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☆ Mortgage rates rise on inflation concerns
▼ + stars: | 2023-02-09 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —Mortgage rates rose this week after four weeks of declines, as a stronger-than-expected jobs report suggested the Federal Reserve would continue hiking its benchmark lending rate in its battle against inflation. After climbing for most of 2022, mortgage rates have been trending downward since November, as various economic indicators continue to show inflation may have peaked. The surprising number makes the Fed’s historic and aggressive efforts to cool the labor market and bring inflation down through rate hikes all the more complicated. “Mortgage rates are likely to continue moving up and down in a narrow range for the next few weeks,” said Ratiu. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country.

☆ Mortgage rates fall for fourth week in a row
▼ + stars: | 2023-02-02 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —Mortgage rates fell slightly this week, as a smaller rate hike by the Federal Reserve signaled promising improvement on inflation. Mortgage rates have not been this low since September and are now nearly a full point below last year’s peak of 7.08%, last reached in early November. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. “The Federal Reserve controls short-term rates, but long-term rates, including 30-year mortgage rates, are a function of market expectations for the path of the economy,” said Mike Fratantoni, senior vice president and chief economist at the Mortgage Bankers Association. Even with lower rates in recent weeks, mortgage applications dropped 9% last week from the week before, according to MBA.

☆ US home prices continued to lose momentum in November
▼ + stars: | 2023-01-31 | by ( Anna Bahney | ) edition.cnn.com time to read: +1 min

All 20 cities reported lower price increases in the year ending November 2022 compared to the year ending October 2022. Month-over-month declines continued in November, with all 20 cities reporting declines before seasonal adjustments. After seasonal adjustments, 19 cities still reported declines, with only Detroit increasing 0.1%. Last July marked the first month-over-month decrease for the national index since February 2012 and that continued through November, with seasonally adjusted prices falling 0.3% month over month. “Given these prospects for a challenging macroeconomic environment, home prices may well continue to weaken,” he said.

☆ Pending home sales increased last month for the first time since May
▼ + stars: | 2023-01-27 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —Pending home sales increased in December for the first time since May, a sign that lower mortgage rates are bringing some buyers back into the housing market. The pending sales index, based on signed contracts to buy a home rather than the final sales that are accounted for in existing home sales, improved by 2.5% from November to December, according to data released Friday from the National Association of Realtors. Pending sales dropped in the Northeast, where the index was down 6.5% in December from November; and in the Midwest, where the index was down 0.3%. Pending sales were up 6.1% in the South in December from November and rose 6.4% in the West. “Mortgage applications have been trending higher alongside lower rates, pending home sales are up, and builder confidence increased in January,” Kushi said.

☆ Mortgage rates tick down ahead of Fed meeting next week
▼ + stars: | 2023-01-26 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

Washington, DC CNN —Mortgage rates fell slightly this week, staying almost flat ahead of the Federal Reserve’s closely watched interest rate-setting meeting next week. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. Mortgage applications riseThe downward trend for mortgage rates since November has had a positive impact on home affordability for mortgage borrowers. “Borrower demand, thanks to lower mortgage rates, continues to rise in early 2023,” said Bob Broeksmit, MBA president and CEO.

☆ Buying a home is now more affordable than renting in these five cities
▼ + stars: | 2023-01-26 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Renting costs nearly $800 less per month than buying, on average. But there are five cities where, despite stubbornly high prices, rising mortgage rates and some of the least affordable home buying conditions in decades, it is still cheaper to buy than to rent. Monthly buying costs assume a 7% down payment with a mortgage rate of 6.36%, and include taxes, insurance and homeowners association fees. Where renting is betterAustin, Texas, offered the biggest discount for renting compared to buying, with renting 121% or $2,013 cheaper per month. Even in Florida cities like Miami, Tampa and Orlando, which have seen some of the highest rent growth and rent costs in the past year, renting is still more affordable than buying a starter home.

