Current Events in August 2013

Construction of new homes shot higher last month, rebounding from June's big decline.

Commerce Department figures show housing totaled an annual rate 896,000 in July, a jump of 5.9% the revised June estimate of 846,000. It's also 20.9% above the year-ago rate of 741,000. Economists surveyed by Briefing.com were calling for a rate of 895,000.

The star performer in July was the multi-family sector, where construction rose to 290,000 units. Construction of single-family homes fell 2.2% to an annual rate rate of 591,000.

Building permits

Looking to future construction, applications for building permits rose 2.7% in July to an annual rate of 943,000. However, authorizations for single-family construction dropped 1.2% to 613,000, while permits for buildings with five units or more were at a rate of 303,000.

Interest rates

No discussion of housing is complete without a look at the cost of financing a home loan.

Earlier this week, Freddie Mac reported average fixed mortgage rates were largely unchanged from the previous week.

The 30-year fixed-rate mortgage (FRM) averaged 4.40% for the week ending August 15, with an average 0.7 point -- unchanged from last week. Last year at this time, the 30-year FRM averaged 3.62 percent.

The rate for the 15-year FRM was up 1 basis point to 3.44% with an average 0.6 point. A year ago at this time, the 15-year FRM averaged 2.88 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.23% with an average 0.5 point, Last week it averaged 3.19% and a year ago it was 2.76%.

The 1-year Treasury-indexed ARM averaged 2.67 percent this week with an average 0.4 point, versus 2.62% this week and 2.69% last year.

Market speculation that the Fed will taper some of its monetary stimulus has had the fixed mortgage rates around over the past few weeks. “In fact,” says Frank Nothaft, vice president and chief economist at Freddie Mac, “65% of economists surveyed by Bloomberg expect the Fed to reduce the amount of bond purchases at its September 17th and 18th monetary policy committee meetings.”

Nothaft points out that mortgage rates on 30-year fixed mortgages currently are 1.1 percentage points above their all-time low set on November 21, 2012, which translates into $125 more per month in mortgage payments on a $200,000 loan.

Samsung is the first company to be awarded a new safety certificate from Underwriters Laboratories (UL) covering high-tech products.

The award is for Samsung's new A3 Mono Multifunction printer, similar to the one shown here. 

UL said Samsung Electronics "was able to identify safety hazards early in the product development phase and therefore design products more efficiently – shortening products’ time to market and providing more performance options to demonstrate compliance."

The new UL safety performance standard -- known as IEC 62368-1 -- is "a shift from the traditional prescriptive standards to a new hazard-based concept, with more performance-based options," UL said.

The standard requires companies to use Hazard-Based Safety Engineering (HBSE) in product development.

Wide range of products

It covers a wide range of high-tech products including computing and networking products, consumer electronics, displays and display units, telecommunication products, office appliances including printers, musical instruments, and similar varieties of audio/video, information and communication technology equipment.

"This world’s first certification reflects our commitment to hazard-free products that meet customer demands for both performance and safety," said Wooseog Kim, Vice President of R&D team at Samsung Electronics. "We are honored by the certification from UL and we consider this excellent recognition for our continued effort in discovering new possibilities in printing innovation."

"Samsung Electronics receiving the first-ever IEC 62368-1 certificate for its printer will have a great influence in future safety design and product development in the ever-changing world of technology," said Stephen Hwang, vice president and general manager of UL Korea.

The Food Safety and Inspection Service (FSIS) has expanded the amount of product being recalled by the Chilean Ministry of Health. After official notification from the government of Chile of the positive result for dioxin, FSIS instructed importers to hold chicken products, which were presented for re-inspection.

FSIS has determined that 343,637 lbs of chicken may be affected and 155,595 lbs is currently being held. Through effectiveness checks, it has determined that 188,042 lbs was distributed to federal establishments for further processing, a distributor and retail locations in Florida, Georgia, New York, Pennsylvania and Puerto Rico.

FSIS conducted an analysis of the Chilean test results and determined that the risk to consumers is negligible. The agency continues to investigate distribution of the product and will take immediate action on new information.

Char-Broil of Columbus, Ga., is recalling about 71,200 Char-Broil Gas Patio Bistro Grills.

The electronic ignition on the grill can ignite unexpectedly, posing a burn hazard. The company has received 26 reports of the burner flame going out and then unexpectedly reigniting when the consumer turned the control knob to “OFF.” The 26 reports include four reports of burns, including one with burns to the nose, chin and hair, and seven other reports of “burned” or “singed” hair.

