Current Events in February 2023

If you’re headed out for spring break, you’ll likely have some unwelcome company. From its perch, online security provider NordVPN says that from booking platforms to apps, holiday scammers have their suitcases packed and ready to make as many vacationers' lives as miserable as possible.

Marijus Briedis, cybersecurity expert at NordVPN, laid out everything a spring breaker needs to protect themselves and ensure a scam-free time.

Briedis’ first warning starts with anyone who may still be searching for deals on accommodations, airfares, etc. 

“Most of us will have used booking platforms or comparison sites to find our perfect break, but how do you know you’re getting the best price for your vacation?” he asked.

“As well as the time of year, your location and tracking data can also play a role in the type and price of deals you are offered by travel companies. If you are visiting a website you have used before, clear your cookies beforehand and hide your location through your browser’s ‘incognito’ mode to see if it gives you access to better offers.”

While it may be a bit of shameless self-promotion, Briedis did offer one unique advantage of having a VPN, which basically masks who and where an online surfer is -- and could pave the way for a better deal.

“You might even find that using the booking website for a country you’re visiting, by using a VPN, is cheaper than booking from home," he offered. "Our researchers found that for six days’ car hire in Dublin, Ireland, this March the price they were quoted going through Expedia’s Irish site was less than half that for exactly the same rental package through the US site.”

Phishing poles, un-updated apps, and free wi-fi traps

Given their success over the 2022 holidays, scammers are likely to amp up their phishing efforts, too. Briedis said that scammers will be out in force with fake offers designed to target things like a person’s details and bank balances and mimic genuine customer loyalty schemes.

“Check any offer by visiting the company’s website separately and don’t click on any email links or attachments unless you are sure you’re dealing with a legitimate business,” he said.

Other things people should consider strengthening include:

App updates: Hackers constantly watch for vulnerabilities in apps and try to figure out how to make some hay off those holes. Briedis suggests making sure all your apps are up to date before you take off.

Stay off of social media: This may be tough to do, but leaving Facebook, Instagram, Twitter, and any other social media platform you use alone while you’re vacationing could help keep scammers’ curiosity in check. 

“Not only can burglars looking at your feed discover your home is empty, seeing you on real-time social media like Instagram Live can reveal that you’re not around to defend your property. Even those very familiar with online privacy can still give away a stack of personal information through mistimed posts including upcoming travel plans.”

Public wi-fi is loaded with prying eyes: Briedis suggests that whether you’re in an airport or a hotel lobby, try to resist using the free public wi-fi those places may offer.

His reasoning is that free wi-fi is an added opportunity for cybercriminals to access and compromise your security. Not only can criminals set up fake hotspots, but they can also hack into unsecured public routers and monitor your online activity as well as drop some malware onto your device.

The race is on! Likely feeling some heat from Target’s recent announcement that it is investing $100 million to scale up its ability to deliver packages the next day and Walmart pumping up its “last mile” effort to get packages on doorsteps quicker, Amazon says bring it!

According to a report in the Wall Street Journal, the online retailer said it too will grow its “same-day site” warehouses and could expand to at least 150 in the next several years.

How much of a game-changer is this? Potentially huge. As Marc Wulfraat, president of MWPVL International, a global supply chain and logistics firm explained it to RetailDive, Amazon would build a combination fulfillment center and delivery station which would enable customers to get any of 100,000 items delivered within hours when all the elements are in place. 

Wulfraat said that an order could be picked up within 15-30 minutes of a customer placing the order, then rushed to an Amazon Flex driver who puts the package in their car and gets it on the customer’s doorstep within four hours. 

Amazon making a move for grocery dominance, too

Amazon also wants to pump up its grocery business, too. In a recent earnings call, Andy Jassy, the company’s CEO, said that even though the company’s Whole Foods chain continues to grow and is perfect for those who want a physical store experience, Amazon’s crystal ball shows that, over time, grocery shopping is going to shift to being more omnichannel.

“There are going to be a lot of people that order their grocery items online and have it delivered to them, and there are going to be a lot of people who continue to buy in physical stores,” Jassy said.

“But you're going to also see a hybrid of those, where people pick out what they want online and pick it up in stores, or people are in stores and there's something that's not in inventory in the stores, so they go to their app or to a kiosk and order it to be delivered from online.”

Jassy said that the wheels are already turning in the omnichannel direction due to the love the company’s Amazon Fresh is getting now.

