High interest rates make hunt for a new home even more challenging
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(NEW YORK) — Rising inflation has driven mortgage rates up, making it difficult for many Americans to find an affordable home. As a result, many potential buyers find themselves waiting for an interest rate cut to bring mortgage prices down.
For more than a year, LaToya Trotter has worked closely with trusted real estate agent Shannon Welch to find an ideal new home in the vibrant Chicago area. Trotter purchased their current home in 2020 for $45,000 in an all-cash offer.
Interest rates have dropped from their 23-year high in 2023 but are nowhere near the 3% homeowners enjoyed in 2020. This puts home prices at an all-time high, dramatically increasing moving costs.
According to the National Association of Realtors, the current monthly payment for a median-priced home has more than doubled since 2019. Buying a starter home in more than 200 U.S. cities now costs $1 million.
“It’s sad because there are people in America that will never make $1 million in their lifetime,” Welch said. “So how can they afford a million-dollar home?
Trotter, a single mother and electrical engineer, is searching for a new home priced at $400,000 to secure her 14-year-old daughter Adoniah’s future. She wants to move closer to her daughter’s school. The teenager attends a private Catholic high school located 30 minutes away from their South Chicago home.
She visited a three-bedroom, two-bath home listed for $340,000 and a five-bedroom, three-bath home with an asking price of more than $459,000.
Welch is keeping a keen eye on the market for her client. She doesn’t dismiss Democratic presidential nominee Vice President Kamala Harris’ promise to build 3 million new housing units if elected, but she thinks that plan misses the mark in Chicago.
“We have tons of inventory throughout Chicago land,” Welch said. “We have hundreds of properties on auction. We have properties that are abandoned.”
Harris proposed a plan to assist first-generation homebuyers by providing a down payment of up to $25,000.
While Harris’ Republican rival Donald Trump has yet to outline a housing plan if he wins back the White House in November, the Republican National Party this year pledged to promote homeownership through tax incentives.
According to a recent ABC News/Washington Post/Ipsos poll, more respondents trust Trump over Harris to handle the economy and inflation by 9 points. Over 85% of adults consider this a top issue in their presidential vote.
When asked who she’ll vote for this November, Trotter noted that she’ll back the candidate whose policies seem likely to offer her the best future.
“I’ll just again look to find whoever has policies that align more closely with what I’m looking to do today,” Trotter said. “It’s not about the past. It’s about looking forward.”
(WASHINGTON) — Former President Donald Trump told the audience at a cryptocurrency conference in Nashville, Tennessee, over the weekend that he wants to turn the U.S. into the “crypto capital of the planet.”
The remarks thrust digital currency into the forefront of a presidential campaign in which both major candidates are seeking to draw contrasts on hot-button issues. The political attention comes during an upswing for bitcoin, the most popular cryptocurrency, which has surged 60% in value this year.
Trump, who opposed crypto as president, has recently undertaken a campaign blitz in support of digital assets. By contrast, likely Democratic nominee Kamala Harris has remained quiet on the issue since President Biden ended his reelection bid more than a week ago and endorsed the vice president in his place.
“This is a really live issue,” Aaron Klein, a senior fellow in economic studies at the Brookings Institute, told ABC News, pointing to key constituencies that disproportionately trade cryptocurrency, such as young voters.
In response to ABC News’ request for comment, the Trump campaign touted the candidate’s support for crypto and the wider tech industry.
“As the Bitcoin conference demonstrated, President Trump wants our nation to regain the global lead for technology, innovation, and manufacturing. That includes crypto and other sectors,” senior adviser Brian Hughes told ABC News in a statement. “Crypto innovators and others in the technology sector are under attack from Kamala Harris and the Democrats who’ve placed obstacles and unnecessary burdens in the way of our nation’s next generation of industry leaders.”
The Biden campaign did not immediately respond to an ABC News request for comment on the issue.
