Grumpy Editor

MORTGAGE RATES HIT 22-YEAR HIGH

 

Mortgage rates soared to a 22-year high last week, making it difficult for the housing market, notes Grumpy Editor.

 

Interest rate on the average 30-year fixed mortgage reached 7.23 percent, based on Freddie Mac data.  That compared with 7.09 percent a week earlier.

 

The Wall Street Journal noted that “some borrowers are paying even higher rates.”

 

With the higher rates, applications for mortgages dropped to their lowest levels since 1995, reported the Mortgage Bankers Association.

 

Existing home home sales in July fell for the fourth time in five months.

 

 

IN CASE YOUR FAVORITE NEWS OUTLETS MISSED THESE…

 

FISH BLAMED FOR POWER OUTAGE.  A fish, apparently dropped by a bird, landed on a power transformer, causing a power outage in Sayreville,  New Jersey.

 

ANOTHER NORTH KOREA LAUNCH FIZZLES.  North Korea’s second attempt to launch a spy satellite failed when the final stage of the rocket failed due to an error in the emergency blasting system.

 

AUG. 24 CITED AS SICK DAY.  An analytics firm finds Aug. 24 is the most common day for employees to call in sick.  Reason?  Pehaps it’s linked to the upcoming Labor Day.

 

SWANK HOTEL OFFERS PLUSH TREATMENT FOR DOGS.  The Waldorf Astoria hotel in Washington, D.C., debuted its Pawsidential Suite package on Saturday.  It offers visiting dogs and owners a signature suite and enjoy a variety of plush extras during a two-night stay. 

 

MICHICAN MAN SAYS HE FOUND RAT’S FOOT IN SOUP.  A Michigan man is suing Olive Garden, alleging that he found a rat’s foot in a bite of minestrone soup at he chain’s Warren, Mich. location.  The suit alleges that an Olive Garden employee denied that a rat’s foot could have been in the soup and commented, “That’s funny. We don’t even put meat in minestrone.”

 

NAP CAN BOOST MEMORY.  Napping isn’t just for babies, notes WebMD, citing studies that show an afternoon nap is great for adults and pointing out a short nap in the mid-afternoon can boost memory, improve job performance, lift your mood, make you more alert and ease stress.

 

U.S. TO TRAIN UKRAINIAN PILOTS.  The U.S. will start training Ukrainian pilots to fly U.S.-made F-16 fighter jets.  It will start at an Air National Guard base in October, says the Pentagon.

 

LOSS OF ANTARCTICA ICE AFFECTS PENGUIN CHICKS.  Researchers say loss of ice in one region of the Antarctica last year affected emperor penguin chicks.  They did not survive in four colonies. 

EXISTING HOME PRICES POST BIGGEST DROP IN MORE THAN DECADE

 

Existing home prices in the U.S. p0sted the biggest year-over-year decline in more than 11 years in May as rising interest rates continued to weigh on the housing market, Grumpy Editor noted in The Wall Street Journal.

 

National median existing home prices fell 3.1 percent to $396,100 in May vs. the same month last year. It was the largest drop since December 2011, according to the National Association of Realtors.

 

Mortgage rates have fluctuated since hitting 20-year-highs above 7 percent in October and November.

 

IN CASE YOUR FAVORITE NEWS OUTLETS MISSED THESE…

 

NATIONAL GUARD STRUGGLES TO YIELD RECRUITS.  National Guard continues to  find it difficult to attract recruits.  However, it hopes to get closer to recruiting goals this year while battling private companies such as FedEx, Micosoft and Wendy’s.

 

CHARITY DONATIONS DECLINE.  Americans gave the lowest percentage of disposable income to charity last year since 1995, per a new Giving USA report, adding total amount of charitable giving fell 3.4 percent last year to $499.3 billion — a 10.5 percent decrease when adjusted for inflation.

 

SEARCH ON FOR ‘HERO’ DOG.  Colombia is searching for a dog named Wilson that aided in finding missing children in the Amazon.  The Belgian Shepherd became a national hero in that country when he helped the military find four children who survived a plane crash and were lost in the jungle for 40 days. Wilson went missing during the search and is the target of a rescue operation.