“We're doing a fair bit of experimentation today in those stores to try to find a format that we think resonates with customers.”

Have you filed your 2022 taxes already? Or, are you part of the more than 30% of taxpayers who wait until the last minute to file? 

A new report from the Chamber of Commerce surveyed taxpayers across the country to get a better idea of their typical filing habits. Experts surveyed 1,000 Americans across the country, and also analyzed data from the U.S. Census and the Internal Revenue Service (IRS). 

The results broke down which states are the most likely to procrastinate filing their taxes, which generations procrastinate filing, how taxpayers are most likely to use their refunds, and more.

Who’s procrastinating the most?

Overall, 31% of taxpayers across the country were likely to procrastinate on filing their taxes. The study highlighted the top 10 cities where residents are the most likely to stall on filing: 

• Atlanta, Georgia

• Orlando, Florida

• Salt Lake City, Utah

• Miami, Florida

• Fort Lauderdale, Florida

• Minneapolis, Minnesota

• Denver, Colorado

• Cincinnati, Ohio

• Seattle, Washington

• Richmond Virginia

Generationally, Baby Boomers were the least likely to procrastinate on their taxes, while Gen Z was the most likely to procrastinate. Over 40% of Gen Z respondents said that they’re likely to wait to file their taxes. 

For nearly 50% of those who procrastinate, the stress and confusion associated with filing taxes is enough to make them wait it out. Additionally, nearly 40% of those surveyed said they wait because they want to be sure their information is correct, while 37% said that the process is too time-consuming. Nearly 30% procrastinate filing because they know they won’t get a refund this year. 

Refunds: saving or spending?

When it comes to tax refunds, just about a quarter of survey respondents believe that their return will be smaller this year than it was last year, while nearly 30% aren’t expecting a return at all. But what do taxpayers plan to do with those refunds? 

Over 35% plan to save any money they get back from the IRS. Just 5% said they’ll use it to plan a vacation, while 8% will use it for a big purchase. A quarter of respondents said that their tax returns will pay off debt, 20% will use it to buy essentials, and 13% will invest it. 

What do the experts say?

So, when is the best time to file taxes? According to experts, the sooner the better. 

“Filing taxes can be a stressful process, so it’s natural for Americans to procrastinate, but there are benefits to filing as early as you can,” Collin Czarnecki, a researcher with LLC.org, told ConsumerAffairs. “For example, if you plan to work with an accountant or CPA this tax season, it’s best to schedule an appointment with them as soon as possible before their calendars fill up. 

“Also, filing as early as possible means that you’ll receive your refund quicker. According to the IRS, the average length of time to receive a refund is about 21 days or three weeks from the date the IRS receives your return. If you wait to file until Tax Day this year, which is April 18, you might not receive your return until May. Whereas if you were to file right now, you could be getting your refund before Tax Day. 

“Depending on the amount of your refund, you can use that extra cash to chip away at debt, such as student loans, car payments, and credit cards,” Czarnecki said. “In fact, 25% of survey respondents say they plan to use their tax refund to pay off debt this year. Filing early can also help you financially prepare if you’re faced with an unexpected amount owed on taxes.” 

Using a credit card and making timely payments usually increases your credit score. However, making purchases with a debit card does not. That’s because you aren’t “borrowing” the money when you make a purchase, it comes straight out of your bank account.

But leave it to the new wave of fintech financial services companies to find a workaround. Extra card has introduced the Extra debit card and company executives say using it responsibly will raise your credit score. Here’s how:

A regular debit card is issued by your bank. It’s the same as writing a check, but more efficient.

The Extra debit card has some features of a credit card. For example, it pays rewards. But it is linked to your bank account, just like a regular debit card issued by your bank.

When you make a purchase with the Extra debit card, Extra pays for the purchase immediately, then withdraws the amount of the purchase from your bank account. When you make an on-time payment, Extra reports the payment to Equifax and Experian – two of the three credit reporting agencies.

The company has released research that found that over the course of one year, Extra card members who practiced good credit habits while successfully using the product as recommended, experienced an average overall credit score increase of 48 points and were twice as likely to get approved for an auto loan or a credit card.

Road to higher credit score?

Company officials say the card could be a way for a consumer with marginal credit, who might not qualify for a credit card, to raise their score so they can access credit on better terms.

