Stocks May Be Volatile, but Home Values Aren’t

 
 

With all the uncertainty in the economy, the stock market has been bouncing around more than usual. And if you’ve been watching your 401(k) or investments lately, chances are you’ve felt that pit in your stomach. One day it’s up. The next day, it’s not. And that may make you feel a little worried about your finances.

But here’s the thing you need to remember if you’re a homeowner. According to Investopedia:

“Traditionally, stocks have been far more volatile than real estate. That’s not to say that real estate prices aren’t ever volatile—the years around the 2007 to 2008 financial crisis are just one memorable example—but stocks are more prone to large value swings.”

While your stocks or 401(k) might see a lot of highs and lows, home values are much less volatile.

A Drop in the Stock Market Doesn’t Mean a Crash in Home Prices

Take a look at the graph below. It shows what happened to home prices (the blue bars) during past stock market swings (the orange bars):

Even when the stock market falls more substantially, home prices don’t always come down with it.

Big home price drops like 2008 are the exception, not the rule. But everyone remembers that one. That stock market crash was caused by loose lending practices, subprime mortgages, and an oversupply of homes – a scenario that doesn’t exist today. That’s what made it so different.

In many cases before and after that time, home values actually went up while the stock market went down, showing that real estate is generally much more stable.

This graph shows how stock prices go up and down (the orange line), sometimes by more than 30% in a year. In contrast, home prices (the blue line) change more slowly (see graph below):

Basically, stock values jump around a lot more than home prices do. You can be way up one day and way down the next. Real estate, on the other hand, isn’t usually something that experiences such dramatic swings.

That’s why real estate can feel more stable and less risky than the stock market.

So, if you’re worried after the recent ups and downs in your stock portfolio, rest assured, your home isn’t likely to experience the same volatility.

And that’s why homeownership is generally viewed as a preferred long-term investment. Even if things feel uncertain right now, homeowners win in the long run.

Bottom Line

A lot of people are feeling nervous about their finances right now. But there’s one reason for you to feel more secure – your investment in something that’s stood the test of time: real estate.

Read more at Keeping Current Matters

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Morgan Stanley predicts major mortgage rate changes are coming soon

 
 

When mortgage rates surged in 2022, doubling from 3.5% to nearly 7%, it marked an end to the Covid-era housing boom. Stubborn mortgage rates have kept the market at a standstill, making purchasing a home more expensive for buyers and discouraging sellers from listing their homes.

Although mortgage rates were initially projected to drop notably in 2025, sticky inflation and economic uncertainty have kept them above 6.5%, despite three consecutive interest rate cuts at the end of 2024.

It may take longer than expected, but mortgage rates are expected to modestly yet steadily decline through 2026.

Morgan Stanley analysts now predict that treasury yields will decline over the next two years, bringing mortgage rates down as well. Lower treasury yields are often caused by economic downturn and volatility in financial markets, but a reignited housing market would help stimulate GDP and economic growth.

Mortgage rates could drop as treasury yields fall

Although mortgage rates are influenced by the federal funds rate, they are more strongly tied to the 10-year treasury yield.

Lenders use the treasury yield as a benchmark for mortgage rates to keep mortgage-backed securities competitive with treasury bonds.

Secretary of the Treasury Scott Bessent has publicly announced the Trump Administration's commitment to bringing down the treasury yield to provide housing relief, and Morgan Stanley analysts believe that will happen in the next two years.

In a new report, the investment bank wrote, "The good news is: Morgan Stanley strategists anticipate that mortgage rates could fall with Treasury yields over the next two years and home prices may decrease slightly amid increased housing supply."

However, the treasury yield drops during economic uncertainty, as bond demand and prices rise when investors flock to 'safe' investments. If mortgage rates fall due to an economic downturn, it may be difficult for housing activity to revert to previous levels.

A housing revival may be the key to GDP growth

If mortgage rates do continue to fall through 2026 without a recession, increased homebuying could help stimulate the U.S. economy through GDP and consumer spending.

The National Association of Home Builders (NAHB) found that consistent mortgage rate declines in early 2025 raised homebuyer confidence enough to increase housing sales.

