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.
Four people have been killed in the latest US strike on an alleged drug boat amid growing unease at the legality of the attacks.
The small vessel, which was hit in the eastern Pacific Ocean on Thursday, is the 22nd destroyed by the US military on suspicion of drug trafficking.
It is the first such attack after a pause of nearly three weeks.
At least 87 people have now been killed during Donald Trump‘s “war” with drug cartels, which has also seen vessels targeted in the Caribbean Sea, including near Venezuela.
Image: The vessel explodes in flames. Pic: Reuters
Video of the strike shows a small boat moving across the water before it is suddenly hit by a large explosion.
The boat is then seen engulfed in flames and billowing smoke as the camera zooms out.
On X, formerly known as Twitter, US Southern Command described those killed as “four male narco-terrorists“.
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“Intelligence confirmed that the vessel was carrying illicit narcotics and transiting along a known narco-trafficking route in the Eastern Pacific,” the post said.
The Trump administration has been weighing options to combat what it has portrayed as Venezuelan President Nicolas Maduro‘s role in supplying illegal drugs that have killed Americans.
The socialist leader has denied having any links to the illegal drug trade.
Venezuela has said the boat attacks amount to murder – and that President Trump’s true motivation is to oust Mr Maduro and access its oil.
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It comes as an investigation in Washington DC has started looking into the very first strike on an alleged drug boat on 2 September in international waters near Venezuela.
On that occasion, US navy admiral Frank “Mitch” Bradley is accused of ordering a follow-up strike to kill the survivors.
This reportedly followed demands from defence secretary Pete Hegseth that the navy “kill them all”.
The admiral briefed politicians in a series of closed-door briefings at the US Capitol on Thursday, and denied there was any such order from Mr Hegseth.
Image: Admiral Frank ‘Mitch’ Bradley arrives at the US Capitol for a classified briefing on Thursday. Pic: Reuters
Mr Hegseth said the admiral “made the correct decision to ultimately sink the boat and eliminate the threat”.
But speaking on Air Force One last Sunday, the president said he was unaware of the second strike and would not have wanted it, though he backed Mr Hegseth.
A video of the 2 September strike, which killed 11 people, has been shown to politicians, but accounts of its contents split along party lines.
Republican Senator Tom Cotton of Arkansas said the survivors were “trying to flip a boat loaded with drugs bound for United States back over so they could stay in the fight”.
Image: Donald Trump and Pete Hegseth during a cabinet meeting at the White House on 2 December. Pic: Reuters
His party colleague, representative Rick Crawford of Arkansas, issued a statement saying the strikes were legal.
But representative Jim Himes of Connecticut, the top Democrat on the House Intelligence Committee, said: “What I saw in that room was one of the most troubling things I’ve seen in my time in public service.
“You have two individuals in clear distress, without any means of locomotion, with a destroyed vessel.”
They “were killed by the United States”, he said.
Representative Adam Smith of Washington, the top Democrat on the House Armed Services Committee, echoed his account.
Image: Democrat representative Adam Smith of Washington (L) leaving the briefing. Pic: AP
He said the survivors were “basically two shirtless people clinging to the bow of a capsized and inoperable boat, drifting in the water – until the missiles come and kill them”.
Likewise, Senator Jack Reed of Rhode Island, the top Democrat on the Senate Armed Services Committee, said he was “deeply disturbed” by the video, and called for it to be made public.
“This briefing confirmed my worst fears about the nature of the Trump Administration’s military activities,” he said in a statement.
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Even if the campaign against the suspected drug-trafficking boats had been authorised by Congress, ex-military lawyers said the strike against survivors would be a war crime if the military knowingly killed survivors.
Attacks on combatants who are incapacitated, unconscious or shipwrecked are forbidden by the defence department’s law of war manual – provided the survivors abstain from hostilities and do not attempt to escape.
Firing upon shipwreck survivors is cited as an example of a “clearly illegal” order that should be refused.
The boss of world football’s governing body was back in the White House this week, and sport wasn’t even on the agenda.
And yet it still came back to football and today’s World Cup draw – even after the signing of a peace deal between Rwanda and the Democratic Republic of the Congo.
Mr Infantino was picked out in the audience as Mr Trump diverted from trumpeting ending another conflict to boasting about World Cup ticket sales.
Image: Donald Trump and FIFA President Gianni Infantino stand next to the FIFA Club World Cup trophy. Pic: Reuters
“A great leader in sports and a great gentleman,” the US president said.
So it’s certainly not just Mr Infantino dishing out the flattery. But there is plenty of that, aligning himself with the MAGA agenda going back into the first term.