"We seem to be in an era now where tech-bro negligence is at an all-time high, which was one of the main reasons why conducting a study like this and providing proof points for Extra's first-of-its-kind product is more important than ever," said Cyrus Summerlin, co-founder & chief brand officer of Extra. "As an uncertain economy continues to affect customers, I would love to see a reset in fintech startup culture that celebrates impact made, more than just money raised.”

Using an Extra debit card carries a monthly or annual fee. The Extra Credit Building program costs $8 a month. The Extra Credit Building and Rewards program costs $12 a month or $108 for the entire year. 

The latest Air Travel Consumer Report is out and it shows that airlines have their work cut out for them if they want to please their passengers. On-time arrivals and departure, luggage, and flight cancelations appear to be issues.

Airlines have work to do… lots

Overall, there’s some serious work to be done. Complaints were up more than double from the latest report vs. a year ago. The biggest complaint categories shake out like this:

1. Refunds -- about 30% of all complaints

2. Flight problems (delays, etc.) 

3. Baggage 

4. Fares 

5. Reservations

Here are some highlights ConsumerAffairs found interesting:

On-time arrivals. Getting somewhere on-time is crucial and must be on the lips of every Delta pilot in that airline’s workforce. Its percentage of on-time arrivals was a domestic airline best at 85.5%. United was second at 83.9% and Southwest* was third at 81%. Bringing up the rear was Frontier with its flights landing when they were supposed to 64.6% of the time. *It's important to note that these reports lag by a couple of months and Southwest’s holiday troubles were not included.

Baggage woes continue to grow. If you’ve flown lately, you’ve noticed that more and more travelers are bringing their bags with them in the cabin. They have a good reason, too. The report shows that the number of baggage-related complaints the Department of Transportation has received has quadrupled in the last year. 

When it came to “mishandled baggage” per 100 people on a flight, it was American at 0.76 bags per 100, then Alaska (.62), and JetBlue (.58). Allegiant had the fewest number of “mishandled baggage” complaints per 100 fliers with 0.15.

Sorry, you’re not getting on. When it comes to who’s not getting on a flight – “involuntary,” “denied boardings” – American, Southwest, and Frontier have some explaining to do. Each of those carriers drew complaints more than 1,000 times between July and September ‘22, with Frontier complaints jumping 64%, Southwest complaints jumping 57%, and American complaints 35% from the same period in ‘21.

One truly amazing metric was how Delta and Allegiant fared on the good side of the “involuntary,” “denied boarding” scoreboard. Out of 34,955,144 flights Delta put up during the period tracked, the airline suffered zero complaints regarding being denied boarding; and while Allegiant only put 397 flights in the air, it still had zero complaints, too.

Refund? What refund? When it came to problems in obtaining refunds for unused or lost tickets, fare adjustments, or bankruptcies, Frontier (236), American (146), and United (107) scored the most complaints. With the added effort American has put toward improving consumer perception about refunds, it probably hopes this is the last time it shows up near the top of this category.

“Not fair” fares! The report showed that when it came to fare issues such as discount fare conditions, Frontier scored the most complaints (104) among the major U.S. carriers, more than double what Spirit received (40), and about triple what American did (35). Delta Air Lines received 30 complaints about fare issues and Southwest 10.

We’re only weeks away from the spring housing market when the bulk of sales occur. One thing that homebuyers will no doubt face is the question of whether or not they should buy a home warranty plan. 

On average, a home warranty plan costs between $36 and $68 per month ($432 to $816 per year), according to ConsumerAffairs' most recent cost analysis, and can come in handy if a seller wasn’t exactly forthcoming on things like the condition of the appliances they left behind or write off that musty basement as one of those “Oh, we get a big rain ever so often, but it’s nothing to worry about” type things.

Especially with an older home, the service agreement can save a homeowner thousands of dollars while they are living there. But the Federal Trade Commission (FTC) says a homeowner needs to understand how these plans work.

In addition to the upfront cost, some warranty companies charge a service call fee each time a homeowner files a claim which results in sending a contracted technician to the home. The fees quickly add up if there are a lot of claims.

“When big things in your home break — like your dishwasher or air conditioning system — they can cost lots of money to fix,” said Kira Krown, a consumer education specialist with the FTC. That said, Krown believes homeowners should be very familiar with how their plans work before signing on the dotted line. 

