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High mortgage rates stretching housing affordability, says Nationwide

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High mortgage rates mean affordability is still “stretched” for many home buyers, according to the Nationwide.

The building society said that while earnings had been rising faster than house prices in recent years, this had not been enough to offset the impact of more expensive mortgages.

Its comments came as it said house price growth had been “broadly stable” in June, with prices up 0.2% from the previous month.

The average house price is now £266,064, the lender said.

Prices were up 1.5% from a year earlier, but Nationwide said activity in the housing market had been “broadly flat” over the past 12 months, with transactions down by about 15% compared with 2019.

The lender said the market was still being affected by the increase in mortgage rates, which started climbing after the Bank of England began to raise its key interest rate in late 2021.

Robert Gardner, Nationwide’s chief economist, said that mortgage rates are “still well above the record lows prevailing in 2021 in the wake of the pandemic”.

“For example, the interest rate on a five-year fixed rate mortgage for a borrower with a 25% deposit was 1.3% in late 2021, but in recent months this has been nearer to 4.7%.

“As a result, housing affordability is still stretched.”

Nationwide’s figures are based on the building society’s own mortgage lending, which does not include buyers who purchase homes with cash, or buy-to-let deals. Cash buyers account for about a third of housing sales.

The impact of higher borrowing costs can be seen in the fact that transactions involving a mortgage are down by nearly 25% over the past year, Nationwide said.

Meanwhile the number of cash transactions for properties is about 5% higher than pre-pandemic levels.



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Democratic donors say they won’t finance party until he drops out

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U.S. President Joe Biden walks to deliver remarks after the U.S. Supreme Court ruled on former U.S. President and Republican presidential candidate Donald Trump’s bid for immunity from federal prosecution for 2020 election subversion, at the White House in Washington, U.S., July 1, 2024. 

Elizabeth Frantz | Reuters

President Joe Biden is facing an uprising from some his own party’s wealthy donors, including an heiress to the Disney family fortune, who say they will no longer fund the Democratic Party until Biden steps down following his disastrous debate performance.

Abigail Disney, the granddaughter to Roy O. Disney, who cofounded The Walt Disney Company, told CNBC on Thursday that she plans to withhold donations to the party she has funded for years until Biden drops out. The president has said he has no plans to withdraw from the race, despite calls for him to do so.

“I intend to stop any contributions to the party unless and until they replace Biden at the top of the ticket.  This is realism, not disrespect. Biden is a good man and has served his country admirably, but the stakes are far too high,” Abigail Disney said in a lengthy statement to CNBC. “If Biden does not step down the Democrats will lose. Of that I am absolutely certain. The consequences for the loss will be genuinely dire.”

The Democratic Party at large has been in a state of panic since Biden struggled to perform in the debate against former President Donald Trump last week. Rep. Lloyd Doggett, D-Texas, called on Biden to drop out of the race, suggesting the debate performance proved to voters that the president is incapable of taking on Trump and unable to overcome his distance in the polls.

A New York Times/Sienna College poll taken after the debate showed Biden behind Trump by 6 percentage points among likely voters.

Representatives for the Biden campaign did not return requests for comment.

Abigail Disney has been a longtime supporter of Democrats. She gave $50,000 to the Jane Fonda Climate political action committee in April, according to a Federal Election Commission filing. The PAC has given $35,000 to Democrats running for congressional seats, according to data from OpenSecrets.

Disney gave $150,000 in 2014 to Planned Parenthood Votes, a PAC affiliated with the health care nonprofit, according to OpenSecrets. That PAC this election cycle has spent over $400,000 supporting Democrats, including $26,000 for Biden.

Disney pointed to Vice President Kamala Harris as a solid alternative to Biden, arguing she’d be able to defeat Trump.

“We have an excellent Vice President.  If Democrats would tolerate any of her perceived shortcomings even one tenth as much as they have tolerated Biden’s (and let’s not kid ourselves about where race and gender figure in that inequity) and if Democrats can find a way to stop quibbling and rally around her, we can win this election by a lot,” Disney said.

And she’s not the only one pausing gifts until Biden steps down. Gideon Stein, the president of the Moriah Fund, said he’s decided to pause planned donations of $3.5 million, earmarked for nonprofits and political organizations aligned with the presidential race.

“Joe Biden has been a very effective president, but unless he steps aside my family and I are pausing on more than $3 million in planned donations to nonprofits and political organizations aligned with the presidential race, with the exception of some down ballot work,” Stein said. “Virtually every major donor I’ve talked to believes that we need a new candidate in order to defeat Donald Trump.”

Karla Jurvetson, a philanthropist and major Democratic donor, hinted as recently as Tuesday in a private donor call that she agrees with the sentiment on pausing donations until Biden steps down and could end up making such move, according to a person familiar with her remarks. The person was granted anonymity in order to speak freely about a private conversation.

A spokesman for Jurvetson did not return repeated requests for comment.

Jurvetson is among the top 50 donors this cycle across the country, donating over $5 million to Democrats, according to OpenSecrets. She’s given over $200,000 to the Biden Victory Fund this cycle, according to FEC records.

Jurvetson gave over $30 million to Democrats in 2020, according to the data.



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Civics are becoming a 21st-century business skill

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The Fourth of July is a day typically filled with food, festivities, and fireworks in the U.S., as our nation celebrates the passage of the Declaration of Independence in 1776. But this day commemorates something else, too.

