Current Events in June 2022

Goodyear Tire & Company is recalling 173,237 G159 tires that fall under DOT date codes 046 through 0403 and are size 275/70R22.5. 

The company says the tread may separate from the tire in the recalled products, which could lead to a loss of vehicle control and increase the risk of a crash. 

Dealers are being advised to replace the tires free of charge and to provide a $60 voucher for the cost of professionally weighing recreational vehicles. Goodyear will also offer owners a $500 refund for tires that were not installed on a vehicle. 

Consumers may contact Goodyear customer service by phone at 1-800-592-3267 for more information. 

General Motors is recalling 39 model year 2022 Chevrolet 4500HD, 5500HD, and 6500HD vehicles due to an issue with their brake lines.

The company filed a report stating that the pressure-sensor fitting of the primary hydraulic brake line assembly in affected vehicles may not be tightened correctly. This could cause brake fluid to leak and extend the distance required to stop the vehicles, increasing the risk of a crash. 

GM says dealers will tighten the brake pressure switch, bleed the brake system, and top off the brake fluid in affected vehicles free of charge. Owner notification letters are expected to be mailed on July 5, 2022. 

Consumers can contact Chevrolet customer service at 1-800-222-1020 for more information. GM's number for this recall is N222368230.

The Federal Trade Commission (FTC) has launched an investigation of pharmacy benefit managers (PBM) in an effort to lower prescription drug costs for consumers.

The probe is aimed at the six largest PBMs and requires them to provide information and records that shed light on their business practices. The investigation will try to determine how these business practices affect the prices consumers pay for prescription drugs, either out-of-pocket or through higher insurance premiums.

The companies under investigation are:

• CVS Caremark

• Express Scripts, Inc.

• OptumRx, Inc.

• Humana Inc.

• Prime Therapeutics LLC

• MedImpact Healthcare Systems, Inc.

Middlemen between drug makers and pharmacies

Pharmacy benefit managers act as middlemen between drug manufacturers and retail pharmacies. The industry has defended itself against charges that it is largely responsible for high drug costs, saying the focus should be on “Big Pharma’s” pricing policies.

“Although many people have never heard of pharmacy benefit managers, these powerful middlemen have enormous influence over the U.S. prescription drug system,” said FTC Chair Lina Khan. “This study will shine a light on these companies’ practices and their impact on pharmacies, payers, doctors, and patients.”

PBMs' role in the nation’s health care system is to negotiate rebates and fees with drug manufacturers, create drug formularies and surrounding policies, and reimburse pharmacies for patients’ prescriptions. According to the FTC, the nation’s largest PBMs are now vertically integrated with the largest health insurance companies and wholly-owned mail order and specialty pharmacies.

What consumers are saying

Consumers reviewing these companies on ConsumerAffairs rarely mention drug prices but often express frustration about various companies’ efficiency. Luciano, of Newtown, Pa., told us that communication is an issue with Express Scripts.

“I have been on the phone with Express Scripts and Cigna Medicare on 6 occasions in the past 30 days, 4 just today holding in some capacity for 4 hours,” Luciano wrote in a ConsumerAffairs review. “My physician mailed a prescription to an address given to him and after 10 days I had not received my medication. Today I called Express Scripts, who transferred me to Cigna, who transferred me to Cigna Medicare, who transferred me back to Express Scripts. After explaining my situation on numerous occasions, sometimes twice to the same individual, I received 4 different addresses where prescriptions should be mailed.”

Of the six PBMs under investigation by the FTC, ConsumerAffairs reviewers give them these ratings, based on a 5-star system:

• OptumRx, Inc. - 3.5-stars

• Express Scripts, Inc. - 3.3-stars

• Humana Inc. - 2.0-stars

• CVS Caremark - 1.0-stars

• Prime Therapeutics (not rated)

• MedImpact Healthcare Systems (not rated)

The Pharmaceutical Care Management Association (PCMA), a major PBM trade group, called for an expanded probe of high drug prices two weeks ago. It voiced support for pending Senate legislation that addresses drug prices and stated that the entire pharmaceutical industry should come under scrutiny.

