Demand for riskier residence loans is excessive as rates of interest rise

Mortgage demand fell again last week as interest rates climbed higher, but one type of loan is attracting borrowers. Adjustable rate mortgages, or ARMs, which offer lower interest rates, are seeing renewed demand after earning very little interest over the past decade.

According to the Mortgage Bankers Association’s seasonally adjusted index, total mortgage applications fell 2% last week from the previous week, reflecting rising interest rates.

The average contract rate for 30-year fixed-rate mortgages with matching loan balances ($647,200 or less) increased from 6.75% to 6.81%, with points going from 0.95 (including the setup fee) to 0.97 for loans with a Discount of 20% increased payment. This is the highest value since 2006.

“The news that job growth and wage growth continued in September is positive for the housing market as higher incomes support housing demand. However, it has also sidelined the possibility of a near-term turnaround by the Federal Reserve on its plans for additional interest rate hikes,” wrote Michael Fratantoni, MBA’s chief economist, in a press release.

The average rate for 5/1 ARMs, which is a fixed rate for the first five years, increased slightly but was still lower at 5.56%. The ARM share of the applications was just under 12%. When interest rates were lower earlier this year, that share was just under 3%, where it has been for several years.

ARMs can be locked in for up to 10 years, but are considered riskier loans because the interest rate eventually adjusts to the market interest rate. Interest rates were so low for so long that borrowers didn’t have to take that extra risk before interest rates started to rise.

Higher overall interest rates pushed refinancing demand even further, with requests down 2% this week and 86% year-on-year. At this level of interest rates, there are barely 150,000 borrowers who can benefit from refinancing because so many people already have borrowing at far lower rates, according to Black Knight, a mortgage technology and analytics company.

Mortgage applications to buy a home, which fell 2% this week, were 39% lower than a year ago. Buyers have fared back this fall as higher interest rates have made affordability even worse. Property prices are beginning to ease, but potential buyers are also concerned that if they buy their new home now, they could lose value in the coming year. Concerns about a recession are also discouraging buyers from making such a big investment.

Mortgage rates continued to rise earlier this week; Another survey by Mortgage News Daily has put 30-year fixed rates now well above 7%. All eyes are now on the latest inflation report, due out on Thursday. It could move rates decidedly either way.

Biden says he does not suppose there will probably be an financial recession

U.S. President Joe Biden arrives to address the Volvo Group’s powertrain manufacturing facility in Hagerstown, Maryland on Friday, October 7, 2022.

Craig Hudson | Bloomberg | Getty Images

President Joe Biden said he doesn’t think a recession will happen anytime soon and if it does, he expects a “mild” economic slump.

“Every six months they say that. Every six months they look at the next six months and say what’s going to happen,” Biden said in an interview with Jake Tapper on CNN that aired Tuesday, referring to the latest economic forecasts of the major US banks.

“It hadn’t happened yet. It hadn’t… I don’t think there’s going to be a recession. If there is, it’s going to be a very mild recession. That means we’re going to move slightly down.”

JPMorgan Chase CEO Jamie Dimon warned Monday of the likelihood of a recession in six to nine months.

In an interview with CNBC, Dimon warned of a “very, very serious” headwind that could plunge the US and global economy into recession by the middle of next year.

The concern comes as the Federal Reserve continues to aggressively raise interest rates in a bid to reduce inflation. In September, the US Federal Reserve raised interest rates by three-quarters of a percentage point – the Fed’s third rate hike in a row.

Biden didn’t fully discount the odds of a recession, but told CNN the odds are slim.

“It’s possible,” Biden said. “I don’t expect it.”

The president acknowledged that the US has “real problems” but credited legislation passed under his administration, such as the Inflation Reduction Act, for putting the United States “in a better position, economically and politically, than any other major country in the world.” offset.

What is a recession and can you predict it will happen?

Anthony Rapp explains why he accused Kevin Spacey of misconduct

Anton Rapp has taken a stand.

