Current Events in September 2015

For homeowners hoping to sell their homes, cleaning, painting, and staging are three low-cost ways to make your property more attractive to potential buyers.

A fresh coat of paint in neutral colors brightens and freshens each room. Replacing light switchplates, door hinges, and vent covers helps make an older home look new again with little expense.

Removing excess furnishings and personal effects, like family pictures, will make it easier for a would-be buyer to imagine your home as his or her new home. Most Realtors will tell you these are basic steps in getting your home ready to sell.

Small investments

If you are willing to make some small investments, there are other steps a seller can take to make a home more attractive. Some are exterior touches that home shoppers may notice before they ever reach the front door.

Pay attention to landscaping issues. Weed flower beds and add fresh mulch. In the fall, keep leaves raked and off the lawn.

Inspect the wood trim, especially on porches and decks, for excessive wear. Decks and porches are prominent exterior features on any home and can have an outsized impact on first impressions.

A fresh coat of stain or paint is a small investment to bring fresh life back into your entryway or backyard living space. If you have a deck, power-washing it removes dull, gray dirt buildup and makes it look new again.

In the kitchen

The kitchen can make or break your ability to sell a house, but most buyers are more concerned with counter space and general layout than other features. To avoid a major investment, make what's already there look better.

If cabinets are structurally sound, consider a fresh coat of paint, set off by attractive, stylish hardware. Decorators say replacing dated pulls with a more contemporary look in a new color can bring a new mood to the room.

New flooring is not a small investment but might be necessary if the carpet is worn and is looking its age. In high traffic areas, consider replacing carpet with wood or tile. It's more durable and homebuyers tend to prefer it over carpet.

Accent lighting

Finally, take a look at lighting, both natural and artificial. Most home showings occur in daylight hours, but you want to make sure your home is always properly lit in order to create the best impression. Use subtle accent lighting to prevent rooms from appearing dark.

A good real estate agent will have other ideas to help your home present well. The secret is to limit expenses to improvements that deliver the most bang for the buck; this will help you avoid big expenses that you won't recoup on the sale.

HGTV, home of countless real estate reality shows, says basic maintenance is often more important in moving a house than an awesome kitchen.

If your vision's not so good, you can wear glasses or contacts or maybe have a laser procedure to sharpen things up. But don't count on Ultimeyes, a smartphone app that claimed it could improve users' vision.

The app's promoters, Carrot Neurotechnology, Inc., has agreed to pay $150,000 and stop making claims not supported by scientific evidence.

“This case came down to the simple fact that ‘Ultimeyes’ promoters did not have the scientific evidence to support their claims that the app could improve users' vision,” said Jessica Rich, Director of the Federal Trade Commission's Bureau of Consumer Protection. “Health-related apps can offer benefits to consumers, but the FTC will not hesitate to act when health-related claims are not based on sound science.”

According to the FTC’s complaint, since 2012, Carrot Neurotechnology, Inc. advertised and sold Ultimeyes on the company’s website and through third-party app stores including the Apple App Store and Google Play Store, claiming it is “scientifically shown to improve vision.”

"Turn back the clock"

Ads for Ultimeyes stated that the app, which sells for between $5.99 and $9.99, would “Turn Back The Clock On Your Vision.” The ads further claimed that users would benefit from “comprehensive vision improvement” for activities such as sports, reading and driving, and that using the app would reduce the need for glasses and contact lenses. 

The app is based on a series of visual exercises related to reading speed, contrast sensitivity, and low light conditions among other elements.

The ads further claimed that studies, including those conducted by Aaron Seitz, prove Ultimeyes works. The FTC alleges that Seitz’s studies and other “scientific research” do not prove Ultimeyes improves vision. The FTC also alleges the marketers failed to disclose Seitz’s affiliation with the company when touting his studies in advertising.

The Consumer Financial Protection Bureau (CFPB) is cracking down on an operation that allegedly runs a debt-relief scheme that charges consumers exorbitant, illegal, upfront fees.

