The company said 17.2 percent of homeowners have a 6 percent or higher rate, which is the largest proportion since 2016.

“That’s up nearly five percentage points from 12.3 percent in the third quarter of 2023,”the company said in a Feb. 6 statement. “If this growth rate were to continue, which is feasible, the share of homeowners with a rate of at least 6 percent would nearly double in the next three years.”

Meanwhile, the share of homeowners with an interest rate less than 6 percent stands at 82.8 percent. As such, an even higher share of owners have a rate below the Jan. 30 weekly average rate of 6.95 percent, said the report. This is “prompting many to stay put instead of selling and buying another home at a higher rate.” The phenomenon, called the “lock-in effect,” dries up housing supply, thus supporting price growth and contributing to the affordability crisis.

However, the lock-in effect is showing signs of easing as “it’s not realistic to stay put forever” for most individuals,” Redfin stated. Many people are opting to move despite the higher rates because of major life events like a divorce or job change that leave them with no choice, Redfin said, citing its agents.

“Many Americans are growing accustomed to the idea that rates are unlikely to fall to pandemic lows anytime soon,” the Redfin report stated.

Rates hit a record low of 2.65 percent during the COVID-19 pandemic, the brokerage said. The average weekly rate for a 30-year fixed-rate mortgage has remained above the 6 percent level for more than two years, according to data from Freddie Mac.

Moreover, the “pandemic surge in home values means many homeowners have enough equity to justify selling and taking on a higher rate—especially if they’re downsizing or moving somewhere more affordable,” said the report.

Data from the Federal Reserve Bank of St. Louis shows that the average sales price of houses sold in the United States in Q1, 2020, was $383,000. This has jumped more than 33 percent to $510,300 as of Q4, 2024.

Growing Rental Market

Mortgage applications to buy homes have declined amid high rates. According to the Mortgage Bankers Association (MBA), while overall mortgage applications rose 2.2 percent for the week ending Jan. 31 compared to a week back, the jump was driven by a 12 percent increase in refinances.

“Purchase activity had a tougher week, with declines across all loan types,” said MBA Deputy Chief Economist Joel Kan. “The average loan size for a purchase loan has increased since the start of the year.”

Mortgage purchase applications over the last two weeks are “modestly above what we saw a year ago,” he said. This suggests there is “some latent demand in the market.”

There are currently 110,727 new single-family build-to-rent homes under construction in the United States across 613 communities, according to the report.

State-wise, Texas had the highest number of build-to-rent homes under development, with 21,812 homes at various stages of construction. It was followed by Arizona and Florida with nearly 14,000 properties, and North Carolina with more than 12,000 units.

Doug Ressler, manager of business intelligence at Yardi Matrix, a sister company of Point 2Homes, said renting a build-to-rent home is cheaper on average than buying a starter home.

“Recent reports indicate that renting can save one around $1,000 per month compared to buying. This is largely due to high mortgage rates and elevated home prices,” Ressler said.

“More and more build-to-rent (BTR) residents consider themselves renters by preference compared to 2023 (36 percent in 2024 vs. 27 percent in 2023).”

“In 2025, prices for all food are predicted to increase 1.9 percent,” the agency said in a Jan. 8 report.

Food-at-home and away-from-home prices are projected to rise by 0.8 and 3.5 percent respectively. While overall food prices are projected to increase this year, the gain is expected to be “at a slower pace than the historical average rate of growth.” In 2021, prices rose by 3.9 percent, in 2022 by 9.9 percent, and in 2023 by 5.8 percent.

The Food Price Outlook tracks and forecasts annual food price changes by taking into account projected and observed prices over the previous two years.

In 2024, food prices are estimated to have increased by 2.3 percent. The food category that registered the largest price change last year is eggs, which rose by an estimated 7.7 percent. This was followed by beef and veal with a 5.5 percent increase, fats and oils at 2.5 percent, and cereals and bakery items with a marginal gain of 0.5 percent.

Fish and seafood are calculated to have seen the biggest price dip at 1.9 percent, followed by dairy products which fell by 0.3 percent.

