Current Events in July 2022

Home sales have dropped sharply from last year’s peak all across the U.S., and sellers are cutting prices as rising interest rates make homes less affordable. At the same time, a new report shows that rents are surging.

Rentometer, a residential asset data firm, has analyzed rent costs for a three-bedroom single-family home in 252 U.S. cities. In the second quarter, the company found that 96% of these areas had recorded year-over-year average rent increases.

Perhaps more notable, 80% of the municipalities saw the average rent increase by 10% or more. Miami had the biggest increase in average rent, rising 59%. Rents are up 31%  in Tempe, Ariz., 21% in San Diego, and 30% in Austin.

Even some markets where rents are relatively low saw big increases in the second quarter. The average rent is up 24% in Memphis and 13% in Indianapolis.

States with widespread increases

Arizona, Florida, Georgia, and Texas have experienced some of the most widespread rent increases. In Arizona, Tempe, Scottsdale, Tucson, Peoria, and Pheonix have recorded double-digit year-over-year rent increases.

Besides Miami, Florida rents have skyrocketed in Fort Lauderdale, Boca Raton, Tampa, and Jacksonville. In the Orlando metro, the Orange County Commission voted unanimously this week to require landlords to give tenants 60 days' notice before increasing rents.

“The 60-day notice is critical," said Orange County Mayor Jerry Demings. "Having this ordinance in place gives tenants time to prepare and seek alternative housing in the event that they do not wish to stay where they are currently living."

Renters just about everywhere are feeling financial pressure. In Louisville, Ky., a new report shows that the median rent is outpacing the median income in the city.

Tenants are being priced out in New York City

A report from StreetEasy found that more than one-third of new rental leases in New York City are the result of the previous tenants being priced out of the market after getting deep discounts during the early days of the pandemic. The report found that the citywide median rent hit a record high of $3,349 in May. That represents a 34% increase from the near record lows seen last year during the height of the pandemic.

Housing economists say rents are rising because fewer people are buying homes. In its most recent report, the National Association of Realtors (NAR) said sales of existing homes in June were 5.4% lower than in May and were down 14.2% from June 2021.

Ian Shepherdson, a chief economist at Pantheon Macroeconomics, told the New York Post that home listings have increased by 40% over the last four months, setting up what he thinks will be a major housing market correction. He believes home prices may eventually fall by as much as 20%.

Large companies that sell products to consumers have a strategy for dealing with inflation. They’re passing higher costs on to their customers.

In recent days, major consumer brands such as Coca-Cola, McDonald’s, Unilever, and Kimberly-Clark reported second-quarter earnings. They all said they are willing to see sales go down slightly as long as they make more per sale. For example, McDonald’s has just announced it is increasing the price of its cheeseburger in the U.K. for the first time in 14 years. 

Unilever makes Dove shampoo and Ben & Jerry’s ice cream. The company recently reported that it has increased prices by an average of more than 11% on all of its products.  Kimberly-Clark makes Huggies diapers and Cottonelle toilet paper, and it reports that it has raised prices by an average of 9%.

Amazon has announced it is increasing the price of a Prime Membership in the U.K. and Europe. U.S. customers saw the cost of their Prime membership rise in February, so they may be safe – at least for a while.

Selling less but making more

Unilever reported that its sales dipped by 2.1% in the second quarter. But company officials said the sales decline was offset by increased prices for its products.

“We are pricing ahead of the market, and we’re prepared to tolerate low-single-digit volume declines and some compromise on competitiveness for a limited period of time in order to land that price,” Unilever CEO Alan Jope told the Wall Street Journal.

However, not all consumers are reacting the same way to rising prices. McDonald's officials have noted that many customers haven’t changed their habits, but lower-income consumers have “traded down” by ordering fewer combo meals and choosing more items from the “value menu.”

Switching to store brands

Many consumers are also pinching pennies at the grocery store. The Food Industry Association’s 2022 Power of Private Brands report shows that 40% of American consumers have bought more store brands since before the pandemic.

With inflation cutting into their spending power, nearly 75% of these shoppers plan to continue taking this route. More than half say they have switched to private brands because they are less expensive.