The recall involves two Char-Broil Gas Patio Bistro Grills: the model 240 Full Size grill and the model 180 Table Top grill. Both are single-burner propane gas grills equipped with a battery-operated integrated electronic ignition and intended only for outdoor use. The grills have round black bodies with silver/aluminum trim. The words “Char-Broil” and “Patio Bistro” are printed near the thermometer on the grill’s lid and near the control knob on the front of the grill. The grills have a rating label on the bottom support on the back of the unit that states “Char-Broil, LLC,” the model number and other information. The grills were sold with the following model numbers:

The grills, manufactured in China, were sold at hardware stores and other retailers nationwide, including Ace Hardware, Home Depot, Sears, Target, True Value and online from Amazon.com from September 2010, to June 2013, for about for about $175 for the full size grill and $135 for the table top grill.

Consumers should immediately stop using the grills and contact Char-Broil for instructions on how to order and install a free repair kit.

Consumers may contact Char-Broil toll free at (866) 671-7988 from 8 a.m. to 6 p.m. ET Monday through Friday and 10 a.m. to 3 p.m. ET.

Warehouse clubs like Sam's Club, BJ's Wholesale Club and Costco have become fixtures in the retail universe with their ability to sell huge packages of food and other products at a discount. Consumers like it because they don't have to shop as often and they usually end up saving money.

The chains keep prices low by cutting deals with suppliers and moving massive quantities in just a few transactions. Consumers, of course, have to be careful. It's one thing to purchase a crate of paper towels – they don't go bad and eventually you'll use them all.

Food items, however, can present challenges since almost everything has an expiration date. Selling meat in large quantities is even trickier. But a Spokane, Wash., start-up – Zaycon Foods – is doing it, and doing it in a most unusual way.

The company started in 2009 when Mike Conrad's brother brought him the idea.

The idea

“He was the meat manager at a grocery store,” said Conrad, the co-founder of Zaycon Foods. “And he thought, 'Every day I get in these cases of chicken. I wonder if I can sell a whole case to the customer if I gave them a really good deal, instead of putting it on a foam tray, wrapping it and selling it for two bucks more a pound.'”

In the initial marketing effort, the brothers sold three truckloads of chicken. In four short years Zaycon Foods has become a nationwide firm, selling cases of fresh meat, out of the back of a truck, directly to consumers, in every state except Hawaii.

“Our business wouldn't exist if the Internet didn't exist, because everything we deliver is pre-sold. When we go to event or location, all we are doing is delivering a pre-sold product,” Conrad said.

How it works

But first it's got to get sold. To make a purchase, a consumer registers at the company's website and states a preference for the types of meat they want to buy. The company then sends an email when a truck is going to be passing through the customer's town. The consumer makes the purchase online and picks up the case of meat at the appointed place and time.

To create such a large national footprint in such a short period of time, Conrad and a cousin looked up 450 food blogs and called each of the bloggers. They asked if they would write a review of their chicken if they received a free package.

Then Conrad and his cousin divided up the country and drove the free chicken to each of the bloggers' homes, personally delivering it.

Power of the Internet

“That was the launch of doing it nationwide,” Conrad said. “All the bloggers tried the chicken, did the review, and we started getting a whole bunch of people registering on our site.”

The mostly favorable reviews stemmed in part, no doubt, from the personal delivery as much as the quality of the product. The end result is that Zaycon Foods has become a player in the bulk food sector, doing the warehouse chains one better on trimming overhead. The company serves 49 states with 25 employees and no stores and has given new meaning to the term "food truck." Their trucks simply show up in towns across America and start unloading meat.

“Most of our locations are churches because churches have big parking lots that aren't being used, except on Sunday,” Conrad said.

The company gives the church a case of meat in return for the use of its parking lot. The churches like that arrangement, Conrad says, because it can then distribute the meat to members in need.

Amazon.com of meat?

It's too early to tell if Zaycon Foods is going to become the Amazon.com of meat, but Conrad says the company has expansion plans. It has already added non-meat food items – like honey and blueberries – to its offerings. It hopes to develop relationships with small farmers and processing plants so that it can support local agriculture while enhancing freshness even more.

“Generally the price is what brings people in,” Conrad said. “Beyond the price, the freshness keeps them. We're trying to get the meat to them in less than five days. If you look at a large chain store, it goes from the warehouse to the distribution center, to the store's distribution center, to the store. It could take 15 days before it's actually on the shelf to sell.”

How much can consumers save buying in bulk, off the back of a truck? Conrad says it's about 50%.

“If you go to a store now I bet you'll find chicken at $2.49 to $3.99 a pound,” he said. “If you're in New York it's $4.99 to $5.99 a pound. Right now I'll selling boneless, skinless chicken, fresh, in New York for $1.84 a pound.”

It's easy to get carried away with the savings, whether you are buying from a warehouse or from a truck. When buying meat, especially, make sure you have the freezer space to store it.

