that’s good news for workers and for the economy, it also gives the Fed more leeway to keep rates high. A strong job market could keep upward pressure on workers’ wages, which Wall Street fears could keep inflation high.

“The increase in job openings is the worst news the Fed could have because that just puts more pressure on wages,” Roth said.

But stocks pared their losses in the afternoon after a Fed official hinted the central bank may hold rates steady at its next meeting in two weeks.

“Indeed, skipping a rate hike at a coming meeting would allow the Committee to see more data before making decisions about the extent of additional policy firming,” Fed Gov. Philip Jefferson said in a speech. But he said the Fed could still raise rates again at a later meeting.

Other, smaller portions of the economy have shown much more pain in the face of higher rates. A report on Wednesday morning suggested manufacturing in the Chicago region is contracting by much more than economists feared. .

The U.S. banking system has also come under pressure. The Fed-driven surge in rates means customers are pulling their deposits in hopes of making more in interest at money-market funds. Higher rates have also knocked down the values for bonds and other investments banks made when rates were low.

Bubbling behind all these worries is a still simmering drama in Washington about a potential default on the U.S. government’s debt.

President Joe Biden and House Speaker Kevin McCarthy are trying to wrangle enough votes to pass a deal to allow the U.S. government to borrow more money. Without it, the U.S. government could run out of cash to pay its bills as soon as Monday.

On Wall Street, Advance Auto Parts plunged 35 after it reported much weaker profit for the latest quarter than analysts expected. The retailer also said it expects pressures to continue through 2023, and it cut its full-year financial forecast and reduced its dividend.

Hewlett Packard Enterprise tumbled 7.1% after it reported weaker revenue for the latest quarter than expected.

Ford Motor fell 4.7% after CEO Jim Farley told the Bernstein Decisions Conference that electric cars will cost more to make than gas-powered vehicles until at least 2030.

In stock markets abroad, indexes tumbled 1.9% in Hong Kong, 1.5% in France and 1.5% in Germany.

In the bond market, the yield on the 10-year Treasury fell to 3.62% from 3.70% late Tuesday. It helps set rates for mortgages and other important loans that influence the housing and other markets.

The two-year yield, which moves more on expectations for Fed action, fell to 4.39% from 4.46%.

—

AP Business Writers Joe McDonald, Matt Ott and Tom Krisher contributed.

The right tipping system helps encourage customers to tip generously and provides a smooth experience for people on both sides of the transaction. Small-business owners can use their point-of-sale systems’ customer-facing screens to collect other useful feedback, too.

Here’s how restaurant-industry experts are navigating new gratuity norms and getting the most out of customer-facing tipping screens.

Consider your business model

If you’re not sure where to start with preset tipping options, take your business model into account. “You have to be specific and intentional when you’re choosing what you want those percents to be,” says Sarah White, who runs multiple restaurants in Northern Virginia and is president of the Virginia Restaurant, Lodging and Travel Association’s restaurant component.

Businesses that do mostly takeout orders may choose lower tipping options since less service is required. For example, White usually chooses gratuity options of 5%, 10% and 15% for carryout orders. Full-service restaurants or professional service businesses, like a spa, on the other hand, might choose 20% and above.

Julia Kesler Imerman’s Atlanta cafe, Daily Chew, operates according to a hybrid model, meaning people order at the counter, pay upfront and then receive table service afterward. To account for this service and the fact that 10% of tips go to the kitchen, she and her staff decided gratuity presets should start at 18%, with additional options at 20% and 25%.

Do market research

Getting to know your neighborhood and customer base can go a long way if you’re not sure how to best set up your business’s tipping screen. Pay attention to how similar businesses in your area approach tipping and consider asking regular customers for their opinions on which tip amounts feel appropriate.

Your market research might also involve looking at tipping data for your area because what works in one city might not work in another. For example, Toast, a restaurant POS system provider, found the average tip percentage among quick- and full-service restaurants across 12 metro areas was highest in Cleveland at 20.6% and lowest in San Francisco at 17%.

Your front-of-house employees can be a valuable resource, too. While you’re experimenting with the default tipping options, ask employees which options stick. “If you set one and you see that tips aren’t what you want them to be, try adjusting it a little higher or a little lower,” White says.

Think twice before removing the custom tip option

In addition to fixed tip percentages, most tipping screens allow for a “custom tip” option where the customer can input a dollar amount of their choosing. While this feature may mean customers tip a smaller-than-suggested amount, taking away the custom tip option doesn’t necessarily mean they’ll choose a preset one instead. When Kesler Imerman removed the option, she noticed that people who might’ve otherwise left a custom tip were choosing not to tip at all. Eventually, she added the custom option back to the tipping screen.

