Mortgage rates rise for 4th straight week
U.S. mortgage rates rose for a fourth straight week, with higher borrowing costs threatening to crimp the housing rally.
The average for a 30-year, fixed loan was 3.05%, up from 3.02% last week and the highest since July 2, Freddie Mac data showed Thursday. Rates have surged this year from a record low 2.65% in January.
Rates are rising as vaccines and a massive stimulus package drive a bet that inflation will accelerate as the U.S. economy picks up steam. Even with the recent spike, rates remain low by historical standards. This time last year, the average for the 30-year loan was 3.36%.
Rates dipped below 3% in July and stayed there for seven months, boosting buying power as Americans looked for larger properties in the suburbs.
Mark Vitner, a senior economist at Wells Fargo Securities, said rates are heading higher as Covid-19 infections decline and the $1.9 trillion stimulus package fires up the economy.
"The record low rates are probably in the rearview mirror because they only existed at the time when the news of the pandemic was at its absolute worst," Vitner said. "The economy is clearly on the mend so it makes perfect sense that interest rates have increased.
VW SUV named Best Car Interior
Volkswagen's all-new ID.4 EV was named to Autotrader's list of 10 Best Car Interiors Under $50,000 for 2021.
The fully-electric SUV, which is initially being built in Europe but will soon be made at VW's assembly plant in Chattanooga, features a modern, airy interior design with configurable storage spaces and a plethora of high-tech features.
ID.4 is available for reservation now with a starting price of $39,995 for the Pro model before a potential Federal tax credit of up to $7,500. It begins arriving to dealers nationwide this month.
"The ID.4 is the most important vehicle for the brand since the legendary Beetle and shares its purpose-built visio - in this case, the people's electric car," said Scott Keogh, President and CEO, Volkswagen Group of America, Inc. "An award right out of the gate is a sign we're on the right track."
Atlanta to add curving taxiway
Hartsfield-Jackson International Airport is moving forward with plans to build a curving taxiway to reduce delays and improve safety.
The project has been in the works for years, though it was temporarily put on hold last year when the COVID-19 pandemic drove a sharp decline in flights.
The Atlanta City Council's transportation committee voted to move forward with phase 2 of the project and will advance the measure on to the full council for approval.
The cost was previously estimated at about $70 million, but is now expected to cost $80.5 million.
The new "end-around" taxiway on the south side of the airfield will increase the maximum departure rate, reduce delays during taxiing and greatly decrease the need for aircraft to cross a runway. The Federal Aviation Administration approved grant funding for a portion of the cost of the project.
Runway crossings increase the risk of aircraft entering the path of another plane that is taking off or landing. End-around taxiways can improve safety.
TVA campgrounds reopen on March 15
The Tennessee Valley Authority is opening its campgrounds for the 2021 season starting Monday.
The seasonal campgrounds, which last year didn't open until June due to the COVID-19 pandemic, are opening on a regular schedule this year and will be open until November 15. Under federal law, persons in public places at the campgrounds will be required to wear a facial mask.
TVA has more than 80 campgrounds across the Tennessee Valley. Most of the campsites can accommodate tents, pop-up trailers, and recreational vehicles. Each campground provides restrooms, potable water, showers, grills, picnic tables, RV dump stations, and nearby boating and fishing access. Most campsites have electrical service, except for a few tent-only campsites.
Recreation Resource Management LLC will be managing the TVA campgrounds.
Europe steps up stimulus efforts
The European Central Bank says it will step up its bond-buying stimulus in the coming months.
The move comes as the eurozone's recovery from the pandemic is expected to lag a full year behind that of the U.S. That is because Europe is being held back by slow vaccine rollouts and less relief spending. The central bank said Thursday that over the next quarter the purchases would be conducted "at a significantly higher pace than during the first months of the year."
ECB officials have expressed concern at a rise in longer-term borrowing rates, which can hurt businesses as they try to emerge from the pandemic recession.
- Compiled by Dave Flessner