In a blow to its corporate pride, Ford is reducing the fuel-economy rating of its C-Max Hybrid, a car the automaker had touted as a Prius-killer, according to Automotive News, which said the announcement is planned for later today.

Ford has faced withering criticism and lawsuits challenging its claimed 47 mpg rating, which is expected to be lowered to 43 mpg. The ratings are based on data gathered under (EPA) Environmental Protection Agency guidelines. 

Ford said in July that it would recalibrate the software on the C-Max to deliver better fuel economy. 

The Toyota Prius, which is smaller and lighter than the C-Max, has a combined rating of 50 mpg, making it the only non-plug-in nameplate with higher EPA fuel-economy than the C-Max.

Hyundai and Kia also backed down on lofty fuel claims earlier this year, retreating from their 40 mpg claim and modifying it to values ranging from 36 to 38 mpg, depending on the model.

That move came about under pressure from the EPA, which said the ratings had been based on flawed test results. The companies offered about 900,000 customers prepaid fuel cards as compensation for the error.

The Detroit News is reporting today that the EPA is expected to announce Friday that it will revise test procedures for how hybrid vehicles are assigned fuel economy ratings and labels.

Google and a California non-profit, Consumer Watchdog, are hurling accusations and insults today over whether consumers should really expect their emails to be private.

The dispute grows out of a class action lawsuit that charged Google was violating federal and state wiretap laws by analyzing its 425 million users' emails. In a court filing, Google said that people can’t expect privacy when sending a message to a Gmail address.

In a motion to dismiss the lawsuit, Google said there is no reasonable expectation of total privacy when sending an email through the public Internet:

“Just as a sender of a letter to a business colleague cannot be surprised that the recipient’s assistant opens the letter, people who use web-based email today cannot be surprised if their emails are processed by the recipient’s [email provider] in the course of delivery. Indeed, ‘a person has no legitimate expectation of privacy in information he voluntarily turns over to third parties.’"

Consumer Watchdog jumped on the motion and called on Google to "stop reading and analyzing the content of emails sent to its system."

In response, Google seemed to backtrack from the message in its court filing, saying:

“We take our users’ privacy and security very seriously; recent reports claiming otherwise are simply untrue. We have built industry-leading security and privacy features into Gmail — and no matter who sends an email to a Gmail user, those protections apply.”

Which is it?

Google can't have it both ways, Consumer Watchdog said, alleging that "Google is either lying to the court or lying to the public."

“If they take privacy seriously, then they must amend their brief and stop reading and analyzing the content of email we send to their system,” said Consumer Watchdog's John M. Simpson. “If Google stands by the claim of no expectation of privacy it asserted in the court filing, they cannot claim to respect users’ privacy. These two claims are obviously incompatible.”

Google has always insisted that the "processing" to which emails are subjected is automated and intended only to match advertising to the general context of the email or to sort emails into appropriate folders or categories.

In its motion, Google said the plaintiffs in the lawsuit were trying to "criminalise ordinary business practices" that have been part of Gmail's service since it was introduced.

The class action lawsuit, filed in San Jose U.S. District Court in May, charges that Google "unlawfully opens up, reads, and acquires the content of people's private email messages." It quotes Eric Schmidt, Google's executive chairman as saying: "Google policy is to get right up to the creepy line and not cross it."

The suit claims that "on a daily basis and for years, Google has systematically and intentionally crossed the 'creepy line' to read private email messages containing information you don't want anyone to know, and to acquire, collect, or mine valuable information from that mail."

The full text of the lawsuit was filed under seal because it details many of Google's confidential and proprietary business practices. A hearing in the case is set for Sept. 5 before Judge Lucy H. Koh.

With automotive websites, it's possible to shop for a car and negotiate a deal without setting foot inside the showroom. While some consumers may like the convenience of not having to kill an entire day at a car dealer, there is something to be said for the direct, in-person approach.

For one thing, it gives you a chance to inspect the vehicle you are buying and, more importantly, take a test drive. The test drive allows you to assess a number of important factors about the vehicle.

For example, what is the visibility like? If you don't like the placement of the windows, you want to find out before you buy the car. And what's good visibility for some drivers may not be for others – especially short drivers.

Harder to see

It's become more of an issue lately. According to an editor at the automotive site Edmunds.com, many late model cars have a higher "beltline" — the horizontal line where the window glass meets sheet metal. For some, it make it more difficult to see.

"This can give the vehicle a more assertive look, but it does little to improve sight lines, and can even make a vehicle feel claustrophobic for smaller drivers," said Edmunds.com editor Warren Clarke. "As a result, short car shoppers making such a big purchase might have trouble getting comfortable with a lot of the new car choices available on the market."

Short drivers may be able to compensate for this by adjusting their seats. But you won't really know if you can until you sit in the seat, make the adjustment, and take the car for a spin.