Increased housing sales will not only create a hotter housing market but will likely increase economic activity. Morgan Stanley predicts consumer spending and residential investment will rise as lower mortgage rates reinvigorate the housing market.

“Housing flows into gross domestic product (GDP) not only through residential investment, but also through the impacts on consumption,” Morgan Stanley economist Heather Berger said. “Households spend more on durable goods following home purchases.”

U.S. Real GDP growth dropped 0.3% during Q1 2025, largely as a result of lower imports from reciprocal tariffs announced by the Trump Administration. Housing-related economic growth may become increasingly important as the full effects of U.S. trade wars are realized.

Read more at The Street

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Dopamine décor favors emotions over aesthetics: Happy home, happy life

 
 

When you’re happy, your whole body knows it. Your heart races. Your face flushes. Your breath quickens. The butterflies in your stomach flutter.

And then there’s your brain. When you’re happy, its neural nooks and crannies flood with “happiness hormones” like dopamine, serotonin and oxytocin. By eliciting feelings of joy, accomplishment, pleasure, satisfaction and self-esteem, they reinforce healthy habits that help you survive and thrive.

Sunlight, exercise, music, memories and pets are just a few of the many things that can stimulate happiness at the neurochemical level, research suggests. But happiness doesn’t flow only from your activities. It’s also an important byproduct of your surroundings.

“When you’re looking at things in your environment, your retina is actively sending messages to your brain that directly impact how you feel,” explains Anita Yokota, a licensed family and marriage therapist, interior designer and author of Home Therapy: Interior Design for Increasing Happiness, Boosting Confidence and Creating Calm. “So, it’s really important to be intentional about what we bring into our homes.”

Indeed, a 2019 study by the Happiness Research Institute found that 73 percent of people who are happy with their homes also are happier in general.

So powerful is the home-happiness connection that it went viral on social media in 2023: The hashtag #dopaminedecor had more than 173 million views on TikTok as of late January.

“Instead of triggers — things that increase our blood pressure and the stress hormone cortisol — dopamine décor is all about finding what I call glimmers: things that bring us joy,” Yokota says.

Although neither homes nor happiness are one-size-fits-all, a few universal design principles can help anyone create a space that makes them smile.

Show your true colors

Color can instantly change how rooms — and people — feel, says Chelsea Foy, founder and editor of the lifestyle blog Lovely Indeed and author of The Happy Home: The Ultimate Guide to Creating a Home That Brings You Joy. Her personal favorite, yellow, makes her feel energized and uplifted. “There’s a small bank of cabinets in my laundry room that I painted a mustardy yellow, and every time I pass by, it makes me smile,” she says.

Although warm hues tend to be stimulating and cool shades soothing, there’s no “bad” color. It’s a matter of personal preference, notes Foy, who says even small pops of color can make a big impact. Consider creating an accent wall with paint or wallpaper; peppering rooms with bold pillows, lamps and accessories; or making flamboyant focal points out of rugs, artwork or furnishings.

“It could be a fantastic pink couch you found at a thrift store, or a painting that dominates a wall,” Foy says. “Beige can be beautiful, but we need things that make our spaces feel vibrant.”

Color can instantly change how rooms feel and the 'dopamine decor' movement encourages the use of colors in unique and innovative ways.

Don’t be a square

Shapes also can be impactful, says industrial designer Ingrid Fetell Lee, author of Joyful: The Surprising Power of Ordinary Things to Create Extraordinary Happiness. “Research shows that when we look at angular objects, the amygdala — the part of our brain that’s associated with fear and anxiety — lights up. When we look at round shapes, that part of our brain stays silent,” explains Lee, who suggests round instead of square tables, mirrors and picture frames. “If you notice the way you move in a space with sharp angles, you tend to be a little more cautious. You don’t want to bang your shin on the coffee table, whereas in a space with lots of rounded shapes you feel very at ease.”