In announcing it obtained a preliminary injunction against World Law Group and its senior leaders, the CFPB claims the debt-relief scheme falsely promised consumers a team of attorneys to help negotiate debt settlements with creditors, failed to provide legal representation, and rarely settled consumers’ debts.

Additionally, World Law is accused of taking $67 million from at least 21,000 consumers before providing any debt-relief services. The order, obtained in U.S. District Court, halts World Law’s operations and freezes defendants’ assets while the case is pending.

Action was taken against World Law, according to CFPB Director Richard Cordray, “for an alleged debt relief scheme that lured consumers with false promises of help from lawyers and collected millions in illegal upfront fees. We are seeking to put an end to this scheme and prevent more consumers from being harmed.”

The lawsuit names Derin Scott, David Klein, and Bradley James Haskins, who control World Law Group. The lawsuit alleges that the defendants operate through an interrelated maze of companies, including Orion Processing, LLC, d/b/a World Law Processing, WLD Credit Repair, and World Law Debt; Family Capital Investment & Management LLC (a.k.a FCIAM Property Management); World Law Debt Services, LLC; and World Law Processing, LLC. The companies comingle funds and share functions, employees, and office locations to operate the debt-relief scheme.

The charges

According to the complaint, World Law promised to help consumers reduce their debts using a “team of attorneys,” including “local attorneys,” that would provide legal representation and negotiate debt settlements directly with consumers’ creditors. The firm allegedly told consumers to stop paying their debts and instead make a single monthly payment to the company, which its lawyers would use to negotiate debt settlements with creditors.

According to the complaint, World Law unlawfully kept many of these payments as fees before providing debt-relief services. As a result, consumers paid millions of dollars in illegal fees and suffered additional harms, including being subjected to collection calls, lawsuits, late fees, and lower credit scores.

The CFPB complaint is not a finding or ruling that the defendants have actually violated the law. The Court issued the preliminary injunction because it found that the agency is likely to prevail and that the public interest is served by granting the order. The case will proceed until the court makes a final determination or the parties settle the matter.

LinkedIn is close to settling a class action that accused it of using 20.8 million members' emails to flood their contacts with spam. In another case, it agreed to pay $1.25 million to users whose passwords were hacked.

In the promotional spam case, consumers complained that LinkedIn used their email address to bombard their contacts with spam emails without asking their permission.

In some cases, LinkedIn masqueraded as the member when it sent it promos to the member's contacts, Courthouse News Service reported.

A tentative settlement has been reached in the case, but the settlement amount was not revealed in court papers signed by U.S. District Court Judge Lucy Koh. 

Not encrypted

In the hacking case, U.S. District Court Judge Edward Davila signed off on a $1.25 million settlement with LinkedIn users whose passwords were posted online by hackers.

Lawyers for the LinkedIn members argued that LinkedIn had failed to adequately encrypt the information.

The settlement will be divided among 800,000 LinkedIn members whose passwords were posted online after legal fees are deducted.

Toyota has done it again.

Two of the Japanese automaker's products -- the Lexus ES, a luxury midsize car, and the Scion iA, a new minicar -- have won the Insurance Institute for Highway Safety (IIHS) TOP SAFETY PICK+ award.

Toyota now has 10 vehicles that qualify for the Institute's top award.

The Lexus ES

The 2016 ES -- including both the ES 350 and the hybrid ES 300h -- was modified for improved protection in small overlap front crashes. Changes were made to the front structure, A-pillar and roof rail, door hinge pillar, and door sill.

The car's performance in the small overlap test earned it a good rating. According to IIHS, the driver space was maintained very well with maximum intrusion of four inches at the parking brake pedal.

In addition, the dummy's movement was well-controlled and the front and side curtain airbags worked well together to protect the head. Measures taken from the dummy showed injuries to the right lower leg would be possible in a crash of this severity.