The Rent actor testified on October 11 Kevin Spacey‘s sexual misconduct trial, in which he clarified why he chose to bring allegations against the actor to NBC News.

Back in 2017, Rapp accused Spacey of engaging in sexually inappropriate behavior around him when Rapp was 14. During the 2022 trial, Rapp’s attorney said the actor was prompted to take the allegation to a BuzzFeed News reporter after Rapp was exposed to an article he was in Lupita Nyong’o filed a complaint of sexual harassment Harvey Weinstein. Harvey has denied all allegations of wrongdoing.

However, Spacey’s attorneys produced a screenshot of a text message conversation between Rapp and a reporter from BuzzFeed News who, NBC News reports, appears to have revealed that Rapp made this claim on Oct. 11, 2017, eight days before the play he was implicated Nyong’o and Weinstein was released on October 19, 2017.

Per NBC News, the text message chain wrote, “I want to talk about someone else who is very powerful in the industry,” Rapp wrote.

Danger of Covid loss of life for individuals being charged and handled is nearly zero, says White Home Covid Czar

People who stay up to date on their vaccines and receive treatments when they have breakthrough infections are at almost no risk of dying from Covid-19, a senior health official said Tuesday.

dr Ashish Jha, head of the White House Covid task force, said the US had made great strides in fighting Covid since the early days of the pandemic, when thousands of people were dying from the virus every day.

“If you are up to date with your vaccines and treated if you have a breakthrough infection, your risk of dying from Covid is now close to zero,” Jha told reporters at the White House.

According to the Centers for Disease Control and Prevention, more than 300 people are still dying from Covid on average every day.

Jha told reporters last week that 70% of people who die from the virus are aged 75 and older and do not have the latest vaccinations or are not receiving treatment as needed. He said that death toll was unacceptable given all the tools the US now has to deal with the virus.

Jha encouraged people with Covid symptoms to get tested so they can be diagnosed and given treatments like the antiviral pill Paxlovid if needed.

“Treatments that we make available for free today keep people out of the hospital, keep people out of intensive care and prevent the worst possible outcome,” Jha said.

People over 50 and people who are otherwise at increased risk, such as those with compromised immune systems or serious medical conditions, should be seriously considered for treatments, he said.

The US introduced new booster shots in September targeting the dominant subvariant omicron BA.5. While there’s no real data on their effectiveness yet, Jha said they should offer a much higher level of protection based on what scientists know about how the human immune system works.

Health officials expect Covid infections to spike in November through January, as they have done every fall and winter since the pandemic began, Jha said. But it’s hard to predict whether the US will face another big Covid surge because the virus continues to evolve, he added.

“We are not helpless in the face of these challenges. What happens in the coming weeks and months will have a big impact on how the winter plays out, and what really happens this winter is largely up to us as the American people,” Jha said Tuesday.

He urged everyone aged 12 and over to get their new Covid booster shots by Halloween so they’ll be protected in time for Thanksgiving when the holiday season is in full swing. Anyone who is eligible should get out and get their annual flu shot, too, as public health officials expect a significant flu season for the first time since the pandemic began, he said.

One caveat is that people who have recently contracted Covid can wait three months to get their booster because infection also boosts your immunity, Jha said.

“Don’t wait – get your new flu shot and your new Covid shot today,” Jha said. “If Americans did that, we could save hundreds of lives every day this winter.”

The FBI has discovered gold and money on pretend billionaire Justin Costello

Prosecutors on Tuesday ordered a California federal judge to send a recently escaped man accused of a brazen $35 million fraud to jail without bail.

An FBI SWAT team apprehended fugitive Justin Costello on October 4 in a remote area near San Diego. He was carrying a backpack containing six one-ounce gold bars worth $12,000, $60,000 in U.S. currency, $10,000 in Mexican pesos and banking cards and checkbooks, prosecutors said in a court filing .

Costello, 42, also had a receipt for a prepaid phone number in his backpack, along with a driver’s license with his photo under the name “Christian Bolter,” the filing revealed.

