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Mortgage rates now perched just below 7%, says Freddie Mac


Jay Lessard, president and senior loan officer at Sonoran Lending in Scottsdale, Arizona, told Mortgage Professional America that clients are already registering the impact, even if most aren’t monitoring the Fed day to day.

“Most consumers aren’t necessarily following the Fed meeting day to day, but they’re feeling the effects of higher rates and the overall cost of carrying debt,” Lessard said.

“Credit cards, auto loans, and other monthly obligations have become increasingly expensive, so we’re having more conversations about using home equity through HELOCs or fixed-rate second mortgages to improve monthly cashflow and get their finances in a better position.” 

Lessard said a broad buyer retreat was unlikely, however. “I do think the recent rise in bond yields and mortgage rates will cause some buyers to step back temporarily, particularly those who are already stretched from an affordability standpoint. But I don’t think it will push everyone to the sidelines.” 

The broader affordability picture has deteriorated steadily since mid-year. According to the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI), a family earning the national median income of $106,800 would need to allocate 34% of earnings to cover mortgage payments on a median-priced new home in the second quarter, up from 32% in Q1, as rising rates eroded gains made earlier in the year.

A Cyberattack Hit Family-Owned Christmas Central at Peak Season. Now It’s Filing for Bankruptcy



The holiday retailer is filing for Chapter 11 bankruptcy. The move comes after it was hit with a cyberattack in 2025.

Giftcards.com: No Fees On Virtual Visa Giftcards With Promo Code NOFEE (Limit 3)


The Offer

Direct link to offer

  • Giftcards.com is offering no fees on virtual visa giftcards when you use promo code NOFEE. Limit 3

Our Verdict

Should stack with the Chase offer for 5% off. 

Hat tip to reader Bockrr

Shopify CEO says employees’ ‘slop grenades’ are making more work for everyone else



The tech leaders who once hailed AI use as the key to unlocking every employee’s full potential are now changing their tune.

This includes Shopify cofounder and CEO Tobias Lütke. He told employees last year that using AI is “a baseline expectation,” and they should first prove they “cannot get what they want done using AI” before asking for more resources. He’s now saying Shopify employees are producing unexamined emails and code with AI and not taking responsibility for the sloppy output.

“We call those ‘slop grenades’ that people toss at each other,” he said during an interview on The Knowledge Project podcast  on Tuesday. “That’s definitely a bad thing.”

Lütke said it’s easy to let AI “go nuts,” but abusing it creates more headaches for the people receiving and reviewing the work. For instance, he suggested AI use is supposed to help synthesize points in an email rather than turning it into “a big missive” that wastes time.

“You don’t really read it, and now it has to be reviewed by your colleagues, and they are like, ‘this doesn’t look right’,” he said. “You’re just letting AI do the work for you.”

Duolingo CEO Luis Von Ahn has similarly backtracked. He announced last year the company would go “AI-first,” which meant evaluating employees on their AI usage, replacing human contractors with AI, and only increasing headcount if a team couldn’t automate the required work. But in May, he told Fast Company that he had got carried away by AI demoing well in writing, but said it ultimately doesn’t match the creativity of Duolingo’s people when it scales. 

“We may need to write 1,000 different stories for people to learn a language, then you’ll find that 20% of the things were just pure slop,” he said. “Whenever we scale a lot [of] things with AI, we have to really be careful that slop doesn’t get through.”

The rise of ‘workslop’

Researchers coined the term “workslop” for the phenomenon Lütke described: polished-looking AI output that ends up dragging down productivity because it needs revision.

BetterUp Labs and Stanford’s Social Media Lab surveyed 962 American full-time desk workers this year and found over half (52.7%) reported sending workslop to colleagues and it was more common in people whose organizations encouraged AI use. Over a third (38%) reported receiving workslop and estimated it cost them 3.4 hours per month on average to revise it. 

What separates workslop from low-quality work done by humans is that workslop looks legitimate on the surface while lacking the components that would make it useful. Examples of workslop mentioned by the survey respondents were well-structured emails with broken links or code that was more complicated than it needed to be. 

The survey found relationships also take a hit when there’s suspicion of workslop. Employees said they viewed their colleagues who sent it in as less competent and less friendly. Of those who had received workslop, over a third (36%) also reported wanting to avoid working with those colleagues in the future. 

The 3.4 hours in cleanup time is an increase from last year’s survey, when 40% reported encountering workslop and said they had to spend two hours reworking it. The number pegged to revising workslop in 2025 came out to be $186 per month for single employees and up to $9 million a year in lost productivity for an organization with 10,000 people. 

Financial Habits That Secretly Make You Richer



This video covers every financial habit you might think is weird, but might secretly make you richer.

