[Fox Business] Mortgage rates dropped this week, but mortgage applications also declined

Mortgage rates continued their slight decline this week, Freddie Mac reported. For 30-year fixed-rate mortgages, the average interest rate is 6.79%, down from last week’s average of 6.87%.

Last year at this time, mortgage rates for 30-year mortgages averaged closer to the bottom of the 6% range at 6.35%.

“Mortgage rates moved slightly lower this week, providing a bit more room in the budgets of some prospective homebuyers,” Sam Khater, Freddie Mac’s Chief Economist, said.

“We also are seeing encouraging data on existing home sales, which reflects improving inventory. Regardless, rates remain elevated near seven percent as markets watch for signs of cooling inflation, hoping that rates will come down further.”

For 15-year mortgages, rates have also dropped since last week and now average 6.11% for fixed-rate mortgages. This is higher than last year’s average of 5.56%.

If you’re looking to purchase a home in today’s market, you can explore your mortgage options by visiting Credible where you can compare rates and lenders with a click of a button.

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While rates are dropping, buyers aren’t yet fully committed to buying. Mortgage applications decreased 0.7% from a week earlier, according to the Mortgage Bankers Association’s (MBA) weekly survey.

Compared to a year ago, MBA’s unadjusted Purchase Index was 16% lower, signaling a struggle to keep buyers in the market.

“Mortgage application activity was muted last week despite slightly lower mortgage rates. The 30-year fixed rate edged lower…but that was not enough to stimulate borrower demand,” Joel Kan, the MBA’s vice president and deputy chief economist, said.

“Purchase applications were essentially unchanged, as homebuyers continue to hold out for lower mortgage rates and for more listings to hit the market.”

Earlier in the year, it was predicted that rates would finally drop below 6%, which is now unlikely at this point.

“Lower rates should help to free up additional inventory as the lock-in effect is reduced, but we expect that will only take place gradually… Similarly, with rates remaining elevated, there is very little incentive right now for rate/term refinances,” Kan said.

Looking to get a mortgage? Credible can help you compare multiple mortgage lenders at once.

HOMEBUYERS GAINED THOUSANDS OF DOLLARS AS MORTGAGE INTEREST RATES FALL: REDFIN

It’s officially become cheaper to rent than to buy in many of the country’s major metro areas. A recent report from Realtor.com revealed that a starter home is more affordable than buying one in the 50 largest metros.

In February 2024, the average monthly cost of buying a starter home was $1,027, which is 60.1% higher than the average cost of renting.

Although the rental market appears hot, the U.S. median rent declined year-over-year, according to Realtor.com. For studio to two-bedroom units, rent declined 0.4% within the top 50 metros. This is the seventh month in a row that rent has declined.

One of the top markets where it’s more affordable to rent is in Austin, Texas. The cost of buying a home in Austin averaged $3,695 per month, 141.5% more than the average monthly rent. Renting in Austin costs $1,530 per month, on average.

Seattle is another area where buying is more expensive than renting. The average cost to buy is $4,422 while the average renter pays $2,000 per month.

If you think you’re ready to shop around for a home loan, consider using Credible to help you easily compare interest rates from multiple lenders and get a pre-approval letter in minutes.

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[Fox Business] Alleged Tennessee shoplifter sues Walgreens after employee shoots her 7 times

A Tennessee woman is suing Walgreens after an employee of the retail giant suspected her of shoplifting and shot her seven times in the store parking lot, leaving her in critical condition. 

Last April, the East Nashville Walgreens employee, Mitarius Boyd, suspected a seven-months pregnant Travonsha Ferguson or her friend “was attempting to shoplift Walgreens merchandise from the store,” according to court paperwork filed Wednesday and obtained by FOX Business. 

According to the Metropolitan Nashville Police Department, Boyd had been notified by another employee that two women were stealing items from the store located at 2500 Gallatin Avenue.

SMALL BUSINESSES TAKING EXTREME MEASURES TO STOP SHOPLIFTERS BECAUSE OF SOFT-ON-CRIME LAWS: SECURITY EXPERT

Boyd said he saw the women placing items into a store cart and into a large over-the-shoulder bag and began recording the women with his cell phone. He proceeded to follow them as they left the store without paying, according to police. 

