Current Events in June 2023

The traveler’s golden “Shoulder Season” has made its first appearances. After Southwest Airlines unleashed a surprise 40%-off flash sale for travel this fall, other airlines are already raising their hands and saying, “Us, too!”

ThePointsGuy (TPG) reports that Aeromexico, Alaska Airlines, American Airlines, Copa Airlines, Delta Air Lines, JetBlue, and United Airlines are all matching Southwest by offering deals to warmer destinations across Mexico, Central America, and the Caribbean. 

One great thing about these sales is that they cover a wide swath of locations, making them convenient for nearly everyone who lives close to a decent-sized city in the country.

TPG says these deals include flights departing from several hubs, including Atlanta, Austin, Baltimore, Boston, Charlotte, Chicago, Dallas, Denver, Houston, Los Angeles, New York City, Seattle, and Washington, D.C. Another plus is that some of these fares are good for up to spring of 2024.

The only iffy thing is that the rug could be pulled out from under these deals at any time, so if you’re interested, you best be making your reservations now.

ConsumerAffairs put these sales to the test on Google Flights and there are considerable savings to be had.

For example, a roundtrip flight from Indianapolis to Miami in early July runs about $375, but in late September, it goes to as low as $156. Cleveland to Phoenix now is costing about $253, but we found roundtrip tickets as low as $138 if we waited until late October.

A new search engine spots the 'perfect' times to travel

Searching for airfares isn’t much fun, but KAYAK has introduced a new “Best Time to Travel” tool that helps consumers find out when to fly and when to book to get the best price.

The widget is helpful in that it can help remove the toil and trouble of going to multiple search engines to gather those data points by yourself. The company says the tool sifts through the billions of pieces of data that others have already used for searches. 

When ConsumerAffairs took the tool for a trial run, it certainly seemed to have a payoff. For example, when we looked at booking a flight from Cincinnati to Rome, its suggestion was to take our trip from 10/3 to 10/16. The reasons it gave were that airfare is lower than normal --  $1,106 during that period compared to a monthly average of $1,192 -- weather will still be good (an avg. of 62F), and it's likely we wouldn't see a lot of crowds.

Photo (c) d3sign - Getty Images

Home equity for the average homeowner with a mortgage declined in the first quarter for the first time since 2012. But the decline was far from a market “crash” many predicted – and some hoped for – in 2022.

A report from CoreLogic, a property information firm, found the average U.S. home lost about $5,400 in the first quarter of this year, compared to the same quarter in 2022. That leaves the average homeowner with about $274,000 in equity.

Of course, that’s just the average. Depending on where you live your equity situation could be quite different.

For example, average home equity declined by $74,000 in Washington State and $60,000 in California. In fact, most western states that saw big increases in home values during the pandemic saw prices fall the most.

At the same time, homeowners in some other areas of the country saw their homes increase in value. Home equity rose $25,000 in Florida, $24,000 in Rhode Island and $23,000 in Maine. CoreLogic provided this map showing states where homeowners lost equity and others gained.

“Home equity trends closely follow home price changes,” said CoreLogic Chief Economist Selma Hepp. “As a result, while the average amount of equity declined from a year ago, it increased from the fourth quarter of 2022, as monthly home prices growth accelerated in early 2023.”

Hepp says many people who purchased homes last year have gained no equity in the last 12 months but she expects that to change as home prices continue to rise again, albeit at a much slower pace.

Hepp also notes that a lot of homeowner’s equity was gained during the pandemic. Before the pandemic, she says the average homeowner had about $182,000 in home equity.

A few homeowners have negative equity, meaning they owe more on their mortgage than the home is worth. While that was a big problem contributing to the 2008 housing market crash, it’s much less of a concern now.

CoreLogic reports that from the fourth quarter of 2022 to the first quarter of 2023, the total number of mortgaged homes in negative equity was unchanged, remaining at 1.2 million homes or 2.1% of all mortgaged properties.

Many consumers adopt a keto diet in an effort to burn more fat and help them lose weight. However, researchers from Cold Spring Harbor Laboratory found that this low-carb-centered diet may also be effective at slowing the progression of cancer. 

On the keto diet, you not only cut out carbohydrates but increase fat consumption to help your body produce more energy.

Though early trials have found that keto diets are likely to be associated with cachexia, a disease common in cancer patients that gradually breaks down all of the body’s processes, more recent research has found a way around this deadly side effect. 

In a trial conducted on mice, experts found that a keto diet coupled with a corticosteroid had two-fold benefits: it prevented cachexia and it slowed the progression of the mice’s cancer and ultimately helped them live longer. 

“Cancer is a whole-body disease,” said researcher Miriam Ferrer. “It reprograms normal biological processes to help it grow. Because of this reprogramming, mice can’t use the nutrients from a keto diet, and waste away. But with the steroid, they did much better. They lived longer than with any other treatment we tried.” 

Slowing tumor growth

Earlier research has found that following a keto diet can be beneficial for cancer, as the high-fat and low-carb-centric meals ultimately deprive cancer cells of the compounds they need to survive and multiply. However, with this trial, and moving forward, the researchers’ primary goal was figuring out how to prevent the onset of cachexia and also slow the progression of cancer, while also maintaining a keto diet.