Separately, White points out that some people prefer leaving tips in whole dollar amounts as opposed to dollars and cents. The custom option lets them do this.

Remember that tipping doesn’t have to be awkward

Tipping screens have certainly sparked some friction by prompting people to rethink how much they tip and where. But customers might be warming up to them. The payment processor Square reports that in the fourth quarter of 2022, full-service restaurants using its system saw a 16.50% increase in tips year over year, while quick-service restaurants saw a 15.86% increase.

As Kesler Imerman puts it, the preset options are there to guide customers. Similarly, White likens the options to a reminder. Plus, it takes pressure off employees to expressly ask for tips, White says.

Collect data points on tipping and beyond

Using a POS system to collect tips isn’t only a matter of convenience — having data on how much employees are tipped during their shifts gives you better insight into your business, too.

“There’s so much power in tracking all of that data to be able to understand, OK, this is how much an employee will typically make every night that they work, so we can plan to staff accordingly,” says Dani Zuchovicki, membership and community manager at The Hatchery, a nonprofit food and beverage incubator in Chicago.

Tipping data aside, some POS systems prompt customers to select “thumbs up” or “thumbs down” after tipping, along with a reason why. White gets notifications immediately after a customer completes this workflow and uses it to parse out, for example, who should be eligible for a management role or who might work better behind the bar as opposed to on the floor. This can lead to both higher employee satisfaction and a more efficient business.

More From NerdWallet

“Chardon has many possible locations for a new hotel, but the beautiful Uptown Square area has great potential to be the ideal spot for a new hotel,” City Manager Randal Sharpe stated in the release. “The Chardon community attracts a great deal of both business and leisure travelers to the area and is currently losing those travelers to neighboring communities.

“This local, economic loss can be recaptured with a new, upper scale hotel product.”

“We knew anecdotally that Chardon has a strong need for a hotel, but we knew that we needed to quantify that need in order to attract the best possible developer or hotelier,” Councilman Kyle Martin, chairman of the Economic Development Committee, said in the release. “With the clear results of this study, we can confidently say to prospective investors that our community can support a hotel, and we look forward to working together to welcome a new hotel to our city.”

The community took the initiative to make the investment in a hotel feasibility study in March. In the following months, Chardon welcomed a representative from Core Distinction Group into their community for a tour and to sit down with local demand generators and community leaders, according to the release.

“Chardon offers two of the major elements that we look for in the task to understand additional need for accommodations, strong business and leisure traveler potential,” Core Distinction Group Partner Jessica Junker stated in the release.

“These two features, along with, the severe lack of current lodging, hotel supporting amenities, and growth friendly, community leaders, sets the community apart for a potential hotel development,” she added.

The feasibility study indicated a need for an upper midscale hotel with 70-90 guest rooms. They
also indicated the property should offer amenities including but not limited to, wi-fi, complimentary breakfast, meeting room and business center.

After ballooning for years, CEO pay growth is finally slowing.

The typical compensation package for chief executives who run S&P 500 companies rose just 0.9% last year, to a median of $14.8 million, according to data analyzed for The Associated Press by Equilar. That means half the CEOs in the survey made more and half made less. It was the smallest increase since 2015.

Still, that’s unlikely to quell mounting criticism that CEO pay has become excessively high and the imbalance between company bosses and rank-and-file workers too wide. Discontent over that gap has helped fuel labor unrest, and even some institutional investors have pushed back against a few of the most eye-popping packages.

The smaller increase came after CEO pay soared 17% in 2021, when boards rewarded top executives handsomely for steering their companies through the pandemic-induced recession.

Many of the compensation packages were approved early in 2022 but even a small raise might seem lavish in retrospect against the backdrop of a year in which stock markets tanked to their worst performance since 2008, inflation erased wage gains, fears of a recession grew, and tech giants began laying off workers.

“I’m not surprised that after two record years in a row, pay hikes cooled somewhat,” said Sarah Anderson, who directs the Global Economy Project at the progressive Institute for Policy Studies. “What we shouldn’t lose sight of is that CEO pay is still off the charts by historical measures.” She said even a small hike last year was “outrageous.”

In contrast to recent years, CEO pay gains were lower than the 5.1% increase in wages and benefits netted by private-sector workers through 2022.

Still, worker pay failed to keep up with inflation, which was sitting at 6.4% at the end of last year. And the pay disparity between CEOs and rank-and-file workers, which has been widening for years, narrowed only slightly.

The median pay for workers at companies included in the AP survey was $77,178, up 1.3% from $76,160 the previous year. That means it would take that worker 186 years to make what a CEO making the median pay earned just last year. At the same group of companies in 2021, it would have taken 190 years.

The timing of some of the biggest pay packages struck a discordant note against the backdrop of difficult times for their industries.