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“Together we will make not only America great again,” he said in January, “but also the entire world”.
There is often bemusement when Mr Infantino pops up wherever Mr Trump is – from a Saudi-backed financial conference in Miami to an official visit to Saudi Arabia and the Gaza peace summit in Egypt.
There isn’t a non-American with such prominent proximity to the presidency. And it’s being used to shortcut decision-making for the World Cup, with direct access to the most powerful man on Earth to help smooth the tournament’s delivery.
Mr Infantino knows how to chime with Mr Trump’s talking points, recently telling critics to lay off the president because he has a mandate from winning the 2024 election.
“We should all support what he is doing because I think he is doing pretty good,” Mr Infantino said.
Image: Pic: AP
For a man who was largely known a decade ago for drawing balls for the Champions League, the ascent to the peak of power has been rapid and only made possible by scandals knocking out presumptive leaders.
It will be a draw on Friday that cements this unlikeliest of bonds when the World Cup schedule is determined at the Kennedy Center in Washington DC.
So much has been done to flatter Mr Trump, to pander to his passions.
The one thing he craves more than anything is a peace prize.
And after missing out on the foremost, illustrious Nobel version – despite an endorsement from Mr Infantino – FIFA created its own to hand out on Friday without any announced process for nominations or selection.
And if there is one song to indulge Mr Trump with it is the unlikely YMCA. The 1970s disco group Village People have been hired for the draw ceremony.
Expect the Trump dance. Expect the unexpected. Expect uneasy moments as Mr Trump takes centre stage alongside Mr Infantino.
How freewheeling will the presidential address become?
And is it all too political, even for a football organisation rarely untouched by politics?
Image: Pic: AP
It has created awkward moments when Mr Trump has been disparaging towards Democrat-run cities attacked for not being safe.
“Gianni, can I say we will move (matches)?” Mr Trump asked on live TV in the Oval Office.
“I don’t think you’re going to have this problem. But we’re going to move the event to some place where it’s going to be appreciated and safe.”
Usually FIFA dismisses questions about moving World Cup venues this late on, but Mr Infantino responded in part: “Safety and security is the number one priority.”
Usually, FIFA would be working to ensure all fans can attend its tournament, but the governing body is not dissenting against the block on visitors from Iran and Haiti.
The rhetoric of Mr Trump – framed around security – collides with FIFA’s idealism about uniting the world through football, with everyone being welcome.
And this is not just about the US. For the first time this is a World Cup being co-hosted by three nations, even if Mr Infantino has paid more visits to just one of them.
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But the leaders of Canada and Mexico are due at the draw here in DC.
They’ll hope the football ceremony provides some respite from Mr Trump’s threats of a military strike on Mexico over drugs or deepening the trade war with Canada.
There is a peace prize to award, after all.
A celebration of all things Donald Trump.
And at some point, the teams will discover they will be drawn to play at the tournament next summer.
Because with Gianni Infantino it has to come back to football, the whole purpose of his role.
Even if his political alliances can seem more prominent than what happens on the pitch.
I recently attended Strutt’s Demo Day to check out the company’s new EV1 mobility device, and even if you’ve never paid attention to electric wheelchairs before, you’ll still probably find this interesting.
The EV1 isn’t really a wheelchair in the traditional sense. It’s closer to an autonomous robot that just happens to take the form of a chair. Imagine a self-driving car fused with a humanoid robot, shrunk down to indoor-outdoor mobility scale. That’s the EV1. And after having spent some seat time in it, I can tell you that this technology is going to change lives.
This isn’t my normal scene – you’re much more likely to see me testing out wild new e-bikes or powerful electric motorcycles. But I was intrigued by the idea of a new type of electric mobility device that had the potential to change not just the way people get around, but the way they live. And I’m glad I followed that hunch and visited Strutt’s Demo Day.
If you want to experience the demos and live testing yourself, or rather vicariously through me, then check out my video below. It’s a fascinating experience.
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Then keep reading for my complete thoughts.
At its core, the EV1 is a mobility device that can drive itself and think for itself. But the level of tech onboard goes far beyond basic autonomy. It uses a full suite of sensors – lidar, vision cameras, ultrasonic sensors, and more – to constantly map its environment.
As the engineers explained to us, it’s actually a much trickier problem to solve than a self-driving car like Waymo, since self-driving cars generally stick to the simplified world of car lanes. But a mobility device needs to be able to autonomously navigate everything from a packed shopping mall to a grassy park path to the livingroom – all without accidentally driving itself down the stairs or over the family dog. That means the EV1 gets an array of overlapping sensors that would make a Tesla jealous.
