Current Events in May 2015

Lettiann Southerland is a Kansas City area real estate agent and a foodie. Despite the fact those two things have little in common, she has combined them in a new book, "Homes that Cook: Best Kept Secrets for Buying, Selling and Creating a Home."

The book offers tips for selling your home but also includes more than 100 pages of recipes and cooking tips.

"I have taken two very happy areas of my life and combined them in a book of real estate buying and selling tips along with delicious family recipes, with the hope that they will enrich people's lives and their quest for a home that cooks," Southerland said.

Recipes are fine but for someone hoping to sell their home this spring the part dealing with real estate will probably be more useful.

There are tips you may have heard before – things like having the closets half empty and changing to higher wattage light bulbs.

On the other hand, there are probably some that could be new to you. Several have to do with holding an open house, a staple of real estate marketing.

Open house dos and don'ts

For example, don't attend your open house. Most Realtors will suggest the same thing for a very good reason. When you are looking at real estate you don't want to worry about offending the owner with very pointed and critical questions. But if you're going to buy the house, those questions have to be asked.

Don't hang around your open house pretending to be a potential buyer. Southerland calls that “crazy behavior” that will likely drive away people who might actually make an offer. If you want feedback, ask your agent.

Schedule your open house at a normal time. In most markets, that's Sunday afternoon. Southerland says there is something to be gained by scheduling your open house when other houses will be open. People who go to open houses usually like to visit several.

Your neighbors are curious and may want to see your house. Instead of contemptuously dismissing them as “Lookie Lous,” Southerland says you should embrace them. Your neighbors can be good assets because they may know people who want to live in the neighborhood and can tell their friends about your property. Invite them to your open houses and offer flyers they can pass along.

You can provide hospitality for your open house visitors but Southerland says going over-the-top could end up detracting from the event. After all, people are there to see real estate.

Still, she says there's no harm in providing cool drinks on a hot day to make buyers more comfortable. It could actually motivate them to stay longer and see more of the house.

Seasons

When considering when it put your home on the market, consider seasons. What time of year will highlight its best features?

A roaring fireplace in winter or beautiful spring blooms may help you get a better offer.

When your property is being shown the showing agent should have full access to the property, including outbuildings. Unless safety is an issue, Southerland says you should not make any rooms, closets, or areas off limits to potential buyers.

Finally, the most important tip has to do with price. All other things being equal, if the price is too high the home will sit on the market.

If you want the home to move quickly, Southerland suggests having an appraisal to determine the market value of the home, then pricing it 15% to 20% below that.

This may sound counterintuitive, but in many markets this will likely cause a bidding war between potential buyers that may drive the price up even higher than it's worth.

Prospective homebuyers continue to face the prospect of paying more for the money they borrow.

Freddie Mac reports average fixed mortgage rates are higher for a third consecutive week as Treasury yields continue to climb.

The rate for the 30-year fixed-rate mortgage (FRM) rose 5 basis points in the week ending May 14, to an average of 3.85% from 3.80% -- just below the high for 2015. A year ago at this time, the 30-year FRM averaged 4.20 percent.

The 15-year FRM this week averaged 3.07%, also up 5 basis points. It averaged 3.29% a year ago at this time.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) slipped to an average of 2.89% from 2.90% last week 2.90 percent. A year ago, the 5-year ARM averaged 3.01%.

1-year Treasury-indexed ARM averaged 2.48% up 2 basis points from last week's 2.46%. At this time last year, the 1-year ARM averaged 2.43%.

Bankrate: Mortgage rates rise to a 5-month high

Mortgage rates as tracked by Bankrate.com's weekly national survey were up for a fourth consecutive week.

The benchmark 30-year FRM was up 2 basis points to 4.01%, the highest level since mid-December. The average 15-year FRM climbed to 3.22% from 3.17%, while the larger jumbo 30-year FRM rose to 4.09%. Adjustable rate mortgages were mixed, with the 5-year ARM sliding to 3.17%.

Bankrate economists point out that the rise in mortgage rates has been tame compared with the increase in benchmark Treasury yields. They've climbed nearly twice as much during the same period due to more selling of government bonds than mortgage bonds, and is evidence that the rise is not necessarily based on underlying economic fundamentals, but rather from traders unloading positions and perpetuating the increase.