 

MORE BARRIERS PLANNED FOR COCKPITS.  A new FAA rule will make it more difficult to break into airplane cockpits.  Planes built after mid-2025 will have seconday barriers when the main cockpit door is open.

 

SHALLOWER WATER AFFECTS PANAMA CANAL.  Because of the drought and shallower water, container ships in the Panama Canal will be limited to a depth of 43.5 feet. Largest ships that go through the canal are Panamax container ships that require at least 43 feet to pass through.

 

BEAR TRIES TO ENTER SECOND STORY WINDOW.  In Colorado, a bear tried to climb through a second story window, then got stuck dangling from it. Colorado Fish and Wildlife was called to rescue it.

 

NEW ASSAULT VEHICLE SET FOR ARMY.  The Army unveils a new assault vehicle with firepower of giant tanks but is a fraction of the size. It is seen as rewriting the battlefield understanding of how tanks are used in combat.

 

 

FRENZIED HOUSING MARKET MAKES HOMEOWNERS AFRAID TO SELL

The housing market may be hot right now but some homeowners are afraid to sell, notes Grumpy Editor.

 

As The Wall Street Journal points out:  “Plenty of households could sell their homes for a big profit, but then they would have to find a new place to live.”

 

It adds that “many are unwilling to compete in this frenzied market, where they could be subjected to fierce and costly bidding wars.”

Fear of failing to find a new home is a key reason people are staying in their current residences longer than in earlier days.

 

Young families seeking to trade up fear being priced out of the neighborhoods.

 

IN CASE YOUR FAVORITE NEWS OUTLETS MISSED THESE…

 

 

D-DAY OBSERVANCE QUIET.  Observance of D-Day, when 150,000 Allied soldiers landed on Nazi-occupied Normandy shore on June 6, 1944, sadly went by rather quietly this year.

 

LOOK FOR BUSY HURRICANE SEASON.  The 2021 Atlantic hurricane season is expected to be a busy year as the National Oceanic and Atmospheric Administration forecasts above-average activity, with up to 10 hurricanes and up to five major storms.

 

POSTAGE STAMP AUCTION GRABS ATTENTION.  “One-Cent Magenta,” as the 1856 postage stamp from British Guiana is called, that sold for nearly $10 million in 2014, goes on auction tomorrow in New York where it is expected to sell for as much as $15 million.

 

DOGS WELCOMED AT VEGAS STRIP CASINO.  Las Vegas Strip hotel Encore at Wynn now welcomes canine clientele with a luxury dog-friendly resort program. A room or suite accommodates up to two canine guests that are offered exclusive amenities ranging from chow to clothing.

 

SHRINKFLATION SPREADS.  “Shrinkflation” is a new term being used to describe companies charging the same amount for a product in a smaller package, such as smaller cans.

 MOTOR VEHICLE CRASHES MOUNT.  More than 38,600 people died in motor vehicle crashes in the U.S. last year, estimates the National Highway Traffic Safety Administration.  That’s the highest number of fatalities in more than a decade.

 THE SHOW MUST GO ON.  In India, a bride-to-be dies of a heart attack during a wedding ceremony.  So her sister fills in and marries the groom --- with the sister’s body in a nearby room.

 

MAJOR BLAZE HITS UNIVERSAL STUDIOS LOT.  Exactly 13 years after a major blaze on its lot, Universal Studios in Hollywood encounters another huge fire --- at the “Despicable Me” attraction under construction.

 

FLAG STEALERS BEING SOUGHT.  Police are seeking the culprits who stole a huge American flag and several smaller flags from a Southern California veterans cemetery over the Memorial Day weekend.

 

 LONDON POLICE SEIZE $7 MILLION.  London's Metropolitan Police seize $7 million in cash --  largest amount ever taken by the capital's police force -- after noticing a man struggling to carry bags stashed full of money.