And despite all that tech, the entire machine breaks down into five major pieces without tools, without unplugging wires, and without any fuss. In about 30 seconds, it’s ready to be lifted into the trunk of a car. Or for those with a vehicle large enough, it can just drive itself up the ramp and park itself in a vehicle all by itself.
It also includes built-in AI navigation. You can literally tell it where you want to go, like asking it to take you into the kitchen to grab a drink, and it will plan the route and drive you to your fridge. That may sound like a demo-party gimmick until you consider how transformative it could be for people who currently have to navigate narrow, cluttered, or inaccessible spaces by carefully inching forward with both hands on a joystick. Hands-free indoor navigation could be a game changer.
You can even tap a location on the live-view map shown on the display and the EV1 will just start taking you there, completely hands-free. Or you can summon it from another room, for example if you’re sleeping in bed and need the chair to come pick you up in the bedroom. This is autonomous driving on another level.
There’s also a mode called Co-Pilot, which lets the user take control to navigate themselves, but will constantly monitor for obstacles and make corrections if the user is about to hit something. For example, you can drive right through a narrow doorway without worrying about precision steering, since it won’t let you graze the edges of the door frame (and if you’ve ever seen the doorframes in the home of a wheelchair user, you’ll know what a game changer that would be).
Strutt demonstrated this mode by having a user blindfolded while driving through a curved hallway. He was simply pressing forward on the controls, but the EV1 smoothly followed a curved path on its own instead of letting him run into the wall when it began to curve. I tried it myself, and it’s uncanny how natural it feels.
But the EV1 isn’t limited to indoor environments. Strutt built in several clever innovations that make it surprisingly capable off pavement. There’s real suspension. The front wheels are actually dual wheels, helping them roll over gaps and rails such as those found in city trolley systems. Those same front wheels aren’t passive casters; they each have their own motors, giving the EV1 proper power steering instead of relying on tank-turning from the rear wheels. It drives like something purpose-built rather than hacked together. And that allows it to handle terrain and inclines not possible from other devices, such as off-camber turns that would send others sliding sideways down an incline.
During the demo, I asked if I could take the EV1 outside the fancy exhibition hall to see how it handled the real world. As I approached the door, trying to figure out how to open it while driving through at the same time, one of the Strutt staff told me, “Just ram it.”
I hesitated, worried I’d scratch up their expensive prototype, but he assured me it would be fine. Turns out, it was very fine. Then I remembered the clip in the presentation they shared of the EV1 towing a Tesla with a tow strap, so I guess the power was never really going to be an issue.
Speed-wise, Strutt had the units limited to 12 km/h (7.5 mph), but even at that speed they feel legitimately fast. Fast enough, in fact, that I switched into manual mode to really get a feel for it.
With a bunch of YouTubers flying around in fancy electric mobility devices, you can imagine that a drag race pretty quickly materialized. I won’t tell you who won, you’ll have to watch the video above to see. But let’s just say that my putting it in manual override mode to remove all the safety features temporarily might have been a dirty trick that gave me an advantage.
All the while, though, I found myself ping-ponging emotionally. On one hand, I’m having a blast riding a futuristic robot-chair hybrid. On the other hand, I’m constantly reminded that for many people, devices like this aren’t toys – they’re essential tools that allow them to navigate a world that wasn’t built for them. Many of the very people who helped Strutt beta test the device during development were there at the presentation, EV1), it was also a stark reminder that while I’m goofing off racing these things, this is technology meant to help people that need it in order to navigate a world not designed for them.
But maybe those two feelings don’t have to be in conflict. Why shouldn’t a device that empowers people also be enjoyable to use? Why can’t a life-changing device like this bring more than just mobility? Why can’t it actually be… fun? I’ve never looked at a mobility chair and thought it looked like a blast to use. This one genuinely is!
But the last bit here that will be critical, and something we just don’t yet know yet, is what it will cost. Considering traditional powered wheelchairs already run a few thousand dollars for relatively clunky designs, this level of advanced robotics likely won’t come cheap.
Strutt says pricing will be revealed early next year, and has just launched an early reservation program offering 35% off the first 200 units (more info in their Facebook group here). Hopefully the final price ends up within reach for the people who most need it. And like many early-stage technologies, costs will likely come down over time as production scales.
For now, though, the EV1 represents something new in mobility: a device that’s powerful, capable, intuitive, and – unexpectedly – pretty darn fun.
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