It's a circus, says Capital Alpha's James Lucier on Congressional tax bill vote
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
13 minutes ago
- Yahoo
Over 30 million homeowners don't have a mortgage right now. Here's why that's a big warning sign about the housing market
High home prices and mortgage rates have made it much harder for Americans—especially first-time buyers—to purchase homes. Many current homeowners, especially those with low or no mortgage payments, are staying put rather than selling, further limiting supply and keeping prices high. Now that more Americans own their homes outright and are building wealth, fewer are tapping into that equity due to high borrowing costs. The quintessential American dream is to become a homeowner. For generations, it's been seen as a symbol of economic stability and a beacon for building wealth. But with mortgage rates and home prices remaining elevated over the past several years, that's blocked many would-be homeowners from breaking into the housing market. The number of first-time home buyers in the U.S. is abysmal: in 2004, the number of first-time homebuyers was nearly 3.2 million, according to NAR data shared with Fortune on Tuesday. By 2024, that number had plummeted to just 1.14 million. The roadblocks of buying a home are essentially a chicken-and-egg situation. Older generations who bought homes decades ago—and who would typically be ready to downsize by now—aren't budging out of fear of relatively high mortgage rates. Mortgage rates were sub-3% during the pandemic, peaked at 8% in October 2023, and currently hover near 7%. And since that supply isn't on the market, home prices are higher, preventing younger generations from being able to buy a home. Plus, many Americans own their home outright—meaning they don't have a mortgage payment. That's good news for them, considering it's unlikely mortgage rates will drop anytime soon, but dismal news for people trying to break into the housing market. The share of homeowners who don't have a mortgage payment rose to 40% in 2023, up from 33% in 2010, which reflects a trend toward outright homeownership and conservative borrowing, according to a Goldman Sachs note published Tuesday. Assuming there are 86 million homeowners in the U.S., that means more than 30 million don't have a mortgage. Meanwhile, the housing market is particularly vulnerable for homeowners who just recently bought. 'We're seeing early signs of risk building within specific markets and within specific borrower populations, like borrowers with limited equity or who are behind on student loans,' Tim Bowler, president of ICE Mortgage Technology, said in a statement. Meanwhile, U.S. mortgage borrowers have $11.5 trillion of tappable home equity in their properties, according to ICE Mortgage Technology. But their preference to tap into their equity has been more muted than between 2001 and 2008 because it appears borrower demand for expensive and riskier debt has shifted following the Global Financial Crisis (GFC), according to Goldman Sachs. 'Rather, borrowers have focused on paying down their mortgages and owning their homes outright,' wrote Goldman Sachs analyst Arun Manohar. That's because borrowers are more averse to riskier debt products (those with a higher interest rate) like home equity lines of credit (HELOC) Manohar did not respond to Fortune's request for additional comment. ICE reported borrowers used just 0.41% of available tappable equity in the first quarter of 2025, which was less than half of the typical withdrawal rate observed from 2009 to 2021. Still, about 25% of homeowners said they are considering a home equity loan or HELOC in the next year, according to ICE's June 2025 Mortgage Monitor report. 'Equity levels remain historically high, and now we're seeing the cost of borrowing against that equity drop meaningfully,' Andy Walden, head of mortgage and housing market research at ICE, said in a statement. 'If the Fed moves forward with anticipated rate cuts, borrowing against home equity could become even more attractive in the second half of the year.' Although the bottom line is more people are buying their homes outright or don't have a mortgage payment out of fear of high home prices and mortgage rates, the silver lining is people are building more wealth and less debt by avoiding taking out home equity. 'The continued slow pace of home equity extraction is likely due to factors such as higher mortgage rates, stricter underwriting standards, lower levels of mortgage lending by banks, and more conservative borrowing behavior,' Manohar wrote. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Post
2 hours ago
- New York Post
LA Mayor Karen Bass signs order to provide cash payments to immigrants affected by ICE raids
Los Angeles Mayor Karen Bass signed an executive order Friday to bolster protocols and support immigrant neighborhoods, including offering cash assistance, in response to raids by the Trump administration targeting those living in the United States illegally. The order is intended to help protect the city's workforce and residents from the federal government during immigration enforcement operations. Advertisement It also demands that federal agencies provide records of the raids, who was detained and for what reason and the cost to taxpayers, which will be part of a Freedom of Information Act (FOIA) request. 'There is a need for me to have an executive directive to help our city understand how to protect itself from our federal government,' Bass said at a press conference. 'What we have seen here over the last, now six weeks of raids that pop up, and we never know exactly when and where they're going to happen. 