The US Attorney’s Office for the Southern District of California cited the contents of the backpack and other factors in the filing when asking a judge to remand Costello pending trial. Prosecutors argued he was “a serious escape risk and a danger to the community.”

They found that Costello had failed to surrender to the FBI’s San Diego office as he agreed with his attorney on September 29. He had been informed that he was facing a new indictment in federal court in Washington state on a series of charges relating to penny stock schemes, shell companies and cannabis companies.

Cash and bullion as described in the court filing in the US District Court in San Diego in the case of former fugitive Justin Costello.

Source: US District Court

Instead, he had “become a fugitive,” prosecutors wrote.

“The FBI attempted to track Costello using his known cell phone numbers but was unsuccessful,” prosecutors wrote. “It is believed that Costello has counter-surveillance measures in place to prevent tracking of devices registered to these numbers.”

The FBI was eventually able to track Costello “through location information he received from theft service for the Alfa Romeo vehicle he was driving,” the filing says.

The SWAT team tracked that car to a remote area of ​​El Cajon, California, where they saw him walking with his backpack, the filing said.

When agents arrested him, Costello said “he was surprised agents found him because he turned off his phone.”

He also told agents he did not surrender as agreed “because he recently had a stroke and was recovering.”

“Costello said that if it weren’t for the stroke, he could have outrun SWAT agents,” the filing reads. “Costello admitted he was the person charged in the indictment and encouraged agents to ‘google’ him to learn more about the case,” he continued.

“Costello was likely referring to the very significant media coverage of his charges and subsequent evasion from prosecution,” prosecutors wrote in a footnote that referenced CNBC’s article about him published last week.

Prosecutors said the FBI learned soon after that the gold in the backpack was part of a larger $94,000 lot of gold Costello bought in April “with money he stole from a bank customer.”

Investigators have determined that since mid-September, the defendant has not used his only known personal bank account for personal expenses and has instead used multiple company accounts to cover his tracks online, prosecutors said.

“The weight of the evidence” against Costello in the pending case – in which he faces charges of wire fraud and securities fraud – “is strong and well documented,” they added.

Costello, who has ties to La Jolla, California, and Las Vegas, is accused of defrauding thousands of investors and others out of millions of dollars by making false claims that companies he controlled were plotting to steal 10 other companies to buy.

He is also accused of using one of the companies, Pacific Banking Corp., to divert at least $3.6 million from three marijuana companies that were customers to benefit him and other companies he owned.

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Prosecutors have said Costello used about $42,000 in money allegedly swindled by investors to pay for expenses related to his wedding. The event included a cake and ice cream sculpture featuring the iconic James Bond 007 film logo and a belly dancing performance by his bride.

Costello allegedly deceived investors with his tall tales about being a billionaire, an Ivy League graduate and an Iraqi veteran, prosecutors said. They determined that none of the claims were true.

He “also falsely claimed that two ‘[l]Local titans of Seattle’s business community “supported” him,” prosecutors wrote in their court filings. They did not name these business leaders.

Costello is scheduled to appear in federal court in San Diego on Tuesday. He is expected to be transferred soon to Washington state to face charges in the US District Court for the Western District of Washington.

An attorney representing him in a civil suit at one of the marijuana companies he is accused of fraud did not immediately respond to a request for comment.

Costello is also facing a civil lawsuit filed by the SEC the same day criminal charges against him were unsealed. This lawsuit broadly follows the allegations in the indictment.

Tia Mowry & Cory Hardrict Present Love On Instagram Amid Divorce

Tia Mowry and her estranged husband Cory Hardrikt Want fans to know it’s all love between them after the 44-year-old actress filed for divorce from Cory, 42, after 14 years of marriage and two children.

On Monday, the family reunion actress shared portraits on Instagram and spoke about the love and support she’s received since confirming the end of her relationship with Cory, who she remarried in 2013.

Every book begins with a dedication page, and this one is dedicated to you: my friends, my family, and my community.

