Roundup of top economy stories
WASHINGTON — The average long-term U.S. mortgage rate tumbled by nearly a half-point this week, but will likely remain a significant barrier for potential homebuyers as Federal Reserve officials have all but promised more rate hikes in the coming months. Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate fell to 6.61% from 7.08% last week. It was 3.1% a year ago. The rate for a 15-year mortgage, popular with those refinancing their homes, fell to 5.98% from 6.38%. Late last month, the average long-term U.S. mortgage rate breached 7% for the first time since 2002.
• • • WASHINGTON — House investigators say a federal contractor that provided identity verification services for the Internal Revenue Service overstated its capacity to perform its services. The investigators say Id.me also made false claims about the amount of money lost to pandemic fraud in an apparent effort to increase demand for its services. The investigation of firm Id.me began in April after critics said the facial recognition software could become a target of cyberthreats and presented privacy concerns. A company representative says “calling Id.me’s estimate too high or baseless is premature, and we welcome additional oversight on this important matter.”
• • • WASHINGTON — A group of Democratic senators have asked federal regulators to investigate any possible violations by Twitter of consumer-protection laws or data-security commitments. The call comes amid the tumult and mass layoffs at the platform under its new owner, billionaire owner Elon Musk. The senators also asked the head of the Federal Trade Commission to take enforcement action if needed against Twitter and company executives. A key focus is the 2011 consent agreement that Twitter signed with the agency, requiring the company to address serious data-security lapses. The FTC said last week it’s tracking developments at Twitter.
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NEW YORK — Several Spacex employees who were fired after circulating an open letter calling out CEO Elon Musk’s behavior have filed a complaint accusing the company of violating labor laws. The complaint, made Wednesday to the National Labor Relations Board, says five employees who participated in organizing the June letter were fired a day after it was sent to company executives. The complaint also says the company interrogated dozens of others in private meetings, and that four additional employees who helped draft or share the letter were fired in July and August. The letter had called on executives to condemn Musk’s public behavior on Twitter and hold everyone accountable for misconduct.• • •
General Motors expects its portfolio of electric vehicles to turn a profit in North America by 2025. That will come as it boosts battery and assembly plant capacity to build over 1 million EVS per year. CEO Mary Barra used the pledge to kick off the company’s investor day event Thursday in New York. She says the profit figure includes vehicle sales revenue, benefits from emissions tax credits, and revenue from software and parts sales. Further details were expected later in the event. Barra says the company’s EV portfolio appeals to a broader range of customers than the competition.