Boyd told police that he made his way over to the women as they put the items in their trunk.

Ferguson claimed in the lawsuit that Boyd “never identified himself as an employee, and aggressively confronted” them about the alleged merchandise “while cursing and screaming.”

Ferguson claimed in the suit that she sprayed Boyd with mace “in fear of imminent bodily harm to baby Ferguson and herself,” the court documents stated.  

BUSINESSES TAKE DRASTIC ACTION TO PROTECT AGAINST RAMPANT SHOPLIFTING, ORGANIZED CRIME THEFTS

Boyd then shot Ferguson “up to seven times, which resulted in serious bodily harm” to her and her baby, the documents stated. 

Boyd admitted to police that he pulled out his semi-automatic pistol and began shooting. He also said that he didn’t know if they were armed, according to the police report. 

After the women fled the scene, Boyd went back into the store and called 911.

Meanwhile, Ferguson was rushed to the hospital where she was in “critical but stable condition” and underwent an emergency C-Section, according to police.

She “sustained internal and/or intestinal injuries and, as a medical necessity, must now wear a colostomy bag to survive,” according to the suit. 

Her baby “fought for his life for weeks in the neonatal intensive care unit” and “is at an increased risk of long-term intellectual and developmental disabilities,” the suit continued. 

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Ferguson’s lawyer, L. Chris Stewart, told FOX Business in a statement that she now has “long-term health issues that she is forced to deal with every day.” 

Additionally, Stewart argued that her baby, which was delivered prematurely, “suffered a life-altering heart defect that will also require ongoing care.”

Police said Boyd cooperated with detectives, his gun was seized, and he handed over his cell phone as evidence. Boyd was fired as a result of the which violated Walgreens policies, according to court documents. 

“We intend to hold Walgreens accountable for the egregious actions of their employee who was a team leader at that location,” Stewart said. “Following someone to the parking lot and shooting them seven times for allegedly shoplifting is outrageous conduct that cannot be tolerated by corporations around the country.”

Walgreens declined comment due to pending litigation. 

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[Fox Business] Sam Bankman-Fried gets 25 years: Where will he serve his sentence?

FTX founder and former CEO Sam Bankman-Fried was sentenced to 25 years in prison for fraud on Thursday by a federal judge, who made a recommendation about where the disgraced crypto king should serve his sentence.

Bankman-Fried, 32, was found guilty in November on two counts of wire fraud and five counts of conspiracy following the collapse of his crypto empire in November 2022, which has been compared to Enron. Bankman-Fried merged the assets of the FTX cryptocurrency exchange with sister hedge fund Alameda Research, and the two firms collapsed once investors moved to withdraw their funds – with billions of dollars of customer assets lost.

U.S. District Judge Lewis Kaplan, who oversaw Bankman-Fried’s trial in Manhattan federal court, handed down his sentence on Thursday and made a recommendation to the federal Bureau of Prisons about where the former billionaire should serve his time. 

“I strongly recommend to the Bureau of Prisons that the defendant be designated initially to a medium security facility or any lower security institution the BOP considers appropriate, and I do so for two reasons,” Judge Kaplan said.

DISGRACED CRYPTO KING SAM BANKMAN-FRIED SENTENCED TO 25 YEARS FOR FTX FRAUD

“First, I have no reason to believe that the defendant would initiate any act of violence against another prisoner or any BOP staff,” which Kaplan said would typically merit assignment to a maximum security prison facility.

“Second, defendant’s notoriety. His association with vast wealth – regardless of his present and actual financial resources – and his autism and social awkwardness are likely to make him more than usually vulnerable to misconduct by other inmates in the environment of a maximum security facility,” Kaplan explained. 

“I further recommend that the designated facility be as close to the San Francisco Bay Area as possible for the purpose of facilitating family visitation,” he added.

SAM BANKMAN-FRIED’S $222M BAHAMAS REAL ESTATE HOLDINGS TO GO ON THE MARKET

The Bureau of Prisons declined to comment on the circumstances of Bankman-Fried’s assignment to a specific prison facility or provide a timeline for BOP officials to decide where he will serve his sentence. The agency offered a statement outlining the factors it considers in assigning individuals to specific correctional institutions.