Just three weeks ago, the average 30-year FRM was 3.79%. At that time, a $200,000 loan would have carried a monthly payment of $930.78. With the average rate now at 4.01 percent, the monthly payment for the same size loan would be $955.98 -- a difference of $25 per month for those waited.    

The 2015 Audi Q5, a midsize luxury SUV, earns the Insurance Institute for Highway Safety's highest award after its structure was improved for protection in small overlap front crashes.

The Insurance Institute for Highway Safety's (IIHS) TOP SAFETY PICK+ award and the good rating in the small overlap test have been awarded to to the Audi Q5.

The rating and the IIHS's top award went to vehicles that have come off the line after January with a reinforced front end and occupant compartment giving them protection in small overlap front crashes..

Strong overlap showing

During the crash, in which a vehicle is sent toward a barrier at 40 mph so that only its left front corner collides with it, the driver dummy's movement was well-controlled. The driver's space was maintained reasonably well, with maximum intrusion of 4 inches at the lower door hinge pillar.

The dummy's head hit the front airbag and stayed cushioned until rebound. The side curtain airbag deployed and provided enough forward coverage to protect the head from contact with side structure and outside objects.

Measures taken from the dummy indicate a low risk of injuries in a crash of this severity.

To qualify for TOP SAFETY PICK or TOP SAFETY PICK+, vehicles must earn a good or acceptable small overlap rating and a good rating in the Institute's four other crashworthiness tests -- moderate overlap front, side, roof strength and head restraints.

The "plus" is awarded to vehicles that have an available front crash prevention system that earns an advanced or superior rating from IIHS.

The Q5's optional system earns an advanced rating.

General Motors is recalling 49,980 model year 2015 Chevrolet Colorado and GMC Canyon trucks manufactured January 6, 2014, to April 1, 2015.

The hooks that secure the driver's and/or front passenger's seat frame may not have been properly attached to the vehicle body during assembly. Thus the seat may not be anchored adequately to the vehicle, and in the event of a crash, the seat occupant could be at an increased risk of an injury.

GM will notify owners, and dealers will inspect the seats, correcting their installation as necessary, free of charge. The recall is expected to begin in May 2015.

Owners may contact Chevrolet customer service at 1-800-222-1020 or GMC customer service 1-800-462-8782. GM's number for this recall is 15150.

AA Poultry Processing of Ridgeland, Wis., is recalling approximately 2,191 pounds of chicken and 21 pounds of turkey products.

The products may have been contaminated with trichloro-s-triazinetrione, which is not approved for use in poultry processing.

There are no reports of adverse allergic reactions due to consumption of these products.

The following whole and cut chicken and turkey pieces, produced from May 4, 2015, through May 11, 2015, are being recalled:

• Various weights of whole or cut chicken and turkey parts.

The recalled products bear the establishment number “P-45525” inside the USDA mark of inspection. Following processing, the carcasses were returned to their original owners in Wisconsin.

Consumers with questions about the recall may contact Ty Martin at (715) 949-1108.

For the first time ever, consumers are spending more at restaurants than grocery stores.

National Restaurant Association (NRA) Chief Economist Bruce Grindy reached that conclusion after crunching the numbers from U.S. Census Bureau data. He found a dramatic shift toward restaurants in the last 10 months.

In June 2014, grocery store sales were still in front of restaurant sales by $1.6 billion. By April of this year that gap had reversed, with restaurant sales outpacing grocery store sales by $1.5 billion.

In total, the $3.1 billion sales shift seen in the last 10 months is almost as much as what occurred during the previous 4 and a half years.

Mystery solved

It also might answer the question “what are consumers doing with the money they are saving on gasoline?” The answer appears to be, they're eating out, not at home.

This shift in how consumers are spending on food has coincided with the sharp drop in gas prices. While economists predicted this savings would likely be spread across the entire retail sector, it hasn't been. Now it appears that consumers have used their savings at the pump to treat themselves to a meal or two.

To determine if this is actually what is happening the NRA commissioned a national telephone survey of 1,008 adults. Eighty percent of consumers who own cars said the recent drop in fuel prices made a positive impact on household finances.

