Current Events in May 2018

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    Starbucks opening amenities to both paying and non-paying customers

    The decision comes on the heels of a recent controversial arrest in Philadelphia

    Starbucks announced a new policy on Saturday that permits both paying and non-paying customers to sit in its cafes/patios and use the bathrooms. Company executives noted that previous language on this topic was ambiguous and often left the decision up to each individual store’s manager.

    “We are committed to creating a culture of warmth and belonging where everyone is welcome,” the company said in a statement.

    With the announcement, Starbucks is encouraging employees to consider every patron that enters its stores a customer -- whether they buy something or not.

    Starbucks founder and chairman Howard Schultz said last week they don’t “want to become a public bathroom... we’re going to make the right decision 100 percent of the time and give people the key.”

    “We don’t want anyone at Starbucks to feel as if we are not giving access to you to the bathroom because you are less than. We want you to be more than,” Schultz noted.

    Recent controversy

    The coffee chain was under fire recently, and the decision to open its cafes and bathrooms to all customers comes after that great controversy.

    On April 12, two African American men were arrested in a Philadelphia Starbucks while waiting for their friend -- though neither made a purchase. Video of the arrests went viral on various social media platforms, and the company experienced a great deal of backlash, as it appeared there was no real reason for the arrests.

    Starbucks CEO Kevin Johnson described the situation as “disheartening” and “reprehensible,” and described three things he hoped to accomplish moving forward.

    “First, to once again express our deepest apologies to the two men who were arrested with a goal of doing whatever we can to make things right,” Johnson said in a statement. “Second, to let you know of our plans to investigate the pertinent facts and make any necessary changes to our practice that would help prevent such an occurrence from ever happening again. And third, to reassure you that Starbucks firmly stands against discrimination or racial profiling.”

    Starbucks settled with the men for an undisclosed sum and free college tuition for a program created by the company for its employees. The men also symbolically received $1 each from the city of Philadelphia, as well as a pledge from officials to set up a $200,000 to promote entrepreneurship among high school students.

    Not long after these arrests, another video surfaced of a similar incident in California from this past January. The video shows a black man saying he was denied access to the bathroom -- while a white man was given access to the bathroom -- despite neither man making a purchase.

    Next steps

    Additionally, the franchise will be closing 8,000 stores across the country on May 29 for bias training. Johnson is confident the training will help combat racial bias, in addition to preventing an event like this from happening again in the future.

    “Closing our stores for racial bias training is just one step in the right direction that requires dedication from every level of our company and partnerships in our local communities,” Johnson said.

    The curriculum for the day’s training will focus on how employees can recognize and address their own implicit biases to prevent future discrimination.

    The new company-wide policy considers anyone who enters the store to be a customer, and there is no time limit as to how long he/she can stay. However, if the customer is considered a safety threat, employees are advised to contact the police.

    “I’ve spent the last few days in Philadelphia with my leadership team listening to the community, learning what we did wrong and the steps we need to take to fix it,” Johnson said in a statement. “While this is not limited to Starbucks, we are committed to being part of the solution.”

    Starbucks announced a new policy on Saturday that permits both paying and non-paying customers to sit in its cafes/patios and use the bathrooms. Company ex...

    Facebook and Qualcomm partner to deliver high-speed WiFi to cities

    The collaboration may help improve internet speed and reliability in dense urban areas

    Facebook and Qualcomm are teaming up to bring super-fast WiFi to cities across the country for "a fraction of the cost" of fiber, the companies announced Monday

    The partnership will use Facebook’s Terragraph technology to build a multi-node wireless system based on 60GHz technology from Qualcomm, with the ultimate goal of bringing high-speed internet connectivity to dense urban areas.

    The social media giant has been working on Terragraph for several years in an effort to replace fiber broadband with 60GHz millimeter-wave wireless. Facebook first unveiled Terragraph at its annual developer conference back in 2016, touting it as a wireless service that could deliver faster and more reliable coverage in dense urban areas.

    Improved connections and speeds

    The technology was designed to offer a replacement for fiber or cable in homes and businesses. It works by utilizing a large number of antennas, channel bonding, time synchronized nodes, and TDMA protocols -- enhancements that help direct signals around urban obstacles like concrete buildings, serve more users, and reduce costs.

