June 1, 2023 - Business and Tech News
Homebuyers can't get a break as mortgage rates march back toward 7%.
Macy's and Costco warn of economic slowdown.
Adidas Yeezy sales slow as Kanye West focuses on politics.
Reddit may kill third-party clients with multimillion dollar fees.
Homebuyers can't get a break as mortgage rates march back toward 7%.
Homebuyers are facing even tougher conditions as mortgage rates surge closer to 7%. The rate on the 30-year fixed mortgage, the most popular type of home loan, jumped to 6.28% this week, according to data from mortgage buyer Freddie Mac. That's up from 5.81% last week and 3.22% a year ago.
The rapid rise in mortgage rates is being driven by rising inflation and interest rates. The Federal Reserve is raising interest rates in an effort to combat inflation, which is at a 40-year high. As interest rates rise, the cost of borrowing money also goes up, which makes it more expensive to buy a home.
The surge in mortgage rates is expected to cool the housing market, which has been red-hot for the past two years. Home prices have been rising at a rapid pace, and inventory has been low. The combination of rising prices and low inventory has made it difficult for many buyers to find homes they can afford.
The rising cost of borrowing money is also expected to dampen consumer spending, which could slow the overall economy. The housing market is a major driver of economic growth, so the slowdown in the housing market could have a ripple effect throughout the economy.
Macy's and Costco warn of economic slowdown.
Macy's and Costco, two major retailers, have warned that the US economy is slowing down. Macy's cut its annual profit and sales forecast after customer demand slowed in March. Costco said that some customers were switching from pricier steaks and beef for cheaper meats like pork and chicken.
The slowdown in consumer spending is being driven by a number of factors, including rising inflation, higher interest rates, and the war in Ukraine. Inflation is at a 40-year high, and interest rates are rising as the Federal Reserve tries to combat inflation. The war in Ukraine is also causing uncertainty, which is weighing on consumer spending.
The slowdown in consumer spending is a major concern for the US economy. Consumer spending accounts for about 70% of US economic activity, so a slowdown in consumer spending could lead to a recession.
Highlights:
Macy's stock dropped around 6% during pre-market trading Thursday.
Costco appeals to middle and higher-income shoppers, and their results show a pullback among that demographic.
Lower-income shoppers also have less money to spend on discretionary purchases and are slowing down.
Dollar General slashed its outlook on weak customer demand.
The slowdown in consumer spending is a major concern for the US economy. It is important to watch how the economy evolves in the coming months.
Adidas Yeezy sales slow as Kanye West focuses on politics.
Adidas Yeezy sales have slowed in recent months, as Kanye West has focused more on his political career. In the first quarter of 2023, Adidas Yeezy sales were down 12% from the same period in 2022.
There are a few reasons for the slowdown in Yeezy sales. First, West has been less visible in the public eye since he announced his presidential campaign in July 2022. He has not released any new music or fashion products since then.
Second, the political climate in the United States is divided, and some people are reluctant to buy products from a celebrity who is so outspoken about his political views.
Third, the global economy is slowing down, and people are spending less money on discretionary items like sneakers.
Despite the slowdown in sales, Adidas is still committed to the Yeezy brand. The company has said that it plans to release new Yeezy products in the second half of 2023.
Highlights:
West's political campaign has been met with mixed reactions. Some people have praised him for speaking out about social issues, while others have criticized him for his lack of experience and his controversial statements.
West has not released any new music since July 2022. His last album, "Donda," was released in August 2021.
The global economy is slowing down, which is affecting sales of all kinds of consumer goods.
It remains to be seen whether Adidas Yeezy can regain its momentum. The company will need to release new products that appeal to consumers and get West more involved in the brand.
Reddit may kill third-party clients with multimillion dollar fees.
Reddit is considering charging third-party app developers millions of dollars for access to its API, which could kill off many popular Reddit apps.
The API is what allows third-party apps to access Reddit data, such as posts, comments, and user profiles. Currently, Reddit charges developers a one-time fee of $100 to access the API. However, Reddit is now considering charging developers a recurring fee of $2.50 per user.
This would be a major financial burden for many third-party app developers. For example, the popular Reddit app Apollo has over 1 million users. If Reddit were to charge Apollo $2.50 per user, that would be a cost of $2.5 million per year.
It is unclear why Reddit is considering such a high fee. The company has not released any details about its reasoning. However, some have speculated that Reddit is trying to force users to switch to its own official app.
If Reddit does implement these fees, it would be a major blow to the third-party Reddit app community. Many of these apps offer features and customization options that are not available in the official Reddit app. Without these apps, many Reddit users would be forced to use a less-functional experience.
It is still too early to say what will happen. Reddit has not yet made a final decision about the fees. However, if the fees are implemented, it would be a major change for the Reddit community.
Highlights:
Reddit has not yet made a final decision about the fees. However, the company has said that it is "considering" the change.
The fees would be a major financial burden for many third-party app developers.
Some have speculated that Reddit is trying to force users to switch to its own official app.
If the fees are implemented, it would be a major blow to the third-party Reddit app community.