Our celebration of Independence Day is an opportunity to reflect on our country—the progress we have made and the work we must still do to strengthen our democracy and communities as we look toward the future.

Like a successful business, democracy only works when all of its components function well. The very skills that formed this great experiment are the same skills that spark the inspiration and innovation necessary for breakthrough ideas and continued economic growth. In other words, civics is a 21st-century business skill.

Critical thinking, problem-solving, negotiation, curiosity, adaptability, shared risk-taking, and other so-called “soft skills” are increasingly called “durable skills” because there’s nothing soft about them. In fact, a recent LinkedIn survey found that nine out of 10 global executives say they are more important than ever in the workplace.

Collaboration and shared risk-taking

in government, facilitating and making decisions requires people to work together. Whether it’s running a polling station on Election Day or serving on a municipal committee, the path to getting things done includes working with others who may hold opinions and ideas that are quite different from your own.

While our neighborhoods, houses of worship, schools, and other places where we gather with others may be homogenous, in the workplace, we are likely to encounter people who are different from us.

When team members with varied opinions and perspectives can work respectfully and effectively together, organizations win. Companies and teams adept in durable skills can be expected to deliver greater employee morale, improved product service or quality, and increased innovation, to name a few.

Defusing conflict and solving problems

Failure to understand how our government works is preventing people from finding common ground on basic issues. This lack of knowledge foments division, frustration, and ultimately, incivility and an inability to communicate effectively with others, especially those who see the world differently.

Most Americans believe the nation’s tone is uncivil (58%). However, when people have a shared understanding of organizations and processes, they can listen to others’ arguments and make strong rationales of their own. In doing so, they can better use reason to compromise and manage conflict.

Honing negotiation skills

Think about the way legislation is often crafted: Someone has an idea for change. Others may disagree. In an ideal world, they discuss their differences, find common ground, and draft legislation made stronger by a range of viewpoints.

Increasingly, managers are concerned about their team members’ unwillingness to compromise and inability to sit together and come to an agreement. By many accounts, our founding fathers held wildly differing opinions and argued fiercely. However, they were able to reach compromises that became our nation’s foundation.

Training critical thinking

While sometimes met with chagrin, jury duty is one of the most important ways citizens participate in our system of governance.

Being a good juror requires weighing evidence, questioning our own preconceptions, and asking good questions. These are the same critical thinking skills necessary in making key organizational decisions.

Building leaders

Understanding and participating in how our government is run teaches us how to operate in complex systems, navigate change, and use good judgment and reason to reach a goal. In short, civic engagement builds leaders who can apply those skills in myriad ways, including in the workplace.

Americans are eager for employers to help build bridges, create healthier discourse, and strengthen cooperation in the communities they serve. Eighty-two percent of Americans believe that businesses can play a role in bringing our country together, and nearly 75% of voters agree that businesses have a responsibility to protect our economic system and national environment.

Businesses can take small yet meaningful steps to boost civic engagement. For example, employers may offer their employees time off to serve as nonpartisan poll workers during local, state, and national elections, addressing a critical shortage across America. Or they can support employees selected for jury service by providing resources to help them prepare for their duties. They can also provide educational experiences that reintroduce employees to civics basics, empowering them to learn more about how our government works and how they can meaningfully participate. The U.S. Chamber of Commerce Foundation runs one of several such initiatives that help employers enhance civic skills within their teams.

As we prepare to celebrate Independence Day, now is the time for the business community to commit to elevating civics education and skills in the workplace.

More must-read commentary published by Fortune:

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.



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Trump falsely claims to have driven Biden from race in video, Daily Beast reports By Reuters

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(This story contains offensive language in paragraph 3)

By Jeff Mason

WASHINGTON (Reuters) – Republican Donald Trump falsely claimed to have driven Democratic President Joe Biden out of the White House race and disparaged Vice President Kamala Harris in a video published by the Daily Beast, which drew a sharp rebuke from the Biden campaign.

Former President Trump was filmed at one of his golf courses seeking plaudits for his debate against Biden, whose stumbling performance a week ago sparked calls from his fellow Democrats for him to step aside.

“He’s quitting the race … I got him out,” Trump says in the footage, published late Wednesday. He then disparages Harris, who sources say would likely take over from Biden as the Democratic presidential candidate if he were to pull out, saying, “She’s so bad, she’s so pathetic, she’s just so fucking bad.”

Biden, 81, told his campaign on Wednesday that he was still running. His campaign fired back at Trump, 78, in a statement.

“No, Donald. What is bad is taking away women’s rights; What is bad is losing an election and encouraging a violent mob to attack the Capitol; What is bad is assaulting women; What is bad is not paying your taxes,” spokesperson Sarafina Chitika said.

© Reuters. Former U.S. President and Republican presidential candidate Donald Trump holds a campaign event, in Chesapeake, Virginia, U.S. June 28, 2024. REUTERS/Brendan McDermid/File Photo

Trump’s campaign stood by his words, with co-campaign manager Chris LaCivita responding on X: “Nothing in this video is incorrect.”

Reuters verified the location of the video as Trump National Golf Club in Bedminster, New Jersey. The golf cart Trump is seen driving features the number one and a presidential seal; he has been seen driving the same cart before in file video from the course.





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