Improvements also were made to the vehicle's optional front crash prevention system, which went from an advanced to a superior rating. The car avoided a collision in track tests at 12 mph and 25 mph. It also has a forward collision warning component that meets criteria set by the National Highway Traffic Safety Administration.

The Scion IA

The new iA also earned a good small overlap rating. The driver space was maintained very well, with maximum intrusion of two inches at the parking brake pedal, door hinge pillar, and instrument panel. As with the Lexus, the dummy's movement was well-controlled and the airbags worked well to protect the head. Measures taken from the dummy indicated a low risk of significant injuries in a crash of this severity.

The minicar has a standard low-speed front crash prevention system that earned an advanced rating. The iA avoided a collision in the 12 mph track test. The system doesn't operate at higher speeds or include a warning feature.

Although many vehicles now have front crash prevention as an option, it is still relatively rare to have the technology standard and unprecedented for a vehicle as inexpensive as the iA.

Award criteria

Both the ES and the iA earn good ratings in the moderate overlap front, side, roof strength, and head restraint tests. To qualify for TOP SAFETY PICK, vehicles must earn good ratings in those tests, plus a good or acceptable rating in the small overlap test.

For TOP SAFETY PICK+, vehicles also need an available front crash system with an advanced or superior rating.

Construction of new homes fell in August after posting a modest gain a month earlier, according to figures released jointly by the Census Bureau and the Department of Housing and Urban Development.

Housing starts for privately-owned homes were down 3% from the revised July seasonally adjusted annual rate of 1,161,000 units -- to 1,126,000. Still, the construction rate is up 16.6% from the same month a year ago.

Builders broke ground on 739,000 single-family homes in August -- down 3.0% from a month earlier, while the August rate for multi-family -- units in buildings with five units or more -- was 381,000, down 9,000 from July.

Building permits

Building permits, a sign of builders plans in the next six months or so, came in at a seasonally adjusted annual rate of 1,170,000 -- up 3.5% from July 12.5% year-over-year.

Authorizations for single-family home construction were up 2.8% to a rate of 699,000; permits for units in buildings with five units or more totaled 440,000 last month, a gain of 18,000 from July.

The full housing starts report is available on the Commerce Department website.

Jobless claims

First-time applications for state unemployment benefits continue to fall.

The Labor Department (DOL) reports initial jobless claims were down 11,000 during the week ending September 12 to a seasonally adjusted total of 264,000. That level, economists say, suggests an economy that is at, or near, full employment.

There were no special factors affecting this week's initial claims.

The four-week moving average was 272,500, a drop of 3,250 from the previous week's unrevised average of 275,750. Because it lacks the volatility of the weekly data, the four-week moving average is considered a more accurate gauge of the labor market.

The complete jobless claims report is available on the DOL website.

Karoun Dairies is recalling a variety of cheeses it distributes.

The products may be contaminated with Listeria monocytogenes

To date, no product has tested positive for Listeria.

The products are vacuum packed, in jars or in pails under the following brands: Karoun, Arz, Gopi, Queso Del Valle, Central Valley Creamery, Gopi, and Yanni. Weights vary from 5 ounces to 30 pounds.

This recall is limited to cheese with the UPC codes in the table below sold nationwide.

The recalled products were distributed to retail outlets, including food service accounts and supermarkets, in the U.S.

Customers who purchased any of the recalled products should dispose of them or return them to the place of purchase for a full refund.

Consumers with any questions may call toll free 1-866-272-9393 toll free, Monday – Friday 8:00AM to 6:00PM (PST).

Di Stefano Cheese Co., of Pomona, Calif., is recalling approximately 1,280 pounds of Parma Boneless Ham.

The products, produced in Italy, were not presented at the U.S. point of entry for inspection. Without the benefit of full inspection, a possibility of adverse health consequences exists.