Alphabet’s CEO, Sundar Pichai, ranked No. 1 in the AP’s pay survey this year with a package valued at nearly $226 million. The vast majority of his compensation came from a grant of restricted stock, valued at $218 million, and which Google grants its CEO every three years.

The leader of Google won’t reap most of the benefits of the stocks awards right away and how much he realizes ultimately depends on how Alphabet’s stock performs. Alphabet noted in its annual proxy filing that, compared with Pichai’s 2019 stock awards, a greater proportion of the latest batch will only vest if the company reaches goals for shareholder return.

Even so, Pichai received a total compensation package 15 times higher than this year’s median CEO pay just before Google laid off tens of thousands of workers. The company’s total shareholder returns fell 39% last year.

Stephen McMurtry, a Google software engineer and member of the Alphabet Workers Union-CWA, said he was not impressed when Pichai told employees shortly after the layoffs that executives would take significant bonus cuts in 2023 because “bonuses are a small part of executives’ primarily stock-based compensation.” Pichai didn’t receive a bonus in 2022.

“The clear disparity between executive rewards and our jobless former coworkers erodes trust and further underscores the need for transparency,” McMurtry said in a statement e-mailed to AP.

Like many companies, Alphabet’s equity portion of executive compensation is designed to reflect results over several years. Since Pichai started as CEO in 2015, Alphabet’s stock has nearly quadrupled, and the company has become the third most valuable on Wall Street.

Alphabet declined to comment beyond its proxy statement.

Nearly 130 CEOs in the AP’s survey saw pay cuts last year. Among them was UPS CEO Carol Tomé, who received a total compensation package valued at nearly $19 million, most of it in stock awards. That’s down 31% from $27.6 million in 2021. UPS said Tome’s compensation was lower because she didn’t exceed performance targets by as much in 2022 as she did in 2021.

Tomé is trying to stave off a potentially crippling strike by unionized workers, who feel they saw little of the company’s windfall in profits, which nearly tripled during the pandemic as consumer reliance on deliveries grew.

“I don’t feel bad for her that she got a decrease,” said Jimi Hadley, UPS package driver in Roswell, Georgia, and Teamsters shop steward. “Nineteen million? Most workers will never make that in their entire life.”

Tomé’s pay was 364 times higher than $52,144 median pay for UPS workers, although the company notes that the average pay for full-time drivers is $95,000. UPS says its executive pay is “at the midpoint when compared to other companies of similar size and global scale.”

Some boards put the brakes on CEO compensation following pushback from institutional investors, who get the chance to vote in “Say On Pay” tallies at annual shareholder meetings, although such votes are only advisory and don’t compel boards to make changes.

Homebuilder Lennar, for example, capped the annual cash bonuses for its co-CEOs, Rick Beckwitt and Jonathan Jaffe, at $6 million each in response to complaints from investors about their $16.6 million bonuses in 2021. Just 63% of Lennar’s investors voted to approve the pay packages at last year’s shareholder meeting, compared to 84% in 2021.

Beckwitt and Jaffe saw their total compensation fall 11% and 12% in 2022, respectively, to $30.4 million and $30 million.

Higher up the pay scale, Apple CEO Tim Cook was no. 3 in the AP survey with a compensation package valued at $99.4 million, nearly identical to what Apple gave him in 2021. But Cook has requested a 40% pay cut for 2023, in response to the vote at last year’s annual meeting, where just 64% of shareholders approved of Cook’s pay package, compared to 94% the previous year.

Such shareholder pushback remains rare, however. The vast majority of companies included in AP’s survey received more than 90% support for their executive compensation programs in 2022.

The AP’s and Equilar’s compensation study included pay data for 343 CEOs at S&P 500 companies who have served at least two fiscal years at their companies, which filed proxy statements between Jan. 1 and April 30. Some well-paid CEOs are not included because they don’t fit the criteria, such as Amazon’s Andy Jassy and Microsoft’s Satya Nadella.

The biggest cuts to CEO pay last year were in annual performance-based cash awards, which were down 15.5% to a median of $2.3 million. On the other hand, stock awards rose 10.5% to a median of $8.5 million.

Cash salaries and bonuses comprised less than a quarter of compensation for the typical CEO in the survey. The bulk comes from stock and stock options because shareholders have advocated for CEO pay to closely aligned with their own returns.

Executives will likely see steeper pay cuts in 2023 when boards consider the full effect of the stock market’s downturn, said Kelly Malafis, a partner at Compensation Advisory Partners, a consulting firm that works with boards.

“We’re not seeing companies slash and burn,” Malafis said. “We might see some of that next year.”

______

AP Business Writers Alex Veiga in Los Angeles, Matt Ott in Silver Spring, Maryland, and Michael Liedtke in Washington, D.C., contributed to this story.