As for domestic factors, Kelly, an economics professor, blames higher energy costs, regulations on trucking like banning cages for chickens, and extreme weather as contributing factors. However, “the vast majority of the high food prices are attributed to high inflation,” he said.

“Inflation certainly affects food as it does every other good. Since 2019, general prices have increased 4.2 percent per year, and food prices have risen 4.8 percent.”

Kelly suggested exploring ways to boost the food supply and cut down regulations to curb food inflation. “You could do things such as reduce tariffs or promote free-trade agreements especially in agriculture, but those are not popular,” he said.

The USDA blames egg prices on the outbreak of highly pathogenic avian influenza (HPAI) that began in 2022.

The outbreak “contributed to elevated egg prices by reducing the U.S. egg-layer flock,” it said. “HPAI continued to drive egg price increases in 2024, with recent detections in December 2024. Egg prices in November 2024 were 37.5 percent higher than those in November 2023.”

Egg prices at the farm level also continue to experience “large monthly changes,” said the agency. “In November 2024, prices for farm-level eggs were 94.4 percent higher than November 2023, when prices had fallen during a lull in the outbreak through much of 2023.”

The USDA called egg prices “the most volatile category” tracked by the agency.

This includes almost 102 million egg-laying hens and pullets—hens less than a year old that have yet to start laying eggs.

“As the current HPAI outbreak enters its fourth year, the impact on the poultry industry remains significant,” the association said.

Macy’s is closing 66 stores across 22 states in an effort to “return the company to sustainable, profitable sales growth,” the retailer said in a Jan. 9 statement. Out of the 66 outlets, two have already been closed. A majority of the stores are expected to be closed during the first quarter of 2025. Meanwhile, Kohl’s announced plans to shutter 27 “underperforming stores” across 15 states by April this year.

Macy’s year-over-year quarterly revenue growth registered declines for the past 10 consecutive quarters. The retailer’s “Bold New Chapter” strategy plans to shut down 150 unproductive stores while “investing in its 350 go-forward Macy’s locations through fiscal 2026,” the statement said.

Macy’s CEO Tony Spring said that closing unproductive outlets would “allow us to focus our resources and prioritize investments in our go–forward stores, where customers are already responding positively to better product offerings and elevated service.”

Shares of the company were down by more than 15 percent over the past year.
As for Kohl’s, most of the closures are set to take place in California, with 10 outlets shutting down in the state.

In addition, the company aims to shutter its San Bernardino E-commerce Fulfillment Center (EFC) in May, when the facility’s lease term expires. It is one of the 15 EFCs and distribution centers linked to the company across the United States.

Kohl’s justified the decision, saying it is in a position to fulfill orders without the San Bernardino facility.

“All associates have been informed, and offered a competitive severance package or the ability to apply to other open roles at Kohl’s,” it said.

Kohl’s quarterly revenues have registered a year-over-year decline for 11 straight quarters. Over the past year, the company’s shares have crashed by more than 51 percent.

Tough Business Conditions

Several companies have slashed store counts, shuttered divisions, or filed for bankruptcy in recent months, citing profitability and cost challenges.

This week, REI, a specialty outdoor retailer, said the company was exiting from its Experiences business, which included day tours and adventure travel. CEO Eric Artz said the segment “costs significantly more to run than it brings in.”

“When we look at the all-up costs of running this business, including costs like marketing and technology, we are losing millions of dollars every year and subsidizing Experiences with profits from other parts of the business,” he said.

Last month, party goods retailer Party City announced filing for Chapter 11 bankruptcy and shuttering almost 700 stores nationwide after being in business for almost four decades.

The company said the decision was taken to ensure continued operations while it faced an “immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors.”

In October 2024, convenience store chain 7-Eleven announced closing 444 underperforming stores to boost efficiency and manage costs.

According to a report from S&P Global, U.S. corporate bankruptcies hit a 14-year high in 2024, registering 694 filings. S&P’s bankruptcy calculations only consider large companies that exceed certain asset and liability thresholds.

“Businesses continued to face pressure in 2024 from elevated interest rates, especially as total debt among credit-rated non-financial U.S. companies reached a quarterly record of $8.453 trillion,” the report said.

