An aerial view shows a subdivision that has replaced the once rural landscape in Hawthorn Woods, Illinois.
Scott Olson | Getty Images
Mortgage interest rates dropped last week to the lowest level since May 2023, causing a surge in mortgage demand from both homebuyers and especially current homeowners.
Total mortgage application volume rose 6.9% last week compared with the previous week according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was at the highest level since January of this year.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.55% from 6.82%, with points decreasing to 0.58 from 0.62 (including the origination fee) for loans with a 20% down payment.
“Mortgage rates decreased across the board last week…following doveish communication from the Federal Reserve and a weak jobs report, which added to increased concerns of an economy slowing more rapidly than expected,” said Joel Kan, MBA’s vice president and deputy chief economist in a release.
Applications to refinance a home loan, which are most sensitive to weekly rate changes, jumped 16% for the week and were 59% higher than the same week one year ago. While the percentage increases are large, they are still coming off a very small base. The vast majority of borrowers today have loans with rates below 5%. There are less than one million borrowers who can benefit from a refinance and shave at least 75 basis points off their current rate.
Applications for a mortgage to purchase a home increased just 1% for the week but were still 11% lower than the same week one year ago.
“Despite the downward movement in rates, purchase activity only saw small gains, with an increase in conventional purchase applications offset by decreases in government purchase applications. For-sale inventory is beginning to increase gradually in some parts of the country and homebuyers might be biding their time to enter the market given the prospect of lower rates,” added Kan.
Mortgage rates fell further to start this week, following a stock market rout Monday. They rose sharply again, however, on Tuesday following some more positive economic data.
“This is how things often play out when the bond market forces a quick move to extreme rate levels. For example, several of the biggest drops in daily mortgage rates have followed quick moves to long-term highs,” wrote Matthew Graham, chief operating officer at Mortgage News Daily.
(Reuters) – Boeing (NYSE:) Co has told suppliers it is delaying a key production milestone for its 737 MAX by six months, three industry sources said, in a sign the planemaker is struggling to boost production of its best-selling jet.
Boeing’s latest 737 supplier master schedule communicated to the industry calls for MAX output to reach 42 a month in March 2025, compared with a previous target of September 2024, the sources told Reuters.
Boeing has been struggling to recover production of its top single-aisle passenger plane due to additional safety and regulatory checks since a door panel dramatically flew off a 737 MAX jet in midair in January.
While the so-called master schedule is a demand signal, it is not an official production target. Boeing has not changed its official plane production target, which calls for 38 MAX jets a month by the end of 2024, up from roughly 25 jets a month in July.
When asked about the master schedule, a Boeing spokesperson directed Reuters to second quarter comments made by CFO Brian West in late July.
“On the master schedule, we continue to make adjustments as needed and manage supplier by supplier based on inventory levels,” West said. “Our objective remains to keep the supply chain paced ahead of final assembly to support stability.”
In an effort to align with Boeing’s lower production, supplier Spirit AeroSystems (NYSE:) in August temporarily lowered its monthly output of fuselages for the 737 MAX to 21 a month from 31, reducing demand for parts from its own supply chain, a senior industry source told Reuters.
Spirit AeroSystems spokesperson Joe Buccino said “we make adjustments of delivery and production rates with our suppliers in accordance with our supplier agreements.”
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
The US Department of Justice accused Google of running a massive ad tech monopoly that cut off potential rivals and drove up costs for publishers and advertisers in an attempt to maximise profits, as the latest antitrust trial against Big Tech got under way on Monday.
“No one wins” — except Google, a lawyer for the DoJ, Julia Tarver Wood, said during her opening statement in a federal court in Virginia.
The trial comes just weeks after a judge in Washington issued a landmark verdict in another DoJ antitrust case against Google, finding it had monopolised the market for online search. A decision on how to punish Google is expected next year.
Both cases are part of a growing push to rein in the power of Big Tech by antitrust enforcers in Washington, who have brought sweeping cases challenging the market power of the likes of Amazon, Meta and Apple.