COVID-19 ‌tally‌ ‌as‌ ‌‌compiled‌‌ ‌by‌ ‌Johns‌ ‌Hopkins‌ ‌University.‌ ‌(Previous‌ ‌numbers‌ ‌in‌ ‌parentheses.)‌

Total‌ ‌U.S.‌ ‌confirmed‌ ‌cases:‌ 85,079,798 (84,885,712)

Total‌ ‌U.S.‌ ‌deaths:‌ 1,010,021 (1,008,881)

Total‌ ‌global‌ ‌cases:‌ 533,327,522 (532,504,668)

Total ‌global‌ ‌deaths:‌ 6,303,578 (6,300,491)‌

Moderna reports positive results from updated booster

Moderna has updated its vaccine to deal with Omicron subvariants that are able to slip past antibodies. It has released new clinical data on its Omicron-containing bivalent COVID-19 booster candidate, mRNA-1273.214, and reports that it is highly effective.

The company said a booster dose of mRNA-1273.214 met all pre-specified endpoints, including superior neutralizing antibody response against the Omicron variant one month after administration when compared to the original mRNA-1273 vaccine.The booster dose was generally well-tolerated, with side effects comparable to a booster dose of the previous vaccine.

"We are thrilled to share the preliminary data analysis on mRNA-1273.214, which is the second demonstration of superiority of our bivalent booster platform against variants of concern and represents an innovation in the fight against COVID," said Stéphane Bancel, CEO of Moderna. 

Cases are sharply higher but deaths are significantly lower

The daily COVID-19 numbers collected by Johns Hopkins University present a mixed picture, especially when compared to the numbers from exactly one year ago. Cases are surging but deaths are declining.

On Tuesday, the U.S. recorded more than 116,000 new cases of COVID-19, more than any other nation. On June 7, 2021, after vaccines had rolled out and before the Delta variant surfaced, there were only 13,565 new cases.

But one year ago, there were 403 deaths from the virus. On Tuesday, even with substantially more cases, there were only 339 deaths. Medical experts says the current virus strains spread more easily than previous variants but are much less lethal.

U.S. may get a fourth vaccine

An advisory committee for the U.S. Food and Drug Administration (FDA) has recommended approval of Novavax's COVID-19 vaccine for use in adults. If the proposal is adopted by the FDA,  the Novavax vaccine would join other approved vaccines produced by Moderna, Pfizer/BioNTech, and Johnson & Johnson.

But the new vaccine faced some questions from some committee members. Some wondered whether there was a need for another vaccine at this point in the pandemic.

The FDA’s Dr. Peter Marks suggested that there are still some unmet vaccine needs in the U.S. He said some people who have not been vaccinated might have various concerns about the three approved vaccines and might welcome an alternative.

Around the nation

• Massachusetts: Five counties are now listed by federal health authorities as having a high risk of COVID-19 transmission. Those counties are Barnstable, Franklin, Middlesex, Norfolk, and Suffolk. Bristol County is the only area of Massachusetts classified as low risk.

• Nebraska: Nebraska’s rate of COVID-19 infection is higher than the nation as a whole, with cases climbing over the last two months. The state recorded 2,354 new cases last week, significantly higher than the 1,671 logged during the previous week.

• New Jersey: State officials are cautiously optimistic that this summer will be marked by a return to normalcy, from offices to the beaches. New cases are on the rise across the state, but the current strains have not resulted in rising hospitalizations and deaths.

• New Hampshire: The New Hampshire Hospital Association reported that 91 people tested positive for COVID-19 in hospitals around the state on Tuesday. That’s an increase from 89 people on Monday. Of those 91 people, 27 required treatment for COVID-19, which was one fewer than Monday.

• Oregon: New cases of the coronavirus declined for a second week, as Oregon posted an 11% weekly drop in identified cases. The Oregon Health Authority recorded 9,800 confirmed or presumed infections in the past week. That translated into 1,400 a day, down from 1,579 daily cases last week.

A new piece of legislation has been introduced in the Senate that could become the foundation for cryptocurrency regulation. Working across the aisle in the U.S. Senate, Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) have introduced the Responsible Financial Innovation Act.

The senators think their bill will provide certainty and clarity by bringing digital assets to a place where they can be regulated. Actions connected to the bill would include herding digital assets through a responsible financial restructuring with flexibility, transparency, and consumer protections.

Lummis should know something about cryptocurrency since she represents Wyoming. The state embraced digital assets back in 2018 when it signed off on five new laws and amendments to bolster their development. Now, Lummis wants to bring Wyoming’s success to the federal level.

“As this industry continues to grow, it is critical that Congress carefully crafts legislation that promotes innovation while protecting the consumer against bad actors,” Lummis stated. “The Act … creates regulatory clarity for agencies charged with supervising digital asset markets, provides a strong, tailored regulatory framework for stablecoins, and integrates digital assets into our existing tax and banking laws.”

