Housing

Why haven’t mortgage rates gone down?

Prospective homebuyers are holding onto hope that mortgage rates soon fall. Mortgage rates have done nothing but climb in the past few months, further restricting homebuying activity and refinancing. The Fed’s rate cuts haven’t helped.

• According to Freddie Mac, the average rate for a 30-year fixed mortgage is 6.79% as of Thursday, even after the interest rate cut late last week and a larger one in September.

Mortgage rates have yet to settle back into their pre-pandemic lull, where rates floated around 4% for a decade. The Mortgage Bankers Association reports that during the past five weeks, mortgage rates have increased by 67 basis points, the most in two years.

Isn’t the Fed supposed to help?

In response to cooling inflation, the Federal Reserve cut interest rates 25 basis points on Thursday, to a range of 4.5%–4.75%.

Economic experts are mixed on why the Fed’s rate cuts aren’t doing much to tame mortgage rates, but there are a lot of ingredients that go into mortgage rate soup:

• Mortgage rates are somewhat tied to the 10-year Treasury yield (which is significantly affected by economic forecasts) and lenders often reference it when setting their rates.

  • Market factors also have a big impact, like inflation, Federal Reserve policy, investor sentiment, government policies, and global events.

What has driven up Treasury yields? Some analysts believe President-elect Trump’s economic plan, which leans heavily on low taxes and high tariffs, could reignite inflation, which spiked Treasury yields. Other economists have argued his proposed plans would have a less significant impact.

As borrowers deal with the highest mortgage rates in decades, all prospective homebuyers can hope for is a decline. Rates dipped slightly last week after the quarter-point rate cut and some can find solace that more reductions are likely to come.

At least we aren’t here: Last October, when both inflation and economic growth reached pandemic-era highs, mortgage rates peaked at almost 8%.

Health

Our tap water may soon be fluoride-free

This doesn’t mean I’ll have to go to the dentist more often, right? Right? As Donald Trump takes preliminary steps to enter the White House for a second term, a member of his transition team has said a major mineral change in our tap water could take effect.

Robert F. Kennedy Jr., who will likely have a health role in Trump’s administration, has stated that the President-elect may encourage communities to consider eliminating fluoride from their water systems.

Fluoride Fans

Since 1950, fluoridating water has been advised by federal health experts due to the overwhelming evidence that moderate fluoride exposure mitigates tooth decay. Nearly two-thirds of Americans have tap water that contains fluoride.

• According to one study, fluoridated tap water has reduced overall dental costs in the US by $6.8 billion per year.

  • As a result, the CDC named water fluoridation one of the Top 10 public health achievements of the 20th century.

However, Fluoride has also garnered criticism in the medical sector with many experts stating Americans ingest too much of the mineral, which can be detrimental to children and adults alike. RFK Jr. has adopted this position and made it a policy position of the incoming administration.

Fluoride Fears

While the National Institutes of Health (NIH) has said additional study is required to ascertain the full effects of suggested fluoride levels on children and adults, health experts, medical professionals, dentists, scientists, and RFK Jr. have continued to debate its effect on Americans.

• An NIH analysis that found excessive fluoride exposure is linked to lower IQ in children.

  • As a result, a federal judge recently ordered the Environmental Protection Agency to tighten control of fluoride levels.

• Fluoride levels were found to be twice the advised limit of 0.7 milligrams per liter, according to the NIH.

Since fluoride can naturally occur in groundwater, nearly 2 million Americans consume water that contains at least twice the maximum amount of fluoride. That might be something to be worried about:

• According to the CDC, 25% of Americans between the ages of six and 49 exhibit symptoms of dental fluorosis.

• According to a USC study, the children of pregnant women who consume more fluoride are at greater risk of having behavioral problems.

• Some research indicates that kids who are exposed to higher levels of fluoride are more likely to suffer from bone-related issues.

Looking forward: If the Trump administration decides to pursue the eradication of fluoride from tap water, it may encounter some resistance. Water decisions are made at the community and state level, but the administration could use the EPA to enact a nationwide removal, which would almost certainly invite legal action.

Retail

Barnes & Noble has made a comeback

Ah, my favorite place to walk around for an hour and leave empty-handed. This month, 12 additional Barnes & Noble locations will open, putting the chain on track to reach its target of 60 scheduled openings this year.