Sacred symmetry works

In 2016, scientists at the University of Chicago conducted an experiment in which they showed students pictures of either orderly or disorderly environments, then gave them a math test. The students who saw messy rooms were more likely to cheat, according to researchers, who cited asymmetry as a hallmark of disorderly spaces.

“There’s something destabilizing about asymmetrical environments that influences the way we behave,” suggests Lee, who says you can bring more symmetry to spaces by decorating in pairs — two nightstands flanking a bed or two plants flanking a large piece of artwork — or by choosing wallpapers and fabrics with repeating patterns.

Clutter disrupts joy

A common cause of asymmetry is clutter. “Clutter increases the stress hormone cortisol. … When we see clutter, it actually increases our blood pressure,” explains Yokota, who recommends using baskets, bins and trays to organize clutter in closets, drawers and pantries, and on surfaces like counters and desktops. “I’m a huge proponent of using vertical space, so I also love hooks. … I put 3M hooks on the beautiful porcelain waterfall countertop in my kitchen because that’s where my kids’ backpacks land, and if I had to see a backpack on the floor there, it would drive me crazy.”

It’s as important to remove emotional clutter as it is physical clutter, says interior designer Rebecca West, CEO of Seriously Happy Homes and author of Happy Starts at Home: Change Your Space, Transform Your Life. She recalls a recently divorced client, for example, who got rid of a bookcase that reminded her of her marriage. “As soon as she put it on the curb, it was like 100 pounds had been lifted from her shoulders,” West says.

Embrace the element of surprise

Creating small moments of whimsy and surprise gives you little sparks of joy whenever you see them, says interior designer Betsy Wentz, author of Design Happy: Colorful Homes for the Modern Family. Instead of art, for example, Wentz likes to frame and hang colorful scarves or cool bedsheets. And for fun accessories, she applies tinted lacquer to mirrors, light fixtures and knickknacks.

“You can lacquer anything,” says Wentz, who recalls a grandfather clock she once transformed for a client. “It had belonged to her husband’s great-grandfather. We lacquered it and put in fabric panels behind where the pendulum swings. Now it’s a really fun, unexpected piece. It looks like an antique, but it’s a bright citron yellow.”

Wallpaper also can achieve a similar effect. You can put it on ceilings, in drawers, in alcoves or even in closets. For example, Lee cites a client who put butterfly wallpaper in the entryway closet where her kids store their coats and shoes. “Now, whenever they leave the house, her kids say, ‘To the butterflies!’” says Lee, who once painted big yellow cabana stripes in a closet of her own. “I would forget about them, and then I’d open the closet and get a big burst of sunshine.”

Create community

Close relationships and social connections are the biggest determinants of happiness, according to the Harvard Study of Adult Development, one of the world’s longest-running studies of adult life. To nurture them in your home, design spaces in ways that maximize social attachment.

“Instead of making your furniture face one way to the TV in the living room, consider having more of a circular furniture flow,” Yokota suggests. “For me, swivel chairs give a big dopamine hit. Nowadays we have these open concepts where the kitchen and family rooms are connected. I love using swivel chairs in those spaces so you can easily interact with people on either side of you.”

Wax nostalgic

Scientists have found that nostalgic experiences activate not only the areas of the brain associated with memory, but also those associated with pleasure. That’s why Foy likes decorating with personal mementos instead of meaningless bric-a-brac — sentimental souvenirs from treasured travels, for example, or framed artwork from her kids. “I like looking into my space and seeing things that bring back good memories,” she says. “Filling your home with physical representations of a life well lived … brings warmth to a space and allows you to see yourself in it.”

Read more at USA Today

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A Tale of Two Housing Markets

 
 

For a long time, the housing market was all sunshine for sellers. Homes were flying off the shelves, and buyers had to compete like crazy. But lately, things are starting to shift. Some areas are still super competitive for buyers, while others are seeing more homes sit on the market, giving buyers a bit more breathing room.

In other words, it’s a tale of two markets, and knowing which one you’re in makes a huge difference when you move.

What Is a Buyer’s Market vs. a Seller’s Market?

