Mortgage demand plummeted to a 28-year low as the average long-term rate creeped up toward 8%.
According to leading real industry group Mortgage Bankers Association, the average rate on the benchmark 30-year home loan climbed to 7.53% this week — the highest rate since 2000.
A separate report on Bankrate showed that Thursday’s average on a 30-year fixed mortgage rate was even higher, 7.88%.
The rate was 6.75% at this time last year and mortgages below 3% were offered at the start of 2021. The mortgage rate hasn’t hit 8% since 1995.
Mortgage applications and applications to refinance a home have stalled dramatically, falling 6% and 7% for the week, respectively, according to MBA.
“The purchase market slowed to the lowest level of activity since 1995, as the rapid rise in rates pushed an increasing number of potential homebuyers out of the market,” MBA’s deputy chief economist Joel Kan told The Post.
The higher rates add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already unaffordable to many Americans.
They also discourage homeowners who locked in low rates two years ago from selling.
The lack of housing supply also weighs on sales of previously occupied US homes, which are down 22.3% through the first seven months of the year versus the same stretch in 2022.
In response, Kan noted that applications for adjustable-rate mortgages increased, making up 8% of purchase applications — up from 6.7% a month ago when interest rates sat around 7%.
ARMs typically offer lower interest rates, though they’re fixed for shorter periods of time.
Mortgage rates have been rising along with the 10-year Treasury yield, which has historically been considered a key benchmark for mortgage rates.
Thus, as mortgage rates near 8%, the 10- and 30-year Treasury yields have also reached new heights, hitting 4.8% and 4.925%, respectively, on Tuesday — both the highest since 2007.
The advances could keep upward pressure on inflation, giving the Federal Reserve reason to keep interest rates higher for longer.
In August, US inflation rose 3.7% from 2022. Though it’s still above the Fed’s 2% goal, it’s a stark difference from June 2022’s four-decade peak at 9.1%.
Inflation’s substantial cooldown in recent months has forced many home sellers to slash their asking prices to lure in potential buyers.
Those who don’t slash their asking price risk selling at a loss. Last month, a report by real estate brokerage Redfin revealed that home sellers in America’s major cities are already doing this.
San Francisco sellers had it the worst, Redfin’s report showed, as they are a whopping four times more likely than the average US home seller to take a loss.
Detroit is home to the second-highest share of homeowners who take a loss in their home-selling transactions, at 6.9%, followed by Chicago and New York, where 6.5% and 5.9% of homeowners take a loss in selling their homes, respectively.
Though the share of New York homeowners who reported a loss was half that in San Francisco, the cities were tied for the largest median loss in dollars, at $100,000, Redfin found in a separate analysis.
Jimmy Kimmel’s late-night talk show will return to ABC affiliates belonging to Sinclair and Nexstar after the two major network operators took his programme off-air over his comments in the wake of Charlie Kirk’s assassination.
Kimmel was accused of being “offensive and insensitive” after using his programme, Jimmy Kimmel Live, to accuse Donald Trump and his allies of capitalising on the killing.
Disney-owned ABC suspended the show last week following threats of potential repercussions from the Trump-appointed head of the Federal Communications Commission.
Sinclair, which controls 38 ABC affiliates from Seattle to Washington DC, called on Kimmel to apologise to Mr Kirk’s family over the comments and asked him to “make a meaningful personal donation” to Turning Point USA, the nonprofit that the conservative activist founded.
Image: Actor Gregg Donovan holds a sign that says “Welcome Back Jimmy”. Pic: AP
On Tuesday, Disney announced the return of the programme after backlash to its suspension, but both Sinclair and Nexstar, which own more than 20% of ABC affiliates, initially said they would not resume airing the show.
Kimmel criticised the ABC affiliates who preempted his show during his TV return, saying: “That’s not legal. That’s not American. It’s un-American.”
Three days later, the two major network operators announced that Jimmy Kimmel Live would return to their TV stations after the week-long boycott.
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The move came after Sinclair received “thoughtful feedback from viewers, advertisers and community leaders”.
In its statement, the company pointed to its “responsibility as local broadcasters to provide programming that serves the interests of our communities, while also honouring our obligations to air national network programming.”
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Protests held outside company buildings in support of Kimmel
Nexstar, which controls 28 ABC affiliates from Kansas to New Orleans, said in a similar statement that it was airing content that is “in the best interest of the communities we serve”.
Both companies said their decisions were not affected by influence from the Trump administration or anyone else.
The president had criticised the programme’s return on Tuesday, writing on Truth Social that he “can’t believe” ABC gave Kimmel his show back and hinted at further action.
“Why would they want someone back who does so poorly, who’s not funny, and who puts the Network in jeopardy by playing 99% positive Democrat GARBAGE,” Mr Trump wrote.
“He is yet another arm of the DNC (Democratic National Committee) and, to the best of my knowledge, that would be a major illegal Campaign Contribution. I think we’re going to test ABC out on this.”
Image: Donald Trump criticised the return of Kimmel’s show. Pic: Reuters
During Kimmel’s first show since being taken off-air, the presenter said it was “never my intention to make light of” Mr Kirk’s death.
“I don’t think there’s anything funny about it,” he said as he choked up.
“Nor was it my intention to blame any specific group for the actions of what was obviously a deeply disturbed individual. That was really the opposite of the point I was trying to make”.
