Morning Report: Biden cuts mortgage fees

The Biden administration announced a change that will save an estimated 850,000 home buyers an average of $800 on home financing costs this year. The move affects mortgage insurance premiums paid by new borrowers who take out loans insured by the Federal Housing Administration. The mortgage fee cuts will primarily impact low to middle income and first time
home buyers.

Despite an increase in overall applications, more and more colleges are shuttering. A Common Application report shows that while applications to prestigious colleges have jumped 24% from 2019 to 2022, to well known institutions, smaller schools are still struggling. College applicants are vying for the limited spots in “brand name” schools. The smaller colleges receiving less attention are being hit hard by inflation and dwindling endowments.

The Federal Reserve reports that inflation remains higher than they would like. The Fed also anticipates more interest rate hikes, saying that rates will continue to rise until inflation is
knocked down.

Google is now asking some of its employees to share desks. Although Google is one of the richest companies in the world, some of its offices are facing downsizing. Employees sharing a desk will alternate the days they work in office. The company cites a slow transition back to in person work and need for “real estate efficiency” as the reason for the change.

Stocks ended lower Wednesday as inflation is higher and harder to shake than previously thought.