The outpouring of love I have received from you over the past week has been so encouraging and humbling. I am so grateful to you all.

New book, first chapter follows.

Love Tia ❤️

Cory must also have felt the love Tia was sending her followers because he left a heart and sparkly emoji showing his love for his estranged wife amid their divorce. In response, Tia replied:

“I love you (heart emoji)”

Tia Mowry says she’s starting a new chapter

Following her message of thanks to supporters, a grinning Tia shared another Instagram reel that touched her as she opened a new chapter. She wrote in the caption.

“I am love. I am peace.”

The audio over a video of Tia smiling for the camera seemingly confirmed the star’s message.

“You’re losing yourself. I know you hate to admit it. There are many other people you could fall in love with. You choose yourself.”

Previously, The Shade Room reported that Tia and Cory are divorcing due to “irreconcilable differences.” Minutes after news broke about the two, the twin confirmed the news on Instagram:

I’ve always been honest with my fans and today is no different. I wanted to share that Cory and I have decided to go our separate ways. These choices are never easy and are not without sadness.

Roommates, are you shocked that Tia and Cory are getting along so well while divorcing?

Russia lashes out at Ukraine however is in agony

Cars are seen on fire in Kyiv, Ukraine, October 10, 2022 after Russian missile attacks as Russia’s attack continues.

Valentin Ogirenko | Reuters

Russia has dramatically ramped up its missile attacks on Ukraine over the past 48 hours, but experts say the country is running out of options — as well as supplies and ammunition — on the battlefield.

Air raid sirens rang out again in several regions of Ukraine on Tuesday, and emergency services warned that further Russian attacks were very likely. Ukrainian officials reported that power infrastructure in the western city of Lviv was hit earlier, while the southern city of Zaporizhia was also attacked this morning.

The latest attacks come a day after a series of Russian attacks launched in response to last weekend’s bombing of Russia’s prized bridge across the Kerch-Crimea Strait, hitting various Ukrainian cities, including the capital Kyiv. At least 19 people were killed and more than 100 injured in the strikes, emergency services said.

Ukraine’s leadership has said it will not be intimidated by the latest spate of attacks, with President Volodymyr Zelenskyy pledging to inflict more pain on Russian forces on the battlefield.

Inventories are running out

Despite Moscow’s recent show of strength over the past few days, experts see Russian forces looking increasingly desperate and ill-equipped.

“We know – and Russian commanders on the ground know – that their supplies and ammunition are running low,” Jeremy Fleming, director of GCHQ, one of Britain’s top intelligence agencies, will say on Tuesday.

“Russia’s armed forces are exhausted. The use of prisoners as reinforcements and now the mobilization of tens of thousands of inexperienced conscripts speak to a desperate situation,” he will say at the annual RUSI lecture, according to pre-released comments.

According to Fleming, the Russian people are beginning to understand the reality of the war. “You see how badly Putin misjudged the situation. Fleeing conscription, they realize they can no longer travel. They know that their access to modern technology and outside influences will be severely limited at the terrible human cost of their chosen war.”

Destroyed armored vehicles and tanks of the Russian Armed Forces after withdrawing from the town of Lyman in the Donetsk region of Ukraine on October 5, 2022.

Methane Acta | Anadolu Agency | Getty Images

Far removed from “the inevitable Russian military victory her propaganda machine produced,” it is clear that Ukraine’s prowess on the battlefield and in cyberspace, countering Russian propaganda, is “turning the tide,” Fleming will say, in the war.

Meanwhile, Russian President Vladimir Putin’s decision-making is looking increasingly flawed as “high-stakes strategy… leads to strategic miscalculation.”

CNBC has reached out to the Russian Defense Ministry for a response to Fleming’s comments and has yet to receive a response.

Fleming is not alone in believing that Russia is in its death throes both at war and at home.

Christoph Heusgen, chairman of the Munich Security Conference, told CNBC last week that there were signs that Russia was “falling apart”.