Federal Reserve policymakers are concerned about the toll that rising prices will have on consumer sentiment. This week, the Conference Board reported that consumer confidence declined in July for a third straight month.

“Concerns about inflation – rising gas and food prices, in particular – continued to weigh on consumers," said Lynn Franco, senior director of Economic Indicators at The Conference Board. 

A new study conducted by researchers from the European Society of Cardiology explored how women’s diets may affect their heart health. Their findings showed that eating more foods that are high in potassium may improve women’s long-term heart health and neutralize the effects of salty foods. 

“It is well known that high salt consumption is associated with elevated blood pressure and a raised risk of heart attacks and strokes,” said researcher Liffert Vogt. “Health advice has focused on limiting salt intake but this is difficult to achieve when our diets include processed foods. Potassium helps the body excrete more sodium in the urine. In our study, dietary potassium was linked with the greatest health gains in women.” 

Potassium can improve heart health

For the study, the researchers analyzed data from nearly 25,000 people between the ages of 40 and 79 who were enrolled in the EPIC-Norfolk study. Participants provided a urine sample, answered questions about their lifestyles, and also had their blood pressure measured. 

The researchers identified a link between women’s potassium intake, salt intake, and blood pressure. Independent of salt intake, higher potassium consumption was linked with lower blood pressure in women. However, the study also found that women with high sodium levels were able to improve their blood pressure when they increased their potassium intake. Each one-gram increase in potassium was linked with a 2.4 mmHg lower systolic blood pressure reading. 

“The results suggest that potassium helps preserve heart health, but that women benefit more than men,” Vogt said. “The relationship between potassium and cardiovascular events was the same regardless of salt intake, suggesting that potassium has other ways of protecting the heart on top of increasing sodium excretion.” 

For consumers looking to incorporate more potassium into their diets, the researchers recommend eating more beans, bananas, fish, fruits, vegetables, dairy products, and nuts. The team says more women should also consider adding salmon or avocados into their diets to improve their long-term heart health. 

“Our findings indicate that a heart-healthy diet goes beyond limiting salt to boosting potassium content,” said Vogt. “Food companies can help by swapping standard sodium-based salt for a potassium salt alternative in processed foods. On top of that, we should all prioritize fresh, unprocessed foods since they are both rich in potassium and low in salt.” 

While many parents want to prepare their kids academically to start kindergarten, a new study conducted by researchers from Penn State suggests that sleep is an equally important factor for kindergarten readiness. 

According to the team's findings, the transition to kindergarten is likely to be easier when kids get comfortable with a consistent bedtime routine before starting school full-time. 

“We found that children who had 10 or more hours of sleep per night on a regular basis, particularly before the kindergarten year began, tended to maintain that more optimal sleep pattern across their full kindergarten year,” said researcher Doug Teti.

“This has significant implications for anyone interested in promoting healthier sleep patterns in children making the transition to first-time schooling; parents should do what they can to help their children regularly get most – if not all – of their sleep during night hours before the school year even begins.” 

The benefits of a sleep schedule

For the study, the researchers had 220 kids wear activity trackers to measure their sleep habits. They picked four one-week sessions starting in the summer months before kindergarten and then assessed sleep again in September, November, and April. The kids’ kindergarten teachers also answered questions about the children’s kindergarten preparedness and how well they transitioned into the new school year. 

The researchers found that children who got at least 10 hours of sleep each night had the most successful transition into kindergarten. The findings also showed that consistently getting this level of sleep was tied to better academic success, emotional development, and learning engagement.

The researchers noted that these benefits were only identified when kids were regularly sleeping for 10 or more hours each night. One night of not getting enough sleep, or trying to make up for lost nighttime sleep with a daytime nap, wasn’t effective.

“Good sleep hygiene appears to be just as beneficial for young children as it is for adults,” said Teti. “Establishing habits that lead to a good night’s sleep before the kindergarten year begins seems to give kids a leg up when making that transition to formal schooling."

Konges Sløjd A/S of Denmark is recalling about 100 silicone baby toy bear activity toys sold in the U.S. and Canada.

The mirror can come out of the silicone bear cover if pushed, exposing sharp edges of the mirror and posing a laceration hazard.

The firm has received one report of the mirror edge becoming exposed while a child was playing with the toy, resulting in cuts on the child’s gums and the corner of their mouth.

