Connect with us

Published

on

US single-family homebuilding rebounded in September, boosted by demand for new construction amid an acute housing shortage, but the highest mortgage rates in nearly 23 years could slow momentum and delay the overall housing market recovery.

That was flagged by other data on Wednesday showing applications for loans to purchase a home plunged last week to levels last seen in 1995. In addition, the jump in housing starts partially recouped the decline in August.

The rebound in homebuilding probably reflected permits approved several months ago before mortgage rates broke above 7%. A survey this week showed confidence among single-family homebuilders slumped to a nine-month low in October, with builders reporting lower levels of traffic.

“In the very short-term, single-family construction activity is likely to increase with permits rising in every month of 2023 thus far, but at some point mortgage rates are likely to put a lid on new construction activity for home purchase,” said Conrad DeQuadros, senior economic advisor at Brean Capital in New York.

Single-family housing starts, which account for the bulk of homebuilding, increased 3.2% to a seasonally adjusted annual rate of 963,000 units last month, the Commerce Department said. Data for August was revised to show starts dropping to a rate of 933,000 units instead of 941,000 units as previously reported.

Single-family starts rose in the Midwest, West and the densely populated South, but plunged 19.0% in the Northeast.

The housing market had shown signs of stabilizing before mortgage rates resumed their upward trend late in the summer, with the rate on the popular 30-year fixed mortgage vaulting above 7% in August. According to the Mortgage Bankers Association, the average contract interest rate on a 30-year fixed-rate mortgage rose 3 basis points to 7.70% last week, the highest since November 2000.

Mortgage rates have risen in tandem with the yield on the benchmark 10-year Treasury note, which has spiked to more than a 16-year high, mostly because of expectations that the Federal Reserve will keep interest rates higher for longer in response to the economy’s resilience. Since March 2022, the central bank has raised its benchmark overnight interest rate by 525 basis points to the current 5.25%-5.50% range.

Residential investment has contracted for nine straight quarters, the longest such stretch since the housing market bubble burst, triggering the 2008 global financial crisis and the Great Recession. That downturn probably extended into the third quarter, though overall gross domestic product growth last quarter was likely the fastest since late 2021, thanks to a tight labor market that is underpinning consumer spending.

Stocks on Wall Street were trading lower amid mounting tensions in the Middle East. The dollar rose against a basket of currencies. U.S Treasury prices fell, with the yield on the 10-year bond rising to the highest level since July 2007.

Financial markets expect the Fed will leave rates unchanged at its Oct. 31-Nov. 1 policy meeting, according to CME Group’s FedWatch Tool, given the surge in Treasury yields.

Starts for housing projects with five units or more soared 17.1% to a rate of 383,000 units in September. Overall housing starts accelerated 7.0% to a rate of 1.358 million units in September. Economists polled by Reuters had forecast starts rebounding to a rate of 1.380 million units.

Permits for future construction of single-family homes rose 1.8% to a rate of 965,000 units, the highest since May 2022. Though permits are a leading indicator, economists cautioned against being too optimistic about homebuilding prospects, citing the soaring mortgage rates and souring builder sentiment.

“It’s not lights out for homebuilding, but we don’t know how many more body blows with the Fed’s interest-rate hammer the nation’s housing sector can withstand,” said Christopher Rupkey, chief economist at FWDBONDS in New York.

Continue Reading

US

Trump ‘considering’ whether to invite Zelenskyy to Putin meeting in Alaska

Published

on

By

White House considering inviting Zelenskyy to Trump-Putin meeting in Alaska - reports

The White House is considering inviting Volodymyr Zelenskyy to a meeting between Donald Trump and Vladimir Putin in Alaska, according to reports in the US.

The reports come a day after Washington and Moscow confirmed the US and Russian presidents will meet on Friday to discuss bringing about an end to the war in Ukraine.

A senior US official and three people briefed on internal discussions have told Sky News’ US partner network NBC News that the Trump administration is now considering inviting the Ukrainian president to the summit.

“It’s being discussed,” one of the people briefed on the talks was quoted as saying.