What questions to ask

“There are different types and options depending on the company and amount you pay, but home warranties typically cover replacements and repairs for things like appliances or air conditioning systems. They last for a set amount of time and — unlike builder warranties for new homes, or warranties included with some products — they cost extra,” Krown said.

“And after looking at the details, you may find that a home warranty duplicates coverage you already have. Or covers only part of a product. Or makes it nearly impossible to get repairs done when you need them.”

She offered four key things everyone should consider: 

• Is it likely to save you money? Two things to weigh here – both the upfront cost and extra costs like deductibles or fees you have to pay every time a product is serviced.

• What are the limitations? The questions to ask here are: Are there limits on the amounts you can be reimbursed? Is accidental damage covered? Are certain appliances or systems not included? Are there restrictions or fees for cancellation?

• Does the claims process seem difficult or slow? Waiting a long time to get paid back can reduce the value of having coverage.

• Does the company have a good reputation? A home warranty is only as good as the company responsible for coverage. Search for the name of the company and words like “review” or “complaint” to see if people have had issues in the past.

Reputation

That last part – reputation – is crucial. Separate from the FTC, ConsumerAffairs has done its homework on that angle.

After analyzing more than 200,000 reviews and more than 20 home warranty companies, our research team recently released the results of research on available plans, what customers raved and complained about, and coverage limits and prices. A breakout of that research is available here.

Our experts at ConsumerAffairs advise homeowners to get quotes from multiple home warranty companies, noting that some companies offer price-matching guarantees. Consider both the monthly and yearly costs, as well as what is covered. If you have an ancient air conditioning system you want to make sure that's covered.

Warranty plans come with a cost, but paying a monthly premium could be much less expensive than paying hundreds or thousands of dollars out of pocket for a system or appliance repair or replacement.

Because of the airline industry’s holiday collapse, some wannabe travelers might be thinking of other options to get to their vacation destination. Bus? Train? Renting a car? RV?

On the surface, they all seem expensive and, in fact, can be. But one travel blogger who went the RV route insists that when gas, accommodations, meals, etc. are figured into the equation, renting an RV may offer more upside than most people realize.

“This topic of airline travel fees vs the cost of an RV road trip came up after I, along with many others, experienced the stress, panic, and cost of travel this past holiday,” Megan Meade told ConsumerAffairs.”

“After our flights to and from the Midwest were canceled the night before we had to leave, our plan of catching a cheap flight turned into a hectic rescheduling for some much more expensive tickets and the loss of a day on our trip. This got me thinking, how much would it have cost us to just take our RV and make a road trip out of it?”

Meade said that thanks to some online tools like the U.S. government’s fuel trip calculator and tips from blogs on calculating the price of an RV road trip, she was able to get a good idea of just how much her 1,200-mile trip from the east coast to the Midwest would set her back. She said she took everything she could into account, including a one-night stop at a campground each way, a high-end estimate on the price of gas, and tolls. 

When it was all added up, Meade said that while the estimated cost of gas seemed off the chart – like $840 – everything added together was about the cost of one to one-and-a-half airline tickets. 

And Fido rides free!

One plus that Meade brought to our attention is that she was able to avoid the cost of boarding – or shipping – her dog.

That factor alone saved her around $350, making the savings for this trip far more considerable, she said.

“In total, the cost of an RV road trip would have cost in the ballpark of $1,000-$1,200. This is $600 less than what it cost us to fly, including the additional expense to leave our pup behind,” was her takeaway.

“These savings alone are enough to make me strongly reconsider flying for our next trip, but one day when kids are added to the mix, we will definitely be skipping the stress of airline travel and embracing the life-long memories that come with family road trips whenever possible.”

RV parks are all-in on upgrades, too

Meade apparently isn’t alone in using an RV for her vacation transportation. All told, more than 70 million Americans did the same in 2022, 10 million more than they did in COVID-heavy 2021.

To meet the rush, campground owners are finding they need to up their game, too, if they want to stay in business. On top of natural add-ins like wi-fi, sustainability, and environmental impact to meet the expectations of the younger, more diverse traveler, Steve Mwan at RVPlusYou says campground owners are being nudged to find unique overnight options that might appeal to demographics who’ve written off  RVing as old-fogey stuff.

“For the road-weary traveler who has spent too many nights in a cramped RV, onsite lodging can be a welcome relief. Getting creative with your accommodations is a clever way to appeal to a wider range of campers,” Mwan said.