☆ Biden administration unveils rent protections
▼ + stars: | 2023-01-25 | by ( Anna Bahney | ) edition.cnn.com time to read: +9 min

Washington, DC CNN —In response to rent payments soaring across the country in recent years, the Biden administration unveiled new actions Wednesday to protect tenants, make renting more affordable and improve fairness in the rental housing market. The agencies involved include the Federal Trade Commission, the Consumer Financial Protection Bureau, the Federal Housing Finance Agency, the Department of Housing and Urban Development and the Department of Justice. The FHFA will initiate a process to examine limits on egregious rent increases and proposals for renter protections for future investments. The administration also set out its guiding principles in its “Blueprint for a Renters Bill of Rights,” which, while not enforceable, aims to underscore protections the administration says every renter deserves. Meanwhile, others in the housing industry say that this kind of federal involvement in housing policy serves to increase housing costs.

☆ Elon Musk is back on the stand in trial over controversial ‘funding secured’ tweet
▼ + stars: | 2023-01-24 | by ( Matt Mcfarland | ) edition.cnn.com time to read: +2 min

Washington, DC CNN —Tesla CEO Elon Musk returned to the witness stand for a third day in a California court room Tuesday, as he testified in a class-action lawsuit over his controversial “funding secured” tweet from 2018. Musk’s “funding secured” tweet previously prompted a civil suit by the Securities and Exchange Commission, the federal agency that protects investors. The lead plaintiff, Glen Littleton, testified last week that he lost more than 75% of his investments following Musk’s “funding secured” tweet. Musk has argued during the trial that his tweets do not cause Tesla’s stock price to move higher or lower. He pointed to a time in May of 2020 when he tweeted that “Tesla stock price is too high.” The stock price dropped the day of his tweet but recovered and closed the year higher than it had opened.

☆ Elon Musk returns to the stand in class-action lawsuit over controversial tweet
▼ + stars: | 2023-01-23 | by ( Matt Mcfarland | ) edition.cnn.com time to read: +3 min

Washington, DC CNN —Tesla CEO Elon Musk took the stand again on Monday morning in a California courtroom to testify for a second day in the lawsuit over his controversial “funding secured” tweet from 2018. Musk had spoken to executives of the Saudi sovereign wealth fund about the funding he would need to take Tesla private. However, it was anything but “secured.” Musk shared his recollection of the incident in his testimony Monday. He pointed to an incident in May of 2020 when he tweeted that “Tesla stock price is too high.” The stock price dropped the day of his tweet but recovered and closed the year higher than it had opened. Musk testified Friday that no one at Tesla reviewed his tweets in 2018 before he published them.

☆ Homebuilder confidence rises for the first time in a year
▼ + stars: | 2023-01-18 | by ( Anna Bahney | ) edition.cnn.com time to read: +2 min

Washington, DC CNN —A modest drop in mortgage rates over the past month has helped home builder confidence improve in January, after 12 consecutive months of falling, according to a survey released Wednesday. Experts say that could mean new home building is set for a pivot as construction prospects improve. All three metrics rose in January, marking the first improvement in builder sentiment since December 2021. The survey found home builders’ confidence rose this month from its December level, which was the lowest sentiment level since 2012 — aside from the immediate onset of the pandemic. “In the coming quarters, single-family home building will rise off of cycle lows as mortgage rates are expected to trend lower and boost housing affordability,” he said.

☆ Tesla-induced pileup involved driver-assist tech, government data reveals
▼ + stars: | 2023-01-17 | by ( Matt Mcfarland | ) edition.cnn.com time to read: +3 min

The Tesla’s driver told authorities that the vehicle’s “full self-driving” software braked unexpectedly and triggered the pileup on Thanksgiving day. The National Highway Traffic Safety Administration then announced that it was sending a special crash investigation team to examine the incident. It’s delighted some Tesla drivers but also alarmed others with its flaws. The benefit and promise of Autopilot is clear from the Vehicle Safety Report data that we have been sharing for 4 years,” Tesla said this month in an update to its vehicle safety data. Reimer said it remains to be seen if there’s a recall of any Tesla driver-assist features, and what it means for the automaker’s future.

☆ Mortgage rates inched down last week, after a slight increase the week before
▼ + stars: | 2023-01-12 | by ( Anna Bahney | ) edition.cnn.com time to read: +3 min

Washington, DC CNN —Mortgage rates inched down last week, after a slight increase the week before. The 30-year fixed-rate mortgage averaged 6.33% in the week ending January 12, down from 6.48% the week before, according to Freddie Mac. But mortgage rates dropped in November and December, following data that showed inflation may have finally reached its peak. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.