Analysis: Zelenskyy faces nightmare deal


Mark Austin

Mark Austin

Chief presenter

For Ukraine – its exhausted, brave soldiers, its thousands of bereaved families mourning their dead, and its beleaguered president – it is exactly what they feared it would be.

They fear the compromise they will be forced to make will be messy, costly, unfair and ultimately beneficial to the invading tyrant who brought death and destruction to their sovereign land.

Read Mark’s full analysis here.

The sources said a visit by Mr Zelenskyy has not been finalised – and it is unclear whether the Ukrainian leader will be in Alaska.

However, the senior administration official said it is “absolutely” possible.

“Everyone is very hopeful that would happen,” the official said.

More from World

Asked whether the US had officially invited Mr Zelenskyy, a senior White House official said: “The president remains open to a trilateral summit with both leaders. Right now, the White House is focusing on planning the bilateral meeting requested by President Putin.”

On Friday – before the summit was confirmed – Mr Trump had told reporters at the White House that “we’re getting very close to a deal” that would end the conflict.

The US president added there will be “some swapping of territories to the betterment of both sides”.

Please use Chrome browser for a more accessible video player

US diplomacy ‘totally amateur’

Zelenskyy suggests he’s unwilling to give up territory

Yesterday, the Ukrainian president warned that allowing Russia to keep territory it has occupied in Ukraine will result in another invasion.

He said allowing Mr Putin to annex Crimea in 2014 didn’t prevent Russia forces from occupying more parts of Ukraine during the current conflict.

Mr Zelenskyy added: “Now, Putin wants to be forgiven for seizing the south of our Kherson region, Zaporizhzhia, the entire territory of Luhansk and Donetsk regions, and Crimea. We will not allow this second attempt to partition Ukraine.

“Knowing Russia – where there is a second, there will be a third.”

Please use Chrome browser for a more accessible video player

Zelenskyy: Ukraine will not give land to ‘occupier’

NATO allies say Ukraine must be involved in negotiations

Ukraine and several NATO allies have reportedly been privately concerned Mr Trump might agree to Mr Putin’s proposals for ending the war without taking their positions into account.

In a joint statement last night, UK Prime Minister Sir Keir Starmer and the leaders of France, Italy, Germany, Poland, Finland and the European Commission said Ukraine’s future cannot be decided without Kyiv.

They said: “Ukraine has the freedom of choice over its own destiny. Meaningful negotiations can only take place in the context of a ceasefire or reduction of hostilities.

“The path to peace in Ukraine cannot be decided without Ukraine.

“We remain committed to the principle that international borders must not be changed by force.

“The current line of contact should be the starting point of negotiations.”

Read analysis:
Lifting sanctions a ‘massive victory for Moscow’

Stakes high for Alaska summit as Zelenskyy faces nightmare deal
Why Trump will have a lot of ice to break at Alaska summit

From left: Volodymr Zelenskyy, Donald Trump and Vladimir Putin. Pics: AP
Image:
From left: Volodymr Zelenskyy, Donald Trump and Vladimir Putin. Pics: AP

UK hosts Ukrainian officials ahead of summit

Earlier, Foreign Secretary David Lammy hosted a meeting of top Ukrainian officials and European national security advisers alongside US Vice President JD Vance.

The meeting took place at Chevening, the foreign secretary’s official country retreat in Kent, where Mr Vance is staying at the start of a UK holiday.

After the meeting, Mr Lammy said: “The UK’s support for Ukraine remains ironclad as we continue working towards a just and lasting peace.”

From left: Rustem Umerov, David Lammy, JD Vance and Andriy Yermak. Pic: X/David Lammy
Image:
From left: Rustem Umerov, David Lammy, JD Vance and Andriy Yermak. Pic: X/David Lammy

It is understood that the meeting had been called at Washington’s request, and included representatives from the US, Ukraine, France, Germany, Italy, Finland and Poland, as well as the UK.

Ukraine was represented by Rustem Umerov, secretary of the country’s national security and defence council, and the head of Mr Zelenskyy’s office, Andriy Yermak.

