Fed holds interest rate steady
The U.S. Federal Reserve is maintaining its benchmark lending rate, ignoring pressure from President Donald Trump to reduce borrowing costs.
The Fed held the rate at a target range of 4.25% and 4.5% as expected, as it said “uncertainty about the economic outlook has increased further,” and that it “judges that the risks of higher unemployment and higher inflation have risen.”
Though the Fed does not set mortgage rates, its rate impacts various factors that influence mortgage rates.
Mortgage rates more closely follow bonds, as both are considered long-term investments, and rate changes impact bond yields. And as Fed rates increase, so do the borrowing costs for banks, which are passed on to buyers in the form of higher mortgage rates.
The current 30-year fixed mortgage rate average was 6.76% as of May 1, according to mortgage giant Freddie Mac.
EPA to shut down Energy Star program
The U.S. Environmental Protection Agency’s longstanding Energy Star program that certifies the energy efficiency of homes, contractors and appliances is reportedly being cut as part of a reorganization effort.
An EPA director told staffers during a meeting Monday the program will be “de-prioritized and eliminated,” according to recordings received and confirmed by The New York Times. The move is part of the Trump administration’s ongoing efforts to reduce costs at federal agencies.
Energy Star also helps homeowners save money on utility bills by providing tools to find efficient appliances and determining eligibility for tax credits and rebates.
Some experts have warned that utility costs could increase for homeowners as a result of the program’s end. Energy Star began in 1992 and, according to the EPA, has reduced greenhouse gas emissions by 4 billion metric tons and saved Americans $500 billion in that time.
FEMA says Los Angeles has enough housing
After a natural disaster hits, it’s typical for the Federal Emergency Management Agency to lease buildings and house displaced victims. That has yet to happen in Los Angeles, where wildfires devastated the city in January.
A program called Direct Lease is used as a supplement to FEMA’s housing assistance subsidies. The agency leases out units such as short-term rentals to residents who have lost their homes.
But Los Angeles emergency officials, according to the Los Angeles Times, say the program is not needed because an analysis of apartments in Los Angeles County showed more than 5,600 units were available within FEMA’s cost reimbursement limits.
Residents and housing advocacy groups told the Times
the challenge of finding housing has been more difficult than FEMA’s analysis shows. The wildfires were said to have destroyed about 13,000 homes, and reports in the aftermath emerged describing instances of rental price gouging.