The wobbler/tumble toy is made of silicone, is inflated with air, and has a mirror glued in the center opening that measures about three inches in diameter. The item number KS2497 and batch number 062021 are printed on the bottom of the toy.

Embossed on the back of the toy are the company logo, address, and the words ‘Designed in Denmark, made in China.’

The toys were sold online at bitteshop.com, littleauroras.com, ladida.com, omammaj.com, heylittlediddle.com, and shopbornbaby.com from October 2021, through February 2022, for about $37.

What to do

Consumers should immediately take the toy away from children, stop using it, and contact Konges Sløjd for a full refund.

Consumers may contact Konges Sløjd collect at (917) 730-1075 from 3 a.m. to 9 a.m. (ET) Monday through Friday, by email at info@kongessloej.com, or online for more information.

General Motors is recalling 28 model year 2022 GMC Acadia All-Wheel Drive (AWD) vehicles and Cadillac XT5s & XT6s.

The fuel tank rollover valve may not provide a proper seal in a rollover crash.

A fuel tank rollover valve that does not properly seal can result in a fuel leak in a rollover crash, increasing the risk of a fire.

What to do

Dealers will inspect the fuel tank and replace the fuel tank shell if the rollover valve is found to be dislodged or missing for free.

Owner notification letters are expected to be mailed on August 8, 2022.

Owners may contact GMC customer service at (800) 462-8782 and Cadillac customer service at (800) 458-8006. GM's number for this recall is N222366070.

The Federal Reserve’s meeting this week is almost certain to end with another large hike in a key interest rate. Meanwhile, rates on personal loans and mortgages – loans used by consumers – are falling.

Consumers with good credit scores received lower rates in the last seven days on both three- and five-year personal loans, according to financial website Credible.com. For example, consumers with a credit score of 720 or higher got a rate of 10.71% on a three-year personal loan, down from 11.01% a week earlier. Those applying for a five-year loan got an average rate of 13.59%, down from 13.81% the previous week.

Personal loans have become popular alternatives to credit cards because of their lower interest costs. The typical credit card carries an interest rate of around 20%, even for people with good credit scores.

Banks' lending costs rise every time the Fed raises its federal funds rate. Those costs are often passed along to borrowers – including those who carry a credit card balance. 

Mortgage rates also fell

Mortgage rates are also trending lower. According to Forbes, the average 30-year fixed-rate mortgage rate started this week at 5.73%, down from 5.88% a week earlier. Mortgage rates are not influenced directly by the Fed’s action but by the yield on the 10-year U.S. Treasury bond. That rate, which spiked in recent months and nearly doubled mortgage rates, has declined in the last week.

Consumers who are seeking either a personal loan or a mortgage should shop carefully among lenders for the best terms. Fortunately, researchers at ConsumerAffairs have done a lot of the leg work to help you make your decision.

The right personal loan lender may vary based on your credit score and how much you need to borrow. ConsumerAffairs vetted 24 loan companies with annual percentage rates (APRs) of less than 36% to help you make a choice. Check out our guide, with thousands of verified consumer reviews, here.

We have also assembled a comprehensive guide for choosing a mortgage lender. The ConsumerAffairs Research Team vetted 66 mortgage companies that were reviewed by more than 5,478 people in the last year. To find the best lender for you, read our guide to compare loan types, eligibility requirements, rates, and terms here.

Student loan borrowers are preparing to resume payments after August 31, the date that a moratorium on payments is set to expire. But the Biden administration is dropping clues that another extension of the moratorium could be in the works.

With the scheduled resumption of payments about a month away, student loan servicers need time to prepare bills and resume their collection efforts. But the Wall Street Journal reports that loan servicers have been told to stand down.

Scott Buchannon, who heads the Student Loan Servicing Alliance, says the U.S. Department of Education has told loan servicers not to communicate with borrowers yet. That’s leading to speculation that the White House plans to either extend the pause on payments or even forgive a portion of the loans.

“The situation is that we’re almost 30 days away from the planned resumption and the department has been telling servicers to hold off on resumption communications for the last few months,” Buchanan told the Journal. “Maybe the department expects that the White House will yet again kick the can down the road.”

