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Home Listings Jump As Sellers Worry They May Miss Out on the Red-hot Housing Market

Katelyn Bailey

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A For Sale sign is displayed in front of a house in Washington, DC.
Stefani Reynolds | Afp | Getty Images

Sharply higher mortgage rates have caused a sudden pull-back in home sales, and now sellers are rushing to get in before the red-hot market cools off dramatically.

The supply of homes for sale jumped 9% last week compared with the same period a year ago, according to Realtor.com. That is the biggest annual gain the company has recorded since it began tracking the metric in 2017.

Real estate brokerage Redfin also reported that new listings rose nearly twice as fast in the four weeks ending May 15as they did during the same period a year ago.

“Rising mortgage rates have caused the housing market to shift, and now home sellers are in a hurry to find a buyer before demand weakens further,” said Redfin Chief Economist Daryl Fairweather.

Sellers clearly see the market softening. Pending home sales, a measure of signed contracts on existing homes, dropped nearly 4% in April from March. They were down just over 9% from April 2021, according to the National Association of Realtors. This index measures signed contracts on existing homes, not closings, so it is perhaps the most timely indicator of how buyers are reacting to higher mortgage rates. It marks the sixth straight month of sales declines and the slowest pace in nearly a decade.

April sales of newly built homes, also measured by signed contracts, dropped a much wider than expected 16% compared with April, according to the U.S. Census.

Sales are slowing because mortgage rates have risen sharply since the start of the year, with the biggest gains in April and early May. The average rate on the 30-year fixed mortgage started the year close to 3% and is now well over 5%.

“We used to get 10 to 15 offers on most houses, “said Lindsay Katz, a real estate broker with Redfin in the Los Angeles area. “Now I’m seeing between two and six offers on a house, a good house.”

Katz worked with Alexandra Stocker and her husband to sell their home. The stockers were already worried that the red hot housing market was suddenly chilling.

“We talked about that a lot. Like, are we making mistake here? Are we missing the boat? Is everything gonna crash in the next three months and we’re gonna kick ourselves for not selling our house earlier this year?” said Alexandra Stocker.

While home prices rose steadily during the first two years of the pandemic, falling mortgage rates largely offset those increases.

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For example: In May 2019, a buyer purchasing a $300,000 home with a 20% down payment and a 30-year fixed mortgage would get an average interest rate of around 4.33%. The monthly payment of principal and interest would be $1,192. In 2020, that same house was 5% more expensive, but mortgage rates fell to 3.41%, so the monthly payment actually dropped to $1,119.

By 2021, the monthly payment was only up about $100. This month, with prices up another 21%, and mortgage rates surging to around 5.5%, the monthly payment hit $1,991 – almost $800 a month more than it was in 2019.

While home sellers were in the driver’s seat barely six months ago, they are now seeing far less competition from buyers. A demand index from Redfin, which measures requests for home tours and other home-buying services, was down 8% year over year during the week ending May 15. This was the largest decline since April 2020, when the pandemic paused most homebuying activity.

“I met with sellers in February who are going to sell in June, and it’s a very different conversation in February than it will be in June because the market has completely changed,” said Katz.

The Stockers are thrilled they listed their home when they did. They are moving out of California and building a home in Washington state.

“We joke we might be getting out of here, you know, just at the right time,” said Alexandra Stocker. “I wouldn’t want to wait any longer.”

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Original Article: cnbc.com

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Intel Warns Ohio Factory Could Be Delayed Because Congress Is Dragging Its Feet on Funding

Katelyn Bailey

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Patrick Gelsinger, Intel CEO, at the WEF in Davos, Switzerland on May 23rd. 2022.
Adam Galica | CNBC

A large chip factory currently in the early stages of being built outside of Columbus, Ohio, could see its scope scaled back or construction delayed depending on what Congress does with the CHIPS Act, Intel said in a statement on Thursday.

The facility was announced in January and would be the most significant expansion of U.S.-based semiconductor manufacturing in years. Intel estimated the plant could cost as much as $100 billion and committed an initial investment of $20 billion.

“We are excited to begin construction on a new leading-edge semiconductor manufacturing plant in Ohio and grateful for the support of Governor DeWine, the state government and all our partners in Ohio. As we said in our January announcement, the scope and pace of our expansion in Ohio will depend heavily on funding from the CHIPS Act,” an Intel spokesperson said in a statement.

“Unfortunately, CHIPS Act funding has moved more slowly than we expected and we still don’t know when it will get done. It is time for Congress to act so we can move forward at the speed and scale we have long envisioned for Ohio and our other projects to help restore U.S. semiconductor manufacturing leadership and build a more resilient semiconductor supply chain,” the statement continued.

The Biden administration has hailed the Ohio factory as an example of the administration’s efforts to increase manufacturing capacity in the U.S. Intel CEO Pat Gelsinger was a guest of Biden’s at the State of the Union earlier this year.

“If you travel 20 miles east of Columbus, Ohio, you’ll find 1,000 empty acres of land. It won’t look like much, but if you stop and look closely, you’ll see a ‘Field of dreams,’ the ground on which America’s future will be built. This is where Intel, the American company that helped build Silicon Valley, is going to build its $20 billion semiconductor ‘mega site’,” Biden said in the speech.

Most manufacturing of high-end chips currently takes place in Taiwan and South Korea, and U.S. officials have said that increasing the amount of semiconductors fabricated on U.S. and European soil is important for national security.