Speaking on Tuesday night’s show, Kimmel said he understood why the remarks “felt either ill-timed or unclear, or maybe both”.
New episodes of Jimmy Kimmel Live air Monday to Thursday, and Friday night’s rerun will be of Tuesday’s show, meaning viewers of Sinclair stations will be able to watch Kimmel’s emotional return to the air.
The Prince of Wales has told Schitt’s Creek star Eugene Levy that 2024 was the “hardest year” of his life.
The future king told the Hollywood star about last year, which saw his wife, the Princess of Wales, and his father, the King, both undergoing treatment for cancer.
The pair were catching up over a pint in a pub as part of Apple TV+ series The Reluctant Traveler With Eugene Levy, which will air next month.
Image: The Prince of Wales and Eugene Levy in a pub in Windsor. Pic: PA
In the episode Living The Royal Life In The UK, William tells Levy: “I’d say 2024 was the hardest year I’ve ever had.
“Life is said to test us as well and being able to overcome that is what makes us who we are.”
Image: Eugene Levy and the Prince of Wales at Windsor Castle. Pic: PA
The preview of the episode also saw Levy invited to “pop down” to Windsor Castle for a private tour by the prince.
Levy, 78, can be seen reading out an invitation saying: “I heard that your travels have brought you to the UK and I wondered if you might like to see Windsor Castle?
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“If you’re free at 10 tomorrow, why don’t you pop down to the Castle for a private tour.
After touring the castle, Levy asks William what he does when he is at home, and the prince laughs and replies: “Sleep. When you have three small children, sleep is an important part of my life.”
New episodes of The Reluctant Traveler With Eugene Levy will premiere weekly until the finale on 31 October 2025.
The special episode with William will air on 3 October.
CHARLOTTESVILLE, Va. — If there’s a recipe for a trap game, Florida State delivered nearly every ingredient required Friday.
After weeks of fawning praise following a Week 1 upset over Alabama, FSU quarterback Tommy Castellanos admitted his team might have read a few too many of its own headlines.
On the horizon in Week 6 is a showdown against rival Miami.
And on Friday, FSU got it first road test of the season against a pesky Virginia team wearing throwback uniforms in honor of another historic upset 30 years ago, when the Cavaliers delivered FSU its first loss as a member of the ACC.
When this game kicked off, it didn’t take long for the football gods to deliver some karma.
“I don’t think any part of it was looking further [ahead to Miami],” Florida State coach Mike Norvell said of a bevy of early miscues in his team’s 46-38 double-overtime loss. “We knew what their energy was going to be. We knew what our energy was going to be. It wasn’t a lack of preparation. But we did not execute like we needed to.”
Florida State fell into a 14-0 hole early in the second quarter, with the Cavaliers getting both touchdowns following Noles turnovers.
But that was just the beginning of a wild night at Scott Stadium that saw FSU battle back to take a 21-14 lead, Virginia respond to go up by seven with two minutes to play and Castellanos deliver a dagger in the end zone to tight end Randy Pittman on a fourth-and-goal with 36 seconds left to send the game to overtime.
All of that was just a prelude to Virginia quarterback Chandler Morris‘ fifth total touchdown of the game and a pitch-and-catch from Castellanos to star FSU receiver Duce Robinson that appeared to set the Seminoles up for a shot at a third overtime. Replay review, however, showed Robinson bobbling the catch as he exited the back of the end zone, and FSU’s last gasp on fourth down fell short.
Amid a 2-10 season a year ago, an outcome like this would have been another nail in Florida State’s coffin. After Friday’s defeat, however, Castellanos argued that it might have been exactly the experience this team required.
“I think we needed it,” said Castellanos, who threw for 254 yards, ran for 78 and accounted for two touchdowns to go with a pair of interceptions. “I think guys were riding high, kind of feeling ourselves a little bit. But I think we’ll respond and bounce back. We have to. This will push us and make us work harder.”
This offseason, Norvell lamented the 2024 team’s inability to respond to adversity, saying early losses doomed the season. He spent the entire offseason working to build a different mindset for 2025, and he said the resilience the Seminoles showed Friday offered ample evidence this won’t be a repeat of last year’s collapse.
“We didn’t finish with the outcome we wanted, but we responded,” Norvell said. “I believe in this team. I know how they work. And I believe in what they’ll do.”
Florida State refused to suggest Friday’s early struggles came as a result of looking ahead to Week 6’s rivalry game against No. 2 Miami, but there was clearly a lack of focus from the outset. Florida State’s first three drives resulted in a punt, a fumble and an interception.
Trap game? No. A bad mental approach? For sure, Pittman said.
“Just a lack of execution,” Pittman said. “It’s mental focus. We need to be locked in, be where your feet are, and execute.”
Regardless of how much Miami might have loomed over the Seminoles’ early struggles Friday, the Hurricanes will have their full attention now.
Castellanos said he already delivered a firm message to his teammates in the postgame locker room after the loss: “Be a man about it. Eat it, and on to the next. You can’t dwell on the past. It’s over.”
What lies ahead is a shot a redemption and a revival of FSU’s playoff hopes.
“We have a big opportunity here in front of us next week, a huge game for us, for our program and university,” Norvell said. “There are some big steps we need to take as a football team to be able to handle that environment and emotions and make sure our discipline and execution is what it needs to be.”