Resumption of payments may present challenges

Loan servicers have contracts with the Department of Education to manage the repayment of federal student loans. Under normal circumstances, they communicate with borrowers about how much they owe and when and where to send payments. 

Early in the COVID-19 pandemic, when millions of people lost their jobs, student loan payments were suspended as part of one of the pandemic’s many economic relief programs. About 45 million people in the U.S. hold student loan debt. According to the New York Federal Reserve, 67% of student loan debt is owed by people under 40.

That age group is the top household formation demographic, but many have struggled to purchase homes because of student loan debt, which currently totals more than $1.5 trillion.

In March, the New York Fed issued a report warning that it expects a rise in student loan delinquencies whenever the moratorium expires. It noted that very few federal student loan borrowers made voluntary payments during the moratorium. It also said people with private student loans, which were not covered by the moratorium, have struggled to make payments.

Some in Congress, led by Sen. Elizabeth Warren (D-Mass.), have pushed the White House to forgive a large portion of student loan debt.

A new study conducted by researchers from the American Heart Association highlighted the benefits of exercising regularly. Their findings showed that consumers who exceeded national recommendations for weekly exercise goals had a lower risk of death. 

“The potential impact of physical activity on health is great, yet it remains unclear whether engaging in high levels of prolonged, vigorous, or moderate intensity physical activity above the recommended levels provides any additional benefits or harmful effects on cardiovascular health,” said researcher Dong Hoon Lee.

“Our study leveraged repeated measures of self-reported physical activity over decades to examine the association between long-term physical activity during middle- and late-adulthood and mortality.” 

Lifelong benefits of exercise

The researchers analyzed data from over 100,000 people enrolled in the Nurses’ Health Study and the Health Professionals Follow-up Study between 1988 and 2018. The participants answered surveys about their lifestyles every two years. The questions covered subjects like alcohol intake, medical history, general health information, and exercise habits. 

Current guidelines from the U.S. Department of Health and Human Services recommend that adults engage in 2.5 to five hours per week of moderate activity or 75-100 minutes per week of vigorous physical activity. Those who met the recommendations for either vigorous or moderate activity had a 20% lower risk of death. 

The study findings showed that surpassing weekly exercise recommendations was linked with living a longer life. Doing two to four times the amount of moderate exercise each week was linked with a nearly 40% lower risk of cardiovascular disease-related deaths and a 30% lower risk of death from all causes. Similarly, doubling or quadrupling the amount of vigorous exercise each week lowered the risk of cardiovascular disease-related deaths by nearly 35%, and all-cause deaths dropped by 23%. 

“This finding may reduce the concerns around the potential harmful effect of engaging in high levels of physical activity observed in several previous studies,” said Lee. 

The researchers hope these findings highlight the benefits of consistent exercise. When consumers make physical activity a habit and work to balance moderate and vigorous activity goals each week, they’re likely to achieve better health outcomes. 

“Our study provides evidence to guide individuals to choose the right amount and intensity of physical activity over their lifetime to maintain their overall health,” Lee said. “Our findings support the current national physical activity guidelines and further suggest that the maximum benefits may be achieved by performing medium to high levels of either moderate or vigorous activity or a combination.” 

While many consumers may enjoy an afternoon nap, the results from a recent American Heart Association study shows that they might be bad for your health. The study showed that taking frequent naps during the day may increase the risk of high blood pressure and stroke. 

“This may be because, although taking a nap itself is not harmful, many people who take naps do so because of poor sleep at night,” said researcher Michael A. Grandner, Ph.D.

“Poor sleep at night is associated with poorer health, and naps are not enough to make up for that. This study echoes other findings that generally show that taking more naps seems to reflect increased risk for problems with heart health and other issues.” 

Heart health risks

The researchers analyzed data from more than 500,000 people between the ages of 40 and 69 who were enrolled in the U.K. Biobank. The participants were surveyed four times between 2006 and 2019 about their napping habits. They also gave saliva, blood, and urine samples over the course of the study. 

The team learned that regular daytime nappers were nearly 25% more likely to have a stroke and 12% more likely to have high blood pressure. Younger participants who napped frequently had a 20% higher risk of high blood pressure compared to those under 60 who never napped. 