NEW YORK — Wall Street churned to a mixed finish Tuesday as a long list of worries looms, even if the most pressing crisis seems to be calming as Washington moves to avoid a default on its debt.

The S&P 500 edged up by 0.07, or less than 0.1%, to 4,205.52, hovering close to its highest level since August. The Dow Jones Industrial Average slipped 50.56 points, or 0.2%, to 33,042.78. The Nasdaq composite, meanwhile, led the market with a 0.3% gain as excitement keeps building about artificial intelligence. It rose 41.74 to 13,017.43.

Tuesday marked the U.S. stock market’s first trading since President Joe Biden and House Speaker Kevin McCarthy struck a deal to allow the U.S. government to borrow more money, which would let it avoid a default on its debt. They now must convince Congress to approve it before the U.S. government runs out of cash to pay its bills, which could happen as soon as Monday.

Some on Capitol Hill are unhappy about the deal’s details, and Biden and McCarthy are both working to gather votes. The wide expectation on Wall Street has been for Washington to reach a deal in the 11th hour because failure would likely mean tremendous pain for the economy and financial markets.

Even if there is no default, though, all the partisan brinkmanship could erode more faith and trust in the U.S. government. That could trigger another downgrade to its credit rating, following Standard & Poor’s rating cut in 2011.

Beyond the drama around the nation’s debt limit, financial markets have been battling a long list of concerns. The economy is slowing, inflation is still high and interest rates may be heading even higher, which would further tighten the reins on the economy and financial markets.

The worries are also global, with China’s economic recovery weaker than expected following its relaxation of anti-COVID restrictions.

U.S. stocks have rallied despite such worries recently after companies reported drops in profit for the start of the year that weren’t as bad as feared. And at the center of it has been Wall Street’s growing frenzy over AI.

Nvidia, whose chips are helping to power the tech world’s newest rush, rose another 3% after already more than doubling so far this year. Last week, it gave a monster forecast for upcoming revenue as it described customers of all kinds racing to apply AI to their businesses.

Nvidia’s surge has its total value nearing $1 trillion, a threshold passed by only the biggest stocks, including Apple. The huge gains are raising worries about another possible bubble sweeping the stock market. But evangelists say AI is the next big revolution to reshape the global economy.

Also helping to prop up Wall Street in recent weeks have been reports showing a resilient job market and other signals that the slowing economy may avoid a recession.

“I’m sure there’s going to be a lot of money to be made in AI for a select group of companies, but that’s not enough to lift the entire economy out of a potential recession here,” said Rich Weiss, senior vice president at American Century Investments.

He acknowledged the job market has remained much better than he expected under the weight of higher interest rates, but he points to weakness in the housing market, manufacturing, corporate profits and other areas that often fall before the labor market ahead of a recession.

“The job market will follow the others, not the other way around,” Weiss said.

He also highlighted how concentrated the stock market’s gains have been this year among a handful of companies, many benefiting from AI. The majority of stocks in the S&P 500 are down for the year so far, partially on worries about the economy.

A report Tuesday morning showed that confidence among consumers is falling and remains well below where it was before the pandemic, though it remains stronger than economists expected. That’s key because continued spending by households has been one of the main pillars forcing investors to push out their predictions for an upcoming recession by another three to six months.

On the losing end of Wall Street were companies in the energy industry. Exxon Mobil fell 0.9%, as the price of crude oil fell even more steeply amid worries about demand for fuel.

In the bond market, Treasury yields eased as fears about a possible default diminished.

The yield on the 10-year Treasury fell to 3.69% from 3.81% late Friday. It helps set rates for mortgages and other loans.

The yield on the two-year Treasury fell to 4.46% from 4.57%. It more closely tracks expectations for what the Federal Reserve will do.

Traders are largely bracing for another hike in short-term interest rates from the Fed at its next meeting in two weeks, but the hope is that may be the final one after more than a year of rapid increases.

Higher interest rates help to slow inflation, but they do that by dragging on the entire economy, raising the risk of a recession and hurting prices for investments.

In markets abroad, European stocks were lower while indexes were mostly higher in Asia.

___

AP Business Writers Yuri Kageyama and Matt Ott contributed.

If you’ve been comparing mortgage rates, you’ve already encountered one reality about the process of buying a home or refinancing: What you see today might be gone tomorrow. While interest rates change all the time, a mortgage rate lock ensures the rate on your mortgage stays the same, from the initial quote to closing.

What is a mortgage rate lock?

A rate lock is a guarantee that a mortgage lender will honor a specific interest rate at a specific cost for a set period.

The benefit of a mortgage rate lock is that it protects you from market fluctuations. For example, if your lender locks in your rate at 5.68% for 45 days and rates jump up toward 6% within that period, you’ll still get your loan at the lesser rate.