The plan

The Act, also known as Lummis-Gillibrand, has several sections. The ones that likely have the widest consumer implications include: 

Establish a clear standard for determining which digital assets are commodities and what types are securities. The bill wants to break down the difference between digital assets that are securities and the ones that are commodities. The senators say the key differentiator will be what the purpose of the asset is and the rights or powers it conveys to the consumer. The hope is that giving regulators clarity will help them enforce existing securities and commodities trading laws. 

Define and create requirements for stablecoins that will protect consumers and markets and promote faster payments. According to Investopedia, “stablecoins” are more useful than more volatile cryptocurrencies as a medium of exchange. Unlike certain cryptocurrencies like Bitcoin, stablecoins may be pegged to a currency like the U.S. dollar or to the price of a commodity such as gold.

Require disclosures from digital asset service providers to ensure that consumers understand the product and can make informed decisions. “Consumer education must remain a priority for digital asset service providers,” the senators said in their announcement. “The Lummis-Gillibrand disclosure requirements on digital asset service providers will ensure that consumers understand the products they’re purchasing, their rights, as well the associated risks of engaging in digital assets, including source code version changes and digital asset lending.”

Create a workable structure for how digital assets are taxed. As digital assets grow in use and legitimacy, Gillibrand and Lummis say it’s important to make it easier for the public to use them in their everyday lives. Their bill would create an exemption so that people can make purchases with virtual currency without having to account for and report income. 

There may be more pain ahead for used car shoppers. The wholesale price of used cars rose again in May, suggesting that higher sticker prices will be found this month on the used car lot.

The Manheim Used Vehicle Value Index rose to 222.7 in May. That’s a 0.7% increase from April and 9.7% higher than May 2021.

However, the Manheim Market Report (MMR) shows that values shifted during the month. Prices were sharply higher during the first three weeks of May but softened over the last two weeks. 

Prices rose by 0.4% among three-year-old vehicles. During the month of May, daily MMR Retention, which is the average difference in price relative to current MMR, averaged 98.7%, meaning market prices were slightly behind MMR values. 

Not so bad if you are selling a car

Used car prices remain elevated because there have been fewer new cars on the market due to a shortage of computer chips. While that makes it more challenging for buyers, consumers who are trying to sell a car often can’t believe what they’re getting for their vehicle.

Linda, of Philadelphia, was extremely happy after she recently sold her car to Carmax.

“Carmax offered me $4k more than the KBB (Kelley Blue Book) for my 2020 Ram 1500,” Linda wrote in a ConsumerAffairs review. “I didn't believe the offer and almost changed my mind thinking that there would be a bait and switch once I got there. Or at minimum, try and sell me one of their cars. In about an hour I was out of there with a check in my hand in the amount of the promised quote.”

Vans are in demand

All major market segments recorded seasonally adjusted prices that were higher year-over-year in May except for pickups. Vans had the largest year-over-year gains, followed by compact and sports cars. 

Vans also recorded the largest monthly price increase, but all vehicle types got more expensive. Full-size and luxury models proved to be the exceptions. With the cost of most cars rising, it might not be surprising that there were fewer buyers last month.

“We estimate that used retail sales declined 1% in May from April as the typical seasonal trend sees declines in May as tax refund season ends,” the Manheim Market Report’s authors write. “The Dealertrack estimates indicate that used retail sales were down 7% year over year, which was the best year-over-year performance so far this year.”

A new study conducted by researchers from the Johns Hopkins University Bloomberg School of Public Health explored the heart health risks associated with smoking cigarettes. According to their findings, consumers who currently smoke or have smoked cigarettes may be twice as likely to develop heart failure. 

“This reinforces the view that smoking casts a long shadow over heart health,” said researcher Dr. Kunihiro Matsushita. 

Long-term heart health risks

For the study, the researchers analyzed data from over 9,300 people enrolled in the Atherosclerosis Risk in Communities (ARIC) study. The participants were between the ages of 61 and 81, and none of them had a history of heart failure when the study began. The team tracked the participants’ health outcomes over the course of 13 years to better understand the link between heart health and cigarette smoking. 

The study showed that smoking cigarettes was linked with a higher risk of heart failure – even for those who had quit smoking. The researchers explained that there are two main types of heart failure – reduced ejection refraction and preserved ejection refraction. Compared to participants who never smoked, smokers were 2.16 times as likely to develop the former and 2.28 times as likely to develop the latter. 