In a buyer’s market, there are a lot of homes for sale, and not as many people buying. With fewer buyers competing for these homes, that means they generally sit on the market longer, they might not sell for as much as they would in a seller’s market, and buyers have more room to negotiate.

On the flip side, in a seller’s market, there aren’t enough homes for sale for the number of buyers who are trying to purchase them. Homes sell faster, sellers often get multiple offers, and prices shoot higher because buyers are willing to pay more to win the home.

The Market Is Starting To Balance Out

For years, almost every market in the country was a strong seller’s market. That made it tough for buyers – especially first-timers. But now, things are shifting. According to Zillow, the national housing market is balancing out.

The index used in this graph measures whether the national housing market is more of a seller’s market, buyer’s market, or neutral market – basically, whether it favors buyers, sellers, or if it’s not really swinging either way. Each month, the market is measured between 0 and 100. The closer to 100, the bigger the advantage sellers have.

The orange bars in the middle of the graph show the years when sellers had their strongest advantage, from 2020 to early 2022. But, as time has gone on, the market has become more balanced. It shifted from a strong seller’s market to a less intense one. And lately, it’s been neutral more than anything else (that’s the gray bars on the right side of the graph). That means buyers are gaining some negotiating power again.

In a more balanced or neutral market, homes tend to stay on the market a little longer, bidding wars are less common, and sellers may need to make more concessions – like price reductions or helping with closing costs. That shift gives today’s buyers more opportunities and less competition than a couple of years ago.

Why Are Things Changing?

Inventory plays a big role. When there are more homes for sale, buyers have more options – and that cools down home price growth. As data from Realtor.com shows, the supply of available homes for sale isn’t growing at the same rate everywhere (see graph below):

This graph shows how inventory has changed compared to last year (blue bars) and compared to 2017–2019 (red bars) in different regions of the country.

The South and West regions of the U.S. have seen big jumps in housing inventory in the past year (that’s the blue on the right). Both are almost back to pre-pandemic levels. That’s why more buyer’s markets are popping up there.

But in the Northeast and Midwest, inventory is still very low compared to pre-pandemic (that’s why those red bars are so big). That means those areas are more likely to stay seller’s markets for now.

What This Means for You

Every local market is different. Even if the national headlines say one thing, your town (or even your neighborhood) could be telling a totally different story.

Knowing which type of market you’re in helps you make smarter decisions for your move. That’s why working with a local real estate agent is so important right now.

As Zillow says:

“Agents are experts on their local markets and can craft buying or selling strategies tailored to local market conditions.”

Agents understand the unique trends in your area and can help you make the best choices, whether you’re buying or selling. With their expert strategies, you can move no matter which way the market is leaning, because they know how to navigate various levels of buyer competition, how to find hidden gems locally, how to price a house right, how to negotiate based on who has more leverage, and more.

Bottom Line

If you're ready to make a move, or even just thinking about it, connect with a local real estate agent. They’d love to help you understand your local market and create a game plan that works for you.

Read more at Keeping Current Matters

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Why Gen Z—and Designers—Hate Overhead Lighting (and What to Use Instead)

 
 

The gen pop of TikTok and the elite world of interior designers don't always overlap in the Venn diagram of internet opinions. But when it comes to overhead lights, a.k.a. #thebiglight, the two worlds are generally in agreement. The united stance? It's a big no-no to overhead lighting—whether that's recessed lighting, track lighting, or the infamous boob light.

A quick search of "the big light" on TikTok will yield endless results of often Gen Z creators taking stances against overhead lighting, saying it's an attack on the senses, sterile and hospital-like, and even “makes you look ugly.” And while that all may sound a bit extreme, many interior designers actually agree that overhead lighting can get in the way of creating that cozy, inviting ambiance we all want in our homes.

Here's what you need to know about the debate about overhead lighting and some alternative ideas for how you can create the perfect lighting environment in your own home.

The Arguments For and Against Overhead Lighting

While design aesthetics are largely subjective, lighting design isn't just about how something looks, but how it makes you feel, too.

“Something I appreciate about our younger generation is their focus on mental health, so it's not surprising they've picked up on something designers have always known: Lighting has an impact on your emotions," says interior designer Galey Alix of Galey Alix Design.

