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Sales of US existing homes slip slightly in August

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By Francesca Hangeior

Sales of previously owned US homes fell in August, according to industry data released Thursday, but lower mortgage rates and growing supply were likely to boost the industry.

Existing home sales dropped 2.5 percent last month from July to an annual rate of 3.86 million, seasonally adjusted, said the National Association of Realtors (NAR).

This was largely in line with the 3.90 million consensus that analysts expected.

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“Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months,” said NAR chief economist Lawrence Yun.

Homebuyers in the United States have been grappling with a sharp rise in mortgage rates after the US central bank rapidly lifted the benchmark lending rate in 2022 to tackle inflation.

But with growing expectations that the Federal Reserve was going to pivot to rate cuts after holding rates at a decades-high level for months, mortgage rates have also shifted lower.

The popular 30-year fixed-rate mortgage averaged 6.2 percent as of September 12, according to mortgage finance firm Freddie Mac — reaching the lowest level since February 2023.

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A year ago, the rate was around 7.2 percent.

On Wednesday, the Fed kicked off a process of easing monetary policy with a bold half-percentage-point rate reduction, adding to expectations that mortgage rates would fall further.

“Existing home sales fell to a 10-month low in August, but forward looking indicators like mortgage applications point to a pickup in sales in September and October,” said economist Nancy Vanden Houten of Oxford Economics.

But Oliver Allen of Pantheon Macroeconomics cautioned that a mortgage rate of six percent remains “well above the average rate of about four percent on the stock of existing mortgages.”

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“So moving home and taking out a new mortgage still requires a prohibitive jump in monthly payments for most current homeowners,” he said in a note.

“As such, a constrained supply of existing homes for sale will continue to hold back sales,” Allen added.

Compared with a year ago, NAR data showed that existing home sales were 4.2 percent down in August.

The median price increased 3.1 percent from August 2023 to $416,700, with all four US regions seeing price jumps.

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Yun told a media call on Thursday that although home sales are struggling, home prices remained high.

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Fresh Israeli Airstrikes In Gaza Kill 25 Palestinians Including Children

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Fresh Israeli airstrikes in the Gaza Strip have killed at least 25 Palestinians, according to medics.

The casualties on Friday included at least eight people in an apartment in the Nuseirat refugee camp and 10 others in the town of Jabalia, among them seven children.

Efforts to broker a ceasefire between Israel and Hamas have yet to succeed.

Sources involved in the negotiations told Reuters on Thursday that Qatar and Egypt had resolved some points of contention but key issues remain unresolved.

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Israel launched its assault on Gaza following Hamas-led attacks on Israeli communities on October 7, 2023.

The attacks resulted in the deaths of 1200 people and the abduction of over 250 hostages, according to Israeli reports.

Israel states that approximately 100 hostages are still being held, though it is unclear how many remain alive.

Gaza authorities report that Israel’s ongoing campaign has killed more than 45,000 Palestinians and displaced the majority of the 2.3 million residents.

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Much of the territory has reportedly been devastated by the conflict.

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Biden signs bipartisan funding bill to keep government open

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President Biden signed the stopgap funding bill that will keep the government open until March, punting the thornier issues surrounding the nation’s finances to the incoming administration of President-elect Donald Trump.

A bloated 1,500-page funding measure was exploded by Trump and his top ally Elon Musk earlier this week as they demanded a pared-down version.

The parties were able to cobble a stopgap bill together Friday evening, which passed the Senate early Saturday morning.

The package funds the government at current levels until March 14, 2025, and includes $100 billion in hurricane relief funds and $10 billion in aid to farmers.

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With the stopgap funding only running until March, an almost certain clash is looming between Trump and GOP spending hardliners when Congress reconvenes in January.

“The bipartisan funding bill I just signed keeps the government open and delivers the urgently needed disaster relief that I requested for recovering communities as well as the funds needed to rebuild the Francis Scott Key Bridge,” Biden said in a statement after inking the deal.

The post Biden signs bipartisan funding bill to keep government open appeared first on New York Post.

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Russia jails Ukraine resident 16 years for treason

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A military court in Russia’s southern city of Rostov-on-Don on Friday sentenced an unnamed resident of eastern Ukraine’s Lugansk region to 16 years in prison for “high treason,” according to Russia’s FSB security service.

Moscow regularly imposes heavy sentences on individuals it accuses of spying for Ukraine and has consistently imprisoned Ukrainians both in Russia and in occupied territories.

The sentencing coincided with President Vladimir Putin’s call for security services to adopt “tough” anti-terror measures, with a particular focus on military counter-intelligence, as the Kremlin’s offensive in Ukraine nears its third year.

Putin urged the special services to “identify spies and traitors” and “disrupt the work of foreign security services.”

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Prosecutors claimed the accused had passed information about the Russian armed forces to Kyiv’s security services.

The FSB, as reported by Russian news agencies, stated that the man was found guilty of state treason, aiding terrorist activities, and the illegal handling and transport of explosives.

The court ordered him to serve his sentence in a high-security penal colony.

The TASS news agency released a video of the man’s arrest, showing FSB officers stopping a car, dragging a man out, throwing him to the ground, and handcuffing him before taking him to the local FSB headquarters.

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The video, filmed by the FSB, featured the man—his face blurred — stating that he had been recruited by Ukraine’s SBU security service in 2016.

Russia frequently publishes confession videos filmed by the FSB after arrests.

Meanwhile, independent Russian media reported that an activist had died by suicide on Thursday in a Rostov detention centre, shortly after being sentenced to 16 years in prison, also in the Rostov region.

The Mediazona website confirmed with prison officials that Roman Shved, a 39-year-old anarchist sentenced for an arson attack on a government building following the Kremlin’s 2022 military mobilisation, had died in the detention centre.

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Several social media channels reported that Shved had taken his life just hours after being sentenced.

Russia has prosecuted thousands of its citizens for opposing the Ukraine conflict.

AFP

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