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

The following products are being recalled:

15 lb. cases of “Ruliano Collezione Regale” Parma boneless ham with case code 14260

15 lb. cases of “Ruliano 24” Parma boneless ham with a sell by date of 08-02-2016

The products were sent to distributors in the California.

Customers who purchased these products should not consume, but throw them away or return them to the place of purchase.

Consumers with questions about the recall may contact Sasia Mellinger at (909) 865-8301.  

For the first time, a drug designed to prevent or delay the onset of Alzheimer's disease will be tested in a major clinical trial, the first step in bringing the drug to market.

Researchers at Johns Hopkins University say they are getting $7.5 million from the National Institutes of Health (NIH) for a Phase 3 trial of the drug levetiracetam, scheduled to start early next year.

Levetiracetam is not a new drug. It has been commonly prescribed for more than a decade to treat epilepsy. Johns Hopkins neuroscientist Michela Gallagher and colleagues have shown that a form of the drug calms hyperactivity in the brain of patients with a condition known as amnestic mild cognitive impairment (aMCI), in which memory impairment is greater than expected for a person’s age.

Doctors believe it also greatly increases risk for Alzheimer’s dementia. More than 5.6 million Americans and 25 million people globally suffer from aMCI.

Gallagher says scientists believe overactivity in aMCI is a strong predictor of who will ultimately get Alzheimer's, a progressive brain disease that is ultimately fatal.

“We expect our upcoming trial to demonstrate efficacy in preserving cognition and memory in aMCI patients while delaying progression to the clinical stage of Alzheimer’s dementia,” Gallagher said.

Skipping first two phases

Because levetiracetam is already an approved drug for epilepsy, it will skip the first two phases of trials. In a Phase 1 trial, a drug is tested on a small group of people for safety. In a Phase 2 trial, it is tested on a small group to determine if it is effective and has harmful side effects.

In a Phase 3 trial, a drug or treatment is given to large groups of people to confirm its effectiveness, monitor side effects, compare it to commonly used treatments, and collect information that will allow the drug or treatment to be used safely.

If a drug passes a Phase 3 clinical trial, the FDA usually allows it to be marketed for the purpose for which it was tested.

Public-private partnership

The trial will be carried out in a public-private partnership between the NIH’s National Institute on Aging, Johns Hopkins, and the biopharmaceutical company AgeneBio. Patients will receive a mild dose of levetiracetam, called AGB101, in an extended release once-a-day tablet at approximately one-fifth to one-twelfth of the dose most commonly prescribed for epilepsy. Other patients will receive a placebo. The trial is expected to last 18 months to two years.

Other promising Alzheimer's treatments have yet to come to the clinical trial stage but appear to be in the pipeline. As we reported late last year, researchers at UCLA believe they are on the cusp of a breakthrough in which memory loss can not only be slowed but lost memories restored in patients in the early stages of Alzheimer's disease.

There has been an increased urgency associated with Alzheimer's research since the large Baby Boom population began entering the period of highest risk. While Alzheimer's is not a normal part of aging, the Alzheimer's Association says people age 65 and older are at the highest risk.  

A ConsumerAffairs story yesterday incorrectly characterized Epson Corporation's business practices, saying the company "secretly inflates" the $3,800 price of ink cartridges used in its professional-grade Epson 9900 printers.

The story was based on a YouTube video posted by a printing company which complained that the printer controls showed cartridges as being empty when in fact they still contained several ounces of ink.

The company submitted a response to the story, which is presented here verbatim: 

Your recent article highlighted a video posted by Bellevue Fine Art Repro. I’m contacting you on behalf of Epson to clarify how the ink system of the Epson Stylus Pro 9900 is designed. The Epson Stylus Pro 9900 printer is a graphic arts printer designed for professional operation for printing high value photographs and fine art reproductions on canvas and other specialty media up to 44-inches wide. Like Epson’s other graphic arts printers, the Epson Stylus Pro 9900 is finely calibrated to consistently deliver extraordinarily high print quality.