Visibility often comes into play when it's time to find a parking place. If you think visibility may be an issue, maybe you should try to parallel park it as part of the test drive.

Tall people may also have issues

By the same token, some cars might be uncomfortable for drivers who are taller than average. Vehicles that are low to the ground or that have limited head room can be a challenge if the driver is 6'2” or taller.

Some auto experts point out that certain powertrain options can alter the feel of a vehicle. They recommend that when you ask for a test drive, make sure you are driving the same model and trim level that you intend to purchase.

And don't just focus your attention on the driver's comfort. If there are rear doors, how easy will it be for children to get in and out, as well as other adult passengers? Will a child safety seat easily fit in the back seat and how easy will it be to install it?

Check out the interior

Once behind the wheel, look closely at the dashboard. Are the controls laid out in a way that makes sense to you? What about the comfort of the seat? Ergonomics is a very important consideration since most of us spend a lot of time in our vehicles.

What's a great set of wheels for one consumer may not be for another. Edmunds has compiled a list of new cars that it says are great for short drivers. They include the BMW 3 Series, Honda Accord, Kia Soul, Mazda 3 and Subaru Forester. They may, or may not be such a good fit for a a tall driver.

A test drive is the only way to find out for sure. When taking the vehicle for a spin, make sure it's on your terms. If possible, drive on streets and highways of your choosing. Some dealers even let you take a test drive car home overnight. The more time you can spend in it before committing to buying it, the better.

Do your research on a car before you test drive it. If reviews from both drivers and automotive experts raise issues that might affect you – a lack of headroom, for example – maybe you cross that car off the list.

It took awhile but consumers are becoming more vigilant about protecting their computers and smartphones against hacking and malware. Unfortunately, hackers are now turning their attention to fertile new fields -- including cars and homes, which are increasingly controlled by microprocessors that are vulnerable to intruders.

In one particularly frightening case, a Texas family says its baby monitor was hacked. Marc Gilbert said a hacker took control of the camera on the device and heckled his deaf daughter, 

Upon discovering the intrusion, Gilbert said he disconnected the Foscam IP camera from his Comcast router and connected it directly to his computer, enabling him to discover that someone had set up a new user account for the camera and changed the password.

Gilbert said he had strong passwords on the router and camera and had enabled the internal firewall on the router, though on its lowest setting.

It's not quite clear how the intruder got into the system but if it was not through the Internet, then it must have been a local job -- meaning someone within range of the Gilbert family's router must have infiltrated their WiFi network.

Not an isolated problem

While perhaps a little more dramatic than similar incidents, the Gilbert case illustrates the risks affecting a long list of "smart" devices -- insulin pumps, heart monitors, HVAC systems, home automation systems, and cars.

Security researchers are regularly discovering dangerous -- even life-threatening -- security flaws in networked consumer devices and those in hospitals, offices and institutions. 

But the warnings from security experts are often ignored or -- even worse -- used to demonize the white-hat experts who are trying to alert the unsuspecting, DarkReading.com recently reported. 

Security experts are often viewed as the black-hat hackers they are trying to expose, as networked equipment spreads far beyond the world of information technology, where security has been a top priority for decades.

"If you have a hacker who's an expert on a flaw [in a consumer device] and you put him in front of a policymaker, they see a hacker, someone who can't be 100 percent trusted," said Nicholas Percoco, a researcher and senior vice president of Trustwave's SpiderLabs quoted by DarkReading, an infotech security site.

Percoco says there's an urgent need for trusted "white hats" who can bridge the gap between those who are unaware of the risks they're facing and those who are trying to educate them.

"We need ... to find spokespeople for our industry who have a knowledge of the hacking and security community, but are well-seated in the medical device or automotive industries," he said.

Time is money. And, according to the Centers for Disease Control and Prevention (CDC), so is booze.

According to a new study released by the CDC, excessive alcohol use causes a large economic burden to states and the District of Columbia -- a median of $2.9 billion in 2006 to put it dollar-terms. That ranges from $420 million in North Dakota to $32 billion in California. And it works out to a median cost of $1.91 per state for each alcoholic drink consumed.

Binge drinking -- consuming five or more drinks on an occasion for men or four or more drinks on an occasion for women -- was responsible for more than 70% of excessive alcohol use related costs in all states and D.C. The District had the highest per-person cost ($1,662), while Utah had the highest cost per drink ($2.74). Furthermore, about $2 of every $5 in state costs were paid by government, ranging from 37% of the costs in Mississippi to 45% of the total costs in Utah.

Wide-ranging costs

Study authors found that costs due to excessive drinking largely resulted from losses in workplace productivity, health care expenses, and other costs due to a combination of criminal justice expenses, motor vehicle crash costs, and property damage.