“Mortgage interest [rates] can change every day and sometimes even multiple times a day, so we always recommend that borrowers lock in their rate,” says Richard Greene, branch manager and loan officer at New Mexico Mortgage Company in Albuquerque.

It’s up to you to seek the rate lock. If you choose not to do so, and you have no rate lock, this is known as “floating” a rate. That’s not always a bad strategy — when interest rates are falling in general, you would want to take advantage of this favorable movement in the market. (The float is typically 30 days to 60 days, but it might be longer if you’re willing to pay more in fees to get it.)

With mortgage rates in flux in 2023 so far, you could potentially save thousands if you lock your rate.

Why do mortgage rates fluctuate?

Several factors influence mortgage rates. For one, rates tend to rise when there’s strong demand for homes. If demand slows, rates tend to drop to attract more homebuyers to the market.

Generally speaking, rates also tend to increase when the economy does well, and slump during downturns to encourage growth. Mortgage rates can react to volatility, as well, such as the series of regional bank failures in 2023.

The Federal Reserve plays a role in mortgage rates, too. When the Fed raises its key borrowing rate, the rates on adjustable-rate mortgages (ARMs) and home equity lines of credit (HELOCs) follow suit.

The central bank doesn’t have as direct an effect on fixed home loan rates, however, but its policies are tied to the broader economy, including the 10-year Treasury yield. The 10-year, in particular, informs the movement of fixed rates.

How long can a rate be locked?

While 30-day and 60-day rate locks are the norm, you might be able to find significantly longer options that stretch closer to a full year. It all depends on what the mortgage lender offers.

Of course, you might have to pay a higher fee for a longer lock. In some cases, that can be an easily justified cost. For borrowers of construction loans, for instance, paying for an eight-month rate lock might save them money in the long run, especially as interest rates rise.

Mortgage rate lock extensions

If you’re nearing the end of the rate lock period and need more time to close on your home, you can pay for a rate lock extension. The fee is typically a percentage of your loan amount. The longer the extension, the more you’ll pay. It’s typically more efficient to pay for a longer rate lock upfront and give yourself a cushion in the event you need more time.

When can a mortgage rate be locked?

It depends on the mortgage lender. Some lenders offer a mortgage rate lock once the borrower is preapproved with just an address of a prospective home. Others might wait for the seller to accept the buyer’s offer.

If you lock too early, however, you might end up exceeding the expiration date and facing extension fees or a new rate. So, if you’re just starting to look at properties, it might not be wise to opt for a rate lock just yet — you’ll want to avoid feeling rushed to find a place and close the loan.

Also, keep in mind that the lender can void a rate lock if certain items on your credit report or mortgage application change between the time of your agreement and final underwriting.

The sweet spot is the optimal combination of the interest rate, term and costs. Most lenders won’t lock your rate for less than 30 days unless you’re ready to close, and often offer the same rate for a 15-day and 45-day period. Ask about the rates for several lock periods: 30, 45, 60 or 120 days. Any term longer than 60 days gets pricey, so it might be smarter to wait until you get closer to the closing and check again.

How to lock in a mortgage rate

You won’t get the opportunity to lock your mortgage rate until your lender has at least had a chance to do a preliminary review of your finances. Your lender will likely need some or all of the following documents beforehand:

• Credit report
• Social Security Number verification (a form you sign)
• Last two months of bank statements
• Last two months of investment account statements
• Last one to two years of tax returns
• Last one to two years of tax forms like W-2s, 1099s, etc.
• Past 30 days of pay stubs
• Identity verification (for example, a driver’s license or passport)

After verifying your credit score and getting a sense of how much you plan to put down and other factors, your lender will be able to give you a quote for your rate. At this point, it’s wise to ask for details on its rate-lock policy. If things look good to you, simply submit a request to lock in the rate.

Should you lock in a mortgage rate?

Given this year’s fluctuating rates, locking in your rate can pay off.

Consider if you lock in a 6.74% rate on a 30-year loan for $300,000. At this rate, you’d pay $400,408 in total interest.

Now, let’s say you don’t lock your rate and rates rise to 6.99% by the time you close. For the same mortgage, you’d pay $418,567 in interest — a difference of $18,159.

You can use Bankrate’s mortgage calculators to get a sense of what you’d pay based on your rate lock.

Mortgage rate lock FAQ

—Can you change mortgage lenders after locking your rate? A rate lock doesn’t lock you into the deal — if you find better terms and lower closing costs from another lender, you can opt to go with that lender after your rate lock with the first lender begins.

