Mortgage rates drop to near historic lows
U.S. average rates on long-term mortgages fell this week, with historically low levels continuing to fuel demand for homes.
Mortgage buyer Freddie Mac reported Thursday that the average rate on the 30-year home loan declined to 2.91% from 2.99% last week. By contrast, the rate averaged 3.58% a year ago.
The average rate on the 15-year fixed-rate mortgage fell to 2.46% from 2.54% last week.
Housing demand continues as one of few bright spots in the pandemic-hobbled economy, especially for prospective buyers considering a first-time purchase. The trend may even extend strong sales of homes, which has already carried over from spring into summer, further into the fall, Freddie Mac says.
Delta bans passengers for not wearing masks
Delta Air Lines has banned 240 passengers for not wearing masks in violation of its requirement.
"Although rare, we continue to put passengers who refuse to follow the required face-covering rules on our no-fly list," said Delta CEO Ed Bastian in a memo to employees Thursday.
Among those banned was former Navy SEAL Robert O'Neill, who wrote a book about his military experience, including the raid on Osama bin Laden's compound. O'Neill last week tweeted a photo of himself on a Delta flight without a mask, later deleted it and tweeted that he had been banned by Delta for "posting a picture."
Major U.S. airlines require passengers to wear masks and have been tightening their policies.
Hartsfield-Jackson International Airport also requires masks throughout the terminal. Those not wearing masks in the Atlanta airport will be asked by airport employees to comply with the city ordinance by wearing one, according to spokeswoman Elise Durham. The airport is also handing out masks to those who don't have one, but is not writing citations or arresting travelers, Durham added.
Oil and gas industry assesses storm damage
The energy industry is assessing damage caused by storm surges and high winds as Hurricane Laura cut a dangerous path across the coastlines of Texas and Louisiana.
Oil and gas producers evacuated more than half of their platforms and nearly all the rigs in the Gulf of Mexico. Companies had shut down refineries in the storm's path. More than half of U.S. refining capacity is built along the Gulf Coast, where the storm made landfall early Thursday.
Home contracts up 5.9% during July
More Americans signed contracts to buy homes in July, suggesting the current hot housing market could continue in the fall.
The National Association of Realtors said Thursday that its index of pending sales rose 5.9%, to 122.1 last month. It had plunged to a low of 69 in April, when buyers and sellers were forced to the sidelines by coronavirus closures and restrictions. An index of 100 represents the level of contract activity in 2001.
Contract signings are a barometer of eventual, finalized purchases over the next two months, so this month's numbers point continued market strength in August and September.
Contract signings are now 15.5% ahead of where they were last year, after significantly trailing last year's pace earlier in the year because of the pandemic.
Different reports over the past week have shown that sales of existing homes and new homes are both continuing to surge as large swaths of the country have opened back up this summer and people have figured out how to go about regular business despite the ongoing pandemic. Sales of new homes jumped 13.9% in July, while sales of existing homes climbed 24.7%.