Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.

Today we're discussing hidden homeownership costs. A new Bankrate study reveals that upkeep alone can cost around 1% of a home's value annually, surprising many first-time buyers. Homeownership comes with far more than just a mortgage — hidden costs like maintenance, taxes, and utilities can add up quickly.

Plus, a look back at the last week of market activity.

Table of Contents

• Industry Chatter

• Weekly Market Recap

• The Week Ahead

INDUSTRY CHATTER

Hidden Costs Could Add Thousands to Your Home Budget

Owning a home is often seen as a dream financial goal, offering stability and long-term wealth-building potential. However, many potential buyers overlook the true costs involved, focusing mainly on the down payment and monthly mortgage. What most don’t realize is that there are numerous hidden expenses that can quickly add up, potentially throwing off their financial plans.

While a home may seem like a great investment in the moment, the ongoing costs involved can be far more than what you initially bargained for.

A recent Bankrate Hidden Costs of Homeownership Study sheds light on these often-overlooked costs. Beyond the mortgage, homeowners face maintenance, property taxes, HOA fees, utilities, and insurance, all of which can take a significant toll on their finances.

The study found that maintenance alone can cost homeowners about 1% of the home’s value annually, meaning an average $300,000 home could require around $3,000 a year just for upkeep. Property taxes and HOA fees are also key contributors, with the potential to increase over time. Unexpected repairs, like a broken HVAC or roof issues, can further strain finances.

These unanticipated expenses are often the ones that really surprise new homeowners, many of whom are not prepared for the financial reality of owning a home.

Utilities and energy costs often surprise homeowners as well. These expenses, along with homeowners’ insurance (and flood insurance in some cases), add up to ongoing costs that must be planned for. The Bankrate study highlights how these hidden costs can compound over time, especially as homes age and property taxes rise.

Even routine costs like water and electricity, which might seem small at first, can grow significantly over the years. On top of these, homeowners may face fluctuating costs depending on seasonal changes, like higher heating or cooling bills. As homes age, they may require more frequent maintenance or upgrades, further driving up expenses.

WEEKLY MARKET RECAP

Soft Inflation Data Meets Middle East Turmoil

U.S. markets ended a choppy week on a cautious note, as modest gains through Thursday reversed sharply on Friday after escalating tensions between Israel and Iran rattled investor sentiment.

Major equity indices, which had been hovering near all-time highs, pulled back as geopolitical risks surged back to the forefront.

The S&P 500 – as tracked by the Vanguard S&P 500 ETF – ended 1.1% lower for the week, falling below the 6,000-point threshold.

Oil's Back In Focus—And Gold Is Eyeing New Highs

Late Thursday, Israel launched “Operation Rising Lion,” a sweeping aerial campaign targeting approximately 100 Iranian nuclear and military installations, reportedly killing several high-ranking officials. Iran responded by launching over 100 drones toward Israeli territory and vowed severe retaliation, raising fears of a broader regional escalation.

Oil markets reacted swiftly: West Texas Intermediate crude surged past $70 a barrel, capping a double-digit percentage gain for the week — its strongest in years.

On the economic front, the much-feared tariff-driven inflation failed to materialize in May, with consumer and producer price reports generally coming in broadly below expectations.

Under normal circumstances, such data would have bolstered hopes for Federal Reserve rate cuts and likely sparked a rally on Wall Street. But the rally failed to materialize as soaring energy prices clouded the disinflation narrative.

Sector-wise, energy stocks led the weekly gains, buoyed by the oil rally, while financials underperformed. Oracle Corp. delivered a standout performance – climbing by over 20% on its best weekly return since 2001 – following stronger-than-expected quarterly earnings and upbeat guidance.

Currency markets were also in motion. The U.S. dollar came under renewed pressure, with a key index tracking the greenback falling to its lowest level in over three years.

Investors appeared increasingly uneasy about the long-term trajectory of U.S. fiscal policy, particularly as President Donald Trump's sweeping "One Big, Beautiful Bill" heads to the Senate.

Safe-haven demand for precious metals remained robust. Gold extended its powerful 2025 rally, supported by both geopolitical instability and persistent worries over the U.S. debt burden. The precious metal is on track to deliver its strongest first-half performance since 1982.

Silver also inched higher, hitting the highest levels since 2012.

All eyes now turn to the Federal Reserve's policy meeting next week. While no change to interest rates is expected, markets will scrutinize any shifts in the Fed's economic projections. In March, policymakers forecast 2025 GDP growth at 1.7% — down from 2.1% in December — and a 2.7% average inflation rate, revised upward from 2.5%.

THE WEEK AHEAD

Lennar, Smith & Wesson and Kroger report earnings, US Fed Chair Powell speaks, US Juneteenth holiday and more

Economic Data

• Monday: Bank of Japan interest rate decision, US Empire State manufacturing

• Tuesday: US retail sales and homebuilder confidence

• Wednesday: US Fed Chair Powell speaks and initial jobless claims

• Thursday: US Juneteenth holiday

• Friday: US Philadelphia Fed manufacturing

Earnings

• Monday: Lennar (LEN), Woodside Energy (WDS)

• Tuesday: La-Z-Boy (LZB), Jabil Inc. (JBL)

• Wednesday: Haleon (HLN), Smith & Wesson (SWBI)

• Thursday: US Juneteenth holiday

• Friday: Kroger (KR), CarMax (KMX)

Click here for the full calendar of economic data and earnings reports.

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