    Qualcomm will integrate its upcoming chipsets with Facebook’s Terragraph technology, enabling manufacturers to build 60 GHz millimeter wave solutions using the unlicensed 60GHz spectrum and provide Fixed Wireless Access (FWA).

    "With Terragraph, our goal is to enable people living in urban areas to access high-quality connectivity that can help create new opportunities and strengthen communities," said Yael Maguire, vice president of connectivity at Facebook.

    Trials slated to begin next year

    The collaboration will hopefully help to reduce congestion in overcrowded urban wireless networks.

    "Our collaboration with Facebook will bring advanced 11ad and pre-11ay technologies to market increasing broadband penetration and enabling operators to reduce their capex [capital expenditure] for last mile access," explained Irvind Ghai, vice president, product management, Qualcomm Atheros, Inc.

    "Terragraph cloud controller and TDMA architecture coupled with Qualcomm Technologies solution's 10 Gbps link rate, low power consumption, and early interference mitigation techniques will help make gigabit connectivity a reality."

    Trials of the new technology are expected to begin in mid-2019. The companies didn’t announce which cities would receive the service first, but Facebook previously suggested that Terragraph would be tested in San Jose.

    Facebook and Qualcomm are teaming up to bring super-fast WiFi to cities across the country for "a fraction of the cost" of fiber, the companies announced M...

    EU charges Google with 'illegal' behavior

    The tech giant is being accused of skewing search results to its own benefit

    Is Google a monopoly that's gotten too big and powerful and needs regulation? The company, quite naturally, says no -- but some regulators, attorneys, and other tech companies beg to differ.

    In a CBS 60 Minutes report, Margrethe Vestager, the competition commissioner for the European Union (EU), says her office can prove that Google is engaging in illegal, anti-competitive behavior. Google denied the charge but declined CBS's request for an interview.

    “Our responsibility is to deliver the best results possible to our users, not specific placements for sites within our results," Google said in a statement released to the media. "We understand that those sites whose ranking falls will be unhappy and may complain publicly.”

    Part of Vestager's claim hinges on research her team conducted. The researchers looked at 1.7 billion Google search queries and charges the results show Google was manipulating its secret search formulas—or algorithms—to promote its own products and services, while virtually ignoring any competitor.

    "It's very difficult to find the rivals," Vestager told CBS. "Because on average, you'd find them only on page four in your search results."

    Complaint from Yelp

    Yelp co-founder Jeremy Stoppelman told CBS he doubts he could launch his company in today's environment.

    "Because if you provide great content in one of these categories that is lucrative to Google, and seen as potentially threatening, they will snuff you out," he said.

    The Federal Trade Commission (FTC) reportedly acted on some of these complaints in 2011, conducting an investigation into the company's business practices. According to an internal memo leaked to The Wall Street Journal, the agency recommended an antitrust lawsuit against the tech giant, but no action was taken.

    A year ago, the EU fined Google $2.7 billion, charging it deprived some competitors of the opportunity to compete with them.

    Netmarketshare.com measures international search engine traffic. In its latest report, it gives Google nearly 73 percent of the world's search traffic. Baidu, a Chinese search engine, is second with nearly 13 percent. Bing, owned by Microsoft, has less than 8 percent.

    Is Google a monopoly that's gotten too big and powerful and needs regulation? The company, quite naturally, says no -- but some regulators, attorneys, and...

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      Federal student loan interest rates going up

      The new rates will take effect July 1

      Student loan interest rates are set to climb for the second year in a row. Borrowers for the 2018-19 school year will pay more than half a percentage point more to take out loans from the Education Department.

      The rate increase is a result of the Treasury Department’s 10-year note auction. Since the establishment of the Bipartisan Student Loan Certainty Act of 2013, rates are reset every year based on the spring rate of the note, plus a fixed margin.

      Undergraduate students can anticipate paying 5.04 percent interest on new Stafford loans instead of the current rate of 4.45 percent. Graduate students will see the interest rate on new Direct loans increase from 6 percent to 6.59 percent.

      Parents who take on federal student loans to pay for their children’s education can expect to pay 7.59 percent instead of 7 percent.

      Not unexpected

      Experts say the increase in the cost of borrowing isn’t a surprise since interest rates have generally been on the rise over the last few years.

      “We are in a rising rate environment, with the Federal Reserve increasing the federal funds rate. ... So (an increase) is not unexpected,” Mark Kantrowitz, publisher of PrivateStudentLoans.guru, a student lending website, told the Washington Post.

