Los Angeles voters approved a tax on the sale of mansions and other multimillion-dollar real estate transactions to raise money for affordable housing in the second-largest US city.The measure, known as Proposition ULA, boosts the one-time transfer tax to 4% for property deals between $5 million and $10 million, and 5.5% for transactions of $10 million and above. The current rate on all sales is 0.45%. The increase takes effect on April 1, and wi
But there’s still a long way to go before consumers feel much relief or the Federal Reserve hits its goal of a 2 percent annual price target The price of gasoline is dropping like a rock. Chicken wings are suddenly a bargain. And retailers drowning in excess inventory are looking to make a deal.After more than a year of high inflation, many consumers are finally starting to catch a break. Even apartment rents and car prices, two items
U.S. banks reported a 3.2% rise in third-quarter net income from a year earlier, but an uptick in early delinquency and higher unrealized losses with securities may reduce future profits, the Federal Deposit Insurance Corporation (FDIC) said on Thursday.Jointly, banks posted $71.7 billion in profit in the third quarter. The FDIC compiles data from 4,746 commercial banks and savings institutions it insures.FDIC acting Chairman Martin Gruenberg sai
Borrowing costs fall for the third consecutive week, but will that bring home buyers back to the market? Aspiring home buyers saw signs of hope for greater affordability this week as the average 30-year mortgage rate dropped to 6.49%, Freddie Mac reports. Recent economic data suggests mortgage rates have peaked after surpassing 7% in the second week of November. “Rates are still more than double those of a year ago,” cautions Nadia Evangelou,
The architects of the financial system overhaul known as Dodd-Frank suffered numerous slings and arrows while crafting their historic legislation. The final rules put in place in 2010 to stabilize the system after the ravages of the financial crisis were highly controversial in many corners of the banking world — and hotly contested in Washington.However, as the economy heads into another period of potential weakness, the fruits of that labor a
The “broke college student” stereotype has been around for a while. But as college costs have risen to exorbitant levels, the stakes have gotten higher too. Where college students used to fear a budget-friendly ramen noodle diet, now 1 in 5 students have dealt with housing insecurity, according to a recent survey from student loyalty network, Student Beans. The company defines housing insecurity as someone who “finds themselv
Pending home sales continued to fall in October as higher mortgage rates shook buyer confidence. Read more from NAR’s latest home sales report. Pending home sales fell for the fifth consecutive month in October as rising mortgage rates brought many housing markets to a halt. But now that rates show signs of stabilizing, economists say more home buyers—particularly first-timers—may gradually return to the market.Still, contract signings
Banks are tightening standards, and private credit markets are adopting a "risk-off" stance. Billionaire Sam Zell probably doesn’t have trouble getting a bank loan. But one of the portfolio companies of his firm Equity Residential — a company he described as very well capitalized and an “A-” credit — recently “had the hardest revolver extension” that Zell’s firm has ever been involved in. Zell’s anecdote, provided at
The 30-year fixed-rate mortgage averaged 6.61% as of Nov. 17 The 30-year fixed-rate mortgage averaged 6.61% as of Nov. 17, according to data released by Freddie Mac FMCC, 1.38% Thursday, lower than the 7.08% rate seen last week. It was the biggest weekly decline since 1981.Still, the 30-year was averaging at 3.10% at this point last year. “Mortgage rates tumbled this week due to incoming data that suggests inflatio
Ballot measures in the U.S. to build more affordable housing and protect tenants from soaring rent increases were plentiful and fared well in last week’s midterm elections, a sign of growing angst over record high rents exacerbated by inflation and a dearth of homes.Voters approved capping rent increases at below inflation in three U.S. cities: Portland, Maine, and Richmond and Santa Monica in California. Another measure was leading in the vote
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