Mortgage rates drop for first time in 2018
Long-term U.S. mortgage rates fell this week for the first time this year as the spring home buying season begins. The decline comes after nine straight weeks of increases that pushed borrowing costs higher.
Mortgage buyer Freddie Mac said Thursday the average rate on 30-year fixed-rate mortgages slipped to 4.44 percent from 4.46 percent last week. The new average rate remains at a high level, however, raising concern that home sales could be dampened. The benchmark rate averaged 4.30 percent a year ago.
The average rate on 15-year, fixed-rate loans declined to 3.90 percent from 3.94 percent last week.
Mortgage rates rose steadily in January, February and early March, as interest rates generally increased in response to higher levels of government debt and expectations of rising inflation.
Court rules against Chrysler for Jeep fire
Georgia’s highest court on Thursday ruled against Fiat Chrysler, which had appealed a $40 million judgment awarded to the family of a 4-year-old boy who died in a Jeep fire.
Remington “Remi” Walden died in 2012 after a Jeep Grand Cherokee he was riding in was hit from behind and burst into flames.
In a lawsuit against Fiat Chrysler, the boy’s parents argued that mounting the fuel tank behind the rear axle in the 1999-model Jeep left it vulnerable in a crash and amounted to reckless disregard for human life by the manufacturer.
The company, called Chrysler Group at the time, said the crash was caused by a reckless pickup truck driver who hit the Jeep at a high speed. Fiat Chrysler has insisted the Jeep’s fuel system met federal safety standards and didn’t pose an unreasonable safety risk.
A jury in 2015 found in favor of the boy’s parents, awarding them $120 million for wrongful death and $30 million for pain and suffering.
Chamber of Commerce warns against tariffs
America’s largest business lobby is warning President Donald Trump against slapping big tariffs on Chinese imports. The U.S. Chamber of Commerce is sounding the alarm as the White House weighs whether to punish China for forcing U.S. companies to hand technology to Chinese companies.
“Simply put, tariffs are damaging taxes on American consumers,” U.S. Chamber President Thomas Donohue said Thursday.
Citing reports that the administration is considering tariffs worth $30 billion a year, Donohue noted that such a tax on Chinese imports would wipe out much of the windfall American families are getting from December’s tax cuts.
Donohue also warned that sanctions against China “could lead to a destructive trade war with serious consequences for U.S. economic growth and job creation.”