ECONOMY

Anyone in the market for a mortgage loan is being asked to reconsider making a home purchase until prices drop further, according to a new report from CNN Money. In the report, one expert predicted we could see a housing double dip, meaning any homes purchased now could be in danger of falling underwater.

Home Prices Could Drop 25 Percent

A new report from motorist group AAA reported on Friday that the national average price for a gallon of regular gas increased nearly 12 cents this week and could increase more as political turmoil in North Africa and the Middle East worsens. Last week we reported that we could see the return of $4 per gallon gas by the summer, but the reports show that it’s possible to see it increase even sooner after having what was deemed the most expensive February ever.

Gas Increased 6 Cents Overnight

Photo: prayitno via Flickr

It’s no secret there’s a lot going wrong for Americans right now. The unemployment rate is hanging just below double digits, home values have dropped year-over-year for the 13th consecutive year and one-third of Americans have no retirement or personal savings. But it’s not all bad, at least in the Northeast, where Boeing has just won a $35 billion dollar contract from the Air Force.

American workers may receive raises in 2011 after experiencing salary freezes in 2010 or earlier, according to a new survey from Towers Watson. The survey, released by the human resources consulting firm on Thursday, revealed only 5 percent of companies plan to continue freezes for all of their workers this year while a few more expect to continue freezes for executives or other segments of their firms.

Merit Pay Increases Expected to Average 3 Percent

When it comes to finance, men and women differ greatly in just about every aspect. Whether it’s the way each gender handles debt, or simply how men and women view money, the great divide between the genders shows no sign of narrowing. Unfortunately, this not only goes for how men and women spend money, but how they earn it, too.

According to a report released by the Bureau of Labor Statistics, not all jobs are created equal, either, when it comes to wage inequality between the sexes.  Generally speaking, not much has changed on the gender gap front. In 2009, women working full-time overall earned about 80 percent of what their male counterparts did for the same work. The interesting part is that the wage gap varies wildly by industry.

Americans have been experiencing increasing food prices, and it’s likely you’re searching for ways to make trips to the grocery store less expensive. Clipping coupons, buying wholesale and swapping in generic options can help you save money, but the first instinct for many Americans is to buy foods that are naturally less expensive.

Buying cheaper foods is certainly one way to cut the grocery bill, but what makes some foods so much more cost effective than others? Is has a lot to do with our government and what it chooses to subsidize. The following infographic demonstrates how much money the government allocates to the top agricultural subsidies in the U.S.

Saving money may become more difficult for many Americans as reports of increasing prices counter the good news of decreased unemployment. While there is no official report that inflation is on the rise, with manufacturers and retailers reporting their increases, the newly employed may not be able to hold on to as much money as desired.

Inflation a Possibility

For the first time since the financial crisis, people with a credit score below 680 are able to get their hands on new car loans again. Some are even obtaining loans for larger amounts than in previous years. While it’s great that individuals in need have access to reliable vehicles again, some concern has been expressed over the possibility of more loan defaults as a result of the increased leniency in borrowing standards.

Is it possible that loosening up too much result in more people taking on debt they can’t handle? Could giving people with lower credit scores access to a subprime loan cause more problems than it fixes?

The number of bankruptcies filed by Americans topped 1.53 million last year as a result of long-term high unemployment rates and depressed home prices. Many people were unable to successfully make ends meet and therefore, sought court protection to clean their slates.

Bankruptcies Jumped 9 Percent from 2009

Hello, 2011! You sure got here quick.

A new year is upon us, and with it comes a mix of hope and uncertainty. Looking back at 2010, the previous year certainly had its share of good and bad, yet all things considered, the economy has made a lot of progress from being on the verge of collapse just a few years ago to making its current climb–albeit slow and uneasy–back to recovery.

The Federal Reserve and the Obama administration seem committed to jump-starting the economy, whether or not the rest of the population will follow will be the biggest ongoing development of 2011. Here’s a look into a few of the key 2011 predictions and areas that will determine whether your money has a good year, or one that leaves more to be desired.