In a post on social media, Mr Yermak said the allies’ positions were “clear” that “a reliable, lasting peace is only possible with Ukraine at the negotiating table, with full respect for our sovereignty and without recognising the occupation”.

Ahead of the meeting, Sir Keir discussed the talks in a call with Mr Zelenskyy, and also spoke to French President Emmanuel Macron.

A Downing Street spokeswoman said Sir Keir and Mr Macron “discussed the latest developments in Ukraine, reiterating their unwavering support for President Zelenskyy and to securing a just and lasting peace for the Ukrainian people”.

Continue Reading

UK

Amnesty International ‘deeply concerned’ as 474 arrests made at Palestine Action protest

Published

on

By

Amnesty International 'deeply concerned' as 474 arrests made at Palestine Action protest

Amnesty International says it is “deeply concerning” that police made 474 arrests during a Palestine Action demonstration in London.

Metropolitan Police said 466 were detained under the Terrorism Act for showing support for a banned group.

Eight more people were arrested for other offences, including five for assaulting officers.

The Met said it was the most arrests it’s made related to a single operation in at least the past decade.

Pic: PA
Image:
Pic: PA

Organiser of the event, Defend Our Juries, earlier said up to 700 people were at the event in Parliament Square and claimed police were preparing for the “largest mass arrest in their history”.

The group said those arrested included former Guantanamo Bay detainee Moazzam Begg, NHS workers, quakers and a blind wheelchair user.

Amnesty International UK’s chief executive Sacha Deshmukh said in a statement: “The protesters in Parliament Square were not inciting violence and it is entirely disproportionate to the point of absurdity to be treating them as terrorists.

“Instead of criminalising peaceful demonstrators, the government should be focusing on taking immediate and unequivocal action to put a stop to Israel’s genocide and ending any risk of UK complicity in it.”

The Met said a “significant number of people” at the event were seen “displaying placards expressing support for Palestine Action”.

Home Secretary Yvette Cooper said: “The right to protest is one we protect fiercely but this is very different from displaying support for this one specific and narrow, proscribed organisation.

“Palestine Action was proscribed based on strong security advice following serious attacks the group has committed, involving violence, significant injuries and extensive criminal damage.”

Please use Chrome browser for a more accessible video player

Palestine Action supporters arrested at protest

Police said those arrested had been taken to processing points in Westminster and any whose details could be confirmed were bailed on condition they didn’t attend further Palestine Action support events.

Others whose details could not be verified, possibly because they refused to give them, were taken to custody suites across London.

Pic: PA
Image:
Pic: PA

The protests have put a strain on authorities’ capacity to cope.

Sky News understands senior leaders in the prison service, known as “Capacity Gold”, met today to discuss how to deal with the large number of arrests as the male prison estate is close to full.

It’s understood 800 inmates were moved out of the busiest jails in and around London beforehand.

In a statement, the Metropolitan Police Federation said: “Thinking of our colleagues and wishing all assaulted officers well. Remember there are no ‘extra’ police officers – just the same ones having their days off cancelled, having to work longer shifts and being moved from other areas. Officers are emotionally and physically exhausted.”

‘We felt compelled to speak out’

The first of the arrests began just before 1pm, when a man waving a placard that read “I support Palestine Action” was stopped by police, writes Gurpreet Narwan, reporting from Parliament Square.

Officers told him he was showing support for a terrorist organisation, searched him and ushered him away.

The action soon escalated. Among the people arrested today were a number of elderly people, a blind man in a wheelchair, and a teenager.

They were protesting peacefully, with a number of people pointedly seating themselves below statues of Mahatma Gandhi and the suffragette Millicent Fawcett.

They told Sky News that they were fully expecting to be arrested but that they felt compelled to speak out and defend the right to protest.

One protester said: “I don’t think I’m a criminal. That’s not the person I am.”

However, he said he was being guided by his faith and his conscience.

Things calmed down after a few hours but there was a heavy police presence well into the afternoon and early evening.

Read more: What does proscribing a group mean?