“It’s a black hole [in] Russia,” he said. “Putin has a monopoly on communications, on the media, his popularity remains high, but things are falling apart left and right. The military is under severe criticism, the industry is non-productive and there are signs that the country is falling apart, but it is difficult to predict how this will play out and how long it will take, but the end of Putin’s regime is proceeding much faster .” he told CNBC in Warsaw.

“Would you have believed that the Ukrainian military is where it is today and that it is advancing?”

“Push back against aggression”

The multiple attacks on Ukraine on Monday followed a strategic and symbolic blow for Russia: an explosion that partially destroyed the Kerch Bridge, which connects mainland Russia with Crimea, which Moscow illegally annexed in 2014.

Kyiv has not claimed responsibility for the bridge attack, although the blast was widely seen as humiliating for Moscow and another obstacle for Russia to deliver its troops to the occupied territories of southern Ukraine.

Zelenskyy said in his nightly address on Monday that Ukraine would not be intimidated by the strikes and promised that the battlefield would become even more “painful” for Russia in response.

Russian citizens recruited as part of the partial mobilization take part in combat training at the training centers of the self-proclaimed Donetsk People’s Republic (DPR) as the Russo-Ukrainian war rages on October 05, 2022 in Donetsk, Ukraine.

Anadolu Agency | Anadolu Agency | Getty Images

Lesia Vasylenko, a Ukrainian lawmaker, agreed. She told CNBC on Tuesday the country was prepared for more Russian attacks.

“We were not intimidated on February 24th [when Russia’s invasion began]we weren’t intimidated eight years ago and we haven’t been intimidated in centuries,” she told CNBC’s Squawk Box Europe.

“The only way to survive this reality is to fight back against the aggression, to fight back against the Russian military.”

Rachel Maddow says what the remainder of the mainstream media will not say about rising fascism

Rachel Maddow broke the political noise on Monday night to warn that a response from all of society is needed to effectively combat fascism. And that’s something we’ve done before.

Video:

Maddo says:

If you look at what happened the last time we faced something like this, criminal law can’t do everything. I mean, we can’t rely on everything in the courtroom to argue against it. If these are extremist far-right groups willing to use violence against anyone else to get their way, then that’s crime, and the courts and prison system matter, right? But there’s also a really important role for everything else.

For a response from society as a whole. I mean, the criminal justice system isn’t bulletproof, but it also doesn’t address the nature of these crimes in their entirety. To fight fascism effectively, to fight rising authoritarianism effectively – especially when it comes to undoing elections and trying to both gain and keep power in this country in ways other than democracy.

When it comes to the threat of violence as a means of seizing power, there isn’t just space; There is a need for a societal response. So that everyone does something. For activism. For journalism, for political organizing, to keep them out of real power.

I see a way for you to learn how we’ve been through something like this before and it can be unnerving if we’ll ever get away from it. On the other hand, knowing that we’ve encountered this before and encountered it effectively, and the Americans had great ideas on how to outflank and defeat these forces, that gives me energy.

Maddow doesn’t pretend that we don’t confront the rise of fascism and authoritarianism. The queen of context laid it out for Americans tonight – not only do we face this threat, we have done it before. This is exactly the topic she dedicates to her new podcast Ultra.

Ultra looks familiar because we’ve faced major threats like this before:

Sitting members of Congress support and encourage a conspiracy to overthrow the government. Insurgents accused of conspiring to end American democracy for good. Justice Department prosecutors under crushing political pressure. Rachel Maddow Presents: Ultra is the almost-forgotten true story of good old-fashioned American extremism fueled by proximity to power. When extremist elected officials are caught conspiring with the violent far right against America, this is the story of the efforts they will make to cover their tracks.

We must fight on all fronts and never miss a battle. This is an all hands on deck situation. It’s bad, it’s terrifying, but it’s also something each and every one of us can do something about.

Political organizing at the local level, driving people to the ballot box, knocking on doors – these things have power. community has power.

We can learn from those who fought this battle before us. We can use our wits to fight these anti-freedom forces on all fronts.