☆ Mortgage rates start 2023 twice as high as they were a year ago
▼ + stars: | 2023-01-05 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

Washington, DC CNN —Mortgage rates inched up again last week, after a slight increase the week before interrupted six straight weeks of falling rates. But mortgage rates dropped in November and December, following data that showed inflation may have finally reached its peak. “Mortgage application activity sunk to a quarter-century low this week as high mortgage rates continue to weaken the housing market,” said Sam Khater, Freddie Mac’s chief economist. “While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.”The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. Although mortgage rates did increase slightly in recent weeks, the association expects them to fall to around 5.2 percent by the end of 2023.

☆ Here’s what to expect in the housing market this year
▼ + stars: | 2023-01-05 | by ( Anna Bahney | ) edition.cnn.com time to read: +8 min

Washington, DC CNN —Last year was a wild ride in the US housing market. So what’s in store for the housing market this year? “Mortgage rates are really critical to the path of the housing market in the year ahead,” said Jeff Tucker, senior economist at Zillow. “Yes, things have cooled way down in the housing market, but we don’t have a glut of homes for sale,” said Tucker. A plain, boring, vanilla year in the housing market would be a wonderful surprise.”

☆ Sales of Manhattan apartments nosedived at the end of 2022
▼ + stars: | 2023-01-04 | by ( Anna Bahney | ) edition.cnn.com time to read: +3 min

But it nosedived at the end of 2022, with the market returning to its pre-pandemic trajectory as sales dropped and prices slipped. Sales dropped 28.5% in the fourth quarter compared to the fourth quarter of 2021. “The Manhattan sales market is exiting the euphoric market of 2021 and moving to something closer to normal,” said Jonathan Miller, president and CEO of Miller Samuel. As a result, there were 6,523 listings in Manhattan at the end of the fourth quarter. That’s 5% higher than the fourth quarter of 2021, but 15.7% less than the third quarter of 2022.

☆ New home sales rose in November, defying expectations
▼ + stars: | 2022-12-23 | by ( Anna Bahney | ) edition.cnn.com time to read: +2 min

Meanwhile, the median price for a new home dropped to $471,200, down from $493,000 the previous month. But it was still higher than the median price a year ago, which was $430,000. “New home sales rose more than expected, but the big picture still is bleak for most Americans looking to buy,” said Robert Frick, corporate economist at Navy Federal Credit Union. In early November, mortgage rates reached their high for the year – an average of 7.08% for a 30-year fixed-rate loan – and have been falling since. But for the first time since April, builders registered an increase in future sales expectations this month, according to the National Association of Home Builders.

☆ After this week’s Fed rate hike, where are mortgage rates headed?
▼ + stars: | 2022-12-16 | by ( Anna Bahney | ) edition.cnn.com time to read: +8 min

Mortgage rates have run up so far and so fast this year that many would-be homebuyers can no longer afford to buy a home. By fall, mortgage rates had more than doubled, eventually topping 7% in October. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. “We have to remember mortgage rates come down much slower than they go up,” said Cohn. “Volatility increases the level of mortgage rates, compared to Treasury rates, because of the prepayment option,” said Chester Spatt, professor of finance at Carnegie Mellon University’s Tepper School of Business.

☆ Mortgage rates drop for fifth week in a row
▼ + stars: | 2022-12-15 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

Washington, DC CNN —Mortgage rates fell once again this week, dipping for the fifth straight week. But mortgage rates have tumbled in the last several weeks, following data that showed inflation may have finally reached its peak. The rate hike was already factored in to where mortgage rates are, but signaled more good news on inflation. Mortgage rates tend to track the yield on 10-year US Treasury bonds. Mortgage applications tick upFor people looking to buy a home, and homeowners wanting to sell, the retreat in mortgage rates over the past several weeks has been welcome.

☆ What to expect from the Fed meeting
▼ + stars: | 2022-12-14 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +5 min

Although that increase would be smaller than the three-quarter-point hikes announced at the past four Fed meetings, it’s nothing to scoff at. Yet Wall Street appears to believe the Fed will eventually be forced to pivot away from, or even reverse its regimen of rate hikes. The Fed will conclude its rate hike regimen by the second quarter of next year, predicted JPMorgan analysts in a recent note. A global problemThe Fed isn’t acting alone, it’s just one of nine central banks expected to make a rate announcement this week. The European Central Bank, the Bank of England and the Swiss National Bank are expected to follow the United States with half-point moves of their own on Thursday.