“People are increasingly interested in unique or unusual accommodations, so you can add options such as cabins, yurts, teepees, tree houses, or vintage trailers. You can even include bio-domes or hammocks for those who want to soak in the stars.”

Many consumers have adopted plant-based diets in recent years as a way of being both healthier and more eco-friendly. 

While swapping out red meat for plant-based options has become popular, so have plant-based milk alternatives (PBMAs), like almond milk, cashew milk, oat milk – the list goes on. 

Now, in an effort to make things as clear as possible for shoppers picking up these products, the Food and Drug Administration (FDA) is recommending changes to the packaging and nutrition labels on milk alternatives. 

“Today’s draft guidance was developed to help address the significant increase in plant-based milk alternative products that we have seen become available in the marketplace over the past decade,” said FDA Commissioner Dr. Robert Califf. “The draft recommendations issued today should lead to providing consumers with clear labeling to give them the information they need to make informed nutrition and purchasing decisions on the products they buy for themselves and their families.”  

In short, the FDA draft guidance says plant-based milk products can be called milk as long as the label makes clear what was used to make it.

Getting clearer on labeling

The goal is to make the labeling clearer and easier for consumers to understand when they’re in the store and deciding between different milk products. 

The FDA is recommending that PBMAs that have the word “milk” in their names include information on their labels that shows how they’re different from traditional milk products. Options like oat milk, hemp seed milk, coconut milk, and flaxseed milk – among several others – all differ in nutritional content – from each other, and from dairy milk. 

The new guidance would require PBMAs to have labels that indicate how these options are nutritionally different. This could look like how vitamin or calcium levels in plant-based choices compare to the vitamin and calcium makeup of traditional milk options. 

While these recommendations are still in the draft phase, plant-based milk distributors can decide at this point whether or not they want to update their labeling. 

“Food labels are an important way to help support consumer behavior, so we encourage the use of the voluntary nutritional statements to better help customers make informed decisions,” said Susan T. Mayne, Ph.D., director of the FDA’s Center for Food Safety and Applied Nutrition. 

If there’s a buck to be made, consumers can trust Walmart, Target, and Costco to make it. But, according to one big box shopping guru, if there’s a buck to be saved, consumers can get one back from the retail giants if they just pay attention.

When ConsumerAffairs lucked upon Kyle James at Rather-Be-Shopping, it was immediately evident that what he has uncovered is buried treasure, for sure. So good that he should rent out his services as a personal shopper.

Snooping and receipts = savings @ Walmart

“Did you know you can tell if a clearance item at Walmart is about to go even cheaper simply by looking at the price tag?,” James threw out as an example. And, according to one of James’ “anonymous” blue-vested Walmart employee’s tip, all you need to know to crack the price tag code is this:

• Price ending with a 7 is typically the original price. Examples include $2.97 or $5.57. Know that you’re paying full price if you see a price ending in 7.

• Price ending with a 5 or 0 is the 1st markdown price. Examples include $3.25 or $45.00. This price is better than the above obviously, but not the cheapest the item may potentially go.

• Price ending with a 1 is the FINAL markdown price. Examples include $4.91 or $57.01. This is the holy grail at Walmart and is the cheapest price the item will go.

Another gem James says that Walmart has tucked out of the way are clearance deals. Yes, we know, clearance deals should be in the clearance section, but James says that’s not a guarantee – especially for consumer electronics.

“Instead, look down low in the glass cases/cabinets in your local Walmart’s electronics section,” he shared, saying he got this tip from a current Walmart employee who told him, “Most marked down, high-end electronics are held in cabinets near or under their respective items.”

Bonus hint: Most reduced items are not displayed and rarely have price tags.

When ConsumerAffairs asked James for an exclusive tip, he told us that any consumer can make money off their Walmart receipt just by using two cashback apps, Ibotta and Fetch.

“All they require you to do is scan your paper receipt once you get home and you'll quickly build up points depending on what you bought. You'll even get points on generic items like milk, bananas, and bread. I use them both consistently and turn my rewards into $100 Amazon gift cards every Christmas,” he said.

Ask Costco for what… a better price?

Not to be greedy, but ConsumerAffairs also asked for an insider tip for Costco shoppers. James said that members can actually negotiate a better price on some items.

Really?