Legislation to ban Palestine Action came into force on 5 July, making it a criminal offence to show support for the organisation, carrying a prison sentence of up to 14 years.

Defend Our Juries said earlier this week the protest would still go ahead, following several similar demonstrations since it was outlawed last month.

On Saturday, a spokesperson said: “Palestine Action and people holding cardboard signs present no danger to the public at large.”

Pic: PA
Image:
Pic: PA

Human rights advocates Amnesty International described the arrests of so many people under UK terrorism law as “deeply concerning”.

Another march organised by the Palestine Coalition, which is a separate group, set off from Russell Square and assembled on Whitehall.

The Met Police said one person had been arrested there for showing a placard in support of Palestine Action.

Pic: Reuters
Image:
Pic: Reuters

Earlier this week, three people charged as a result of illegal Palestine Action activity were named.

Jeremy Shippam, 71, of West Sussex, Judit Murray, also 71, of Surrey, and Fiona Maclean, 53, of Hackney in east London, will appear at Westminster Magistrates’ Court on 16 September.

The ban on Palestine Action faces a legal challenge in November after the High Court granted a full judicial review to Palestine Action co-founder Huda Ammori.

Continue Reading

US

Man who killed police officer ‘blamed COVID jab for making him depressed and suicidal’

Published

on

By

Man who killed police officer 'blamed COVID jab for making him depressed and suicidal'

A man who opened fire on the headquarters of America’s national public health agency – leaving a police officer dead – had blamed the COVID vaccine for making him depressed and suicidal.

Patrick Joseph White, a 30-year-old from Georgia, had tried to enter the Centers for Disease Control and Prevention (CDC) headquarters in Atlanta but was stopped by guards, a law enforcement official said.

They added that White then drove to a pharmacy across the street before opening fire late on Friday afternoon.

He was armed with five guns – including at least one long gun.

DeKalb County Police Officer David Rose, who had three children, was shot dead while responding to the incident.

 DeKalb County Police Officer David Rose. Pic: Reuters
Image:
DeKalb County Police Officer David Rose. Pic: Reuters

White also died, but authorities haven’t said whether he was killed by police or if he killed himself.

His father had contacted police and identified his son as the possible gunman.

White’s father also said his son had been upset over the death of his dog and had become fixated on the COVID-19 vaccine.

Health and Human Services Secretary Robert F. Kennedy Jr, whose scepticism of vaccines has been a cornerstone of his career, voiced support for CDC employees yesterday.

But some laid-off CDC employees said Mr Kennedy shares responsibility for the violence and should resign.

An armed police officer at the scene. Pic: AP
Image:
An armed police officer at the scene. Pic: AP

Mr Kennedy has a history as a leader in the anti-vaccine movement, but he reached new prominence by spreading distrust of COVID-19 vaccines. For example, he called it “criminal medical malpractice” to give these jabs to children.

He said after the shooting: “We are deeply saddened by the tragic shooting at CDC’s Atlanta campus that took the life of officer David Rose.

“We know how shaken our public health colleagues feel today. No one should face violence while working to protect the health of others.”

Sarah Boim, a former CDC communications staffer who was fired this year during a wave of terminations, said the shooting was the “physical embodiment of the narrative that has taken over, attacking science, and attacking our federal workers”.

The CDC headquarters in Atlanta, Georgia. Pic: AP
Image:
The CDC headquarters in Atlanta, Georgia. Pic: AP

White’s ‘distrust of COVID vaccines’

A neighbour of White told The Atlanta Journal-Constitution that the gunman spoke with her multiple times about his distrust of COVID-19 jabs.

Nancy Hoalst, who lives on the same street as White’s family, said he seemed like a “good guy” but he would bring up vaccines even in unrelated conversations.

“He was very unsettled, and he very deeply believed that vaccines hurt him and were hurting other people.” Ms Hoalst told the Atlanta newspaper. “He emphatically believed that.”

However, she said she never believed White would be violent and added: “I had no idea he thought he would take it out on the CDC.”

Continue Reading

Trending