There was also a link between the amount that the participants smoked and their heart health risks. The more cigarettes the participants smoked on a daily basis, and the more years that they smoked, the higher their risk of heart failure. 

Former smokers also weren’t exempt from heart failure risks. Only those who had stopped smoking for at least three decades had a lower risk of heart failure; all other former smokers remained at an elevated risk of heart failure. 

The team hopes these findings encourage stronger efforts to prevent smoking, particularly for younger consumers. 

“These findings underline the importance of preventing smoking in the first place, especially among children and young adults,” said Dr. Matsushita. “We hope our results encourage current smokers to quit sooner rather than later, since the harm of smoking can last for as many as three decades.”

While recent studies have shown some of the physical health effects of kids’ exposure to traffic pollution, a new study conducted by researchers from the Barcelona Institute for Global Health looked at the cognitive impacts of that kind of exposure. They learned that when kids are exposed to a lot of traffic noise at school they may be at a higher risk for slower cognitive development. 

“Our study supports the hypothesis that childhood is a vulnerable period during which external stimuli such as noise can affect the rapid process of cognitive development that takes place before adolescence,” said researcher Jordi Sunyer. 

Cognitive impact of traffic noise

For the study, the researchers analyzed data from nearly 3,000 kids between the ages of seven and 10. The children went to 38 different schools in Barcelona, and the team collected data on their exposure to traffic noise from 2012 through 2013. The researchers also administered cognitive tests four times throughout the course of the study to understand how traffic may affect cognitive development. 

It was clear to the researchers that exposure to more noise at school affected kids’ development – specifically their attention and memory abilities. Complex working memory was the most affected by traffic noise, as exposure to an extra 5 decibels was linked with a nearly 24% slower than average development of that skill. Similarly, working memory developed more than 11% slower, and attention capacity developed nearly 5% slower when exposed to an additional 5 decibels of noise. 

The researchers also learned that traffic noise negatively affected students’ performance on tests. The more noise the kids were exposed to in school, the poorer they scored on tests in every subject. 

“This finding suggests that noise peaks inside the classroom may be more disruptive to neurodevelopment than average decibel level,” said researcher Maria Foraster. “This is important because it supports the hypothesis that noise characteristics may be more influential than average noise levels, despite the fact that current policies are based solely on average decibels.” 

After estimating the kids’ exposure to traffic noise at home, the researchers found that there was no link between their exposure and cognitive development. Now, the team plans to do more work to better understand if this association between traffic noise and cognitive development holds up in cities around the world. 

F&S Produce Co. of Vineland, N.J. is recalling certain Protein Power Snack products because they contain JIF peanut butter that may be contaminated with salmonella. 

No illnesses have been reported in connection to the Protein Power Snack product, but illnesses have been reported in connection to other JIF peanut butter products.

The products were distributed at Walgreens stores in New Jersey and New York, but they have been pulled from store shelves. The last lot of affected products have a code date of "Best By: 05/28/22," which can be seen on the front label. 

What to do

Consumers who have any affected products in their homes should return them to the place of purchase for a full refund. 

The company says customers who have questions can contact Joseph Garofalo by phone at 856-391-7122 Monday through Friday from 8 a.m. to 5 p.m. EST or by email at jgarofalo@fsfreshfoods.com.

JetBlue has come knocking on Spirit Airlines' door again. On Monday, Spirit confirmed that JetBlue sent its third proposal to acquire every last outstanding share of Spirit's common stock that’s available, enabling Spirit to call off its other proposed merger with Frontier Airlines.

By this time, Spirit’s Board of Directors knows the drill. Because it has fiduciary duties to honor, the Board will work with its financial and legal advisors to appraise what JetBlue is pitching, then decide what its next step would be depending on what it considers to be the best interests of both the company and its stockholders. 

Enticing shareholders

In its latest effort, JetBlue sent a message to Spirit team members in a not-so-shy effort to curry some favor from within.

“We know this process may be unsettling, and we thought you might like to hear from us directly. We do not want all the conversation about a ‘hostile’ takeover to discourage you about your potential future with JetBlue should we reach an agreement with Spirit,” the letter said.

JetBlue went on to pitch all the perks it has laid on the table so far: higher pay, better benefits, retention incentives, and the fact that it’s never furloughed any crewmembers or been sent a WARN Act notice in its 22-year history. The furlough pitch might have some interest for Spirit employees since the airline went through a small furlough and got dangerously close to another in 2020.

