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House preps new stimulus proposal; demand for homes at 14-year high: Today's news and your money

Markets are steady, House Democrats have lowered their coronavirus bill to $2.4 trillion, and building supplies for new homes are running low. Here’s how the news can affect your money.

Speaker Nancy Pelosi, D-Calif., is pictured after a television interview in Russell Building on Friday, August 14, 2020.
Tom Williams | CQ-Roll Call, Inc. | Getty Images

After several rocky weeks, the markets are trying to find equilibrium; House Dems are preparing another, less expensive coronavirus bill; and demand for new homes is creating a building supply shortage. Here's how the headlines could affect your money.

Markets try to hold steady

The major indexes are attempting to stabilize: Thursday closed with the Dow up 0.2%, the S&P up 0.3%, and the Nasdaq up 0.4%, and Friday opened on an even keel. Stocks aim to stave off a fourth week of losses.

This month's tech-driven sell-off is a good reminder to keep your portfolio diversified.

Dems prepare pared-down coronavirus relief bill

House Democrats are preparing a $2.4 trillion coronavirus relief package, pared down from their original proposed budget of $3 trillion. It would include enhanced unemployment insurance, another round of stimulus checks, Paycheck Protection Program small-business loan funding, and airline aid. The House could vote as soon as next week. 

Market analysts hope that a signed, sealed, and delivered stimulus bill will boost markets and revitalize the economy. 

How to spend a stimulus check if you're unemployed

Video by Jason Armesto

Fierce competition for homes

It's a tricky time to try to buy a home. Construction supplies are running short, thanks to high demand for newly built houses. Existing-home prices are up as well: In August 2020, the median price of an existing home was at $310,600, an 11.4% increase over last year.

New home sales in August were at the highest level in 14 years, so prices might keep going up. 

Home office furniture worth splurging on

Video by Courney Stith

Words you've heard: The September Effect

The stock market often drops slightly in September, a phenomenon known as the September Effect, or the September Slump. Since 1901, the Dow has dipped an average of 0.89% every September. Theories for the phenomenon include a practice among some mutual funds to rejigger their portfolios in September and that investors might sell off after a summer lull. 

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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