Here’s what to know about where Trump and Harris stand on cryptocurrency:
Where does former President Donald Trump stand on cryptocurrency?
While in office, Trump sharply criticized crypto. In 2019, he derided digital assets in a post on X as “highly volatile and based on thin air.”
“Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade,” Trump added.
Lately, however, Trump has voiced full-throated support for crypto. Speaking at the annual Bitcoin Conference on Saturday, Trump vowed to ease regulation of cryptocurrency and establish the federal government’s first National Strategic Bitcoin Reserve.
Trump also said he would replace Securities and Exchange Commission Chair Gary Gensler, who many crypto proponents dislike for his robust approach to crypto regulation.
“Trump seems to have had a change of heart and is going all-in on crypto,” Eswar Prasad, a professor at Cornell University who studies digital assets, told ABC News.
In recent weeks, Trump has received endorsements from some major figures in Silicon Valley who back crypto, including Tesla CEO Elon Musk, a prominent crypto supporter. Other Trump supporters include Cameron and Tyler Winklevoss, billionaire crypto entrepreneurs who gained prominence in the early 2000s after suing Facebook CEO Mark Zuckerberg.
In a post on X on Monday, Cameron Winklevoss said, “We’re going to make America and Bitcoin greater than ever before.”
Prasad said Trump’s about-face on crypto aligns with his effort to appeal to Silicon Valley donors and signal a deregulatory approach toward business.
“He seems to view the crypto industry as a source of financing for this campaign and also as lining up with his anti-big government message,” Prasad said.
It remains difficult to discern exactly where Harris stands on crypto, experts told ABC News.
Where does Vice President Kamala Harris stand on cryptocurrency?
The Biden administration has been widely perceived as tough on crypto, they noted, citing the federal prosecution of FTX founder Sam Bankman-Fried and cryptocurrency regulations enforced by Gensler. However, experts told ABC News, it isn’t clear how closely Harris intends to align herself with Biden on the issue.
Democrats are divided over crypto policy, said Klein, of the Brookings Institute. Progressive Sen. Elizabeth Warren, D-Mass., has been a forceful critic of crypto, for instance, while tech entrepreneur and Harris supporter Mark Cuban has sought a friendlier stance on digital assets, Klein noted.
“The Democratic party has a split,” Klein said.
Harris ultimately may seek to soften the Biden administration’s position on cryptocurrency, experts said. The Harris campaign has contacted top crypto firms in an effort to “reset” relations between the industry and the Democratic Party, the Financial Times reported on Saturday.
“I suspect Harris’s campaign will have some level of strategic ambiguity between the Biden administration’s line and what the cryptocurrency industry wants,” Klein told ABC News.
A Spirit Airlines takes off from Oakland International Airport on May 06, 2024 in Oakland, California. (Justin Sullivan/Getty Images)
(NEW YORK) — Spirit Airlines is shifting gears from its famously no-frills service to offer new fare options that include premium seats, carry-on baggage, Wi-Fi and even snacks.
The ultra-low-cost Florida-based carrier announced “a significant transformation” to its pricing structure on Tuesday with new ticketing bundles and more perks for passengers.
“We’re unveiling a new era in Spirit’s history and taking low-fare travel to new heights with enhanced options that are unlike anything we’ve offered before,” Ted Christie, Spirit’s president and chief executive officer, said in a statement.
Christie said the changes were a result of customer feedback from guests who want “choices for an elevated experience that are affordable and provide unparalleled value.”
The changes come on the heels of a similar announcement from Southwest Airlines earlier this month. The Dallas-based budget carrier said it would add assigned seats and a premium cabin, promising full details to come in September at the company’s investor day.
What to know about new changes on Spirit Airlines
Starting mid-August, Spirit Airlines will offer four new flexible travel options for travelers to choose from that range from elevated to economical, all without change or cancel fees: Go Big, Go Comfy, Go Savvy and Go.