“Some of the factors include the level of security and supervision the inmate requires, any medical or programming needs, separation, and security measures to ensure the individual’s protection, and other considerations including proximity to an individual’s release residence,” the BOP explained in a statement to FOX Business.

“The same criteria apply for both initial designations and re-designations for transfer to a new facility,” BOP added.

FTX CEO JOHN RAY HAS HARSH WORDS FOR SAM BANKMAN-FRIED

Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, both reside in the San Francisco Bay Area and have worked as professors at Stanford Law School. 

Judge Kaplan’s recommendation that Sam serve his sentence at a medium security prison near the Bay Area points to two potential medium security federal prisons in northern California where he may be sent to serve his sentence – FCI Herlong and FCI Mendota.

FCI Herlong is located in Lassen County near the Nevada border northwest of Reno, Nevada, while FCI Mendota is in California’s Central Valley within Fresno County. Both correctional institutions have adjacent satellite prison camps to house minimum-security offenders. 

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Judge Kaplan’s suggestion that BOP designate Sam Bankman-Fried to a medium security facility or a lower security institution deemed appropriate by BOP could allow for his transfer to a lower security portion of either facility if he is initially sent to a medium security prison.

FOX Business’ Suzanne O’Halloran contributed to this report.

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[Fox Business] Lottery winner? Now is the time to buy your dream home

Supersized lottery jackpots may have some people fantasizing about what they would do with the funds if they won, whether that would be buying a home, paying off debt or saving.

It is, however, an even more important question for those who actually do win the lottery, like the lucky person in New Jersey who just scored a nearly $1.13 billion windfall from Mega Millions on Tuesday. Lottery winners are faced with many options.

Some winners of past jackpots or even smaller prizes have said they planned to go the homebuying route. For example, a North Carolina man who landed $1 million from a Mega Millions ticket in 2023 indicated he had plans to use it on getting a home.

MEGA MILLIONS ANNOUNCES WINNER OF $1.13 BILLION JACKPOT

That has also happened for lottery-winning participants that appear on the HGTV series “My Lottery Dream Home” and, according to a recent Realtor.com report, the show offers insight on what houses they purchase. They reportedly often defy preconceived notions some may hold of lottery winners.

The properties that many “My Lottery Dream Home” participants with lottery prizes wind up purchasing tend to be on par with and at times below the $406,700 national median, according to the real estate-focused site.

In a statement to FOX Business, Realtor.com Executive Editor Judy Dutton said home purchases by those who win the lottery are typically not extravagant, something she said stems from it being “much more common for lotto winners to win much less money” than the “rare mega-winners.”  

“And even in cases where people do win a lot, even in the millions, they don’t necessarily want to blow it all on a huge house,” Dutton said.

Plenty make home purchases that afford them the room to easily host their families, according to Realtor.com.

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“The majority of lotto winners on ‘My Lottery Dream Home’ shop for homes with plenty of extra bedrooms, or even entire guest suites, where their grown kids and grandkids can sleep over comfortably,” Dutton said, noting it pushed back on the idea lottery winners want to keep their success to themselves.

Others have financially helped loved ones with acquiring a house, Realtor.com reported.

“My Lottery Dream Home” participants also tend to relocate within their area and to forgo exotic new places when they spend winnings on homes, according to the site.

They go with older homes instead of luxury ones in many instances “proving that cutting-edge style and upgrades aren’t always big priorities,” Dutton said.

Using funds from a lottery price to acquire a home can be a “great idea,” Northwestern Mutual Wealth Management Advisor Andrea Williams told FOX Business.

“Buying property gives you a place to live without sending your money to someone else, which you do when renting,” she said. “You get to own an asset that will typically increase in value overtime.”

MEGA MILLIONS LOTTERY $1 BILLION JACKPOT: ANNUITY OR LUMP SUM?

She recommended lottery winners looking to buy real estate consult a financial professional and keep in mind yearly expenses a person encounters with a house.

“When buying a home and budgeting, there’s an additional 2-4% of the house value going toward annual expenses such as homeowners’ insurance, property taxes, utility bills and general maintenance,” Williams said. “So, a $500,000 home can have anywhere from $10,000 to $20,000 of annual expenses. And what we don’t want to do in this situation is become house poor.”

The next opportunity people have to nab a massive lottery grand prize is Saturday, when Powerball next draws for its $935 million jackpot.

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