Across all states and D.C., excessive drinking costs due to productivity losses ranged from 61% in Wyoming to 82% in D.C., and the share of costs due to health care expenses ranged from 8% in Texas to 16% in Vermont.

“This study alerts states to the huge economic impact of excessive alcohol use, and shows how it affects all of us by reducing productivity, increasing criminal justice expenses, and increasing healthcare costs,” said CDC Director Tom Frieden, M.D., M.P.H. “Effective prevention programs can support people in making wise choices about drinking alcohol, and help reduce the huge personal and social costs of excessive drinking.”

May be low-balling

Economic cost estimates for states and D.C. were based on a previous CDC study that found that excessive drinking cost the United States $223.5 billion in 2006. Costs were assessed across 26 cost categories using data from several sources, including the Alcohol-Related Disease Impact Application, the National Epidemiologic Survey on Alcohol-Related Conditions, and the National Survey on Drug Use and Health.

Researchers believe that the study’s findings are underestimated because it did not consider a number of other costs, such as those due to pain and suffering by the excessive drinker or others who were affected by the drinking.

“It is striking to see most of the costs of excessive drinking in states and D.C. are due to binge drinking, which is reported by about 18% of U.S. adults,” said Robert D. Brewer, M.D., M.S.P.H., Alcohol Program Lead at CDC and one of the authors of the report. “Fortunately, the Community Guide includes a number of effective strategies that states and localities can use to prevent binge drinking and the costs related to it.”

Excessive alcohol consumption is responsible for an average of 80,000 deaths and 2.3 million years of potential life lost in the United States each year. Binge drinking is responsible for over half of these deaths and two-thirds of the years of life lost.   

Consumer prices edged higher in July as Americans shelled out more for food, gasoline and shelter.

Figures released by the Bureau of Labor Statistics show the Consumer Price Index (CPI) rose 0.2% last month, in line with forecasts of economists surveyed by Briefing.com. For the 12 months ending in July, the CPI is up a modest 2.0%.

Increases in prices came in a broad range of sectors including including gasoline and food.

Despite a 1.0% rise in gasoline prices, overall energy costs were up just 0.2%, thanks to declines of 2.8% and and 0.3% in the prices of natural gas and electricity, respectively.

Food prices were up a miniscule 0.1% with only two of the six major grocery store food group increasing: fruits and vegetables up 1.5% and meats, poultry, fish and eggs rising 0.2%.

The “core” rate of inflation on the consumer level, which excludes food and energy because of their volatility, was up 0.2% -- the third straight such increase. Over the last year, the core rate of inflation is up 1.7%

Analysts expect inflation will remain tame as long as the economy continues to limp along. The annual rate of growth in the second quarter was 1.7%.

The complete CPI report for July is available on the Labor Department website.

Jobless claims

Separately, the government reports first-time applications for unemployment benefits dipped by 15,000 last week to a seasonally adjusted 320,000. At the same time, the total number of initial claims for the week ending August 3 was revised to 335,000 -- 2,000 more than previously reported.

The 4-week moving average, which is less volatile and considered a more accurate gauge of the labor market, totaled 332,000, a drop of 4,000 from the previous week'.

The full report can be found on the Labor Department website.

Chrysler is recalling 85 model year 2012 RAM 3500 trucks manufactured May 4, 2012, through August 7, 2012; and model year 2012 RAM 4500 and 5500 trucks manufactured May 3, 2012, through August 7, 2012.

Due to a loose snap ring inside the transmission, there may be a loss of power transfer through the transmission to the wheels which could increase the risk of a crash.

Chrysler will notify owners, and dealers will replace the transmission assembly free of charge. The recall is expected to begin in September 2013.

Owners may contact Chrysler at 1-800-247-9753. Chrysler's recall campaign number is N50.

Deere & Company of Moline, Ill., is recalling about 7,000 compact utility tractors.

The spring locking pins in the rollover protective system (ROPS) can break and cause the ROPs to fail in the event of a rollover. This presents a risk of serious injury or death to the operator. The company has received three reports of broken spring locking pins and identified two failed spring locking pins in the manufacturing assembly process. There are no reports of injuries.

This recall involves 19 models of John Deere 1000, 2000, 3000 and 4000 series compact utility tractors manufactured between February 2013 and July 2013. The tractors are green and yellow with a foldable black, metal rollover protection bar that extends above the operator’s head. The model number is on the hood. The serial number is located on the right hand side of the frame above the front axle. Compact utility tractors with serial numbers in the following ranges are included in this recall:

The tractors, manufactured in the U.S, were sold at John Deere dealers nationwide from February 2013, through July 2013, for between $11,500 and $35,700.

Consumers should immediately stop using the compact utility vehicles and contact a John Deere dealer for a free repair. John Deere is contacting all registered owners of the recalled compact utility tractors directly.