The government’s current case against Google strikes at the heart of the lucrative business to display online ads such as the ones at the top or side of a screen. The DoJ, along with 17 states, argued in the lawsuit that Google dominates that business — from publishers that sell ads to the advertisers that create them — and the platform that matches the two sides.
The DoJ said Google’s cut can be 37 cents of every advertising dollar when it matches buyers and sellers, and said it controls a roughly 90 per cent share of the markets for ad servers and advertiser networks worldwide.
Google has argued in response that it does not have a monopoly and instead offers a superior product in a highly competitive market. Karen Dunn, who represented Google, said the company has transformed the ad tech market, competes “millisecond by millisecond” for every ad impression against an array of other companies, and “grew the pie” for all businesses in the sector over the past two decades through its innovation.
Dunn repeatedly charged that the government did not understand the business — and it cannot compel the company to give its tech to competitors. The government’s case against Google is based on analysis “that is not commercial reality” and “made up” for the purpose of litigation, she said.
She said Google would offer as witnesses the company’s engineers and designers, as well as government officials at the US Census and US military veterans, who used Google for recruitment and suicide prevention advertising.
Ultimately, Dunn argued it was not publishers, advertisers or customers who would benefit if Google lost, but the tech giant’s major competitors who have gained market share: Microsoft, Amazon, Meta and TikTok. She added the case was also backwards-looking, given the rapidly evolving nature of artificial intelligence.
The US government was looking “through the lens of ancient history”, said Dunn, a partner at Paul Weiss. She was also expected to help Democratic vice-president and presidential candidate Kamala Harris prepare for Tuesday’s presidential debate.
US District Judge Leonie Brinkema, 80, who was appointed to the bench by then-president Bill Clinton, will decide the case after the conclusion of the trial, which is expected to last for several weeks.
Additional reporting by Stephen Morris and Stefania Palma
Founded in 2021, Climate First Bank is a Florida community bank focused on environmental sustainability. In addition to providing multiple personal and business accounts, it has a goal of reversing the climate crisis by contributing 1% of its revenue to environmental causes. In this Climate First Bank review, we’ll focus on its personal deposit accounts.
All rates and fees are current as of September 9, 2024, and are subject to change.
Climate First Bank
Checking accounts:
Starting at $0 per month
Savings accounts:
Open with as little as $50
Certificate of deposit (CD) rates:
Earn up to 5.34% annual percentage yield (APY)
Climate First Bank rates and products
Climate First Bank has four different checking accounts, two savings accounts, one money market account (MMA), and several types of CDs to choose from.
Checking accounts
All of Climate First’s checking accounts are free checking accounts, meaning it doesn’t charge a monthly fee. There’s also no minimum balance requirement.
When you open either the Regeneration Checking and the Pride Checking account, Climate First Bank will make a $100 donation to Project Regeneration or an LGBTQ+ nonprofit, respectively. This is instead of a traditional checking account bonus. The other two accounts—the NetZero Checking and the Choice Checking—don’t come with a donation.
Note that there are direct deposit requirements to receive your $100 donation or earn the high 5.34% APY on the Choice Checking account. It’s $750 in the first 90 days for the donation accounts and $500 for the Choice account.
Savings accounts
Climate First’s single saving account option for adults is the Super Savings Account. Its 2.75% APY doesn’t quite qualify it as a high-yield savings account, as the best high-yield savings accounts have interest rates above 5%. One selling point of this account is the lack of withdrawal restrictions—many other banks limit you to six withdrawals per month.
Climate First also has a Minor Savings Account for children 17 years or younger. There’s no monthly service fee, but parents do need to be included on the account.
Climate First Bank savings rates compared to current top rates*
While Climate First Bank is a great option, some institutions offer higher interest rates. Compare the rates above to this list of competitors:
Money market account
An MMA combines the features of a savings and checking account. For this account in particular, you’ll enjoy unlimited withdrawals, debit card access, and one of the bank’s highest interest rates.