—What is a float-down lock? In addition to a standard rate lock on a mortgage, some lenders offer a float-down lock, which is designed to help you take advantage of lower rates if they become available before you close the loan. Float-down locks come with a win-win: You get the assurance of your rate now, plus a lack of regret if that rate drops.However, there might be fees associated with this option, so you’ll need to make sure that the potential savings are worth any additional expense.Even if there aren’t extra fees, there will be some fine print to consider. For example, if rates fall by a tiny amount, it might not be enough to actually put the float-down policy in action. Check the details to understand the threshold that rates must cross in order to exercise the float-down capability.

—How much does a rate lock cost? Rate locks aren’t free, but that doesn’t mean you’ll necessarily see a line-item charge for them. Most lenders do not charge a separate fee for rate locks within a certain period of time; the cost of the lock is often baked into the rate you’re offered. Lenders usually charge an additional fee for extending the term of the rate lock period, however, so ask about what to expect if you need to extend the lock.

—Does the loan type affect the mortgage rate lock? You can lock any type of mortgage or refinance rate.

—What happens if the rate lock expires before closing? Real estate transactions don’t always close on time. If your rate lock expires before the keys are yours, don’t panic just yet — your mortgage lender might offer to extend the rate lock, either free or for a fee.That extension fee might not be your responsibility, either. Depending on who’s to blame for the loan failing to close on time, the lender might cover or pay a portion of the cost.If your lender won’t extend the rate lock, the combination of rate and points you locked in might no longer be available. In that event, the loan would be based on the new prevailing rate.

©2023 Bankrate.com. Distributed by Tribune Content Agency, LLC.

But summer can also be an expensive time to travel, which makes it hard to budget enough money for your vacation.

Though it’s best to pay in cash for nonessential travel, there are financing options available, including credit cards, “buy now, pay later” plans and vacation loans. Consider the interest rate and how long you’ll be in debt when deciding which to choose.

The challenges of budgeting for summer travel

Travel demand is in “near-record territory” with all indicators pointing to a “very robust summer leisure travel season,” the U.S. Travel Association, a nonprofit that monitors the U.S. travel industry, said in an email. According to the association, demand has driven up prices in sectors like airfare and lodging.

Even without higher prices, travel is tough to budget for, says Jake Northrup, a certified financial planner in Bristol, Rhode Island.

“Travel usually comes in big waves, and there’s just a lot of uncertainty as to what things will actually cost,” Northrup says.

Adrienne Davis, a certified financial planner in the Washington, D.C., area, says her clients often receive last-minute offers to go on trips with friends or family, which leads to a cash shortage.

“We don’t expect prices to be that high when it’s time to book,” Davis says. “And if your money is already allocated on a month-to-month basis, it’s like, ‘Wow, where am I going to get this extra $500 or $1,000?’”

Northrup and Davis emphasize it’s best to avoid taking on debt for a vacation. But because a trip can mean precious time with loved ones or an enriching personal experience, it’s reasonable to explore your options.

“I certainly understand sometimes the best decision that you can make is not the most financially optimal one, and that’s OK,” Northrup says.

Credit cards, ‘buy now, pay later’ and vacation loans

The majority of travelers this summer (85%) plan to use a credit card to cover travel expenses, according to a survey conducted by The Harris Poll for NerdWallet, though most (74%) plan to pay it off in full within the first billing statement.

Davis prefers a credit card if you must finance a trip because you’ll likely earn points or cash back, which can offset costs. Some cards come with protections, she says, like travel insurance.

But interest rates on credit cards are high, which is why Davis recommends getting a card with a 0% annual percentage rate and paying off the balance during the initial promotional period — typically 15 to 21 months — before regular interest kicks in.

Companies like Affirm and Uplift offer buy now, pay later plans for travel. These plans divide your purchase into equal installments that you pay over time, and interest rates vary.

Uplift partners with airlines, resorts and other travel companies, including some that offer zero-interest financing and terms up to 24 months, depending on the partner and loan amount. Affirm offers no-interest options with terms up to 60 months.

Northrup prefers buy now, pay later if it’s zero interest, but like any debt, it’s important to prioritize repayment to avoid fees or hits to your credit.

A travel loan, or an unsecured personal loan from a bank, an online lender or a credit union, is another option. These loans are larger, and rates vary based on your credit score and debt-to-income ratio. Repayment is typically two to seven years, so consider how long you want to be in debt after your vacation.

Saving for your next trip

Unpacking your bags after a trip with zero debt to repay is a great feeling. Here are tips for saving for your next vacation:

Start now: Time is your most valuable resource when saving. Start putting aside money now for next summer, even if you don’t have a trip planned, Davis says. By saving $85 per month, you’d have over $1,000 saved in a year.

Open a high-yield savings account: Davis and Northrup advise their clients to put travel-specific funds in a separate high-yield savings account. You’ll earn interest, and you won’t accidentally dip into the funds to cover other expenses.