Consumers may contact Deere and Company at (800) 537-8233, from 8 a.m. to 6 p.m. ET Monday through Friday, and Saturday from 9 a.m. to 3 p.m. ET.   

The real estate market has come a long way from the depths of the Great Recession, which froze sales and sent home values plunging. Now, both sales and prices are rising.

That point was driven home earlier this month when CoreLogic reported that home prices nationwide, including foreclosures and short-sales, increased 11.9% in June, year-over-year. It was the 16th straight monthly increase in home prices. Though prices in most markets are not back to where they were at the height of the housing bubble, the rebound is presenting some people the opportunity to cash in, in one way or another.

The most obvious way to cash in is to put your home up for sale. If you bought before 2003, when prices began to surge, you may have regained a lot of your lost equity. That lost equity may have prevented you from putting your house on the market over the last few years.

Now's the time

“Now may be the time to do it,” said Pat Esswein, who writes about real estate for personal finance publication Kiplinger. “It certainly is a quicker process, and in many markets you can sell for more money than you could a year or two ago.”

Of course, all real estate is local. It's possible that market conditions where you live haven't fully recovered. But if you live in one of the hardest hit markets, you may have recovered quite a bit of equity.

“In Phoenix, for example, they've seen home process rocket up, by more than 20% in some cases,” Esswein said. “But that's somewhat unusual. But at least prices in most markets are moving in the right direction. Homes are appreciating in value to some degree. There are still a lot of homeowners who are underwater on their mortgages. They'll probably have to wait some time yet before they have enough equity to allow them to sell.”

One reason prices have recovered is the short supply of homes for sale. Over the last year foreclosures have slowed considerably. Those underwater homeowners can't sell. That means you might be able to sell your home quickly but might not be able to find another house right away. That can raise problems for the seller.

Make choices

“You may have to eliminate some things from your wish list or you may have to broaden the geographic scope or your search,” Esswein said. “If you feel you're going to need more time to find something, many sellers are asking the purchasers to do what's known as a lease-back arrangement, where the seller can rent back their current home for some period of time after settlement.”

But that isn't always feasible. The buyer might not have the luxury of waiting three months before taking possession of the property.

Selling your home is not the only way to cash in on the recovering market. Many homeowners have refinanced, taking advantage of historically low interest rates. The lower rates have resulted in lower monthly payments, in effect putting money in the homeowner's pocket every month.

“People have been refinancing right along as rates dropped to historic lows,” Esswein said. “And even though there has been some volatility over the last few months, rates still are historically low.”

Lower payment is primary goal

When most people refinance their mortgages these days, they are doing so to lower their payments. By and large they are more likely to pay down principal at closing, rather than take out equity in cash.

“If you have equity you could do a cash-out refi, but of course when you take cash out, you are reducing your equity in the home and increasing the risk to the lender, so they charge you a premium,” Esswein said.

During the housing bubble millions of consumers did, in fact, take cash out of their homes when they refinanced. After all, it was generally assumed that the value of real estate would always go up.

Of course, it didn't. The resulting housing crash left many people who once had a lot of equity in their homes with negative equity. A number of those cases ended in foreclosure.

Will history repeat itself? Esswein says it's not likely. Lenders are a lot more prudent than they once were – and so in fact are homeowners. Still, the recovering housing market may allow some homeowners to “cash in,” even if it means just being able to finally sell their homes.

Anyone who's ever tried to chase down automobile recall information may welcome the news that federal safety regulators are trying to make the process a little simpler. 

The completion rate for recalls hovers around 70 percent, which everyone agrees isn't very good for defects that can be life-threatening.

Consumers now see recall notices in newspapers, on news broadcasts and websites but it's not always easy to know if a particular car is covered, since many recalls cover only certain manfacture dates, geographic locations and so forth.

Going to SaferCar.gov, the website of the National Highway Traffic Safety Administration (NHTSA) will generally provide the definitive answer, but not everyone knows about it. So NHTSA is going to require automakers to install a tool -- actually a link to NHTSA -- on their websites to allow consumers tomore easily find out if vehicles have been recalled by searching with their car's Vehicle Identification Number (VIN) starting next year.

"Safety is our highest priority, and an informed consumer is one of our strongest allies in that effort," said U.S. Transportation Secretary Anthony Foxx. "Owners and potential buyers alike will soon be able to identify whether a safety recall for their specific vehicle is incomplete, using our free online search at SaferCar.gov."

NHTSA's online search does not now include the VIN option. Owners must search by year, manufacturer and model and then, in some cases, wade through additional details that determine whether their specific vehicle is part of the recall. 

NHTSA is also imposing new requirements on the recall notices that manufacturers mail to vehicle owners, specifying that they must use "urgent safety recall'' in capital letters and an enlarged font at the top of the letter.