The Choice Money Market account has a 5.34% APY if you maintain a balance above $50,000, making it one of the best MMA rates. However, if your balance falls below that, you’ll only earn 0.05% APY, which is far below average.
Certificates of deposit
Climate Bank’s four CD terms are some of the best CD rates on the market right now. With a CD, you deposit your money for a set term in exchange for a fixed interest rate.
The two penalty-free CDs allow you to make one withdrawal per term without paying an early withdrawal penalty. There is also a Flex CD that lets you increase your rate once during the term. You can also make additional deposits up to half of your initial principal balance as well as withdraw up to half of your original deposit without penalty.
Other services Climate First Bank offers
Health savings account (HSA): If you have a minimum balance of $1,000, you can waive the $2.50 monthly fee.
Individual retirement account (IRA) account: These are CD accounts specifically for your retirement funds.
Personal loans: These include some unique options like residential solar loans with 7.73% APR or personal lines of credit.
Home equity line of credit (HELOC): Climate First Bank recommends you use these to make energy efficiency improvements and upgrades to your home.
Home loans: These include mortgages and refinancing with 30-, 45-, and 60-day lock-in periods for interest rates.
Auto loans: Climate First Bank offers these specifically for the purchases of an electric or hybrid vehicle.
Business banking: Choose from business checking, savings, money market, trust, and CD accounts
Cash management: Businesses can get help with bill pay, remote deposits, accounting, and more.
Commercial lending: Businesses can take out Small Business Administration (SBA) loans, working capital lines of credit, construction loans, energy improvement loans, and more.
Online banking
On the Climate First Bank website, you can open an account, make transfers, pay bills, and more. Although Climate First Bank is focused in Florida, it does consider itself a digital bank, so it offers robust online account features.
The Climate First Bank platform and customer support
Climate First has separate apps for its personal and business customers, which should ensure your experience is tailored to your needs. Customers rate the app 4.9 stars on both the App Store and Google Play—higher than the ratings for most other banks. The app allows you to see your accounts and statements, make a transfer or loan payment, or perform a mobile deposit.
Contacting Climate First for help will require you to send it an email or call during business hours. Its hours are 9 a.m. to 5 p.m. Eastern time at all three locations. The bank is also closed during federal holidays.
Is Climate First Bank secure?
Climate First Bank has not had any security incidents in the three years it’s been around. While it does post cybersecurity tips on its blog, it doesn’t provide insight into what its security protocols are. Therefore, we can’t advise whether this is a secure bank.
Climate First Bank user reviews
Climate First Bank has a cumulative 4.1 stars out of 5 across its three locations on Google Maps. Reviews say that the staff is very nice and jump in right away to help if there are any issues. Customers like how the bank has a wide variety of account options. Many also appreciate how the bank is socially and environmentally conscious. While the bank isn’t accredited with the Better Business Bureau (BBB), it does have an “A” rating with 5 out of 5 stars.
*SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Is Climate First Bank right for you?
Consider Climate First Bank if you’re looking for ways to offset your carbon footprint and be more environmentally conscious. The bank takes many steps to donate to eco-friendly causes as well as reduce its impact. The fact that it offers above-average APYs, a wide variety of accounts, a large ATM network, and easy account access are additional perks. However, if you don’t live in Florida and want in-person branch access, you’ll have to look elsewhere.
Frequently asked questions
Is Climate First Bank legit?
Yes, Climate First Bank is a legitimate community bank that was founded in 2021. It recently exited de novo status and is preparing to scale its operations outside of Florida.
Who is the founder of Climate First Bank?
Ken LaRoe is the founder and CEO of Climate First Bank. LaRoe has previously founded two other banks, including First GREEN Bank, which was the first bank in the Eastern United States with an environmental and social mission.
How big is Climate First Bank?
Climate First Bank currently provides services to over 10,700 business and personal account holders across the country. It has over $650 million in assets.