      “Possibly contributing to the increase in 10-year Treasury note rates were fears of a trade war and inflation fears due to the U.S. backing out of the Iran nuclear deal,” Kantrowitz said.

      Although lawmakers decided several years ago to tie interest rates to the market, Congress has set a cap on them. Interest rates on undergraduate loans are capped at 8.25 percent, graduate loans can never go higher than 9.5 percent, and parent loans are capped at 10.5 percent.

      The new interest rates will go into effect July 1, 2018. They will remain in effect for the life of the loan, until June 30, 2019.

      Student loan interest rates are set to climb for the second year in a row. Borrowers for the 2018-19 school year will pay more than half a percentage point...

      Researchers create molecule that provides hope for common cold cure

      The new molecule essentially makes the human body inhospitable to cold viruses

      Researchers say they have developed a new molecule that has the potential to stop the common cold in its tracks.

      The molecule, created by scientists at Imperial College London (ICL), has been shown to block several strains of rhinovirus, the most common type of respiratory virus. It combats cold viruses by targeting the protein that viruses use to construct a capsid, a shell that protects the virus so it can multiply.

      Early in vitro tests with human cells showed that the new molecule (codenamed IMP-1088) successfully blocked the replication of rhinovirus strains.

      "A drug like this could be extremely beneficial if given early in infection, and we are working on making a version that could be inhaled, so that it gets to the lungs quickly," said Ed Tate, the study’s co-author.

      Affects the protein rather than the virus

      Every strain of the common cold latches onto the protein known as N-myristoyltransferase (NMT). The researchers say the new molecule has the potential to prevent cold viruses from using the protein. Additionally, IMP-1088 could eventually be used to prevent related viruses, such as foot and mouth disease and polio.

      The team was encouraged by the molecule’s effectiveness in cell models and hopes to move to animal and human studies soon.

      “The way the drug works means that we would need to be sure it was being used against the cold virus, and not similar conditions with different causes, to minimize the chance of toxic side effects," he says.

      Could save consumers money

      Common colds are the leading cause of work and school absenteeism in the country, according to the Centers for Disease Control and Prevention (CDC). Millions come down with some form of the common cold each year, reportedly costing the world economy billions of dollars annually due to doctor visits and missed work days.

      Researchers say unnecessary antibiotic treatments prescribed to treat the common cold are also a primary source of the population’s growing antibiotic resistance problem, as well as a drain on the world’s medical systems.

      The new research findings have been published in the journal Nature Chemistry.

      Researchers say they have developed a new molecule that has the potential to stop the common cold in its tracks.The molecule, created by scientists at...

      Model year 2018 Jeep Cherokees with a 2.4L engine recalled

      The fuel tube may leak fuel into the engine compartment

      Chrysler (FCA US LLC) is recalling 48,990 model year 2018 Jeep Cherokees equipped with a 2.4L engine.

      These vehicles may have a fuel tube that may leak fuel into the engine compartment.

      A fuel leak in the presence of the ignition source can increase the risk of a fire.

      What to do

      Chrysler will notify owners, and dealers will inspect the fuel tube, replacing it as necessary, free of charge.

      The recall is expected to begin June 20, 2018.

      Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is U39.

      Chrysler (FCA US LLC) is recalling 48,990 model year 2018 Jeep Cherokees equipped with a 2.4L engine.These vehicles may have a fuel tube that may leak...

      GM recalls Chevrolet Express and GMC Savana vehicles

      Liquid may leak into the driver's power window switch

      General Motors is recalling 207,483 model year 2014-2017 Chevrolet Express and GMC Savana vehicles equipped with power windows.

      Liquid may leak into the driver's power window switch and cause corrosion, resulting in high electrical resistance and increase the risk of a fire.

      What to do

      GM will notify owners, and dealers will replace the driver side window switch, free of charge.

      The manufacturer has not yet provided a notification schedule. Owners may contact Chevrolet customer service at 1-800-222-1020 or GMC customer service at 1-800-462-8782.

      GM's number for this recall is 18155.

      General Motors is recalling 207,483 model year 2014-2017 Chevrolet Express and GMC Savana vehicles equipped with power windows.Liquid may leak into the...