• For quality assurance, the Epson Stylus Pro 9900 ink system uses two methods to track ink levels. The first system estimates ink consumption by mathematically calculating how much ink is consumed from a cartridge for each ink droplet fired during printing and print head cleaning. The printer and ink cartridge use this information to display ink levels and initiate an “Ink Low” status alert. This alert is an indicator to the operator that it is time to consider ordering a new cartridge and occurs with roughly 10-15 percent ink remaining. 

• After “Ink Low” alert, the printer can continue to print normally until all usable ink in the cartridge is consumed and noted with an “Ink Out” notice. This “Ink Out” notice is triggered by a second method – a physical sensor in the cartridge – not an estimated amount. The sensor triggers when ink volume has declined to the point that further use could cause harm to the print head.

• If a cleaning cycle is initiated during the “Ink Low” status and the level of ink remaining in the cartridge is estimated by mathematical calculation to be less than required for a print head cleaning, the printer will signal that there is “not enough ink to complete the process.” The ink required for cleaning is conservatively estimated to assure there is enough ink to completely eliminate any print head obstructions and ensure quality output. At this stage a fuller cartridge needs to be installed to complete the print head maintenance. But, it is important to note, that after this maintenance cycle, the original cartridge may be reinserted and used until “Ink Out” status is reached. It does not have to be discarded.

The printing system of the Epson Stylus Pro 9900 is conservatively designed with two methods of tracking ink levels. The “Ink Low” signal does not prevent the ink from being used until the “Ink Out” signal. In the event that a print head cleaning is attempted after an “Ink Low” signal, the professional operator may have to swap in a full cartridge for cleaning and use up the useable ink in the original cartridge at a later time.

ConsumerAffairs apologizes for its error.

Apple enthusiasts already know this, but for the rest of us, here's a reminder: iOS 9 is available today. It's the latest version of the software that makes iPhones and iPads run.

This latest version of Apple's venerable mobile operating system has lots of new features you may or may not care about, but Apple insists the new operating system is devoid of many bugs and overlooked irritants which drove many iFolks to distraction with iOS 8.

Of course, if you're the cautious type and you're not unduly determined to have the very latest version of anything Apple, there's nothing wrong with waiting a week or two. There will undoubtedly be a few glitches that come to light in the first days.

Among its biggest advantages, iOS 9 is quite a bit more compact than its predecessor, weighing in at a mere 1.3 gigabytes of free space needed for an update. iOS 8 wanted 4.58, which was more than many consumers had available.

But what's so great about 9? According to Apple, the search function is much improved, Maps and News work better, Siri is better behaved, and there are new multitasking features that will let you run two apps at once. 

Smart & secretive

Siri is not only smarter and better behaved, she's also good at keeping secrets, like other Apple products and services. Although Siri tries to notice and keep track of your wants and needs, she does it all on the hardware in your phone -- not in someone's cloud. 

This is part of Apple's "privacy built-in" policy, often cited by CEO Tim Cook as a prime differentiator between Apple and competitors like Google and Microsoft. Their "free" services are paid for, at least in part, by their mining of the data they capture from their users, whereas Cook swears that Apple is not looking over your shoulder. Nor is it reading your mail, which is now encrypted for better security.

There's a complete list of new and improved features on Apple's website.

If you've spent any time browsing car dealers' sites lately, chances are you've been invited to download an app that would supposedly make your car-shopping faster, easier, and so forth.

Some apps might really do that but you may pay an unexpected price for it in lost privacy.

That's what brought DealerApp Vantage LLC to the attention of the New Jersey Division of Consumer Affairs.  The Piscataway, N.J., company develops apps for hundreds of car dealers, each of them customized to reflect the dealer's brand.

But the state agency says that besides providing information to consumers and the dealers who host the app on their websites, DealerApp Vantage also collects and disseminates app users' personal information without their knowledge or permission.