☆ Elon Musk’s $50 billion trial comes to an end today
▼ + stars: | 2022-11-18 | by ( Matt Mcfarland | ) edition.cnn.com time to read: +5 min

Washington, DC CNN —The trial for the Tesla shareholder lawsuit examining CEO Elon Musk’s unprecedented compensation package will wrap up this afternoon. The net value of the compensation package is $50.9 billion today, after Tesla’s valuation soared more than 1,000% at its peak since shareholders approved the package. Several corporate governance experts told CNN Business that it’s clear Tesla’s board of directors lacks independence from Musk. At the time of the 2018 compensation package, Kimbal said it was “very unlikely” that Elon would walk away from his role of CEO at Tesla. That’s just not how Elon operates,” Kimbal Musk said.

☆ Tesla’s close-knit leadership team goes under the spotlight in court
▼ + stars: | 2022-11-17 | by ( Matt Mcfarland | ) edition.cnn.com time to read: +6 min

Tornetta accuses Tesla’s board of breaching its duties to shareholders. The pay package from Tesla’s board granted Musk large sums of shares every time Tesla hit certain milestones, including earnings and share price targets. In this sketch, former Tesla board member Antonio Gracias testifies in court. Ehrenpreis also had the rights to the first Model 3, Tesla’s breakout product, but gave it to Elon Musk as a birthday gift. Ehrenpreis is also the Tesla board member who asked consultants if hypothetically Tesla could lower the disclosed costs of Musk’s compensation plan.

☆ Elon Musk takes the stand in lawsuit over his Tesla pay
▼ + stars: | 2022-11-16 | by ( Matt Mcfarland | ) edition.cnn.com time to read: +2 min

Washington, DC CNN —Tesla CEO Elon Musk is testifying this morning in a shareholder lawsuit examining the massive compensation package that helped make him the world’s richest person. Musk was awarded the compensation package in 2018, and shareholders approved the deal at the time. They’ve also contrasted Musk’s compensation with the average Tesla salary, which they’ve said is $40,000. Musk’s compensation package goals were characterized t as lofty and incredibly difficult to achieve. This is a developing story and will be updated throughout Musk’s testimony.

☆ Tesla’s board chair says Musk needed money for space travel
▼ + stars: | 2022-11-15 | by ( Matt Mcfarland | ) edition.cnn.com time to read: +2 min

Washington, DC CNN —Elon Musk said that he needed to receive what amounted to the largest compensation package in history so that he could fuel his goals around “inter-planetary travel,” Tesla board chair Robyn Denholm testified Tuesday. Musk has long claimed that he intends to use his vast wealth in pursuit of space travel and colonization. “Quite honestly, I don’t know how much it costs to do any inter-planetary travel. The company’s driving interest in awarding Musk such an enormous compensation package was to keep his focus on Tesla, as opposed to his other companies. Denholm said Tuesday that Musk’s previous compensation package before the 2018 plan wasn’t adequate to keep him engaged at Tesla.

☆ Tesla heads to court to defend Elon Musk’s pay
▼ + stars: | 2022-11-14 | by ( Matt Mcfarland | ) edition.cnn.com time to read: +9 min

Washington, DC CNN —Tesla headed to court today to defend the huge compensation package that helped make CEO Elon Musk the richest person on Earth. Even in the rarified air of CEO pay, Musk’s compensation plan stood apart. The Tornetta complaint alleges that the board of directors that created Musk’s compensation plan lacked sufficient independence from him. “This is a huge package,” Hayn said of the compensation plan. Tesla leadershipHayn noted that Musk’s close relationships with the board members could be problematic for Tesla in the case.

☆ Elon Musk heads to court over Tesla pay that made him the world’s richest person
▼ + stars: | 2022-11-13 | by ( Matt Mcfarland | ) edition.cnn.com time to read: +8 min

Washington, DC CNN —Tesla and CEO Elon Musk will spend this week in court to defend the massive compensation package that helped make him the world’s richest man. The week-long trial in Delaware Court of Chancery will examine the 2018 compensation plan that the automaker’s board of directors created for Musk. Even in the rarified air of CEO pay, Musk’s compensation plan stood apart. The Tornetta complaint alleges that the board of directors that created Musk’s compensation plan lacked sufficient independence from him. “This is a huge package,” Hayn said of the compensation plan.

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