      The Weekly Hack: Attackers steal $15 million from Mexico’s central bank

      Chili’s customers who dined at the restaurant are advised to check their credit card statements

      An unknown group of hackers stole the equivalent of $15.3 million from Mexico’s central bank, the Bank of Mexico, the institution admitted on Wednesday.

      The bank assured reporters that no individual accounts were harmed, but the hack raises further questions about the online security of financial institutions worldwide. The hackers had targeted interbank payment systems, or online transfer systems that allow banks to transfer money to each other in real time.

      Meanwhile, people who use Citibanamex, the country’s second largest bank, were unable to withdraw cash from ATMs or conduct transfers this week, but the bank denied that its systems were compromised.

      The Bank of Mexico, meanwhile, said that it switched to a slower, more secure online system after the hack to avoid any more breaches.

      Chili’s

      Brinker International, the restaurant conglomerate that owns Chili's Grill & Bar, says that any customers who dined at the restaurant in March or April may have had their credit card data accessed in a hack.

      Brinker says that credit card or debit card numbers, as well as cardholder names, were stolen in an attack currently under investigation. The restaurant cautions against canceling cards unless users notice suspicious activity, but in the meantime, it is offering free credit monitoring to all affected consumers

      Signal

      Tech experts have recommended that people who are concerned about their cybersecurity or who need to conduct sensitive conversations over the phone should use the messaging app Signal.

      The SMS app boasts fully encrypted messaging, which prevents even seasoned hackers or government officials from cracking the app’s code. But even Signal isn’t perfect.

      Security researchers this week identified a potential vulnerability in the app, in which they said that a malicious attacker could send an unprompted message to a stranger.

      Researchers reported the vulnerability to Signal’s developers, who promptly created a patch to fix the problem.

      An unknown group of hackers stole the equivalent of $15.3 million from Mexico’s central bank, the Bank of Mexico, the institution admitted on Wednesday....

      House panel rejects Trump administration’s efforts to overturn ZTE ban

      An amendment would keep sanctions against Chinese smartphone maker ZTE

      On Thursday, the House Appropriations Committee voted unanimously to accept an amendment to a bill that would uphold sanctions against ZTE.

      The action comes days after President Donald Trump sent out a surprising tweet calling for the Commerce Department to help give ZTE "a way to get back into business, fast.”

      The amendment’s author, Rep. Dutch Ruppersberger (D-Maryland), said the amendment will stop the Commerce Department from renegotiating sanctions on ZTE.

      “Supporting this amendment will show that the U.S. government stands behind the sanctions that it enacts, and will enforce them. It also further prevents foreign companies beholden to their governments from further infiltrating our U.S. networks,” Ruppersberger said in a statement.

      Banned from receiving essential parts

      Last month, Chinese smartphone maker ZTE was hit with a denial order that prevents it from receiving parts and components from U.S.-based vendors. As a result of the seven-year ban, ZTE recently announced that it had been forced to shut down its “major operating activities.”  

      The ban was handed down after the government determined that ZTE had violated the terms of a 2017 settlement by failing to fire employees involved in illegally shipping U.S. equipment to Iran and North Korea. ZTE said previously that it was working to get the seven-year ban suspended.

      A day after Trump tweeted about his intent to help the company, he followed up with another tweet that said ZTE "buys a big percentage of individual parts from US companies" and that the company is "reflective of the larger trade deal we are negotiating with China and my personal relationship with President Xi."

      Security threat

      Lawmakers from both parties were quick to point out the potential security risks of overturning the seven-year ban. Democrats and Republicans argue that Chinese telecom companies spy on Americans and steal intellectual property.

      "ZTE is a Chinese telecommunications company that has been exhaustively investigated by the U.S. intelligence community, other areas of the government and the U.S. Congress,” Ruppersberger said.

      “They're widely suspected of spying for the Chinese government, and we cannot allow them to infiltrate U.S. networks or give them access to the U.S. market while they continue to be beholden to their government," Ruppersberger said.

      Senator Marco Rubio (R - Fla.) tweeted Monday that the U.S. would be "crazy" to allow ZTE to operate in the U.S. "without tighter restrictions."

      "Any telecomm firm in #China can be forced to act as a tool of Chinese espionage without a court order or other review process," Rubio said.

      Ruppersberger said the amendment will "prevent a foreign company that is beholden to its government – and that ignores embargoes – from infiltrating the devices and networks that are now indispensable to American life.”