“More than anything, we want you to know that we are genuinely excited about the opportunity to combine with Spirit. We have so much respect for Spirit Team Members and believe we can bring together the best of both airlines to create a new national low-fare carrier to go up against the Big Four,” JetBlue stated.

Until its board members change their minds, Spirit appears fully committed to its deal with Frontier and is out trying to muster some Yes votes of its own. On its special “VoteSpiritFrontier” website, the airline tells voters that "everyone wins" if they vote for the Frontier deal.

“Everyone wins. A vote FOR the merger is a vote FOR even more ultra-low fares to more places,” the airlines stated. “This is the right deal for Spirit and its shareholders.”

COVID-19 ‌tally‌ ‌as‌ ‌‌compiled‌‌ ‌by‌ ‌Johns‌ ‌Hopkins‌ ‌University.‌ ‌(Previous‌ ‌numbers‌ ‌in‌ ‌parentheses.)‌

Total‌ ‌U.S.‌ ‌confirmed‌ ‌cases:‌ 84,885,712 (84,774,441)

Total‌ ‌U.S.‌ ‌deaths:‌ 1,008,881 (1,008,593)

Total‌ ‌global‌ ‌cases:‌ 532,504,668 (532,038,696)

Total ‌global‌ ‌deaths:‌ 6,300,491 (6,299,323)‌

Four more destinations marked as "high risk"

While planes are full and demand for travel is surging, the Centers for Disease Control and Prevention (CDC) is cautioning Americans that there are still risks. The health agency has added four more destinations to the “high risk” category for summer travel.

This week, the CDC added Guyana, Mongolia, Namibia, and the islands of St. Kitts and Nevis to the Level 3 list. All four areas had previously been listed at Level 2.

The new additions to Level 3 join France, Germany, Greece, Ireland, Italy, The Netherlands, Portugal, Spain, and the United Kingdom on the list of countries that present the highest risk for contracting COVID-19.

Half of COVID-19 patients have lingering symptoms

Penn State researchers say half of COVID-19 patients still deal with lingering symptoms from a prior infection. In their just-concluded study, they describe two conditions – long COVID and what are known as "post-COVID conditions."

Both cover a wide range of continuing health problems. Chief among them is a distorted sense of smell. Some people lose the ability to smell altogether for an extended period of time. The less severe symptoms fall into the post-COVID condition category.

Penn State researchers say long COVID usually lasts up to six months after the initial COVID virus onset, but scientists at the CDC say it can last weeks, months, or even years.

COVID-19 can increase risk of psychiatric issues

A study by scientists at Oregon State University has found that COVID-19 patients had a roughly 25% increased risk of developing a psychiatric disorder in the four months following their infection when compared to people who were not infected.

The researchers looked at the rate of psychiatric diagnoses for two time periods: from 21 to 120 days after patients’ COVID-19 diagnosis, and from 120 to 365 days after diagnosis. The study was limited to patients with no previous mental illness.

Around the nation

• Michigan: Transportation Secretary Pete Buttigieg has tested positive for COVID-19 after attending a public affairs conference on Michigan’s Mackinac Island. At least 14 other people who attended the event were also infected. The event was put on by the Detroit Regional Chamber of Commerce, and more than 1,000 public officials, journalists, and others attended. 

• Utah: The latest COVID-19 wave appears to be over in Utah. State health officials reported 5,728 new cases of coronavirus in the week ending Sunday, nearly the same as the week before. Cases had been rising quickly across the state due to the highly transmissible subvariants of the Omicron variant.

• Illinois: Chicago health officials say city residents who traveled to parts of the U.S. that were categorized as medium or high COVID-19 community transmission levels should take steps to prevent the spread of the virus on their return. The Chicago Department of Public Health notes that 7.4% of U.S. counties are now listed at either the medium or high community level.

• Minnesota: As the Omicron wave begins to recede in Minnesota, state health officials say the latest wave appeared to target seniors. They say around 90% of coronavirus deaths during May in Minnesota were among people aged 65 and older. It was just 66%  in December.

• Kentucky: New cases of COVID-19 are on the rise across the state, according to state health officials. The Kentucky Health Department’s weekly COVID-19 report shows that the state’s positivity rate has risen in the last week to 12.42%.