The lower the income of the household, the more impact gasoline price savings had, the survey found.

Forty-nine percent of car owners said lower prices at the pump made it more likely they would purchase meals, snacks or beverages from restaurants, fast food places or coffee shops.

A majority of car owners in households with incomes below $50,000 said their fuel savings increased their willingness and ability to go to restaurants, fast food places or coffee shops.

NAR says its research suggests this trend is likely to continue as long as gasoline prices remain lower than the recent norm.

Obesity concerns

What this may suggest is that, given the means and a choice, today's consumers would rather eat out than eat a meal prepared at home. This is a trend that could hold significance for health policy makers concerned about obesity.

A steady diet of restaurant meals – particularly fast food – has been linked (PDF) to America's expanding waistline. But not all restaurant meals are loaded with calories.

Restaurants that post calorie information on menus give consumers a means to measure their caloric in-take that eating meals at home might not offer. And some restaurants go out of their way to offer healthier choices.

The Daily Beast posted this guide to the “25 Healthiest Restaurant Meals.”

After rising in March for the first time since last October, the governments producer price index (PPI) is headed lower again.

Figures released by the Bureau of Labor Statistics show prices were down a seasonally adjusted 0.4% last month. For the 12 months ended in April, the PPI is down 1.3%

The broad-based decline was led by a 2.9% drop in energy costs, with a 4.7% plunge in gasoline playing a major role. Prices for diesel fuel, jet fuel and utility natural gas also fell.

Food costs also were down 0.9%,with pork prices lower, but the costs of fresh and dry vegetables rising.

The “core rate,” less the volatile food and energy categories, was down 0.1%

The full PPI report is available on the Labor Department website.

Initial claims

Separately, the government reports initial jobless claims were down by 1,000 in the week ending May 9 to a seasonally adjusted 264,000. Officials say there were no special factors affecting the tally.

The 4-week moving average, which is less volatile than the weekly count, fell 7,750 to 271,750 -- the lowest level since April 22, 2000 when it

Details may be found on the Labor Department website.

It's been a good 3 months for those looking to buy a home.

According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), 66.5% of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $65,800. That's a gain of 3.7% from the final 3 months of 2014.

“Consumers benefited from continued low mortgage rates and some fall in the price of homes sold in the first quarter, as these conditions offer a great time to buy,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo.

The past two quarters have seen an improvement in affordability as mortgage rates remain low. “Eighty-five percent of the metropolitan areas measured experienced an increase in affordability,” said NAHB Chief Economist David Crowe. “Along with favorable home prices and pent-up demand, this broad improvement should help encourage more buyers to enter the marketplace.”

Prices head lower

The national median home price -- the point at which half the prices are higher and half are lower -- fell from $215,000 in the fourth quarter to $210,000 in the first quarter. Meanwhile, average mortgage interest fell from 4.29% to 4.03% in the same period.

For the second straight quarter, Syracuse, N.Y., was the nation’s most affordable major housing market, as 95.6% of all new and existing homes sold in the first quarter of 2015 were affordable to families earning the area’s median income of $68,500.

Also ranking among the most affordable major housing markets in respective order were Toledo, Ohio; St. Louis; Akron, Ohio; and Harrisburg-Carlisle, Pa.

Meanwhile, Sandusky, Ohio, topped the affordability chart among smaller markets in the first quarter of 2015. There, 96.3% of homes sold during the first quarter were affordable to families earning the area’s median income of $69,600. Other smaller housing markets at the top of the index included Cumberland, Md.-W.Va.; Elmira, N.Y.; Davenport-Moline-Rock Island, Iowa-Ill.; and Kokomo, Ind.

Not so affordable

For a 10th consecutive quarter, San Francisco-San Mateo-Redwood City, Calif., was the nation’s least affordable major housing market. There, just 14.1% of homes sold in the first quarter were affordable to families earning the area’s median income of $103,400.

Other major metros at the bottom of the affordability chart were Los Angeles-Long Beach-Glendale, Calif.; Santa Ana-Anaheim-Irvine, Calif.; New York-White Plains-Wayne, N.Y.-N.J.; and San Jose-Sunnyvale-Santa Clara, Calif.