They explained that the hormone corticosterone is what allows the body to process the benefits of a keto diet; however, for those with cancer, it’s difficult for the body to naturally produce corticosterone. 

This led to their latest treatment trial: the keto diet and a corticosteroid. The combination did exactly what the researchers hoped – it boosted the mice’s corticosterone levels, slowed the cancer progression, and prevented cachexia. 

The plan now for the researchers is to further finetune this approach to have even greater success with the combined corticosteroid and keto diet treatment. 

“We want to push back against cancer even harder, so it grows slower still,” said researcher and Assistant Professor Tobias Janowitz. “If we can broaden this effect, make the treatment more efficient, we can ultimately benefit patients and improve cancer therapeutics.” 

Water purity is a growing global problem and some areas of the U.S. have not been spared. An extreme example is Flint, Mich., where lead contamination shut down the city’s water supply in 2015.

Concern about purity and taste has led to increased bottled water sales in recent years, as well as all types of water filtration systems used in homes. Some are simple, like Brita water pitchers. Some are more elaborate, such as under-the-sink reverse osmosis systems.

In a recent report on home water filtration systems, the New York Times concludes that these systems have generally improved over the years, but some are better at some tasks than others.

Activated carbon

The Times report found that most filters use activated carbon as a primary feature. This material can capture contaminants and is found in refrigerator systems as well as pitchers and whole house systems.

Kenny, of Dallas, reports installing a RainSoft system in his home that not only improved the taste but also removed visible signs of sediment.

“Ever since we started using RainSoft, the water in our showerheads doesn't get crusty or clogged up,” Kenny wrote in a ConsumerAffairs review. “So we don't even have to clean it as often as we used to it and it’s a big thing. Whenever you drink the water, you don't get the harsh taste and mostly, it's pretty clear. The best thing is, you don't have to spend money on water bottles.”

Experts interviewed by the Times say consumers who are considering a water filter should pick one that meets their particular needs. If it is effective at filtering polyfluoroalkyl (PFAS) substances it could be a good choice. Federal regulators have signaled plans to lower allowable levels of PFAS in drinking water.

Many municipal systems fall short

Detlef Knappe, a professor of civil, construction and environmental engineering at North Carolina State University, told the Times that most municipal water treatment plants fall short when it comes to screening out PFAS, as well as pharmaceutical drugs that increasingly are showing up in water supplies.

Selecting a filter that can reduce those contaminants might be a worthwhile investment since PFAS have been linked to cancer and other health issues.

“Home filters appear to work decently well for PFAS and can now be NSF/ANSI Standard 53 certified for some of those chemicals, too,” the Times concluded.

Before purchasing a water filter it’s probably smart to have your water tested, so you know exactly what you’re dealing with. A state-certified lab will provide the most accurate results.

You can find verified ConsumerAffairs reviews of nearly two dozen filter manufacturers here.

The passport situation has gotten worse. New data from Squaremouth.com, a U.S. travel insurance marketplace, confirms that the recent surge in passport applications has led to prolonged waiting periods for applicants -- a rush brought on by the crush of Americans who want to fly overseas before prices make it unaffordable.

The situation has also made life confusing for some applicants. ConsumerAffairs recently received an email from one passport applicant who said their grandson's passport was applied for on Feb 24, 2023, for a July 4 departure date. But so far, nothing – almost seven weeks longer than the processing time the passport office said that expedited processing would take.

The reader said the family went as far as appealing to their Congressman and were able to get her husband’s passport, but not her grandson’s.

What can someone do in this situation?

It’s been nothing but crickets from the passport office since it admitted the problem and that’s not helping the situation. If it’s not following through on expedited processing, that’s a major fumble, If going through a Congressional representative can’t shake anything loose, it appears to be a serious bottleneck.

So, are there workarounds?

As far as ConsumerAffairs can tell, the only two things that might get the agency’s immediate attention are life and death emergency situations and “urgent” travel. However, the agency is hosting special passport fairs in California, New Jersey, Florida, and New York to assist people to apply for their passport.

The agency didn't promise that those fairs would move the needle on getting an application processed but said that most events are for first-time customers and children using Form DS-11 to apply. At least it's a shot, right? If someone needs to renew their passport, the agency said these fairs aren’t for them and that they should renew by mail. 

The only other option is taking out travel insurance. The analysts at Squaremouth told ConsumerAffairs that while most Trip Cancellation policies won’t cover travelers who are forced to cancel a trip if their passport arrived in time, coverage can be available for those booking trips now, and those concerned with the ongoing passport delays.

“Many policies offer an optional Cancel For Any Reason (“CFAR”) upgrade, which can provide reimbursement for issues not covered under a standard plan, including any passport issue,” a Squaremouth spokesperson said, adding that, at the moment, CFAR policies are running about $599. 

Make no mistake, putting a roof over your head is an expensive proposition, whether you’re buying or renting. But lately, the scales appear to be tipping toward renting.