“Have you ever seen the last of a particular item at Costco? Nothing left but the display floor model, which still works great, comes with the same warranty, but might have a scratch or a couple wear marks on it. Often you’ll find these in the electronics and computers section. They want to get rid of these things, and while they might already be marked down, there is still room to negotiate an even better deal,” he said. “Politely ask for 15% off and settle for 10%. Sometimes all you have to do is ask.”

And, lastly, a little-known Costco fact is that you don't have to be a full-fledged Costco member to actually shop there.

James said that he heard from a Reddit user that Costco sells gift cards that give non-members access to the store. “A friend can buy them for you and even reload them for you online,” he said, pointing us to this link where you do that. 

However…

“Be aware that when using a Costco cash card you’ll be hit with a 5% surcharge on purchases from Costco.com. This applies to non-members only,” he cautioned.

Amazon and One Medical have officially joined forces to make it easier for consumers to access health care on their own terms. 

By signing up for a One Medical membership, consumers have the option of meeting with a health care provider either in person or via video chat or message. Telehealth services are available 24/7, and in-person appointments are typically made for the same day or within one day. 

“For decades, you called your doctor, made an appointment three or four weeks out, drove 15-20 minutes to the doctor, parked your car, signed in, and waited several minutes in reception, eventually were placed in an exam room, where you waited another 10-15 minutes before another doctor came in, saw you for five to 10 minutes and prescribed medicine, and then you drove 20 minutes to the pharmacy to pick it up – and that’s if you didn’t have to then go see a specialist for additional evaluation, where the process repeated and could take even longer for an appointment,” said Andy Jassy, Amazon CEO. 

“Customers want and deserve better, and that’s what One Medical has been working and innovating on for more than a decade. Together, we believe we can make the health care experience easier, faster, more personal, and more convenient for everyone,” Jassy said. 

What does the One Medical membership entail? 

With the new Amazon/One Medical partnership, the companies are offering patients an annual membership for $144. 

Members then gain access to the One Medical website or mobile app where they can get either asynchronous telehealth services, storing health information through a patient portal for a health care provider to review later, or on-demand 24/7 assistance through video chats or messaging. These services include: 

• Access to vaccines and medical records

• Reminders for referrals or follow-up care

• “Treat Me Now” assessments for common health issues

• Prescription renewals 

Members can also request in-person medical care, though One Medical will have to go through members’ insurance plans for that. 

With the membership, consumers can get access to physical and mental health professionals, as well as specialists, including sexual health, urgent care, and LGBTQIA+ services. The services can also be utilized to prevent illness, maintain wellness, or get care and treatment for chronic illnesses. 

For Amazon Prime members, there is currently no integration between Prime and One Medical. The two remain separate memberships, and adding One Medical would be an additional cost. 

Photo (c) Richard Jones/Science Photo Library - Getty Images

Hopes for a better spring housing market dimmed this week as mortgage interest rates, which had moderated since the first of the year, went up again last week.

The Mortgage Bankers Association (MBA) reports the rise in interest rates was so abrupt that it sent mortgage applications into a tailspin. New applications plunged 13.3% from the previous week.

 Joel Kan, MBA’s vice president and deputy chief economist, attributes the drop to rising rates, which make homes less affordable.

“Mortgage rates increased across all loan types last week, with the 30-year fixed rate jumping 23 basis points to 6.62% – the highest rate since November 2022,” Kan said. “The jump led to the purchase applications index decreasing 18% to its lowest level since 1995.” 

The nearly quarter-point rise in just seven days can be traced to rising rates on U.S. Treasury bonds. The rate on the Treasury’s 10-year bond, currently at 3.9%, has been rising amid inflation concerns. 

Bad timing

That rate has a direct impact on interest rates for mortgage loans. Kan says the increase comes at a bad time for the housing market.

“This time of the year is typically when purchase activity ramps up, but over the past two weeks, rates have increased significantly as financial markets digest data on inflation cooling at a slower pace than expected,” Kan said. “The increase in mortgage rates has put many homebuyers back on the sidelines once again, especially first-time homebuyers who are most sensitive to affordability challenges and the impact of higher rates.”

Homebuyers face another challenge in addition to rising interest rates. Home prices are still going up.

In fact, Zillow this week reported that heading into the spring season, home values are up 6% from a year ago and are 39% higher than in 2020. The big reason for that is the lack of available homes for sale. 

Zillow reports the number of homes for sale is the second-lowest on record — meaning stiff competition for well-priced homes.