Morning Business Report: Mortgage rates hit housing market as Bank of America faces $1.2 billion in penalties

The return of 7% mortgage rates is putting pressure on the U.S. housing market, sending pending home sales to their lowest levels in nearly 12 years.

(LILAMAX)- The return of 7% mortgage rates is putting pressure on the U.S. housing market, sending pending home sales to their lowest levels in nearly 12 years.

Pending home sales dropped 4% in September compared with the previous month.

According to Redfin, nearly one in five home sellers reduced their asking prices last month as potential buyers grew increasingly concerned about rising mortgage rates.

Meanwhile, the U.S. Treasury Department announced more than $1.2 billion in penalties against Bank of America over alleged violations of anti-money laundering and sanctions laws.

According to the department, Bank of America admitted to willfully violating Bank Secrecy Act regulations and failing to report more than $5 billion in suspicious transactions in a timely manner.

Officials said more than $1 billion of that activity involved national security and other high-priority risks, including Chinese money-laundering networks and transactions connected to the southwest border.

On Wall Street, stocks closed lower across major indexes as renewed concerns about artificial intelligence spending weighed on semiconductor companies.

Chip stocks were among those experiencing declines.

Six Flags shares also dropped more than 16% Tuesday following a deadly roller coaster incident in Georgia.

According to reports, a man died after falling from Goliath, Georgia’s tallest roller coaster, while several other passengers were injured.

The company’s stock fell to its lowest level since 2009 following the incident.

Six Flags temporarily closed six roller coasters in response to the tragedy.

In other business news, a financial literacy program is using superheroes to teach children about managing money.

Captain Cash and Dollar Duchess are two financial superhero characters designed to help young people develop the knowledge and confidence needed to make informed financial decisions.

The program is intended for families and educators looking for engaging ways to teach children about their financial futures.