“While some relief came in September when the U.S. Federal Reserve began lowering its benchmark interest rate from a 20-year high, the central bank’s monetary easing may slow in 2025.”

Overall commercial Chapter 11 bankruptcies rose by 20 percent in 2024, according to a Jan. 3 statement from the American Bankruptcy Institute. Michael Hunter, vice president of bankruptcy data provider Epiq AACER, said he expects the filing growth to continue throughout this year.

“If the current trend continues, new bankruptcy filings will return to pre-pandemic normalized volumes over the next 24–30 months,” he said.

“There are a number of things taxpayers can do to get ready as the end of 2024 nears and the start of the 2025 tax season approaches,” said a Dec. 19 statement from the agency. The latest reminder is part of the “Get Ready” series in which the IRS publishes key updates as the start of the 2025 tax season approaches.

The IRS encouraged taxpayers to sign up for an IRS Online Account. The account helps individuals view key information from their recent returns, make and cancel payments, get electronic notices from the agency, set up payment plans, and sign forms like powers of attorney, among other things.

Besides the account, the IRS recommended getting an Identity Protection Personal Identification Number, or IP PIN. “An IP PIN is a six-digit number that prevents someone else from filing a federal tax return using an individual’s Social Security number or Individual Taxpayer Identification Number.”

“It’s a vital tool for ensuring the safety of taxpayers’ personal and financial information,” the agency said.

For the 2025 filing season, the IRS has made an update regarding dependents on tax forms.

Taxpayers claim dependents during filing returns to receive certain deductions and credits like the Child Tax Credit, Earned Income Tax Credit, medical expense deduction, and education credits.

Sometimes, multiple people claim the same individuals as dependents on tax forms, like for instance, former spouses.

The IRS processes tax returns in the order they receive. As such, if the agency had already processed a return with certain dependents, another return seeking to claim the same individuals gets rejected.

However, starting from the 2025 filing season, returns claiming same dependents shall be accepted by the agency, provided the taxpayer includes a valid IP PIN.

The IRS says the new update “will reduce the time for the agency to receive the tax return and accelerate the issuance of tax refunds for those with duplicate dependent returns.”

“The best way to sign up for an IP PIN is through the IRS Online Account,” the agency said. However, “if an individual is unable to create an Online Account, alternative methods are available, such as in-person authentication at a Taxpayer Assistance Center.”

The IRS also highlighted the upcoming estimated tax payment due date.

“Taxpayers with non-wage income—such as unemployment benefits, self-employment income, annuity payments or earnings from digital assets—may need to make estimated or additional tax payments,” said the agency.

The deadline to make these payments for the September–December quarter of 2024 is Jan. 15.

1099-K Reporting, Digital Assets

Taxpayers who sold goods or services and collected over $5,000 in receipts via payment apps or online marketplaces in 2024 “should expect to receive a Form 1099-K,” the IRS said.

The form details payments received by taxpayers engaged in such transactions. Taxpayers must now account for these incomes when filing returns.

When previously the form was issued if the total transaction value in a year exceeded $20,000, currently the threshold is set at $5,000. This reduction is part of a plan to eventually reduce the limit to $600.

The IRS clarified that “taxpayers must report all income on their tax return unless it’s excluded by law, whether they receive a Form 1099-K or not.”

“The law doesn’t allow taxpayers to avoid taxes on income earned just because they didn’t get a form reporting the payments received.”

Form 1099-K income threshold reduction has come under criticism from lawmakers.

Rep. Carol Miller (R-W.Va.) introduced the “Saving Gig Economy Taxpayers Act” which seeks to revert it back to $20,000. She called the reduction “a tax hike on Americans and gig workers who use online payment platforms.”

Meanwhile, the IRS also reminded taxpayers to report all income related to digital assets like cryptocurrencies when filing the 2024 returns.

“If a taxpayer had digital asset transactions last year, they should be sure to keep records that prove their purchase, receipt, sale, exchange or any other disposition of the digital assets,” the IRS said. This includes the fair market value of such assets measured in U.S. dollars.

The IRS received around $5.1 trillion in tax revenues in the latest fiscal year 2024, roughly $400 billion more than in the previous year.