All 5 least affordable small housing markets were in California. At the very bottom was Santa Cruz-Watsonville, where 21.6% of all new and existing homes sold were affordable to families earning the area’s median income of $87,000. Other small markets included Salinas, Napa, San Luis Obispo-Paso Robles, and Santa Barbara-Santa Maria-Goleta in descending order.

The conventional wisdom is a four-year college degree is required for anything but a minimum wage job.

Not true, says Tony Lee, publisher of CareerCast, a job search portal. Lee's company has analyzed its job postings and found many that offer a comfortable salary and don't require a four-year degree.

While it is true that a college degree will give you a leg up on the better jobs, people without degrees aren't carrying any of the $1.2 trillion in student loan debt that has burdened many higher-earning college grads.

"Starting a career without a degree may be unconventional, but succeeding in the workplace without one is far from impossible," said Lee.

What you need, he says, are two things; an entrepreneurial spirit and specialized training.

Entrepreneurial spirit

An entrepreneurial spirit will make you valuable to an employer and help you get ahead. Specialized training will prepare you for a specialized job, more so than most college curriculum.

It might be harder to land that first job so Lee suggests working pro bono where possible. Also, working as an independent contractor allows an employer to see what you can do without making a major commitment.

What are some of the better jobs? Lee says a dental hygienist can make a median salary of $70,000 with a projected hiring outlook of 33%.

In fact, health care is a hot field with growing opportunities. Lee says a registered nurse earns around $65,000. A respiratory therapist earns more than $55,000.

IT opportunities

The increasing demand for IT professionals can mean more opportunities, even if you only have a high-school diploma. The median salary for a web developer is $62,000 a year with a projected 20% hiring outlook. A multimedia artist earns a median salary of $61,000.

Skilled tradesmen can do well too. Lee says the median salary for an electrician is $49,000 while a carpenter makes about $40,000.

Some of the great jobs available to those without a degree require some specialized education but not a full four years. You'll find some states require certification to become a skincare specialist, dental hygienist or personal trainer, for example, while trade crafts such as electrician and carpenter demand either advanced training or apprenticeships.

The full list of jobs is here.

Kiplinger's list

Carpenter, dental hygienist, nurse and electrician also make Kiplinger's list of the best jobs that don't require a 4-year degree. But so does computer user support specialist – someone who helps others deal with increasingly complex technology. Kiplinger's says that job can pay anywhere from $35,000 to $60,000 a year.

Unofficial apprenticeships also are invaluable for job seekers without a college degree.

Lee says a willingness to get outside your comfort zone is definitely an asset for those seeking a good job without a college degree. Technology, he says, can help.

For example, he says you could use CareerCast's Part-Time Network to connect with potential clients. Social media tools can also help.

Deservedly or not, cable TV companies have a bad reputation these days. Multiple bad reputations, in fact: one bad reputation for high prices, another alleging poor-to-nonexistent customer service, a reputation for limited or inflexible program offerings, and others.

It's bad enough that the cable industry is trying to distance itself from the very word “cable” and rebrand itself as something else.

Last week, the National Cable & Telecommunications Association (NCTA) held its annual trade show in Chicago, a trade show formerly known as “The Cable Show.” But this year, as Bloomberg initially noted, The Cable Show was renamed “The Internet & Television Expo.”

Michael Powell, the former Federal Communications Commission head who now serves as president of the NCTA, said he “hates” the world “cable” because it's so outdated: “It doesn’t fairly capture what they do.”

Resist the temptation, here, to make snide commentary regarding just which terms would “fairly capture” what the cable companies do. According to Powell, the term “cable company” has “a proud history, but it needs to be retired,” in order to focus on “its future as it's associated with the Internet.”

Uphill climb

And yet, as TechDirt pointed out: “when your entire business revolves around using coaxial cable to deliver Internet and television service, deciding to drop the word in the hopes of forcing a brand refresh might be an uphill climb.”

Yet even if Powell succeeds in his effort to make people completely and utterly forget the word “cable” in this particular context, that doesn't mean they'll forget the complaints that gave the word such a bad reputation in the first place.