Ms. Jones is Co-Founder/Editor-in-Chief of PoliticusUSA and a member of the White House Press Pool.

Sarah hosts Politicus News and co-hosts Politicus Radio. Her analysis has been featured on several national radio and television news programs and talk shows, as well as in print media, including Stateside with David Shuster, as well as The Washington Post, The Atlantic Wire, CNN, MSNBC, The Week, The Hollywood Reporter and more.

Sarah is a member of the Society of Professional Journalists.

Kenan Thompson’s Amazon Prime Sale picks make your life simpler

We interviewed Kenan Thompson because we think you’ll like his choices at these prices. Kenan is a paid spokesperson for Amazon. E! has affiliate relationships, so we may earn a commission if you buy something through our links. Items are sold by the retailer, not E!. Prices are correct at time of publication.

Amazon shoppers look forward to Prime Day every summer, but this year we’re doubly lucky with a second big sale. Amazon’s Prime Early Access Sale includes two days of deals beginning October 11, 2022. There are big discounts in many product categories including household, fashion and beauty products. If you’re looking for some handy tips, you’ll find the Saturday Night Live icon Kenan Thompson has you covered with some unmissable recommendations.

Kenan has selected some useful kitchen gadgets, innovative cleaning gadgets and fun games for the whole family. If you like planning your Amazon purchases in advance, Kenan’s tips are a great place to start.

Extra flights in Asia could trigger airfares to come back down, however it could take time

Many flights canceled during the pandemic are returning to the skies this month.

Last week, Singapore Airlines and Scoot announced they would be adding dozens of flights to cities across Asia. Citing strong demand and eased border restrictions, both airlines announced more flights between Singapore and Japan, South Korea and Taiwan.

Scoot is also returning twice-weekly flights to Yogyakarta and Pekanbaru in October.

Most flights are resuming, but Scoot is adding some new routes. This month she will fly from Singapore to Lombok and Makassar, Indonesia. Scoot is also adding a seasonal non-stop service to Sapporo for travelers wanting to hit the slopes in Japan this winter.

Both airlines are preparing for more flights to China. Singapore Airlines launched flights to Beijing in September; This month it will fly to Chengdu, with a second weekly flight to Shenzhen. Scoot already flies to four Chinese cities, with flights to Wuhan and Zhengzhou starting this week.

Scoot isn’t the only low-cost airline expanding its services in the region. Cebu Pacific resumes its first international route from Davao to Singapore this month. And AirAsia is resuming several flights between Malaysia and Indonesia, including a new route connecting Bali with Penang.

Following the easing of border restrictions in Hong Kong, Cathay Pacific’s low-cost airline HK Express announced plans to add more than 400 flights between Hong Kong and Singapore, Bangkok and several cities in Japan by the end of the year.

More flights, cheaper fares?

James Marshall, vice president of global air at Expedia Group, told Squawk Box Asia on Monday that the limited flight choices available to travelers in Asia is “one of the reasons the prices are quite high.”

“The fact that airlines are increasing capacity is a very good thing,” he said. But whether airfares are peaking right now, Marshall said, “It’s very hard to tell.”

One problem is that the industry continues to struggle with staff shortages. The Hong Kong Aircrew Officers Association, a professional body representing Cathay Pacific pilots, warned last week that due to staffing shortages “airfares will continue to rise due to low supply combined with high demand” – a situation weighing on Hong Kong becomes “many years.”

Staffing issues have been blamed for last summer’s travel chaos in Europe and North America — a problem Asian airlines don’t want to repeat, Marshall said.

“Asia Pacific airlines have been very careful about how they are managing the surge… and making sure they are staffed at the right level so we don’t end up with operational issues that we have seen in other regions.” , he said .

If airlines remain cautious about adding new flights and demand remains strong – particularly with the end of the Christmas travel season – cheaper fares may not materialize for some time.

“We’re obviously optimistic about opening and reducing capacity, but demand is still very strong, especially towards the end of the year,” Marshall said.