Less than six weeks after President Joe Biden promised student-loan borrowers that relief was on the way in a matter of weeks, he’s pulled back on that timeline. The Wall Street Journal reported on Monday that Biden may officially announce his student-loan forgiveness plan in July or August.

One reason administration officials gave for the pushback is that student loan repayments are scheduled to start again in September. Another is that the president is continuing to mull over how broad student loan forgiveness will play out economically and politically given the magnitude of his pledge – as much as $10,000 in relief for borrowers who earn less than $150,000 a year. 

"The administration is continuing to assess options for cancellation and no decision has been made," a White House official told the Journal.

Others pressing hard for the same

Not only does Biden have to deal with the political football that student loan forgiveness has become on Capitol Hill, but he’s also getting pressure from unions and organizations to go big or go home on the situation.

Politico reported that unions representing workers at Amazon and Starbucks plan to unveil their support for student loan forgiveness. When the leaders of those two groups met with Biden at the White House last month, they highlighted the importance of the issue.

“We’re fighting for economic justice both inside and outside of the workplace, and canceling student loan debt is a necessary part of that,” the Starbucks Workers United campaign said in a statement. “So many young people across the country cannot afford to pay rent and buy groceries in the same week, let alone pay thousands of dollars in student loan debt.”

The NAACP is also trying to stir up support for its advocates.

“Data suggest that cancellation policies beyond $50,000 would benefit all demographics, eliminate racial disparities in student debt, and boost our struggling economy,” the NAACP said in a request for petition signatures that it wants to present to the White House on behalf of Black student loan borrowers.

The organization says debt cancellation would provide Black borrowers with opportunities to pursue homeownership, develop economy-boosting discretionary income, and fuel upward mobility that would help close the racial wealth gap.

“I'll be 40 in 3 years and still unable to qualify for a home loan. I've been turned down for so many loans because of my debt-to-income ratio,” Dominique T told the NAACP. “I'm very behind in the race of life and our quality of life isn't as great as it could be because of the amount of student loan debt on my credit.”

Tackling student debt alone can be difficult

As a couple of ConsumerAffairs reviewers found out, the student loan debt landscape is rugged and pockmarked with holes. 

“Consolidating my loans with AES [American Educational Systems] was one of the worst decisions I've ever made. … At this point, I've paid over $72,000 on $93,000 worth of loans, but I still owe $72,000. How can this be?,” Mel, of Ogden, Utah, asked in a recent review.

To learn more about the best student loan companies, visit ConsumerAffairs' guide here.

May was the least affordable month to purchase a home in 16 years, according to a new analysis from property data firm Black Knight. 

The report found that U.S. home prices have risen 42% since the start of the pandemic in 2020, with the average home having gained almost 9% in value just since the start of 2022. Price increases slowed slightly in April but are still rising by double-digits.

More telling is the fact that the monthly principal and interest (P&I) payment on the average-priced home with 20% down is nearly $600 more than it was at the start of the year and $865 more than before the pandemic.

With 30-year mortgage rates at 5.25%, the share of median income required to make that P&I payment climbed to 33.7% as of May 19. That's just below the 34.1% high that was reached in July 2006.

Bad time for first-time buyers

Yatin Karnik, the founder of Confer, Inc. and a former senior vice president at Wells Fargo, says borrowers are now facing heavy challenges in financing a home purchase.

“It especially impacts first-time home borrowers, which is one-third of the purchase market,” Karnick told ConsumerAffairs. “With rising interest rates being imperative to tame inflation during this upcoming buying season, affordability will be further stretched for borrowers.”

As a result, Karnick expects that the affordability factor will likely weigh heavily on the housing market in the months ahead. As a result, he anticipates a slight reduction in home prices as investor demand slows.

But that doesn’t automatically mean people who want to buy a home to live in will have an easy time. Thanks to rising mortgage rates, many would-be buyers will find that homes are still out of their price range.

“In reality, potential home buyers are being priced out of the market,” Karnick said.

Growing wealth gap

Deborah Hauser, executive director of Residential Brokerage at Boston real estate firm Senné, agrees, but only to a point. Even with higher interest rates, she expects that the summer real estate market will find plenty of buyers at current high prices.

“If sellers decide to cash in and more inventory comes to market, then we will see some price adjustments, but otherwise, the lack of inventory will keep prices high, at least until mortgages remain under 6%, which remains to be seen,” she told us.