Pick the destination last: Many travelers pick their destination first, then try to come up with the money. But you can reverse that process, Northrup says, by “backing into” the trip you want. See what you have saved, then choose a destination based on that figure.

This article was written by NerdWallet and was originally published by The Associated Press. 

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This month’s personal consumption expenditures price index (PCE) suggests that inflation rose more sharply in April than in the preceding two months. The PCE increased 0.4% in April after rising 0.1% in March and 0.3% in February, according to a Bureau of Economic Analysis report released Friday.

The PCE measures consumer spending by tracking prices that U.S. consumers are currently paying for goods and services. The Bureau of Economic Analysis releases new PCE data on a monthly basis.

This month’s report found that:

• Annually, the PCE price index rose 4.4% in April, compared to 4.2% in March.
• On an annual basis, prices for goods increased 2.1% in April, while prices for services increased 5.5%. In March, on an annual basis, the prices of goods increased 1.6%, while prices for services swelled 5.5%.
• Core PCE, which excludes food and energy, rose 0.4% from March to April after rising 0.3% from February to March.

The PCE price index, and specifically core PCE, is the Federal Reserve’s preferred measure of inflation. The Fed, aiming to tame inflation, meets on June 13 and 14 to decide whether or not to raise the federal funds rate for the 11th time since March 2022.

In that same week, we’ll see another new inflation metric. On June 13, new consumer price index data will be released. Among other differences between that index and PCE, the CPI data is published by the Bureau of Labor Statistics.

As for the PCE, it’s compiled by the Bureau of Economic Analysis, which uses data from businesses and manufacturers by way of the U.S. Census Bureau. In calculating the index, the Census Bureau estimates what goods and services were sold on a month-to-month basis through surveys, quarterly reports and economic census. It also factors in the GDP, or gross domestic product.

The article Ouch. April Saw a Sharper Uptick in Inflation, New Data Shows originally appeared on NerdWallet.

At $499, the 6.1-inch Pixel 7A is $100 less than the 6.3-inch Pixel 7 and $400 less than the 6.7-inch Pixel Pro. In terms of screen size, the 7A is more than big enough. It fits in my hand better than the 7 and the 7 Pro. The 7A is bigger and a lot less expensive than the iPhone 14, which starts at $799. It’s also less expensive than most Samsung phones. Size is only one of several things to consider when buying a phone, but larger phones typically cost more than smaller ones.

Android vs. iOS

There are people who dismiss Android phones, because they are wedded to iOS and the Apple eco-system. I get it. Apple does a great job integrating its products, making it easy to go back and forth among their phones, laptops, watches and tablets. But Google is starting to create its own eco-system with its Pixel watch, Fitbit trackers, Nest hubs and the recently announced Pixel Tablet. Samsung also has a suite of products designed to keep its customers loyal, but truth be told, it’s not that hard to switch between products from these companies. With the exception of Apple’s own apps, there are Android versions of most iOS apps.

I prefer Pixels to other Android phones, because the interface is typically less cluttered, and they are always up-to-date with the latest Android operating systems. Other Android phone makers often delay updates and sometimes never fully update their devices to the latest version of Android. One of my favorite Pixel features is the camera’s Magic Eraser that makes it easy to remove objects in photos, often without affecting the background.

My current phone is the larger 6.7-inch Pixel Pro, which sells for $899, but as I explain later on, it cost me a lot less because of a trade-in.

Premium features, anyone?#Pixel7a is the first A-series phone with:
Google Tensor G2
90Hz Smooth Display¹
8GB RAM
Wireless Charging
Face Unlock
Long Exposure
4K video
and more

Order yours today at the Google Store: https://t.co/PpyUbARWpY pic.twitter.com/53uwvQCSTl

— Made by Google (@madebygoogle) May 19, 2023

A lot like the Pixel 7

When you compare the 7A with its more expensive counterpart, the differences are close to nil. It’s definitely the best value when it comes to Google phones and arguably when compared with the competition.

The 7A is a tiny bit smaller, but has the same chipset, the same amount of memory and storage at 128 GB (though the 7 has the option or 256 GB), a slightly higher resolution rear camera, a slightly higher capacity battery and the same wireless charging. Like the 7, it’s also water resistant.  When it comes to storage, 128 GB is plenty unless you’re storing video or a lot of photos. I have plenty of apps and photos on my phone but am only using 84 GB of storage. You can compare the tech specs of the 7A, 7 and 7Pro at tinyurl.com/pixelcompare.

Both the 7A and 7 look the same and have the same power and volume and buttons, speakers, USB-C ports and SIM card slots. The 7 has a slightly brighter screen, but you’d be hard-pressed to see the difference.