      On Thursday, the House Appropriations Committee voted unanimously to accept an amendment to a bill that would uphold sanctions against ZTE. The action...

      Vermont passes law to allow prescription drug imports from Canada

      Vermont’s governor hopes that the Canadian competition will give residents access to cheaper medicine

      In Canada, prescription drugs have grown so expensive that nearly one million Canadians have sacrificed food and heating to afford their medication. But compared to the United States, prescription drugs in Canada are a relative bargain.

      Although numerous states have proposed allowing drugs from Canada to be imported to combat rising drug costs, Vermont on Wednesday became the first state to pass one such proposal into law.

      Canadians face the second-highest drug costs in the world, but their prescriptions still cost 2.9 times less on average than prescriptions in the United States, the most expensive country in the world for prescription drugs.

      Vermont Governor Phil Scott said that the bill he signed into law on Wednesday will help consumers in the state access more affordable prescription drugs. The law was also celebrated by Senator Bernie Sanders (I-VT), who said that he used to bring constituents across the border to Canada to purchase cheaper prescriptions.

      Still requires approval

      Pharmaceutical companies had aggressively lobbied against the proposal, airing commercials characterizing Canada’s prescription drugs as unsafe. "Protect the U.S. drug supply by rejecting policies that permit importation of counterfeit Canadian drugs,” one such ad said.

      Canadian pharmacists described the ad as deeply inaccurate.

      Bringing pharmaceutical drugs across the border from Canada is a legal gray area, but experts estimate that some eight percent of Americans do so.

      Vermont’s new state law is still contingent on approval from Health and Human Services Secretary Alex Azar, who has expressed ambivalence about allowing drugs from Canada into the United States.

      "Canada simply doesn't have enough drugs to sell them to us for less money, and drug companies won't sell Canada or Europe more just to have them imported here," he claimed in a speech on Wednesday.

      In Canada, prescription drugs have grown so expensive that nearly one million Canadians have sacrificed food and heating to afford their medication. But co...

      AHA reaffirms the importance of including fish in consumers’ regular diets

      Researchers say the omega-3 fatty acids found in some varieties can greatly reduce cardiovascular risks

      A new advisory published by the American Heart Association (AHA) reaffirms the health benefits of regularly eating fish, especially types that have high amounts of omega-3 fatty acids.

      Researchers say that consumers who include fish in their diet can improve their cardiovascular health and reduce the risk of heart failure, coronary heart disease, cardiac arrest, and ischemic stroke.

      "Since the last advisory on eating fish was issued by the Association in 2002, scientific studies have further established the beneficial effects of eating seafood rich in Omega-3 fatty acids, especially when it replaces less healthy foods such as meats that are high in artery-clogging saturated fat," said Eric B. Rimm, chair of the AHA’s writing group and a professor at Harvard’s T.H. Chan School of Public Health.

      The AHA recommends that consumers eat at least two 3.5-ounce servings of non-dried fish every week, with an emphasis on oily, omega-3 rich fish like salmon, mackerel, herring, lake trout, sardines, or albacore tuna.

      Benefits outweigh risks

      Although eating plenty of fish can be part of a healthy diet, the researchers caution that eating too much can also be problematic. Certain varieties of fish are known to contain traces of mercury, which can lead to neurological problems if consumed in excess.

      The researchers also point out that taking too many supplements that are high in omega-3’s can cause excessive bleeding, adding that consumers “taking more than 3 grams of omega-3 fatty acids from capsules should do so only under a physician’s care.”

      But while these potential dangers may cause some consumers to hesitate, the AHA says that the potential benefits of consuming fish far outweigh the risks.

      “Omega-3 fatty acids benefit the heart of healthy people, and those at high risk of — or who have — cardiovascular disease,” the researchers said. “Increasing omega-3 fatty acid consumption through foods is preferable.”

      The AHA’s full study has been published in the journal Circulation.

      A new advisory published by the American Heart Association (AHA) reaffirms the health benefits of regularly eating fish, especially types that have high am...

      Court dismisses suit claiming Poland Spring water doesn't come from springs

      An independent investigation found the product meets federal criteria

      A U.S. District Court has dismissed a lawsuit against Nestle Waters North America that claimed its Poland Spring brand water does not come from springs.