 

 

 

U.S. HOUSING MARKET SIZZLES, TRIGGERING BIDDING WARS

House prices are skyrocketing around the nation, bidding wars are the norm and supply is scarcer than ever, notes Grumpy Editor.

Bloomberg also finds the market is too hot even for homebuilders.

“Demand is so fevered and construction costs are climbing so quickly,” observes Bloomberg, “that overwhelmed builders are suppressing orders and shifting away from fixed prices.”

Bloomberg adds, “In a global economy roiled by supply shortages, the U.S. housing market is struggling with a collision of pandemic-related forces that’s holding back new inventory just when it’s needed most. Buyers are stampeding for new homes as remote work upends employment, while soaring lumber costs and a shortage of workers are slowing construction. The result is home prices, already reaching unaffordable levels for many Americans, are set to keep rising.”

 

About 19 percent of builders are delaying sales or construction and 47 percent have added escalation clauses into contracts, allowing them to lift prices as costs increase, according to an April survey by the National Association of Homebuilders.

 

IN CASE YOUR FAVORITE NEWS OUTLETS MISSED THESE…

 

AP MARKS 175TH YEAR.  The Associated Press is celebrating its 175th anniversary this month.  The AP was formed in May, 1846 when five New York city newspapers funded a Pony Express route through Alabama to carry news about the Mexican War to the northern part of the country. Today, it has bureaus in 250 locations in more than 95 countries and produces 2,000 daily stories and more than a million photographs a year. 

MEDAL OF HONOR AWARDED --- FOR KOREAN WAR ACTION.  President Joe Biden awarded the Medal of Honor on Friday to Ralph Puckett Jr., a 94-year-old retired Army colonel who led the capture and defense of a hill during the Korean War against an overwhelming Chinese attack.

VANDENBERG GETS NAME CHANGE.  Vandenberg Air Force Base in California, gets a periodic name change --- this time to Vandenberg Space Force Base. Space Force in 2019 was created as the sixth uniformed military branch.

 

NEW MISS UNIVERSE.  Andrea Meza, who holds a software engineering degree, is the new Miss Universe.  She edged ahead of Miss Brazil.

 

FOR DOGS...NO BARKING?  North of the border, Calgary's pet ownership bylaws are being updated and some of the proposed changes have some dog behavior experts worried...namely no barking.

 

GREENLAND OFF THE MARKET.  The U.S. is no longer interested in buying Greenland, says President Biden’s secretary of state, Antony Blinken.  “I can confirm that’s correct,” he tells reporters.  Former President Donald Trump eyed purchasing Greenland, a self-governing part of Denmark, even as its leaders said it wasn’t for sale.

 

 

CALIFORNIA SOLAR REQUIREMENT COULD ADD $10,000 TO NEW HOME PRICE

Little has been said about it nationally, but home buyers in California, already facing some of the highest prices in the nation, will be paying a bit extra next year when the Golden State makes solar mandatory for new houses, notes Grumpy Editor.

The requirement could easily add $8,000 to $10,000 to the home’s price, according to the California Energy Commission (CEC).

The solar addition will increase the average monthly mortgage payment by $40, figures CEC.  But, it adds, new home buyers will save an average $80 a month on  heating, cooling and lighting bills.

Danielle Hale, chief economist at Realtor.com, tells CNBC's "On the Money" that the new solar requirement could undermine a segment of the real estate market that's struggled to add to new homes relative to demand.

Added costs could hit "the affordable side of the market," she mentions, where prices on available homes have been under pressure.

"It's a very different perspective depending on if you're looking for affordable homes, or pricier homes," she adds.  “It's already difficult for builders to build, and I think this is just going to exacerbate that problem."

 

IN CASE YOUR FAVORITE NEWS OUTLETS MISSED THESE…

 

RUSSIAN INTERFERENCE REPORT DELAYED.  Robert Mueller’s final report on the two-year investigation of the so-called Russian interference in the 2016 presidential election, which media were awaiting this week, won’t be out after all, leaving print and broadcast outlets in suspense.

