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As spring buying season begins, home sellers lower list prices in response to higher mortgage rates

As the spring homebuying season begins, more homeowners are eager to sell their homes and are willing to lower their initial asking prices to attract potential buyers. According to Realtor.com, 14.6% of U.S. homes listed for sale last month had their prices reduced, up from 13.2% a year earlier. This is the first annual increase since May, and in January, the percentage of homes on the market with price reductions was 14.7%.

This increase in price cuts is higher than the monthly average dating back to January 2017, indicating a trend that benefits prospective homebuyers in a market where affordability remains a challenge for many Americans. Despite consistently high home prices, the reduced prices suggest smaller gains compared to previous years, as noted by Danielle Hale, chief economist at Realtor.com.

The rise in the share of homes with price cuts signals a shift towards a more balanced housing market, where buyers and sellers have a fairer playing field. The exceptionally low mortgage rates during the pandemic created buying power that led to bidding wars and substantial price increases in home sales. However, the recent price reductions indicate a return to normalcy in the housing market, offering hope for a more stable market for buyers and sellers.

Home inventory remains below pre-pandemic levels04:08

While the percentage of homes with reduced asking prices peaked in October 2018 and again in October 2022, last year saw a significant increase as the average 30-year mortgage rate hit a 23-year high of 7.79% in October. The recent easing of mortgage rates in December created some relief, but the resurgence in rates in February is affecting sellers’ pricing strategies to accommodate potential buyers.

As the market awaits potential rate decreases in the coming year, sellers are adjusting their prices to align with buyers’ expectations and needs. This flexibility may alleviate the pressure on sellers to meet the market demands and could lead to a more balanced and favorable environment for both buyers and sellers in the housing market.

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Kevin McCarthy, former House Speaker, seeks revenge

Ousted House Speaker Kevin McCarthy is out for vengeance. After being voted out as House speaker, McCarthy left office at the end of 2023. Now, he is traveling the country giving speeches, appearing on TV, and plotting revenge against those who orchestrated his downfall.

Eight Republican lawmakers joined with Democrats in toppling McCarthy, marking the first time a House leader has been voted out. Two of the Republicans who voted against him are retiring, while three others are facing strong primary challenges. McCarthy is working behind the scenes to ensure their defeat, using his political connections and resources to support their opponents.

McCarthy’s main nemesis in this battle for vengeance is Rep. Matt Gaetz, who was instrumental in McCarthy’s ouster. During a recent appearance at Georgetown University, McCarthy accused Gaetz of pushing him out of the speakership due to an ethics complaint involving a 17-year-old girl. Gaetz denied the allegations and called McCarthy a liar.

Despite the turmoil of his speakership lasting less than nine months, McCarthy feels liberated and focused on campaigns and elections, which have always been his forte. He remains close to lawmakers he recruited and maintains a vast donor network built over years as a top GOP strategist.

McCarthy’s top priority is to secure Republican control of the House in the upcoming elections. He is also focused on reelecting key members, such as Young Kim, Michelle Steel, and Lori Chavez-DeRemer, who have diversified the House GOP.

At a recent seminar on American democracy, McCarthy displayed both charm and self-deprecation. He broke with former President Trump by supporting aid for Ukraine and acknowledging Joe Biden’s victory in the 2020 election. However, McCarthy also dodged questions and made false equivalences, drawing criticism from his detractors.

Despite speculation about a second Trump administration, McCarthy has not shown interest in becoming an influence peddler. Instead, he prefers working in the campaign realm, where his skills and talents are best utilized. McCarthy’s focus is on electing viable Republican candidates and achieving payback against those who pushed him out of power.

In conclusion, Kevin McCarthy is on a mission for vengeance, using his political savvy and resources to take down his opponents and secure Republican victories. His determination and focus on campaigns and elections show that McCarthy is not one to back down easily, making him a force to be reckoned with in the world of politics.