Manufacturers grumble

Manufacturers are grumbling about the process, which requires them to install a link that will take their customers away from their site and plop them down on the NHTSA site. They say they could do the job better on their sites. 

"Automakers can provide a one-stop digital storeroom for consumer information that the government cannot provide," the Alliance of Automobile Manufacturers said in a prepared statement.

"Automakers are already providing safety recall information on their own websites. Consumers go to automaker websites when they were looking to buy their car, so it makes sense to provide safety recall information on those same websites," the automakers' group said. "Not only are consumers familiar with the websites of auto companies, but these websites also provide additional information on vehicles and customer service campaigns that would not be available on a separate government website, which was an option that the government chose not to adopt."

Coca-Cola and other soft-drink manufacturers may be feeling backed into a corner. Their sugary drinks are lambasted for contributing to the obesity epidemic and their "diet" drinks made with artificial sweeteners are condemned as health hazards.

It's enough to make you go into the bottled water business. Oh wait, they've done that and been blamed for contributing to environmental damage. 

But the soft-drink makers didn't get to be the globe-girdling giants that they are by turning the other cheek. Coca-Cola has been taking a more aggressive approach than its competitors and is about to launch an advertising campaign defending its use of artificial sweeteners, according to AdWeek. The newspaper ads are expected to roll out over the next few weeks.

"Our use of high-quality, low- and no- calorie sweeteners, including aspartame, allows us to give people great-tasting options they can feel good about," reads a copy of the ad posted to Twitter by Beverage Digest. "Time and again, these low- and no-calorie sweeteners have shown to be safe, high-quality alternatives to sugar."

That's not going down well with food safety advocates like Michael F. Jacobson, PhD, executive director of the Center for Science in the Public Interest, who issued a blunt statement saying the company would be better off getting rid of aspartame entirely.

Switch to water

"Aspartame has been found to cause cancer — leukemia, lymphoma, and other tumors — in laboratory animals, and it shouldn’t be in the food supply," Jacobson said. "We certainly want Coca-Cola to shift its product mix toward lower- and no-calorie drinks, but aspartame’s reputation isn’t worth rehabilitating with this propaganda campaign."

Jacobson said Coke would do better to shift to safer, natural sweeteners, like those made from the stevia plant, a type of sunflower widely used as a sweetener in Japan and other countries. Back in 2008, however, Jacobson objected to plans by Coca-Cola to use rebiana, which is made from stevia, saying it had not been adequately tested.

But leaving that aside, Jacobson argues that if aspartame and other artificial sweeteners are bad, the sugar versions of Coke and other drinks are worse.

"Consumers should know that the greater and more immediate danger to their health is posed not by artificial sweetened products, but by the full-calorie versions of Coke, Pepsi, and other sugar drinks. Rather than posing small risks of cancer, the high-fructose corn syrup or other sugars in these drinks cause obesity, diabetes, heart disease, and other health problems. Everyone would be better off drinking water or seltzer water instead," he said.

Coke fights back

But Coke's not ready to surrender. In fact, it's been running a public relations campaign defending aspartame for several months. Last month it released an infographic, "The Skinny on Aspartame," promoting the ability of the sweetener to help consumers cut back on calories and carbohydrates.

The campaign also seeks to let some of the fizz out of stories about potential negative health consequences of aspartame.

"As a scientist (as well as a consumer of these sweeteners), let me reassure you – these sweeteners are among the world’s most thoroughly studied ingredients. In fact, millions of people—from all over the world--have been enjoying these sweeteners safely for many decades," said Rhona Applebaum, PhD, Vice President and Chief Science and Health Officer for The Coca-Cola Company, in a blog posting.

She said the infographic "offers credible information from independent sources like the American Diabetes Association, the American Heart Association and U.S. Food and Drug Administration" and said it "highlights that aspartame has been proven safe time and time again with more than 200 studies spanning 40 years."

Hackers and identity thieves are increasingly focused on mobile computing. With so many smartphones and tablets now in use, mobile is increasingly becoming how consumers use the web.

Criminals also like the fact that many mobile devices have little or no security protection – not on the device itself and not on the data that is stored in the cloud.

Mobile data can be stored both places and security experts say both need strong protection. Chris Rancourt, an editor at NextAdvisor.com, says consumers who use an online backup service to store and share their data in the cloud need to be especially careful.

“When you put your information on the cloud, you get this extra level of security with their encryption,” Rancourt said. “Most services now use encryption but some are stronger than others.”

Increasingly popular

Cloud storage and backup services have become increasingly popular. They store data off-site, protecting it from a catastrophic computer crash or other physical damage. They also make it accessible from other computers in other locations.