DOW POSTS NINTH STRAIGHT WEEKLY GAIN.  The Dow rose above 26,000 again on Friday, gaining 181.18 points to close at 26,031.81 for the first time since Nov. 8 in posting its ninth consecutive weekly gain --- longest streak since May 1995.

MILLENNIALS TARDY ON AUTO LOAN PAYMENTS.  A record seven million Americans are more than 90 days late on auto loan payments and millennials are clearly leading delinquency rates, finds the New York Fed. It notes the number of new auto loans and leases appearing on credit reports last year reached the highest level in 19 years.  Researchers note there was a “sharp worsening” in the number of delinquent auto loans held by borrowers under 30. 

FOUR TERM MINNESOTA DOG MAYOR DIES.  Duke the four-term ceremonial canine mayor of Cormorant Township, Minn., went to "doggy heaven" last week.  The Great Pyrenees, 13 years old, made national news for being elected the dog mayor, acting as the village's ambassador to the public.

 

SEN. SCHUMER QUESTIONS HEDGE FUND WITH EYES ON GANNETT.  Senate Minority Leader Chuck Schumer wants to know how many journalists hedge fund Alden Global Capital intends to lay off if it manages to take control of Gannett, publisher of USA TODAY.

 

SMOLLETT REAPS HEAVY COVERAGE IN MEDIA.  Actor Jussie Smollett, gaining more media coverage than the President over the past week, was cut from this season’s final two episodes of Fox’s “Empire” after Chicago police charge him with filing a false report for allegedly staging a hate crime attack on himself.

SNOW HITS HOLLYWOOD.  Last week's snow in the Hollywood Hills area of Los Angeles is the first such dusting since 1962.

Private company challenges ‘recess’ appointments, wins

In connection with Friday’s federal appeals court 46-page ruling that President Barack Obama violated the Constitution when he bypassed the Senate to appoint three members to the National Labor Relations Board, most media overlooked the source that triggered the action leading to the decision, notes Grumpy Editor.

Noel Canning, a Washington state family-owned contract canning and bottling facility (that includes Pepsi), sued the NLRB, challenging the board’s decision, citing Obama made so-called “recess” appointments without the Senate being in recess. 

It’s noteworthy because Republicans, legal scholars, Constitution experts and editorial page editors were silent in raising eyebrows on the “recess” appointments.

 

Movement with short sale ‘unending nightmare’

Although previously-owned home sales of 4.65 million in 2012 were up 9 percent from the prior year and the best in five years, sales could rise even more --- giving the economy a lift --- without the heavy red tape,  indecisions, complications and paperwork of major banks.

John Taylor in the Las Vegas Sun on Jan. 20 detailed the “unending nightmare.” 

The sale took eight months to wrap up, said Taylor, a senior editor of local news.

His assessment:  “Beware of the not-so-short short sale.”

Read the full article here.

 

Havana’s Sloppy Joe’s bar reopening grabs space

Reopening of a nearby bar may be welcome news in local newspaper sections, but an Associated Press story on the return of Sloppy Joe’s in far-off Havana grabbed up to a quarter page of space, with art, in some weekend editions. 

The bar, in its heyday, attracted Hollywood stars and other celebrities. 

Founded in 1918, it indicates the bar must have a pretty good PR person, Cuban style, to warrant that sort or coverage in the U.S. press.

 

In case you missed these...

One phrase missing from coverage of the deep freeze sweeping the midwest and northeast:  Global warming (or climate change)…Country music is reappearing in New York City via Cumulus Media radio station WNSH, formerly WRXP…The New York Times is trimming its newsroom staff through buyouts and terminations, aiming for a reduction of 30…The Times also made headlines following a report in New York Magazine that real estate mogul Donald Trump has been holding meetings about possibly buying the New York Times Co…On the hiring side, Al Jazeera, which will be replacing Current TV with the launch of Al Jazeera America, has posted 105 available jobs in the United States with 98 based in New York City and seven in Washington…Strange ad in Bloomberg Businessweek and other publications from Toyota.  Under the line, Let’s Go Places, it shows a vehicle with rainbow colors fore to aft in a farm setting --- with no details on what the multi-hues are all about.