      The company said the Connecticut-based court granted its motion to dismiss the suit, filed last August by eleven consumers who claimed the product is essentially filtered groundwater.

      The court dismissed the complaint after reviewing the results of an independent investigation into whether Poland Spring meets the requirements of the federal spring water standard.

      “We are pleased with the court’s decision to dismiss this meritless lawsuit,” said Charles Broll, Nestlé Waters Executive Vice President and General Counsel. “Poland Spring is what we have always said it is – 100% natural spring water, meeting all FDA regulations for spring water.”

      The lawsuit, similar to one filed in 2003, claimed Nestle Waters was misleading consumers by labeling the Poland Spring product as “100 percent natural spring water.”

      Investigation concludes it's properly labeled

      Nestle says DLA Piper conducted an independent analysis of the Poland Spring product, determining that the water is properly labeled as “spring water.”

      Former U.S. Senator George Mitchell, chairman emeritus of DLA Piper, said in a statement that Poland Spring brand water sources “satisfy the requirements of the federal spring water identity standard, and as a result, the use of the term ‘spring water’ on Poland Spring labels is both accurate and appropriate.”

      The federal regulations covering water products, and whether they can be considered spring water, are specific. Below are the standards that must be met:

      • The water flows naturally to the surface of the earth    

      • The water is collected only at the spring or through a bore hole tapping the underground formation feeding the spring

      • A natural force causes the water to flow to the surface through a natural orifice

      • The location of the spring is identified    

      • Water collected with the use of an external force shall be from the same underground stratum as the spring, as shown by a measurable hydraulic connection using a hydrogeologically valid method between the bore hole and the natural spring, and shall have all the physical properties, before treatment, and be of the same composition and quality, as the water that flows naturally to the surface of the earth.

      A U.S. District Court has dismissed a lawsuit against Nestle Waters North America that claimed its Poland Spring brand water does not come from springs....

      U.S. birthrate falls to 30-year low in 2017

      There are fewer future workers to pay into Social Security

      The U.S. birthrate dropped to its lowest level since 1987 last year, according to preliminary data from the Centers for Disease Control and Prevention (CDC).

      The CDC report counted 3,853,472 babies born in the U.S. in 2017, two percent fewer than the year before. That has broad implications for their parents' generation.

      A declining population generally means fewer people in the workforce, once the new generation reaches adulthood. That translates into fewer workers paying into Social Security, at a time when the older generation is preparing to retire.

      CDC's National Center for Health Statistics says the U.S. birthrate has been falling below the “replacement rate” since 1971. The birthrate was only 12.2 per 1,000 population. The general fertility rate hit a record low of 60.2 births per 1,000 women who were between the ages of 15 and 44. That latter number is a decline of 3 percent.

      Waiting longer to have children

      Women are waiting longer before giving birth for the first time. The mean age for first-time mothers last year was more than 26. Nearly 40 percent were unmarried.

      As evidence that women are putting off their childbearing years, the CDC report notes that women in their 40s made up the only group to see its birthrate actually go up last year, rising 2 percent from 2016.

      The CDC notes the decline in the birthrate from 2016 to 2017 was the largest one-year drop since 2010. It's significantly lower than 2007, a decade earlier, when the U.S. finally eclipsed the surge in births recorded during the baby boom.

      The U.S. is not alone in trying to plan for the future with a declining birthrate. Developed nations -- such as Germany, Switzerland, Japan, and South Korea -- have experienced declining birthrates over the last three decades, as the gap between old and young populations has widened.

      The U.S. birthrate dropped to its lowest level since 1987 last year, according to preliminary data from the Centers for Disease Control and Prevention (CDC...

      Mortgage rates jump as realtors predict even higher home prices

      Thirty-year fixed-rate mortgages are now at a seven-year high

      It isn't getting any easier to buy a home.

      Inventory levels are tight, home prices are rising, and the average rate on a 30-year fixed-rate mortgage is at a seven-year high, according to Freddie Mac. The rate on the 30-year mortgage, preferred by most homebuyers, rose to 4.61 percent, the highest level since May 2011.

      Sam Khater, Freddie Mac’s chief economist, says mortgage rates are closely tied to the yield on the 10-year Treasury bond, and when that rate rises, so do mortgage rates.

      “Healthy consumer spending and higher commodity prices spooked the bond markets and led to higher mortgage rates over the past week,” Khater said. “Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season.”