Go Big includes a Big Front Seat, which has extra legroom, a wider seat, additional cushioning and no middle seat; snacks and drinks, including alcoholic beverages; one carry-on bag and one checked bag; priority check-in and boarding; and streaming access with high-speed Wi-Fi.
Go Comfy offers increased comfort and space with a guaranteed blocked middle seat, one carry-on bag, one checked bag, priority boarding, a snack and a non-alcoholic beverage.
Go Savvy gives passengers the choice between one carry-on bag or one checked bag and standard seat selection during booking.
Go, the airline’s base-level fare, provides options to purchase trip extras after booking including checked bags, standard seat selection, Wi-Fi, and snacks and beverages.
Travelers will be able to book the new options online at checkout starting Aug. 16 with the new guest experience changes rolling out by Aug. 27, 2024.
Priority check-in
Starting Aug. 27, passengers who purchase the Go Big fare class — or are Free Spirit Gold members or Free Spirit World Elite Mastercard holders — will be able to use a dedicated priority check-in line to access the first available ticket counter agent. The new lines will roll out at more than 20 airports.
Enhanced boarding experience
Spirit’s redesigned boarding process will have five groups with priority boarding available to Go Big and Go Comfy fare-classes, Free Spirit Gold and Silver members, Free Spirit World Elite Mastercard holders and active-duty U.S. service members, plus spouses and children who are traveling with that service member.
Expanding guest benefits, flexibility
The airline now offers no change or cancellation fees for all guests, regardless of ticket type, a checked bag weight allowance up to 50 pounds, and extended future travel voucher expiration, now up to 12 months.
(NEW YORK) — They’ve got sleek styling, impressive fuel economy and added power. Hybrids are the hottest vehicles right now and some Americans are struggling to find one.
Jeff Buchanan, vice president of vehicle marketing and communications at Toyota, said there’s still a wait list for the newest Prius model, which launched in November of 2022. He expects a similar situation with the upcoming Camry, which will be sold exclusively as a hybrid powertrain for model year 2025.
“Some people are not ready to switch to electric vehicles,” Buchanan told ABC News. “Hybrids offer flexibility — you don’t have to depend on charging infrastructure but you can still reduce emissions.”
The hybrids on sale today — from sport utility vehicles to six-figure sports cars — are faster, sexier and more efficient. They’ve also lost that nerdy, uncool image from the early 2000s.
“The Prius was always known for great fuel mileage. But the new one has changed everyone’s opinion,” Buchanan said. “The styling is unbelievable, the performance is unbelievable. People say to me, ‘Wow, that’s a really good looking car.'”
If styling won’t convince consumers to buy a hybrid, fuel economy will, he said. Toyota’s popular hybrids — the Prius, Corolla, Highlander, RAV4 and Camry — get anywhere from 40 to 57 combined mpg, according to EPA estimates.
Nearly 1.2 million Americans bought hybrids last year versus 763,000 in 2022, according to Robby Degraff, an analyst at AutoPacific. He said hybrid sales will continue to grow year-over-year as more automakers pull back on their electric vehicle rollouts and add hybrids to their lineups.
“Hybrids are offered in such a greater mix of body styles and segments,” he told ABC News. “Electric vehicles don’t work for a lot of people. Plus, EVs are more expensive than hybrids and gas-powered cars and trucks. Hybrids are the most equitable way to lower your carbon footprint.”
Sports car makers are also turning to hybrid technology to boost performance and acceleration. British marque McLaren currently offers two hybrids for enthusiasts: the Artura coupe and Artura Spider, a convertible that went on sale earlier this year. The Spider, which company execs call the “most fuel-efficient McLaren convertible ever,” produces a combined 691 horsepower from a 3.0-liter twin-turbocharged V6 and E-motor powertrain. The E-motor is powered by a battery pack made up of five lithium-ion modules, allowing drivers to get up to 21 miles of EV range.