For example: last month, after a Minnesota man lost his home after a vicious wind-driven fire destroyed it (plus a couple other homes in his neighborhood), it took a full week plus media attention before Comcast would let the man cancel his Comcast account. As of press time, that story has 12 reader comments posted on it, every one critical of Comcast. One commenter asked:

Is it Comcast or Time Warner that has the worst customer service record in the entire business industry?? If not one, than the other is, and the other is in second place. Soon there will be an alternative to cable, and hopefully this company will go out of business.

Another one said: “Customer service is dead. A moment of silence. Comcast is a constant nose bleed.”

Taken at face value, it's pretty obvious neither of those commenters (nor any other on that story) have any problems with the word “cable,” nor with any of the individual syllables comprising the word; their complaints involve customer service, or the lack thereof.

Or take a gander at any of the 1,268 complaints ConsumerAffairs has collected about Time Warner cable.

On April 25, for example, Reynaldo from San Antonio, Texas had this to say about the company's tech support: “...I had to beg for someone to come out to look at my PC and TV. Finally someone came out and replaced the modem. Service sucks. I would not recommend Time Warner and am considering changing service.”

That same day, Reynaldo's fellow Texan Thomas, from Cedar Park, wrote in with a detailed complaint about Time Warner, ending with: “This is the worst customer service I have ever dealt with. They took my money which I still have not received back, lied to me about 3 scheduled appointments, and have completely wasted my time. I will never even consider doing business with them again....”

“Service sucks.” “Worst customer service.” Memo to Michael Powell and other upstanding members of the National Cable & Telecommunications Association: your bad reputation derives from what you do, not what you call yourself.

British police have uncovered the latest security threat to ATM cardholders, a threat so simple from a thief's perspective that it's pretty much guaranteed to come to America — if it hasn't already.

Security-savvy ATM users have known for years now to watch out for illegal “skimmers” — electronic devices placed over a legitimate ATM-card reader to steal personal identification numbers (PINs) and other information from any swiped cards.

Many of these skimmers are small and thin enough to escape a typical ATM user's notice (unless that sharp-eyed user knows exactly what to look for) — but a thief hoping to use a skimmer generally needs either technological ability sufficient to build his own, or criminal “connections” sufficient to buy one.

No barriers

However, as Security Affairs reported yesterday, the latest criminal threat to ATM security has no such barriers to entry. An off-the-shelf iPod hidden behind a panel with a pinhole drilled in it is all it takes to make a pinhole spy camera capable of recording the PINs of anyone who visits that particular ATM.

Though there's a little more to the scam than that. Apple's iPods have been on the market for years, but only last January was the first such incident of this particular iPod-based ATM spy camera scheme discovered in Gatley, Stockport (a suburb of Manchester, England). As the oft-sensationalist Daily Mail reported last January:

These pictures show the lengths criminal gangs are going to in an attempt to steal card details at ATM machines - as a trick of using hidden iPods as spy cameras continues to spread.

It involves strapping the musical device to the roof of a cash point and setting it to record video of a person inputting their personal identification number (PIN).

The iPod is concealed in a specially-designed fascia with the camera recording through a pinhole-sized gap.

A fascia is simply a long, thin board covering the area where a wall joins a roof or ceiling — the architectural equivalent of a beveled edge, more or less.

Card-eater

So long as the thief has a few minutes of privacy, it's very easy to attach an iPod to the roof or upper wall of an ATM cash point, hidden behind a fascia of the same color. After installing this hidden camera, the fraudsters then slip a thin piece of plastic into the actual ATM card slot.

Now they're ready to pull their scam, which works like this: a victim walks to the ATM, inserts his card and types his PIN, unaware of the hidden camera recording this information. Meanwhile, that piece of plastic in the card slot traps the card inside the ATM. So the victim can't get his card out of the machine, and eventually leaves – most likely to contact the bank and complain about a faulty card-eating ATM.

Once the victim leaves, the thieves go to the ATM, retrieve the card from the slot and the PIN from the video recording, and use these to withdraw cash from the victim's account.

When British police discovered such a setup at a Barclays ATM, they immediately removed the device and informed Barclays, which in turn urged its customers to keep a sharp eye on their accounts and immediately contact the bank if they notice any signs of fraudulent activity.

And if you're an American ATM user, regardless of who you bank with, you need to do the same thing.