“Online consumers, like all other consumers, have the right to control who can view or transmit their sensitive and private personal information,” said Acting Attorney General John J. Hoffman. “This settlement will assure that the alleged violations of consumer privacy committed by DealerApp will no longer occur and will send a message to companies that violate their customers’ privacy that such conduct is unacceptable.”

Never informed

The state charged that consumers were never informed that the apps transmitted personal information, not only to the dealership, but also to DealerApp. In addition, the dealerships that bought and utilized apps from DealerApp were also unaware that the company was transmitting the personal information of their customers to DealerApp.

The personal information collected by the apps and allegedly transmitted to DealerApp included the consumer’s name, email address, telephone number, and the Vehicle Identification Number (VIN) of the vehicle purchased, among other data. The state alleged that DealerApp failed to disclose to consumers that this data was being transmitted by DealerApp, in violation of the New Jersey Consumer Fraud Act. Some of the data was provided to third-party data analytics companies, again without disclosure, the state charged.

About 500 dealers world-wide, including 38 in New Jersey, are DealerApp clients.

“The number of threats to online privacy appear to be growing by the day,” said Steve Lee, Acting Director of the New Jersey Division of Consumer Affairs. “No one should be able to profit from the personal information of others that has been obtained through cyber fraud or violations of privacy.”

Settlement details

Among other things, under terms of the settlement, DealerApp must:

• clearly and conspicuously disclose to its dealership customers the types of personal information it collects through its apps;

• provide disclosures within its privacy policies that clearly and conspicuously disclose the types of personal information it collects from consumers through its apps;

• provide disclosures within its privacy policies that clearly and conspicuously disclose its use of any third-party data analytics companies and what information such companies may collect from consumers’ use of its apps;

• not sell, rent, or otherwise transfer personal information to persons or entities other than the dealership customer for which the mobile app in question was customized, without those consumers’ express consent or providing proper disclosure and offering a mechanism for opting-out such practice; and

• not engage in any unfair or deceptive acts or practices in the conduct of any business, and complying with all applicable laws and regulations in its future business dealings.

Not long ago, parents and educators worked to encourage kids to learn how to use the Internet. Now they're trying to get them to stop posting every minute of their lives.

In Illinois, Attorney General Lisa Madigan is promoting "Delete Day." She wants teachers to set aside some time to "promote respectful and safe online interactions" -- something other than scandalous pictures and selfies, in other words.

“As students around Illinois settle into a new school year and spend more time online, it is important to promote positive online interactions,” said Madigan. “Delete Day is an opportunity for students to evaluate their online habits and get rid of content or associations that could be harmful to themselves or to others.”

Last year the Attorney General’s office conducted a survey of Illinois students in grades three through eight to determine how they are using technology and social media. Results showed compelling information, including:

• 75 percent of surveyed students spend up to four hours a day using technology (not including television);
• the average youth is 10 years-old when they create their first social networking account; and
• more than 60 percent of youth are not concerned with the amount of personal information they make available online.

“Delete Day is an important opportunity for educators to teach students that once they post something online, it never really goes away,” said Decatur’s Garfield Montessori Magnet School Counselor Melissa Downs, who is implementing the school’s second “Prevent and Delete” program this December. “We need to help students be proactive in removing and preventing interactions that could be harmful down the road.”

By participating in Delete Day, Madigan said schools can help students think critically about their online connections, followers and posts, and promote safety and respect on the Internet.

In some areas, abuse of prescription medication by teenagers is on the decline. The unfortunate reason, however, is that many have moved on to heroin, which is cheaper and more plentiful.

But even when children aren't abusing prescription medication, they could be misusing it. This misuse could be characterized by using or combining non-prescribed drugs or skipping doses in a manner that is inconsistent with the ordering physician's directions.

According to the latest analysis by Quest Diagnostics, one in two patients tested between the ages of 10 and 17 are not using their medications appropriately, potentially putting their health at risk.