The 7A has a plastic back rather than the glass used on the 7, but most people put their phone in a case or bumper, so that’s basically irrelevant. The 7 also has slightly better water resistance and slightly more durable gorilla glass, but these differences are pretty minuscule.

Because they use the same chips, performance is the same.

Folding phones

I still haven’t had the opportunity to review the new Pixel Fold, but I did get a little hands-on time with it the day it was unveiled. It’s an impressive piece of engineering, but starting at $1,799, it’s not something I would recommend for most people. When folded, the phone has a 5.8-inch display that looks like other Pixel phones though slightly thicker, though Google says it’s the thinnest folding phone on the market. Unfolded, it turns into a 7.6-inch tablet with the added advantage of being able to see different displays on the two halves of the screen and the ability to show one half of the screen to another person while you look at your half. It also makes framing selfies easier. You can unfold the phone to frame yourself with the front display and take the picture with the higher-resolution rear camera. All that is cool, but again, it comes at a price. Eventually, I suspect foldable phones will get cheaper and that might make them a mainstream item.

If I were to buy a folding phone, I’d be tempted by the Samsung Galaxy z Flip, which doesn’t pretend to be a tablet but pays homage to the flip phones of yesteryear by folding into a pocketsize phone and unfolding to a full 6.7-inch phone.

Check for subsidies

When shopping for a phone, check with your carrier to see if they’re offering any subsidies or trade-in offers. You might be able to get a $1,000 phone for as little as $200 or possibly even free. These offers usually come with a long-term contract, but if you’re happy with your carrier, it might make sense. By trading in an old phone, I got my $899 Pixel 7 Pro from AT&T for about $200, which made that higher price tag irrelevant.

Disclosure: Larry Magid is CEO of ConnectSafely, a non-profit internet safety organization that has received support from Google, Facebook, Microsoft and other technology companies.

More wounded vets than before reported not having enough cash to make ends meet, a recent survey found. Sixty-four percent of those surveyed — or 6 in 10 vets — said they didn’t have enough money to pay bills at least once in the past 12 months, a jump from 42% the previous year, according to the Annual Warrior Survey released this year by the Wounded Warrior Project, a nonprofit veterans service organization.

“We’re getting more feedback from ‘warriors’ that they’re having a harder and harder time meeting their financial obligations on a regular basis,” says Tom Kastner, vice president of financial wellness at the Wounded Warrior Project.

Wounded vets are feeling the pinch of inflation like everyone else. The cost of everyday goods like food was the main reported cause of financial strain. That’s on top of a struggle with food insecurity. Nearly 2 in 5 wounded veterans — or 38.7% — met the threshold for being food insecure, defined as not having enough food for an active, healthy life. That figure is almost four times higher than the 10.2% of the U.S. general population, the survey found.

The Wounded Warrior Project is designed to support wounded veterans, called “warriors” by the nonprofit, through their transitions to civilian life with services in mental health, physical health, peer connection, career counseling and financial wellness, at no charge. The annual survey represents the views of more than 165,000 warriors and is the largest survey of post-9/11 wounded veterans.

Here are some other key findings from the February report.

Debt and cash flow are a new challenge

Wounded veterans face more financial strain overall than before, the study found. Aside from the cost of goods, other reasons given for financial stress included:

• Working but not making enough money (26.8%).
• Family obligations (26.6%).
• Out of work (17.5%).
• Medical bills (6.1%).

Nine in 10 respondents (92.8%) also reported carrying debt other than mortgage debt, such as credit card debt, personal loans or auto loans. More than half (56.8%) reported at least $20,000 in nonmortgage debt. Those trends are in line with past surveys, but Kastner notes that the combination of debt and lack of cash is a challenge.

“Debt is not new, but now we’re getting, ‘I have debt, but I also can’t pay my bills like I used to,’” he says. More than 43% of warriors said they had little to no confidence they could cover a $1,000 emergency expense, a measure of financial health.

A bright spot: lower unemployment

There was some good news when it came to unemployment. The share of unemployed warriors dropped to 6.8% in 2022, compared with more than 13% the previous year. But warriors still have a higher unemployment rate than the general population (3.7%) and all veterans (2.4%).

Unemployed wounded veterans say ongoing mental health or psychological distress are their biggest barriers to finding jobs, followed by difficulty translating military skills to the civilian workforce and lack of education.

The Wounded Warrior Project helps train warriors to find jobs as well as file and receive veteran and disability benefits, and it provides emergency financial assistance as well as long-term financial education, Kastner says.

Overall, the survey findings underscore the urgency of providing more assistance and education to address the financial challenges of wounded veterans.

“We have to pay better attention to the financial readiness of our warriors,” Kastner says.

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