For this month's college graduates preparing to enter the workforce, the April jobs numbers, released last week, were pretty good news.

The U.S. economy is still producing more than 200,000 new jobs each month and the unemployment rate is back at a pre-recession 5.4%

It's that low because millions of people are no longer looking for work, but for someone just entering the workforce, that means less competition.

In the years just after the Great Recession young men and women coming out of college usually felt lucky to find any job. This spring, things are a little different.

You can afford to be a little picky

Katharine Brooks, executive director of personal and career development at Wake Forest University, says 2015 graduates don't have to jump at the first job offered.

“It’s not surprising coming out of the previously poor economy that new grads may feel pressure to accept the first offer they receive, thinking that the ideal job is in a distant future,” Brooks said. “But, there are questions to ask before accepting a job that can help determine if it’s really the best career choice and a good first step.”

She counsels job seekers to carefully consider what the job pays, both in salary but also benefits. At the same time, she advises grads to ask themselves whether the work is something that aligns with their values. It does no good, she says, to take a job for the generous pay but hate going to work every day.

“Rarely is a job the right one or the wrong one,” Brooks said. “Entering a new position with an attitude of growth and learning shows a respect for your employer and an understanding that every experience brings is valuable to learning more about yourself.”

Student loans can be a complicating factor

For grads with student loans and no job lined up, the next few weeks can be crucial. Kathryn Bossler, a counselor at GreenPath Debt Solutions, suggests graduates contact their student loan servicer to arrange for a short deferment in payments.

She also says new job seekers need to have their financial lives in order before going on interviews.

"Graduates need to realize how much an impact their credit history can have on their future," Bossler said. "As more hiring departments take personal finances into consideration, recent college graduates need to make sure their credit and debts are in order."

Live like a college student

Entrepreneur Mark Cuban also has some advice for those just starting their careers; live like they are still college students. In his book “How to Win at the Sport of Business,” Cuban writes “living cheaply” is the key to financial success.

Instead of buying an entry level luxury car, models of which are increasingly marketed to Millennials, Cuban suggests paying off bills and starting a saving and investment program.

Bossler also suggests developing thrifty habits early in a career. She suggests direct depositing a portion of your paycheck into savings.

Even though most 21-year olds can't yet conceive of ever being old enough to retire, they should take advantage of an employer's retirement plan, especially if there is a match.

If you're carrying credit card debt, begin aggressively reducing those balances to minimize the amount of interest you're paying.

Toyota Motor Sales is expanding its recalls involving Takata air bag inflators.

First, the automaker is conducting a recall to replace Takata-supplied driver front airbag inflators on approximately 160,000 model year 2004 and 2005 RAV4 sport utility vehicles. The inflators could be susceptible to rupture when deployed in a crash, increasing the risk of injury to vehicle occupants.

For similar reasons, Toyota is expanding 2 existing recalls for Takata-supplied front passenger airbag inflators, namely:

• The nationwide recall launched in April 2013 will expand to include approximately an additional 177,000 model year 2003-2004 Tundra and model year 2004 Sequoia vehicles; and
• The recall in areas of high absolute humidity launched in 2014 will expand to include approximately an additional 300,000 vehicles built through the 2006 or 2007 model year. This recall will now cover additional vehicles within model years 2005-2007 Toyota Corolla, Corolla Matrix, and Sequoia; model years 2005-2006 Tundra; and model years 2005-2007 Lexus SC.

Areas of high absolute humidity encompass Coastal Areas around the Gulf of Mexico for Texas, Alabama, Mississippi, Georgia and Louisiana; and Florida, Puerto Rico, Guam, Saipan, American Samoa, Virgin Islands and Hawaii.

Multiple investigations into the root cause of the potential for inflator rupture are taking place, including by Orbital ATK, an independent engineering firm commissioned by an industry-wide joint testing initiative composed of the 10 automakers conducting Takata-related recalls.

All known owners of the affected Toyota / Lexus vehicles will be notified by first class mail to return their vehicles to a Toyota / Lexus dealer. The dealer will replace the airbag inflator with a newly manufactured one.

Consumers may contact Toyota at 1 800-331-4331, and Lexus at (1 800-255-3987).