The researchers found that napping more often could worsen heart health. Those who increased their napping in any way – even jumping from rarely napping to sometimes napping – were 40% more likely to have high blood pressure. The team hopes these findings highlight some of the heart health risks associated with regularly napping. 

“These results are especially interesting since millions of people might enjoy a regular, or even daily nap,” said researcher Dr. E. Wang. 

Daimler Vans USA (DVUSA) is recalling two model year 2021 Mercedes-Benz Sprinter 2500 vans.

The generator wiring harness may be incorrectly connected to the electric power steering, which can result in an electrical surge.

An electrical surge can increase the risk of a fire.

What to do

Dealers will inspect and correct the wiring harness connection -- as necessary -- free of charge.

Owner notification letters are expected to be mailed on August 5, 2022.

Owners may contact DVUSA at (877) 762-8267. DVUSA's number for this recall is VS3LE54ELE.

Primal Pet Foods is recalling a single lot (66 cases) of Raw Frozen Primal Patties for Dogs Beef Formula.

The product may be contaminated with Listeria monocytogenes. There have been no complaints or reports of illness in pets or humans.

The recalled product, which comes in flexible packaging, lot #W10068709 with a best by date of 05/22/23, was sold from the freezer at select pet stores in Maryland, Georgia, Texas, and British Columbia in late April 2022.

The lot number and best by date are on the lower third of the back of the package.

What to do

Customers who purchased the recalled product should stop feeding it to their dogs and dispose of it immediately.

Consumers with questions may contact Primal Pet Foods online or by phone at (800) 742-1312 Monday through Friday from 6:00 a.m. through 4:00 p.m. (PST) for more information.

Amid the so-called “Great Resignation” during the COVID-19 pandemic, businesses struggled to find employees. Unfortunately, it seems like they're still struggling on that front.

As we reported last week, many experts directly attribute worker shortages to the effects of the pandemic. But in a new report, the Cengage Group identified another reason – a requirement by most employers that applicants have a four-year college degree.

According to the report, 65% of employers are struggling to find talent, but 62% require a degree for entry-level jobs. In a survey of 1,000 hiring managers, the Cengage Group found that 43% of employers admitted that skills training credentials are more important than a degree when considering a candidate for a position.

"Employers seem to be stuck in a contradictory cycle, where they recognize that a degree is not an indicator of job readiness, but nonetheless require them as part of their candidate screening process,” said Michael Hansen, CEO of Cengage Group. “This outdated mindset and degree stigma is not only widening the labor gap, it's costing businesses time and money and turning away potential talent." 

Are college degrees important?

When we consulted business experts, we found mixed views on the subject. Charles Catania, principal of Branding with Chuck, says colleges today are more geared toward specific job preparation, so employers consider it more important than they once did.

“The purpose of a liberal arts education wasn't to teach business majors, for example, about contracts, as it is now,” Catania told ConsumerAffairs. “Instead, the goal was to teach students how to think and give them the tools they need to solve the complex problems they faced in the real world. Students that come out of a college setting show employers that they have the stick-to-itiveness to see college through to a diploma at the end of four years."

Scott Lieberman, owner and manager of Touchdown Money, doesn’t buy that argument. He says a college degree is “absolutely not necessary” for most entry-level corporate jobs and that hiring should be about skills, character, and enthusiasm. 

“Most employers are out of touch and lazy,” Lieberman told us. “It’s a simplistic way to toss away a large percentage of applicants without actually examining their credentials and getting to know them.”

Rising student loan debt

For the last two decades, young people who wanted to enter the middle class and get good jobs have sought a degree, often at a cost of tens of thousands of dollars. According to the Federal Reserve, the average student loan debt is more than $32,000.

“Frankly, it’s a scam that a 17-year-old, a senior in high school, must decide to pay an insane amount of money just to qualify for a job that will pay much less than that in the first year or even four years in the role,” Lieberman said.

The Cengage Group report concludes that corporate hiring policies are substantially shrinking the potential talent pool. The researchers note that only 38% of U.S. adults have a four-year degree.

Football fans who want to catch every moment of pro football action this season are getting their wish. The National Football League (NFL) announced that the league’s new exclusive video streaming subscription service – NFL+ – is now available everywhere.