Alix especially believes in keeping the lights low—and resisting the big light switch after sunset. “[In the evening], most of us are in our homes trying to settle in and let our cortisol levels recalibrate from the chaos of the day," she says. "If someone turns on my recessed ceiling lights at full brightness past 7 pm, it's a full assault on my nervous system.”

The big light does have a time and place, and even some fans, like designer and content creator Fariha Nasir, who says the topic is more of a cultural take than anything else. “I’m from Pakistan, and in our homes there, we have giant white tubelights on the ceiling in addition to other light sources, so turning on ‘the big light’ is a given; it’s in our genes,” she explains. “When I moved to the US, every home seemed dark. However romantic and relaxing soft ambient light sources seem, for meal times and awake evening hours, we always have the big light on.”

Jourdan Fairchild, a designer in Winston-Salem, North Carolina, agrees there are circumstances where overhead lighting is especially useful. “The big light is good for specific needs, like game night," she says. "Plus, it adds some nice oomph to the ceiling.”

So, no matter which side of the argument you stand on, you don't necessarily have to go all or nothing on your stance. You can find use or avoid the big light as you please.

Alternatives to Overhead Lighting

Here are five designer-approved ways to create ambience, add coziness and calm your nervous system by ditching the big light.

Get Everything on a Dimmer

Every designer tapped for this story—whether they were pro or against overhead lighting—agreed on this one thing: “If you have overhead lighting, it must be on a dimmer, no question,” says designer and stylist Emily Henderson. This lets you take any of your hardwired sconces, chandeliers and yes, even can lights, and customize them to be brighter for task-oriented things, and less intense to relax. “It's also helpful to have softer white bulbs in these lights to create a warmer glow, but being able to bring them down further with a dimmable switch is the real game-changer,” adds Alix.

Keep Lighting at or Below Eye Level

With the exception of chandeliers with shades and some decorative pendant lamps, design content creator Deema Tabbara Lopez “loathes” ceiling lights. “They stress me out," she says. "I’m happiest when my light is coming from eye level.” After all, lower lighting is often associated with intimate settings, though keep in mind when setting up task lighting ,such as in a reading nook, it’s important to have your light source be a little above eye level to reduce glare and eye strain.

Layer Your Lighting

When you hear a designer talk about “layered lighting,” they simply mean bringing light into a room from varied sources, such as table lamps, floor lamps, and wall sconces, the latter being a favorite tool of Thea Bloch-Neal, founder and lead designer at Curated by Thea. ”There are so many rechargeable LED options now that don’t require hardwiring,” she advises. “Add to that floor lamps, which can brighten an entire room while adding a sculptural touch and small table lamps that bring soft, focused light exactly where you need it; they tend to be more energy efficient, too.”

Keep Adding More and More Lamps for More Light

At least that’s Tabbara Lopez’s strategy. The design influencer likes to go full Nancy Meyers—whose movie set designs are well known for their many table lamps. Though unlike much of what you see on TikTok, Tabbara Lopez says you can be anti big light and also want to be able to see in your home. “I have bad vision and I don’t like my rooms too dim, so instead I have 500 lamps,” she jokes. “Can’t it be both? Lit up but not from the ceiling? I currently have three lamps in my living room and that’s not enough yet. I have table lamps on my kitchen counter, in my bathroom—everywhere.”

Consider Plug-In Lights for Areas Like Hallways.

There are some areas of the home where overhead lights seem inevitable for navigation, like hallways and stairwells, but Alix presents another option: “Use soft white plug-in lights in the outlets in these areas, where you might otherwise turn on high hats to see your pathway,” the designer suggests. “These allow for functional lighting in high-traffic areas without having to blast your walkway with high-exposure ceiling lights. Utilizing lighting closer to the ground with plug-in lights creates a wonderful and soothing ambiance in the evening without the cost of running new electrical in the walls for sconces." You can even find options that will automatically turn on when the sun sets or when you approach, which makes them even more convenient, Alix adds.

Read more at Real Simple

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