Industry data show new lease rent rose slightly less than 2% on an annual basis in May. Compare that to the two previous years when rents skyrocketed by 25%. 

In a recent study, real estate brokerage Redfin found that there are only four major U.S. housing markets where it’s cheaper to own a home than to rent one – Detroit, Philadelphia, Cleveland, and Houston. Nationally, renting is 25% cheaper than buying.

Redfin analyzed prices for single-family homes, condos/co-ops and townhouses in the 50 largest U.S. metros. Researchers estimated what a homebuyer’s monthly housing payment would be on those properties using the estimate of the homes’ value in March and a 6.5% mortgage interest rate—the average rate in March. 

Then, researchers estimated what the monthly rent would be on those same homes using the Redfin Rental Estimate. On the purchase side of the equation, researchers assumed a 5% down payment, a homeowner’s insurance rate equal to 0.5% of the purchase price, and 1.25% annual property-tax rate if no tax records were available. 

‘Buying often makes sense’

“Buying a home often makes more financial sense than renting if you can afford a down payment and monthly mortgage because you’re building equity,” said Redfin Deputy Chief Economist Taylor Marr. “When you own your home, your home pays you; when you rent, you and your home pay your landlord.” 

That has always been the popular assumption and may be one reason so many people want to own their homes. But Marr acknowledges that in this environment, buying isn’t a feasible option for everyone.

Some personal finance experts say that renting a home, in many cases, is a better option when it comes to building wealth. While it’s true that home values are likely to increase over time, it’s not always the case, and millions of homeowners discovered during the 2008 housing market crash.

‘Opportunity cost’

The money required as a down payment on a home can be viewed as an “opportunity cost,” meaning it could have been invested in other ways than to purchase a home. 

For now, the monthly cost of owning a home is rising much faster than rents. According to Redfin’s study, mortgage rates would have to plunge to even the playing field.

Even if the 30-year-fixed mortgage rate dropped to 5%, Redfin says the median estimated monthly mortgage payment for homebuyers would be $2,993, or 10% higher than the $2,716 median estimated monthly rent. 

Today, Redfin puts the estimated national monthly mortgage payment $3,385, compared to a national average rent of $2,715.

Summer should be a carefree time for families enjoying the warmer weather and outdoor activities.

But that's not always the case.

According to the U.S. Consumer Product Safety Commission's (CPSC) annual drowning and submersion report, fatal child drownings and nonfatal drowning injuries for children under age 15 remain high.

Among the findings

• There was an average of 371 pool- or spa-related fatal drownings reported per year between 2018 and 2020. The good news is the number of fatal drownings in 2020 was 340 -- down approximately 7% from previous year, when 367 children died.
• The number of estimated non-fatal drowning injuries in 2022 was 6,400 -- statistically the same as in 2021.
• Among children under 15, there were -- on average -- an estimated 6,300 pool- or spa-related, hospital emergency department (ED)-treated, nonfatal drowning injuries each year from 2020 through 2022. Seventy-six percent of these nonfatal drowning injuries involved children younger than five years of age.
• Pool- or spa-related fatal child drownings involving children younger than five increased by 10% in 2020 with 279 fatalities reported, compared with 2019 when 254 fatalities were reported. Of the reported pool- or spa-related fatal child drownings, 75% involved children younger than five years of age.
• Where location was known, 80% of reported fatal child drownings occurred in residential settings such as the victim’s home, or that of a family member, friend, or neighbor, with 91% of those drownings occurring in those younger than five years of age.
• Child drownings continue to be the leading cause of death among children ages one to four years old. CPSC urges families with young children and those in historically excluded communities to make water safety a priority, particularly as they spend more time in and around pools during the summer.

Racial disparities in drowning fatalities

Out of the 63% of all drowning fatalities involving children whose race is identified, African American children made up 21% of all drownings.

For older children -- aged five to 14 with race identified -- 45% of drowning deaths involved African Americans. These data highlight the need to reach historically excluded communities with water safety information and support, said CPSC.

What you can do

“The fatalities from drowning and non-fatal drowning injuries are still high, so water safety vigilance remains crucially important this summer and all year,” said CPSC Chair Alex Hoehn-Saric. “CPSC urges parents and caregivers to follow Pool Safely safety steps.

Specifically:

• Never leave a child unattended in or near water, and always designate an adult Water Watcher. This person should not be reading, texting, using a phone or being otherwise distracted. In addition to pools and spas, this warning includes bathtubs, buckets, decorative ponds, and fountains.
• If you own a pool or spa, install layers of protection, including barriers to prevent an unsupervised child from accessing the water. Homes can use door alarms, pool covers, and self-closing, self-latching devices on fence gates and doors that access pools.
• Learn how to perform CPR on children and adults. Many communities offer online CPR training.
• Learn how to swim and teach your child how to swim.
• Keep children away from pool drains, pipes, and other openings to avoid entrapments.
• Ensure any pool and spa you use has drain covers that comply with federal safety standards. If you do not know, ask your pool service provider about safer drain covers.

A list of CPSC pool safety tips may be found here.