NFL+ subscribers can access live out-of-market preseason games, live local and primetime regular season games, postseason games, live local and national audio for every game, NFL Network shows on-demand, NFL Films archives, and other football content on their phones, tablets, and other devices that can stream audio and video.

"Today marks an important day in the history of the National Football League with the launch of NFL+," said NFL Commissioner Roger Goodell. "The passionate and dedicated football fans are the lifeblood of the NFL, and being able to reach and interact with them across multiple platforms is incredibly important to us.”

What NFL+ offers

The league said NFL+ marks the next evolution of the NFL's direct-to-consumer offering, building upon what the league developed with NFL Game Pass back in 2003.

To its credit, the NFL has made the service very affordable as far as subscriptions go. NFL+ is available in the NFL App across all app stores for $4.99/month or $39.99/year. If fans want extra, more granular content like full and condensed game replays, they can upgrade to NFL+ Premium for $9.99/month or $79.99/year. Premium subscribers will also get the new All-22 Coaches film add-on -- a new twist that allows viewers to gain a view of the game from above of the game that shows what all 22 players are doing on any given play. 

The only thing missing on NFL+ is that it won’t initially include exclusive regular-season games. Companies like Amazon own the rights to some NFL games for the next 7 to 11 years. However, that could change depending on how viewership habits develop.

“It’s another option we’ll consider with all of our other options,” Hans Schroeder, executive vice president and chief operating officer of NFL Media, said. “We are really excited about where NFL+ can go. As quickly as media and the sports distribution business continues to change and evolve, there are lots of different factors.”

NFL Sunday Ticket isn’t going away

The two million subscribers to NFL Sunday Ticket don’t have to sweat losing that subscription – at least not for a while. However, how they access that subscription may change in the short term.

DirecTV’s rights to the service have ended, and the NFL wants the next buyer of the service to pay more than $2 billion for it. The league is reportedly reviewing pitches from Apple, Amazon, and Disney to take over the service next. 

The World Health Organization (WHO) has officially declared monkeypox to be a global health emergency.

After the outbreak grew from 3,040 cases in 47 countries to 16,000 cases in 75 countries, and five deaths occurred in a month's time, the organization’s Emergency Committee decided that the virus represented a public health emergency that affects every corner of the world.

WHO officials say the risk of monkeypox is "moderate" on a global scale, but they note that the risk is high in the European region. While there is a risk of the virus spreading further internationally, WHO Director General Tedros Adhanom Ghebreyesus said there is currently a low risk of the virus interfering with international traffic.

Not necessarily related to monkeys

According to the Centers for Disease Control and Prevention (CDC), the monkeypox virus has been around since 1958. It is part of the same family of viruses as the variola virus, which is connected to smallpox. Monkeypox symptoms are similar to the symptoms of smallpox, but they tend to be milder and are rarely fatal.

The CDC notes that the source of monkeypox is unknown. It is not related to chickenpox or – despite its name – specifically related to monkeys. While non-human primates such as monkeys can harbor the virus and infect people, so can African rodents like striped mice and tree squirrels.

Although he is declaring a public health emergency of international concern, Ghebreyesus said the outbreak is currently concentrated among sexually active gay men, especially those who have multiple sexual partners.

“That means that this is an outbreak that can be stopped with the right strategies in the right groups,” he said. “It’s therefore essential that all countries work closely with communities of men who have sex with men, to design and deliver effective information and services, and to adopt measures that protect the health, human rights, and dignity of affected communities.

“In addition to our recommendations to countries, I am also calling on civil society organizations, including those with experience in working with people living with HIV, to work with us on fighting stigma and discrimination,” Ghebreyesus said.

Addressing the outbreak

Not unlike the coronavirus, Ghebreyus said consumers may want to reconsider having gatherings while the current outbreak is a threat. However, he noted that it isn't mandatory to cancel these gatherings as a "default measure."

The WHO is taking the outbreak seriously and has laid out a plan to curb the spread of monkeypox as quickly and effectively as possible. The organization hopes to mitigate any further outbreaks by implementing a coordinated response to stop transmission of the virus. It is also seeking to protect vulnerable groups and strengthen clinical management and infection prevention and control in hospitals and clinics.