Housing economists say worsening affordability is widening the wealth gap in America. While the rapid escalation in prices is a burden for people who are trying to buy a home, it remains a bonanza for current homeowners because it's increasing their net worth.

The Black Kight report found that current homeowners gained $1.2 trillion in collective tappable equity – the amount available to borrow against while retaining at least a 20% equity stake in the home – in just the first quarter of 2022.

In total, mortgage holders gained $2.8 trillion in tappable equity over the past 12 months, a 34% increase that equates to more than $207,000 in equity available per borrower.

The annual Apple developers conference saw a wide range of announced innovations this week, but one of the most significant may be the tech giant’s foray deeper into financial services.

The company announced that it is expanding its Apple Pay digital wallet to include a buy now, pay later (BNPL) function called Apple Pay Later. Annie Millerbernd, one of NerdWallet’s financial experts, says the company that is most known for the iPhone is moving deeper into financial services.

“Apple Pay Later will present heavy competition for existing BNPL brands because now every Apple Pay user can split up their payments without the help of a specific BNPL app,” Millerbernd said in an email to ConsumerAffairs. 

Familiar ecosystem

Apple Pay Later takes advantage of an ecosystem that is familiar to millions of consumers who won't have to learn how different BNPL platforms behave. They won’t have to guess about late fees or what happens if a purchased product is returned.

“If you have just one service helping you split payments and it’s the same one every time, you might be able to better understand the product,” Millerbernd said. “In a 2021 NerdWallet survey, one-third of BNPL users said they used this option to afford multiple items they wouldn’t have been able to get otherwise.” 

But there could be a downside to that. As we’ve recently reported, a growing number of BNPL users have fallen behind on payments, even to the extent of putting financial pressure on lenders.

“Given Apple Pay’s wide availability, there’s a good chance that more people will opt for BNPL and that could create a lot of headaches for those who struggle to keep track of their expenses,” Millerbernd said.

Stiff competition

Apple is taking on some pretty stiff competition that has had several years to accrue a head start. According to the Wall Street Journal, the five most popular app providers downloaded through Apple’s App Store and the Google Play Store, including Affirm and Klarna, counted an estimated 7.5 million monthly active users in May. That’s a breathtaking 44% increase from a year earlier.

Apple says the Apple Pay Later function will be available wherever Apple Pay is accepted online or in-app through the Mastercard network. Apple said users will have the ability to spread out the cost of a purchase into four equal payments over six weeks. As a plus to users, Apple said there will be no fees or interest.

A new study explored the effect that sports can have on kids’ mental health. The findings showed that while team sports were associated with a lower risk of mental health concerns for young athletes, individual sports may make kids more susceptible to mental health struggles. 

“Children and adolescents who played exclusively team sports, like basketball or soccer, had fewer mental health difficulties than those who did not participate in any organized sports,” the researchers wrote. “However, to our surprise, youth who had participated in only individual sports, had more mental health difficulties compared to those who did not participate in organized sports.” 

How sports affect mental health

For the study, the researchers analyzed data from more than 11,200 kids between the ages of nine and 13. Parents answered questions about what sports their kids played and completed the Child Behavior Checklist to give the researchers some insight into the kids’ mental health. The researchers then compared how the kids’ history with sports affected their mental health. 

The study revealed a positive association between kids who played team sports and strong mental health outcomes. Team sports players were less likely to experience a number of mental health concerns, including social problems, anxiety, attention problems, and depression. Additionally, young girls who played sports were 20% less likely to engage in rule-breaking behaviors when compared to those who didn’t play sports. 

The researchers were surprised to learn that kids who played individual sports didn’t experience similar mental health benefits. In fact, kids who were involved in individual sports like gymnastics, golf, or tennis had a higher risk of mental health struggles. These kids were 16% more likely to have anxiety or depression and 14% more likely to be more withdrawn. 

Moving forward, the team plans to do more research in this area to better understand why individual sports negatively affect kids’ mental health.

Tracker Marine, LLC is recalling 27,078 model year Trailstar and Ranger Trail boat trailers because the axle hubs were not tightened properly. 

The company says the problem could cause the trailer hubs to seize while in motion, which could increase the chances of drivers losing control of their vehicles and getting into a crash.

What to do

Owners of the recalled trailers are being advised to drive at reduced speeds and to not tow a boat until a remedy for this issue has been performed. 

Tracker Marine says dealers will inspect and tighten the hubs, as necessary, free of charge. Owner notification letters are expected to be mailed in June 2022.