Even though that seems very bad, it's actually an improvement from past records. In 2011, 70% of adolescents tested by Quest showed evidence of prescription drug misuse; that number dipped to 52% in 2014. These findings align with research from the National Institute of Drug Abuse, which revealed a decline in high school students' misuse of prescription drugs over the past two years.

Still, the research shows that half of adolescents taking prescription drugs aren't taking them properly.

Long road ahead

"The Quest analysis shows that while our nation is making great strides to curb drug abuse and misuse, we have a long road ahead before we can declare victory on the prescription drug epidemic," said Leland F. McClure, director, medical science liaison, Quest Diagnostics. "By every means of slicing the Quest test data – age, gender, geography, and payer type – we observed significant patterns of misuse in our nationally representative database.”

And while some states may find that teens are no longer abusing prescription pain killers as the once were, others still are. In Indiana, state Attorney General Greg Zoeller says prescription drug abuse is at epidemic levels. After a meeting with U.S. Surgeon General Dr. Vivek H. Murthy, Zoeller said the state needs federal support to deal with the crisis.

Five-fold increase

Zoeller cites statistics showing drug overdose deaths in Indiana have increased five-fold since 1999, with half of overdose deaths a result of prescription drug abuse.

“Prescription drug addiction is at the root of a very serious public health crisis that impacts much of our society today,” Zoeller said. “Prescription drug abuse has fueled high rates of overdose death and greater heroin use in Indiana, and led to unprecedented disease outbreak in Hoosier communities this year through shared needle use among intravenous prescription drug abusers. Preventing prescription abuse is now more pressing than ever.”

Drug overdoses are so prevalent they have become the leading cause of injury deaths in Indiana and 36 other states, according to a report by the Trust for America's Health and the Robert Wood Johnson Foundation.

According to the report, Indiana had the 5th-highest rate of drug overdoses from 2011 to 2013 — 16 deaths per 100,000 residents.

Builder confidence in the market for newly constructed single-family homes is at its highest level since October 2005.

National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) continued its steady rise in September with a one point increase to a level of 62.

"The HMI shows that single-family housing is making solid progress, said NAHB Chairman Tom Woods. "However, our members continue to tell us that they are concerned about the availability of lots and labor.”

The NAHB/Wells Fargo Housing Market Index, derived from a monthly survey, gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good", "fair", or "poor." The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average" or "low to very low."

Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Two of the three HMI components posted gains this month. The index measuring buyer traffic increased two points to 47, and the component gauging current sales conditions rose one point to 67. The index charting sales expectations in the next six months, however, dropped from 70 to 68.

Looking at the three-month moving averages for regional HMI scores, the West and Midwest each rose one point to 64 and 59, respectively. The South posted a one-point gain to 64 and the Northeast dropped one point to 46.

"NAHB is projecting about 1.1 million total housing starts this year,” said NAHB Chief Economist David Crowe. The report, he said, “is consistent with our forecast, and barring any unexpected jolts, we expect housing to keep moving forward at a steady, modest rate through the end of the year.”

Consumer prices became less of a worry during the past month.

According to the Labor Department (DOL), the Consumer Price Index (CPI) dipped 0.1% in August on a seasonally adjusted basis. Moreover, during the past 12 months, it's up a miniscule 0.2%.

Energy and food

Energy costs were down 2.0% in August after posting gains in five of the last 6 months. Gasoline prices, which were up for three straight months, dropped 4.1%. Fuel oil index also declined (-8.1%), offsetting increases in natural gas (+1.2%) and electricity (+0.3%). Over the past 12 months, electricity has fallen 0.6%, fuel oil has plunged 34.6%, gasoline is down 23.3%, and natural gas is off 11.5%.