The E-motor and twin-turbo V6 give the Artura Spider “razor-sharp throttle response,” according to the company, and ridiculously fast acceleration (0-60 mph in 3 seconds). Dani Marcos, a longtime test driver for McLaren, said owners still get that exhilarating rush from the hybrid powertrain.
“The goal was to make the Artura Spider more engaging and enjoyable for customers,” Marcos told ABC News. “It’s comfortable for every day driving but we also preserved McLaren’s [racing] DNA.”
McLaren is not the only automaker to make a hybrid convertible sports car. The Corvette E-Ray’s electric motor adds 60 hp and 125 lb-ft of torque through the front wheels via a 1.9 kWh battery pack, giving the car a combined 655 hp from the motor and naturally aspirated Small Block V8 engine. Moreover, E-Ray owners can start their drives in “Stealth Mode,” an electric drive mode that operates at speeds under 45 mph.
“The first time I floored the E-Ray, it was just so quick,” said Tony Quiroga, editor-in-chief of Car and Driver. “People want sports cars as light as possible and the E-Ray is heavy. But you can’t really notice the weight compared to the regular [Corvette] Stingray.”
He added, “It’s a performance hybrid and not tuned for efficiency. But it’s spectacular and the electric motor fills in the power before the gas engine does.”
Stephanie Valdez Streaty, industry insights director at Cox Automotive, said ongoing education about hybrids, plug-in hybrids (PHEVs) and pure battery-electric vehicles (BEVs) will ease Americans’ “journey toward electrification.”
“What’s a mild hybrid? Gas hybrid? PHEV? Consumers still ask that,” she told ABC News. “Some people think you have to charge a gas hybrid.”
According to Cox Automotive data, the U.S. auto market will soon “pass the milestone of 1-in-5 new vehicles sold including a sizable battery pack – adding millions of batteries to our roads each year.”
“I am not surprised at this trend,” Streaty said. “There really are no barriers to hybrids. They’re easier to sell to consumers: ‘This is how you save money on gas.’ And a lot of popular models are under $35,000.”
Honda Motor executive Jessika Laudermilk said the introduction of the 2025 Civic hybrid would likely appeal to a broad range of motorists and could even account for 40% of overall Civic sales.
The Japanese automaker’s hybrid sales have been growing since the second half of 2022, she said, and set an all-time sales record in 2023. The CR-V and Accord hybrids represented over one-quarter of total Honda brand sales last year.
“The CR-V hybrid and Accord hybrid have carried this strong momentum into the first six months of 2024,” Laudermilk told ABC News. “The market for EVs is going to fluctuate in the early stages of this transition and hybrid vehicles play an important role during this period.”
Randy Parker, CEO of Hyundai Motor America, said the company’s sales of hybrid rose 42% between April and June versus 15% for fully electric models.
The appeal of hybrids can help reassure “EV-curious and cautious customers” that electrification is the way to go, he noted.
“We have always understood the EV transformation to have near-term and long-term requirements,” he told ABC News. “That is why we developed a lineup with this diverse choice of drivetrains. We want to meet the customer where they are on their EV transformation journey, including the readiness of their local and regional charging infrastructure.”
He added, “More models are coming, and more buyers will continue to trade in their ICE [internal combustion engine] models for vehicles with appealing, efficient designs and advanced technology.”
For consumers still clinging to their big engines, Degraff said it’s time to give hybrids a serious look.
“Today’s hybrids are not the same hybrids from the early- to mid-2000s,” he said. “You can buy a Hyundai Elantra, for example, that gets almost 60 miles per gallon — that’s how far hybrid technology has come. Hybrids are pretty fantastic vehicles and are only going to get better.”
Buchanan of Toyota said the company “will build cars our customers want.” Right now, that’s gas hybrids.
“Demand used to be more specific to the East and West Coasts, but every dealer would take more hybrids right now,” he said. “It just underscores the overall acceptance of this technology.”