“Pretty much any information you can upload to the cloud – pictures, documents, videos. And all that information can be encrypted and stored safely inside your cloud or online back-up service,” Rancourt said. “The backup services that we use provide coverage for Apple, Android – pretty much the whole spectrum.”

Rancourt suggests picking a backup service with very robust encryption. One service that falls into that category, he says, is SpiderOak. There is one security feature, in particular, that he likes.

'Zero-knowledge' security

“They have this policy where no one in their company will know your password,” he said. “If you lose your password they can't go in and retrieve it for you. It's really up to you, which makes the security a lot stronger, but at the same time you have to be responsible for your own stuff.”

Absent-minded consumers can run the risk of losing everything if they forget or lose their password. Writing it down in several secure places, however, might be all the insurance policy you need.

Sugarsync is another secure backup service. With Sugarsync, you can safely store important files and then sync them across an unlimited number of computers. If the data is updated on one computer, it's also updated on the rest.

Mozy is a low-cost cloud storage service. The company's backup plans start with one computer per subscription, but it can sync up with other computers that aren't part of the plan.

First line of defense

The best feature of these companies' backup services may be the sophisticated encryption. Rancourt says it provides a great first line of defense.

“For companies like SpyderOak you actually have to have an encryption key in order to decode the information and read it as something legible,” he said. “Most services have something like that as well.”

But hackers are resourceful individuals. Suppose they get access to your cloud and your encrypted information by stealing or finding your lost device. It might look like gibberish at first, but given a few hours, it's just possible some hackers might be able to crack the encryption. That's why you need a second level of defense – remote wipe.

If your device is lost or stolen, remote wipe will still give you access to all your files and documents from another computer but allow you to block access on the missing device. You can even delete files.

“Let's say you keep all your bank information on your cloud,” Rancourt said. “Someone can actually hack in there and steal your identity.”

It should go without saying that you should have robust security features on your hardware as well. Getting a strong mobile security package for your smartphone or tablet will reduce the risks from lost or stolen devices.  

It's been said that the eyes are the windows to the soul. Now, some doctors believe that the eyes may also be a window to a person's stroke risk.

Researchers who took part in a study reported in the American Heart Association journal Hypertension believe retinal imaging may someday help assess if you're more likely to develop a stroke -- the nation's No. 4 killer and a leading cause of disability.

"The retina provides information on the status of blood vessels in the brain," said Mohammad Kamran Ikram, M.D., Ph.D., lead author of the study and assistant professor in the Singapore Eye Research Institute, the Department of Ophthalmology and Memory Aging & Cognition Centre, at the National University of Singapore. "Retinal imaging is a non-invasive and cheap way of examining the blood vessels of the retina."

Hypertension the key

High blood pressure is the single most important risk factor for stroke worldwide. However, it's still not possible to predict which high blood pressure patients are most likely to develop a stroke.

Researchers tracked stroke occurrence for an average 13 years in 2,907 patients with high blood pressure who had not previously experienced a stroke. At baseline, each had photographs taken of the retina, the light-sensitive layer of cells at the back of the eyeball. Damage to the retinal blood vessels attributed to hypertension -- called hypertensive retinopathy -- evident on the photographs was scored as none, mild or moderate/severe.

During the follow-up, 146 participants experienced a stroke caused by a blood clot and 15 by bleeding in the brain.

Finding a link

Researchers adjusted for several stroke risk factors such as age, sex, race, cholesterol levels, blood sugar, body mass index, smoking and blood pressure readings. They found the risk of stroke was 35 percent higher in those with mild hypertensive retinopathy and 137 percent higher in those with moderate or severe hypertensive retinopathy.

Even in patients on medication and achieving good blood pressure control, the risk of a blood clot was 96 percent higher in those with mild hypertensive retinopathy and 198 percent higher in those with moderate or severe hypertensive retinopathy.

"It is too early to recommend changes in clinical practice," Ikram said. "Other studies need to confirm our findings and examine whether retinal imaging can be useful in providing additional information about stroke risk in people with high blood pressure."

After posting their first increase since June last week, applications for mortgages were down again in the week ending August. 9.

Data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey show applications were off 4.7%.

The refinance share of mortgage activity remained unchanged at 63%, while the adjustable-rate mortgage (ARM) share of activity increased to 6% of total applications.

Interest rate influence

The average contract interest rate for 30-year fixed-rate mortgages (FRM) with conforming loan balances ($417,500 or less) decreased to 4.56% from 4.61%, with points decreasing to 0.39 from 0.42 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,500) fell to 4.57% from 4.64%, with points decreasing to 0.25 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year FRMs backed by the FHA decreased to 4.25% from 4.33%, with points increasing to 0.30 from 0.26 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.60 percent from 3.66 percent, with points decreasing to 0.35 from 0.43 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs was down 3 basis points to 3.36%, with points unchanged at 0.37 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.