Food prices, however, were up 0.2%, with the food at home category up 0.3% -- the same as July. Within that latter sector, major grocery store food groups were mixed. The largest increase was for fruits and vegetables, which jumped 1.5% with both fresh fruits and fresh vegetables posting their largest increases of the year. Prices for meats, poultry, fish, and eggs rose 0.5%, while beef, poultry, and pork costs all declined. The biggest sticker shock came in eggs, where costs surged 7.7% and are now up 35.3% over the past year. Over the past 12 months, food at home prices are up 0.8%.

Excluding the volatile food and energy categories, the core rate of inflation increased 0.1% in August the same as July. Shelter costs were up 0.2%, apparel rose 0.3%, and tobacco was up 0.5%. The costs of medical care, new vehicles, and personal care were unchanged, while airline fares fell 3.1%., used cars and trucks were down 0.4%, and household furnishings and operations prices dropped 0.3%. Over the last 12 months, the core rate of inflation is up 1.8%.

The interest rate outlook

The inflation report comes as the Federal Reserve begins a two-day meeting to decide the course of interest rates.

Given the latest CPI numbers, Stifel Fixed Income Chief Economist Lindsey M. Piegza says inflation is likely to remain increasingly benign for the remainder of the year and beyond. That, she says, undermines "any notion of confidence inflation will begin to reverse course back towards the Fed's target of 2%."

Piega believes that despite an apparent growing impatience at the Fed to raise rates, the data suggest September "may not be the appropriate timetable for liftoff."

The complete CPI report is available at the Department of Labor website.   

Mortgage applications posted a sizable decline for a second week running.

The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey shows applications were down 7.0% in the week ending September 11 following a 6.2% drop the week before. The latest results include an adjustment for the Labor Day holiday.

The Refinance Index fell 9.0% from the previous week, taking the refinance share of mortgage activity down to 56.2% of total applications from 56.9% the previous week.

The adjustable-rate mortgage (ARM) share of activity slipped to 6.8% of total applications, the FHA share rose to 14.2% from 13.4% the week prior, the VA share decreased to 10.7%, and the USDA share of total applications was unchanged at 0.8%.

Contract interest rates

• The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) dipped one basis point -- from 4.10% to 4.09%, with points increasing to 0.42 from 0.39 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
• The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) inched up to 4.04% from 4.03%, with points decreasing to 0.26 from 0.28 (including the origination fee) for 80% LTV loans. The effective rate was unchanged from last week.
• The average contract interest rate for 30-year FRMs backed by the FHA dropped two basis points to 3.88%, with points increasing to 0.35 from 0.23 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
• The average contract interest rate for 15-year FRMs fell to 3.33% from 3.34%, with points decreasing to 0.26 from 0.28 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
• The average contract interest rate for 5/1 ARMs rose one basis point to 3.04%, with points increasing to 0.36 from 0.27 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The survey covers over 75% of all U.S. retail residential mortgage applications.

Iowa Select Herbs is recalling all products sold between January 1, 2015, and August 17, 2015, pursuant to a Consent Decree issued by the federal court for the Northern District of Iowa.

The company manufactured and distributed unapproved new drugs, misbranded drugs, misbranded dietary supplements and dietary supplements not manufactured in compliance with the current Good Manufacturing Practice regulations for Dietary Supplements, and therefore adulterated.

There are no reports to date of side effects or adverse events.

The recalled products are herbal extracts marketed under the Iowa Select Herbs brand in either an alcohol or alcohol-free (A/F) solution packaged in various sizes from once ounce to one gallon. The following lots are being recalled:

**Quantity refers to the number of units distributed and not the size of the unit (e.g. ounces or gallons).

The recalled products were sold nationwide between January 1, 2015 to August 17, 2015 to wholesalers and consumers using the company's website and through online marketplace websites, such as Amazon and Ebay.

Iowa Select Herbs is notifying its wholesale and retail customers.

Customers who purchased these products should immediately discontinue their use and return the products to their place of purchase or directly to Iowa Select Herbs.

Consumers may call the Company at 319-826-1000 Monday through Friday from 9:00 am - 5:00 pm (CST) for instructions on the return and refund process.