      But Khater says the higher mortgage rates don't seem to have dampened demand. In fact, he says it could spur sales since buyers may be worried mortgage rates will go even higher.

      Realtors list challenges for buyers

      The rising cost of financing is just one of the challenges facing homebuyers. In its mid-year forecast, the National Association of Realtors (NAR) predicts buyers will continue to face higher list prices for homes and fewer properties to choose from.

      Sales of existing homes have been slow in recent years because of declining inventories. Fewer people are selling their homes and homebuilding is about half of what it was before the financial crisis.

      In 2016, home sales increased 3.8 percent, but those rates slowed to 1.1 percent last year. NAR projects this year's increase in existing home sales will be a little better, increasing 1.8 percent.

      'Fundamentals remain solid'

      "Overall fundamentals remain solid, driven by a growing economy and steady job creation, which will sustain home sales in 2018 slightly above last year's pace," said NAR's chief economist, Lawrence Yun. "The worsening housing shortage means home prices are primed to rise further this year too, hindering affordability conditions for homebuyers in markets across the country."

      Yun said home sales would be growing at a much faster pace if more homes were available for purchase. Without more supply to fully satisfy demand and alleviate the upward pressure on prices, Yun says contract activity is likely to remain flat and will more or less continue sideways through the end of the year.

      At the end of March, there were 1.67 million existing homes on the market, down 7.2 percent from March 2017. Yun says inventory levels have been falling for the last five years, with the fewest homes for sale in a generation. Unsold housing inventory is at a 3.6 month supply. A normal level is six months or greater.

      It isn't getting any easier to buy a home.Inventory levels are tight, home prices are rising, and the average rate on a 30-year fixed-rate mortgage is...

      American Honda recalls ROVs

      The muffler can overheat, posing a fire and burn hazard

      American Honda Motor Company of Torrance, Calif., is recalling about 65,000 Recreational off-highway vehicles (ROVs).

      The muffler can overheat, causing the plastic heat shield to melt or catch fire, posing a fire and burn hazard.

      The firm has received 22 reports of the muffler plastic heat shield melting and three reports of muffler plastic heat shield fires. No injuries have been reported.

      This recall involves all model year 2016 through 2017, and some model year 2018 Honda Pioneer 1000 Vehicles sold in red, blue, green, gray and yellow. The name “HONDA” is on the front, sides and the rear of the vehicle.

      The model name Pioneer 1000 is printed on a label located on both sides of the vehicle, near the rear. The serial number (VIN #) is stamped in the frame at the left rear, below the tilt-up bed/seat.

      The following model numbers and serial number ranges are being recalled:

      MY

      Model

      VIN Start

      2016

      Pioneer 1000 3P

      (SXS10M3*)

      1HFVE04**G4000001

      --- 1HFVE04**G4008403

      2016

      Pioneer 1000 5P

      (SXS10M5*)

      1HFVE04**G4000001

      --- 1HFVE04**G4010507

      2017

      Pioneer 1000 3P

      (SXS10M3*)

      1HFVE04**H4100001

      --- 1HFVE04**H4102101

      2017

      Pioneer 1000 5P

      (SXS10M5*)

      1HFVE04**H4100001

      --- 1HFVE04**H4103000

      2018

      Pioneer 1000 3P

      (SXS10M3*)

      1HFVE04**G4200001

      --- 1HFVE04**G4203360

      2018

      Pioneer 1000 5P

      (SXS10M5*)

      1HFVE04**G4200001

      --- 1HFVE04**G4207379

      Variable character

      The ROVs, manufactured in the U.S., were sold at authorized Honda Powersports dealers nationwide from October 2015, through April 2018, for between $14,000 and $22,000.

      What to do

      Consumers should immediately stop using the recalled ROVs and contact an authorized Honda Powersports dealer to schedule an appointment for a free inspection and repair. Honda is contacting all known purchasers directly.

      Consumers may contact American Honda toll-free at 866-784-1870 from 8:30 a.m. to 4:30 p.m. (PT) Monday through Friday or online at http://powersports.honda.com/ and click on “Recall Information” at the bottom of the page for more information.

      American Honda Motor Company of Torrance, Calif., is recalling about 65,000 Recreational off-highway vehicles (ROVs).The muffler can overheat, causing...