Consumers can contact the company’s customer service by phone at 1-417-873-4555 for more information. Its number for this is TS-0041.

Clek, Inc. has issued a recall for 5,504 Liing (model number LG19U1) and Liingo (model number LGO20U1) infant child seats that were manufactured before September 15, 2020. 

The company says a small plastic portion of the child seat canopy support could break off and detach from the seat, posing a choking hazard to young children and increasing the risk of injury.

Clek says it will provide a replacement canopy support and instructions on how to replace it at no charge. Owner notification letters were mailed on January 31, 2022. Consumers can contact Clek customer service by phone at 1-866-656-2462 for more information.

COVID-19 ‌tally‌ ‌as‌ ‌‌compiled‌‌ ‌by‌ ‌Johns‌ ‌Hopkins‌ ‌University.‌ ‌(Previous‌ ‌numbers‌ ‌in‌ ‌parentheses.)‌

Total‌ ‌U.S.‌ ‌confirmed‌ ‌cases:‌ 84,796,633 (84,748,884)

Total‌ ‌U.S.‌ ‌deaths:‌ 1,008,639 (1,008,567)

Total‌ ‌global‌ ‌cases:‌ 532,143,171 (531,720,689)

Total ‌global‌ ‌deaths:‌ 6,299,644 (6,298,476)‌

Millions of vaccine doses were wasted, report finds

U.S. pharmaceutical companies developed COVID-19 vaccines in record time, but the deployment of those vaccines to control the pandemic was not exactly efficient, according to a new report.

The Centers for Disease Control and Prevention (CDC) reports that pharmacies, states, U.S. territories, and federal agencies threw out 82.1 million vaccine doses from December 2020, through mid-May of this year. That amounts to about 11% of the total vaccines the U.S. government distributed.

The report said two major pharmacy chains – CVS and Walmart – accounted for about a quarter of the discarded vaccine doses, partly because of the scale of the two firms’ operations. The overall amount of waste is consistent with World Health Organization (WHO) estimates for large vaccination campaigns.

Many PPP loans went to real estate firms

Congress authorized the Paycheck Protection Program (PPP) to make loans to businesses at the beginning of the pandemic so they would not have to lay off employees. Many businesses, including restaurants, faced a battle for survival.

But real estate is one industry that managed to do just fine during the early days of the pandemic. Home sales surged and prices rose during that time, increasing sales commissions. Yet the U.S. government’s Pandemic Response Accountability Committee (PRAC) reports that real estate brokers received $3.9 billion in PPP loans.

The average real estate company borrower got $13,000. However, the PRAC data shows that 146 entities got more than $90,000 each.

Consumers are tipping less

Many Americans dug into their pockets and provided generous tips for service workers in the early days of the pandemic to help offset the loss of business. But that practice hasn’t lasted.

A survey from CreditCards.com found that 73% of Americans say they always tip when dining at a full-service restaurant. In 2019, before the pandemic, the percentage was 77%.

“Inflation is cutting into consumers’ purchasing power and a tight labor market has left many service industry businesses understaffed and struggling to provide top-notch customer experiences,” said Ted Rossman, senior industry analyst at CreditCards.com.

Around the nation

• California: Los Angeles County is now dealing with a sharp rise in hospitalizations, and officials say there could be a new indoor mask mandate later this month if that trend continues. “Our weekly case rate and the rate of increase in hospital admissions are of concern,” L.A. County Public Health Director Barbara Ferrer told the Los Angeles Times.

• Maine: Severe COVID-19 cases that require admission to a hospital are on a downward trend. They declined on Sunday, and nine patients were discharged on Saturday. Health officials say only 19 patients are currently receiving critical care.

• Colorado: In an unusual turn, flu cases in Colorado are spiking heading into summer. State health officials say not only are the number of recording flu cases on the rise, but their symptoms are more severe than those of the current COVID-19 subvariants that are present in the state.

• Texas: The City of Austin is renewing efforts to encourage residents to be fully vaccinated against COVID-19 and to get booster shots as cases from two Omicron subvariants rise. “These rising numbers and new subvariants are very concerning, especially at a time when many will be traveling and gathering with loved ones,” said Dr. Desmar Walkes, Austin-Travis County Health Authority.

• North Carolina: North Carolina has 100 counties, and more than half of them are now classified by federal health authorities as either orange or yellow, denoting high or medium levels of COVID-19 transmission. Granville and Person counties are among the 13 counties now in the orange category.