'The directive will help city workers know how to address immigration officials should they approach a city department,' she added. Advertisement The order also requires city departments to create a plan for protocols and training on how to comply with Los Angeles' sanctuary city ordinance. 3 Los Angeles Mayor Karen Bass signed an executive order to help out immigrant neighborhoods by offering strengthened protocols and cash assistance. AP In addition, Bass said a plan is being worked out to provide cash assistance to those affected by the enforcement operations, the Los Angeles Times reported. Cash cards with a 'couple hundred' dollars on them will be distributed by immigrants' rights groups in about a week, Bass said. Advertisement The money will not come from city coffers, but from philanthropic partners, she said. 'You're telling me that isn't a Babylon Bee headline?' a White House spokesperson told Fox News Digital, referring to the satirical news site. 'Recent immigration enforcement in California has resulted in successfully detaining countless violent criminals and liberating children from illegal labor exploitation. But instead of helping these children or putting American citizens first, Bass is doubling down on her defense of illegal aliens.' 3 The new legislation comes in response to the ICE raids by the Trump administration in California last month. / MEGA Advertisement 'Americans are sick of these pathetic stunts from Democrat politicians. That's why they elected President Trump,' the spokesperson added. 'They want someone who will put America First, and it's certainly not Karen, Gavin & Co.' Bass has condemned immigration operations targeting criminal illegal immigrants in the city. Los Angeles is one of several cities suing the Trump administration over the 'unlawful' raids. Immigration agents on Thursday raided a cannabis farm in nearby Ventura County to target illegal immigrants working there. Ten illegal immigrant minors, eight of them unaccompanied, were found at the farm, U.S. Customs and Border Protection Commissioner Rodney Scott said. 3 Bass told reporters, 'There is a need for me to have an executive directive to help our city understand how to protect itself from our federal government.' Getty Images The farm is now being investigated for potential child labor violations. Advertisement Earlier in the week, nearly 100 National Guard troops and immigration authorities targeted crime-ridden MacArthur Park in Los Angeles, prompting Bass to go to the park to demand a halt to the operation, which was rebuffed by U.S. Border Patrol Chief Gregory Bovino. 'I don't work for Karen Bass,' Bovino told Fox News at the time. 'Better get used to us now because this is going to be normal very soon. We will go anywhere, anytime we want in Los Angeles.' Fox News Digital has reached out to Bass' office.
The Hill
3 hours ago
- The Hill
Senate Democrats join fired State Department employees to rally against layoffs
Senate Democrats on Friday joined State Department employees in protest of the Trump administration's decision to layoff 1,300 employees this week. 'This is not America first. This is America in retreat,' Sen. Chris Van Hollen (D-Md.) said on Friday at a protest outside the department's headquarters in Washington. 'And we don't want America retreating, do we?' 'Hell no,' the Maryland Democrat exclaimed. A number of workers gathered outside after the department sent reduction in force (RIF) notices Friday morning to about 1,100 civil servants and 250 foreign service officers stationed in the U.S., with plans to cut its workforce further. Workers were instructed to return their government-issued belongings on Friday. The move, which comes months after Secretary of State Marco Rubio led the department in shuttering the U.S. Agency for International Development (USAID), has been broadly condemned by Democrats on Capitol Hill. 'There are active conflicts and humanitarian crises in Ukraine, Sudan, Gaza, Haiti and Myanmar—to name a few. Now is the time to strengthen our diplomatic hand, not weaken it,' Sen. Jeanne Shaheen (D-N.H.), the ranking member of the Senate Foreign Relations Committee, wrote in a statement backed by all Democrats on the committee. Van Hollen echoed these concerns on Friday, stating the layoffs make the American public 'less safe.' 'When we retreat, that helps our adversaries and it hurts our friends and allies. When we retreat, it helps the autocrats and the dictators,' he said. 'And it undermines those fighting for human rights and democracy around the world.' Sen. Andy Kim (D-N.J.) also attended the Friday rally, describing the reduction in force as 'devastating' earlier in the day. Rubio has long maintained that efforts to reshuffle the Department are 'deliberate' and focused on boosting efficiency. 'It's not a consequence of trying to get rid of people. But if you close the bureau, you don't need those positions. Understand that some of these are positions that are being eliminated, not people,' Rubio told reporters while in Kuala Lumpur, Malaysia. But concerns have also been raised by the American Foreign Service Association, a union that represents tens of thousands of former and current diplomats. They argued the workforce reduction would 'damage our credibility abroad.' 'Diplomats are not faceless bureaucrats. They are America's forward presence, serving in war zones, evacuating citizens, negotiating for the release of detained Americans, and steadying allies in turbulent times. Like military personnel, they move every two to three years, serving wherever America needs representation, often in dangerous and difficult places,' the union wrote. 'Their mobility is a strategic asset. Firing them based solely on their current office location discards that asset and damages our credibility abroad,' the group added.
