30-year mortgage rate decreases to 4.14 percent
WASHINGTON » Average U.S. rates on fixed mortgages fell this week for a fourth straight week. The low rates could give a boost to the spring home-buying season, which has started slowly.
Mortgage buyer Freddie Mac said Thursday that the average rate for a
30-year loan declined to 4.14 percent from 4.20 percent last week. The average for the 15-year mortgage eased to 3.25 percent from 3.29 percent. Warmer weather has yet to boost home-buying as it normally does. Rising prices and higher rates have made affordability a problem for would-be buyers.
Home construction rose in April to its highest pace in five months, the government reported May 16, but nearly all the gain came from the apartment sector — a sign that Americans are still struggling to buy single-family homes.
U.S. home sales rose 1.3 percent in April
WASHINGTON » Sales of existing U.S. homes rebounded slightly in April, but the pace of buying remained below last year’s level. The National Association of Realtors said Thursday that sales rose 1.3 percent from March to a seasonally adjusted annual rate of 4.65 million. Purchases of homes over the past 12 months have dropped 6.8 percent.
Much of the gains was in the condominium market, which experienced growth of 7.3 percent. Sales of single-family homes were up just 0.5 percent last month.
Nearly five years into the recovery from the Great Recession, real estate sales have yet to return to their historic averages. The solid gains made through the middle of 2013 have evaporated, while demand continues to be strong for the most expensive properties and faltering for starter homes and those priced for middle-class buyers.
AirTran’s final flight slated for December
DALLAS » Another name in aviation history will disappear after the final flight of AirTran Airways, which is scheduled for Dec. 28.
The Atlanta-to-Tampa, Fla., trip has been designated AirTran Flight 1 and will retrace the route taken by a predecessor airline’s first flight in October 1993.
Then it was known as ValuJet Airlines, a fast-growing, low-cost carrier that flew mostly in the eastern U.S. The airline changed its name through a merger after a 1996 crash in the Everglades that killed all 110 people aboard. Investigators blamed the crash shortly after takeoff from Miami on a fire that started with improperly handled oxygen generators in the cargo hold. Southwest Airlines Co. bought AirTran in 2011 for $1.4 billion and announced plans to combine the fleets under the Southwest brand.
FAA called too reliant on Boeing for test
NEW YORK » The government failed to properly test the Boeing 787’s lithium-ion batteries and relied too much on Boeing for technical expertise, a new report says.
The National Transportation Safety Board on Thursday criticized the process used by the Federal Aviation Administration to certify the new jet in 2007. It also recommended that the FAA needed to look outside the aviation industry for technical advice.
The report directly conflicts with the FAA’s own internal study released in March, which said the agency had "effective processes in place to identify and correct issues that emerged before and after certification."
The 787 — also known as the Dreamliner — is the first commercial jet to rely on rechargeable lithium-ion batteries to power key systems. The batteries are lighter, letting airlines save fuel. However, a January 2013 fire aboard a 787 parked at a gate in Boston broke out when a battery cell experienced an uncontrollable increase in temperature and pressure. Nobody was injured, but that fire — and a subsequent smoke condition on a separate plane nine days later — led to a worldwide grounding of the Dreamliner fleet.
Toyota recalling 516,000 vehicles
DETROIT » Toyota said Thursday it’s recalling 516,000 vehicles worldwide — including 430,500 in the U.S. — for three separate safety problems, including brakes that can activate without warning.
The company said it has no reports of accidents or injuries due to the defects. In all three cases the company will alert owners, and dealers will repair the issues for free.
The largest recall, of 450,000 Sienna minivans from the 2004-2011 model years, targets vehicles sold in cold-weather areas. Toyota said road salt can corrode the spare tire carrier under the vehicle, and the tire can fall off.
Also recalled Thursday were 16,000 Lexus GS 250 and 350 sedans from the 2013 model year because a manufacturing defect can cause the brakes to activate without warning and without turning on the brake lights. Also recalled were 50,000 Highlander and Highlander hybrid SUVs from the 2014 model year. Toyota says a software glitch could prevent the vehicle from properly calculating the size of the front passenger when determining whether to fire the air bags.
ON THE MOVE
Hawaiian Airlines has promoted Debbie Nakanelua-Richards to the position of director of community relations. She joined Hawaiian Airlines in 1978 as a member of its promotions team and has served in many cross-departmental roles, including marketing, advertising, government relations, reservations, sales and promotions. Nakanelua-Richards was Miss Hawaii in 1984.
Howard Y. Ikeda and David S. Murakami were elected Wednesday to serve three-year terms on the board of directors at Territorial Bancorp Inc., the holding company parent of Territorial Savings Bank. Stockholders also ratified the appointment of KPMG LLP as the independent registered public accounting firm for the company.
HawaiiUSA Federal Credit Union has welcomed Kelvin Chun to its board of directors. He is a technology resource teacher and librarian/media specialist at Nuuanu Elementary School.
