Day: 5 October 2023

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U.S. mortgage rates closing in on 8%

Mortgage up

The average rate on the popular 30-year fixed mortgage rose to 7.72% on Tuesday 3rd October 2023, according to latest data

Mortgage rates follow loosely the yield on the 10-year Treasury, which has been climbing this week following strong economic data. Rates have not been this high since the end of 2000.

At the beginning of this year, the 30-year fixed rate dropped mortgage to around 6%, creating a short-lived burst of activity in the spring 2023. But it began rising steadily again over the summer months, causing sales to drop, despite strong demand. The current trend appears to be even higher, with the possibility of rates reaching over 8%.

U.S. mortgage rates, which are close to 8% according to some sources. This is a very high level compared to the recent years, and it may have significant implications for the housing market and the economy.

Main points

Some experts believe that rates could reach 8% later by the end of October, and possibly stay at that level for the remainder of the year. Others, however, think that rates may stabilize or decline slightly if the economic growth slows down or inflation eases.

30 year fixed mortgage rate at 7.72%

The average rate on the popular 30-year fixed mortgage rose to 7.72% as of Oct. 3, according to Mortgage News Daily. This is the highest rate since 2000.

Rates are rising as more economic indicators point to a strong U.S. economy, which increases the likelihood of the Federal Reserve to hike rates further. The 10-year Treasury yield, which closely tracks the mortgage rates, reached 4.8% on Tuesday, the highest level since August 2007.

Hitting 8% will be like crossing a psychological barrier for many buyers, as it will increase their monthly payments and reduce their affordability. It may also dampen the demand for housing, which has already been affected by low inventory and high prices.

Some buyers are already seeing 8% mortgage rates, especially those who have high loan-to-value ratios, high balance-conforming loans, or non-qualified mortgage loans. These could also be borrowers with lower credit scores or non-prime borrowers.

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A degree in ‘magic’ available at Exeter University

Degree in the occult

The University of Exeter is offering a master’s degree in magic and occult science – (what is occult science?). Available from September 2024. 

First course of its kind in the UK

The course is said to be one of the first of its kind in the UK and aims to explore the history and impact of witchcraft and magic around the world on society and science.

The course leader, Prof Emily Selove, reportedly said that the course was created following a recent surge in interest in magic and the occult, (worrying) – inside and outside of academia. She also said that the course would allow students to re-examine the assumption that the West is the place of rationalism and science, while the rest of the world is a place of magic and superstition.

Institute of Arab and Islamic Studies

The course will be offered in the Institute of Arab and Islamic Studies and will involve academics from various disciplines such as history, literature, philosophy, archaeology, sociology, psychology, drama, and religion. 

Some of the modules that students can choose from include dragons in western literature and art, the legend of King Arthur, palaeography, Islamic thought, archaeological theory and practice and the depiction of women in the Middle Ages.

Preparing students for a ‘teaching’ career amongst other options

The university said that the course could prepare students for careers in teaching, counselling, mentoring, heritage and museum work, work in libraries, tourism, arts organisations or the publishing industry, among other areas of work.

And you get one of these too…

To be perfectly honest, I really do not know what to think. This is for real!

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Bed bugs in Paris!

Bed bugs in Paris

Blood sucking insects

Bed bugs are small, blood-sucking insects that can infest homes, hotels, public transport, and other places where people sleep or rest. And Paris has its fair share at the moment.

They can cause skin irritation, allergic reactions, and psychological distress to their hosts. Bed bugs are not known to transmit any diseases, but they can be hard to irradicate once they establish.

Paris outbreak

According to some news reports, Paris is facing a ‘widespread’ outbreak that has been increasing over the past few years.

Some factors that may contribute to the problem

  • Lack of awareness and prevention measures among the public and the authorities.
  • Reduced use of pesticides, such as DDT, that were effective against bed bugs but harmful to the environment and human health.
  • Increased globalisation, tourism, and immigration, which facilitate the spread of bed bugs through luggage, clothing, and furniture.
  • Social media amplification of the problem, which may create panic and stigma.

Challenge

The bed bug issue in Paris may pose a challenge for the city’s image and reputation, especially as it prepares to host the 2024 Olympic Games. However, there are some solutions that can help prevent and control bed bug infestations.

Methods to control outbreaks

  • Washing and drying your clothes and bedding at high temperatures after travelling or suspecting an exposure to bed bugs.
  • Checking for signs of bed bugs before staying in a hotel or renting an apartment, such as dark spots, blood stains, or live insects on the mattress, sheets, or furniture.
  • Sealing cracks or crevices where bed bugs may hide or enter your home.
  • Avoiding bringing second-hand furniture or clothing into your home without inspecting them first.
  • Calling a professional pest control service if you find bed bugs in your home or workplace.

Not just for Paris – probably coming to a city near you too… and soon.

This will take some time to fix.

Bed bugs in Paris
Imaginative artwork: Bed bugs are small, blood-sucking insects that can infest homes, hotels, public transport, and other places where people sleep or rest.
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‘You can dream, create, design, and build the most wonderful place in the world. But it requires people to make the dream a reality.’

Fairytales and dreams

Walt Disney 1901 – 1966

Walt Disney was an American animator, film producer and entrepreneur. A pioneer of the American animation industry, he introduced several developments in the production of cartoons. As a film producer, he holds the record for most Academy Awards earned and nominations by an individual.

‘You can dream, create, design, and build the most wonderful place in the world. But it requires people to make the dream a reality.’

See other quotes

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Metro Bank shares plunge 25%

Nasdaq

Metro Bank shares have plunged by 25% after reports emerged that the bank is urgently seeking to raise millions to bolster its finances. 

The bank is in talks with investors about raising £250m in equity financing and £350m in debt, while asset sales are also being considered to strengthen the lender’s balance sheet.

The bank’s shares have already suffered substantial falls in September after regulators refused to approve a request to lower the capital, or cash, requirements attached to its mortgage business.

It has been reported that the Metro Bank share price has dropped by 70% so far this year.

As of now, it’s unclear whether the bank will be able to secure the funding it needs. As much as £600 million has been muted as need in in some reports.

Is this a worrying sign of worse to come, or just a one-off?