This is breaking news. Please check back for updates.

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Original Article: cnbc.com

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Supreme Court Strikes Down NY Gun Law Restricting Concealed Carry in Major Second Amendment Case

Katelyn Bailey

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The Supreme Court on Thursday struck down a New York state law requiring applicants for a license to carry a gun outside of their homes to have a “proper cause” to do so, saying it violated the Second Amendment of the U.S. Constitution.

The 6-3 ruling in the case is a major victory for gun rights advocates who had challenged New York’s restrictive law, which makes it a crime to carry a concealed firearm without a license.

It also represents the Supreme Court’s biggest expansion of gun rights in more than a decade — and casts doubt on laws in eight other states and the District of Columbia that restrict concealed-carry permits in ways similar to New York.

The Supreme Court’s six conservative justices voted to invalidate the law, which has been in existence since 1911. Justice Clarence Thomas wrote the majority opinion in the case, known as New York State Rifle & Pistol Association Inc. v. Bruen.

The court’s three liberals voted to uphold the law. Justice Stephen Breyer wrote a dissent to the ruling.

A U.S. Supreme Court police officer stands past gun-rights demonstrators outside the Supreme Court in Washington, D.C., U.S., on Monday, Dec. 2, 2019.
Andrew Harrer | Bloomberg | Getty Images

In his majority opinion, Thomas wrote that New York’s law violated the Constitution’s Fourteenth Amendment — which says citizens have a right to equal protection under the law — because it “prevents law-abiding citizens with ordinary self-defense needs from exercising their right to keep and bear arms” as authorized by the Second Amendment.

The ruling comes weeks after mass shootings at a Buffalo, New York, grocery store, and another in a Uvalde, Texas, elementary school, reignited a national debate about U.S. gun laws.

Democratic elected officials quickly condemned Thursday’s decision, which they said will imperil public safety.

President Joe Biden said he was “deeply disappointed” in the ruling, which he argued, “contradicts both common sense and the Constitution, and should deeply trouble us all.”

Citing the “horrific attacks in Buffalo and Uvalde,” Biden urged states to pass “commonsense” gun regulation “to make their citizens and communities safer from gun violence.”

New York Gov. Kathy Hochul said, “This decision isn’t just reckless, it’s reprehensible.”

Hochul said that because “the federal government will not have sweeping laws to protect us … our states and our governors have a moral responsibility to do what we can and have laws that protect our citizens because of what is going on — the insanity of the gun culture that has possessed everyone all the way up to the Supreme Court.”

New York City Mayor Eric Adams said, “This decision has made every single one of us less safe from gun violence.”

The case was brought by the New York State Rifle & Pistol Association and two of its members, Robert Nash and Brandon Koch, whose applications for concealed-carry handgun licenses for self-defense purposes were rejected.

New York Supreme Court Justice Richard McNally ruled that neither man had shown proper cause to carry guns in public because they failed to demonstrate that they had a special need for self-protection.

The plaintiffs then challenged that denial in a federal court in New York. They argued that the state law governing concealed-carry licenses, which allows them only for applicants with “good moral character” who have “proper cause” to carry guns outside the home, violates the Second Amendment.

After a federal judge in New York dismissed the case, the U.S. 2nd Circuit Court of Appeals affirmed that judgment. The U.S. Supreme Court then took the case.

Thomas, in his majority opinion, wrote that New York’s proper-cause requirement, as it has been interpreted by state courts, was inconsistent with the “Nation’s history of firearm regulation.”

“A State may not prevent law-abiding citizens from publicly carrying handguns because they have not demonstrated a special need for self-defense,” Thomas wrote.

But Breyer, in his dissent, wrote, “Only by ignoring an abundance of historical evidence supporting regulations restricting the public carriage of firearms can the Court conclude that New York’s law is not ‘consistent with the Nation’s historical tradition of firearm regulation.”

Breyer also wrote, “Many States have tried to address some of the dangers of gun violence just described by passing laws that limit, in various ways, who may purchase, carry, or use firearms of different kinds.”

“The Court today severely burdens States’ efforts to do so.”

– Additional reporting by CNBC’s Amanda Macias

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Original Article: cnbc.com

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United Airlines Will Cut 12% of Newark Flights in Effort to Tame Delays

Katelyn Bailey

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A United Airlines passenger airplane is landing on Newark Liberty International Airport in Newark, New Jersey, on January 19, 2022.
Tayfun Coskun | Anadolu Agency | Getty Images

United Airlines will cut about 50 daily flights from Newark Liberty International Airport next month in an effort to reduce delays that have disrupted travelers’ plans this year.

The cuts amount to about 12% of United’s schedule in its New Jersey hub and apply solely to domestic flights, starting July 1.

United executives have said the delays are the result of capacity constraints, airport construction and air traffic control — not airline staffing shortfalls.

Jon Roitman, United’s executive vice president and COO told staff in a note Thursday that “after the last few weeks of irregular operations in Newark, caused by many factors including airport construction, we reached out to the FAA and received a waiver allowing us to temporarily adjust our schedule there for the remainder of the summer.”

“Even though we have the planes, pilots, crews, and staff to support our Newark schedule, this waiver will allow us to remove about 50 daily departures which should help minimize excessive delays and improve on-time performance – not only for our customers, but for everyone flying through Newark,” he wrote.

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Original Article: cnbc.com

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