It’s B&N’s largest expansion in over 10 years, after being on the brink of bankruptcy just six years ago. The retailer hopes to turn the page and reinvent itself as sales continue to climb.

Corporate Competition

Barnes & Noble, which rushed to attempt to regain customers by diversifying its products and investing $1 billion in a Kindle copycat, was torn apart by Amazon.

• A hedge fund purchased the chain in 2019, which is often the last resort for a failing retailer.

  • However, in a turn of fate, a new CEO, James Daunt (who led the turnaround of the UK’s largest bookstore chain) took the reins.

Daunting overhaul: Daunt immediately took action, ending expensive publisher agreements and purchasing affordable shop space. The new CEO told individual locations to set up exhibits and change store layouts in a way that was tailored to their community.

• While the pandemic initially forced B&N to close stores and lay off employees, it also created cheap retail space the company could snatch up, which is finally paying off.

Total turnaround: Daunt completely revamped the philosophy of the dying bookstore chain and brought it back to life through innovative changes, which resulted in sales growing more than 4% last year.

Grab Bag

Target is offering the cheapest Thanksgiving meal yet

There’s nothing like a Target turkey dinner. Target said earlier this month that it is offering its lowest-priced Thanksgiving meal bundle ever in an effort to lure cost-attentive holiday shoppers to the store.

Bundle O’ Bargains

The Thanksgiving meal bundle joins a whole host of other products the retail store is offering discounts on, over 8,000 in fact. Foot-at-home prices (grocery inflation) came in at 1.3% in September, according to the US Bureau of Labor Statistics, and customers are hungry for a good deal.

But Target isn’t the only one with competitive Thanksgiving dinner deals:

• Walmart is offering a ~$45 meal, which feeds four, and a ~$98 dinner, which feeds two dozen. Both are cheaper than the year prior.

• At $47, Aldi's Thanksgiving dinner is the lowest it has been in five years (and it feeds 10 people).

• Although Sam's Club's new Thanksgiving feast is more expensive, it comes fully prepared and costs $100 for ten people.

Or, you could settle for a good ole’ pizza: Target is providing Circle 360 members who place same-day delivery orders between November 13 and November 16 a free frozen pizza since Thanksgiving Eve is (apparently) one of the most common pizza nights of the year.

Take a look at the hottest new collectible

And I’m not talking about the dog. The Westminster Kennel Club and Topps, the trading card business that Fanatics purchased for around $500 million in 2022, are collaborating on cards that showcase champion dogs.

Canine Cards

While trading cards of dogs may seem a bit odd, the collectible business didn’t even start as an addition to the sports world. In the late 1800s, a tobacco manufacturer, Allen & Ginter, started producing trading cards with images of performers, sports stars, flags, birds, and various other subjects.

It’s evolved into a huge business that serves as the main money moneymaker for Fanatics:

• As of 2023, the value of the worldwide sports trading card market was $44 billion.

• Last year, Topps made $640 million from baseball card sales alone, which accounted for the majority of Fanatics' $1 billion in total revenue.

According to Westminster, the cards are a means of reaching a broader demographic and making the dog show (which comes off as pretty preppy) seem a bit more inviting.

Time to start opening packs: Extra collectible relic cards can even contain actual fragments of "Best in Show" ribbons or handlers' winner's lapels.

Fast Facts

Monkey Madness: A "sizeable group" of the 43 rhesus monkeys that broke out of a research facility in South Carolina last week have been recovered unharmed, according to police.

Boy’s Breakfast: Biden will host President-elect Trump tomorrow morning, restarting a tradition that symbolically begins the transfer of power between administrations.

Sad Signatures: According to officials in Nevada, ballot counters had trouble authenticating teens' ballots since their e-signatures barely resembled the ones on their drivers licenses. Guess Gen Z doesn't have as much practice signing checks.

Famous Voice: Elwood Edwards, 74, passed away this week. In 1989, Edwards paid $200 to recite the famous America Online tagline, "You've got mail," along with "Welcome," "File's done," and "Goodbye."

Break Down: The Australian breakdancer, Raygun, who went viral for doing this at the Paris Olympics announced she is retiring from competitive breakdancing over the weekend.