My complete 60+ page manipulation guide:
👉

👜 Business Mail: everythingprofessor@gmail.com

Watch on Spotify:

——————————————————————————–
Timestamps:
0:00 Spending More Money to Save Time
1:07 Measuring Purchases in Hours Instead of Dollars
2:04 Using Debt to Your Advantage
3:08 Refusing to Save Every Penny
4:06 Investing Into Yourself / Paying for Accountability
5:00 Avoiding “Good Deals”
6:11 Overpaying on Purpose
7:07 Spending on Mistakes and Learning Fast
8:06 Emotionally Detaching Yourself from Money
9:00 Ignoring Windfalls
9:42 Taking Risks (on Purpose)
10:38 Only Buy Things You Can Afford
11:25 Use Envy as Power

——————————————————————————–

Disclaimer:
The information in this video is for educational and entertainment purposes only. Nothing here should be interpreted as financial, investment, legal, or tax advice. Everyone’s financial situation is different, and you should always do your own research and consult a licensed professional before making decisions with your money. Past performance does not guarantee future results, and any examples provided are for illustration only. By watching, you agree that the creator is not responsible for any actions you take based on this content.

source

Judge Blocks DHS Four-Year Student Visa Cap, Says Security Rationale “Borders On The Absurd”


A federal judge in Boston stopped the Department of Homeland Security from ending “duration of status” for international students, exchange visitors and foreign journalists, one day before the change was scheduled to take effect.

U.S. District Judge F. Dennis Saylor IV granted a preliminary injunction on September 14 in Presidents’ Alliance on Higher Education and Immigration v. DHS, postponing the effective date of the final rule DHS published on July 17 under Section 705 of the Administrative Procedure Act. We covered the rule back when DHS first moved to cap international student stays at four years.

Under the blocked rule, F and J visa holders would have been admitted for four years or the program end date, whichever came first, and I visa holders for 240 days. Students needing longer would have filed a Form I-539 extension request decided at the discretion of a USCIS officer, with no appeal available even inside DHS.

The rule also shortened the departure window from 60 days to 30, barred students from pursuing a second degree at the same or lower level, and restricted transfers between schools. The coalition of colleges and labor unions that sued DHS in August asked the court to throw the rule out entirely.

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Why It Matters

Roughly 1.6 million people hold F status and 504,000 hold J status, according to figures DHS itself published in the rule. International students contributed $44 billion to the economy in 2023-24 and directly supported close to 400,000 jobs, one job for every three students, per an economic analysis cited in the record.

Those students also fill seats that American universities increasingly cannot fill any other way, which is why international graduate enrollment losses have already triggered layoffs and program closures on campuses that built budgets around full-pay foreign enrollment.

The damage started before the rule ever took effect. The University of Wisconsin-Milwaukee reported a 42% drop in international applications for the current academic year. Those campus numbers track the national trend we covered when international college applications fell 10%, with India down 15% and Ghana down 34%.

What The Court Found

Saylor made clear he was not ruling on whether the policy was smart: “this Court does not have the power to block the rule on the ground that it is misguided or ill-advised.” He ruled on process, and found DHS failed the APA on nearly every front. His treatment of the national security justification was unusually blunt for a district court opinion, and it comes at a time when student visa processing has already drawn bipartisan Senate scrutiny in Congress.

The specifics from the 48-page opinion:

  • The security case rested on five anecdotes. DHS pointed to five incidents involving 11 individuals out of tens of millions admitted over four decades. Saylor wrote that the argument “borders on the absurd,” noting a hostile actor could simply operate inside a four-year window or enter on a six-month tourist visa.
  • The fraud case did not add up either. DHS flagged 77,000 F-1 students who spent more than 10 years in student status since 2003, under 5% of the total, without explaining why a decade in school is suspicious when doctoral programs run nearly six years on median.
  • Journalists got no justification at all. The court found DHS offered no national security evidence, no fraud evidence and no reasoned explanation for capping I visas at 240 days.
  • Cost analysis treated harm as zero. DHS called enrollment effects “unquantifiable” and then effectively priced them at zero, even as it conceded first-year compliance costs near $268 million and roughly 135 hours of work per school official.
  • The comment record was dismissed wholesale. About 22,000 comments arrived during a 32-day window the court called “exceptionally short, and barely legal.” DHS waved off the objections as “speculative.”

One rejected DHS response drew particular attention. The comment highlighted that the rule would cost American universities the strongest applicants available anywhere, but the agency wrote a reponse that schools “may be able to fill vacancies left by nonimmigrant students who choose not to enroll with other qualified applicants.” Judge Saylor called the idea that MIT and Harvard graduate researchers are fungible “not a rational response to a legitimate concern.”

The scope of relief is the part immigration attorneys will argue over. DHS urged the court to limit any order to the named plaintiffs under Trump v. CASA, the 2025 Supreme Court decision curbing universal injunctions. Saylor held that APA Section 705 authority is separate from traditional equitable power, citing a First Circuit decision from August, and ruled that a party-specific order would force parallel regulatory regimes across more than 5,000 institutions while students move between schools and pursue joint degrees.

He granted the postponement nationwide but denied outright vacatur.

How This Connects

The higher education system has been absorbing enrollment shocks for three straight years, and international students have been ta key point of concern. International students typically pay full price at colleges, and that revenue stream is essential for college operations.

Syracuse University acknowledged its first budget deficit in years after missing 2026 enrollment targets, and our running count of college closures and mergers in 2026 keeps growing. A four-year international student enrollment cap landing on top of that math is why 600 institutions signed on to fight it rather than wait out the litigation.

What’s Next

The next status conference is set for October 2, and DHS can appeal the injunction to the First Circuit. Duration of status stays in force in the meantime, so students already in F, J or I status keep their current terms and schools do not need to rebuild compliance systems yet.

Anyone thinking about a U.S. program for 2027 should treat the four-year cap as paused rather than dead, and price international student loan options and graduate school borrowing against a timeline that could still change.

Editor: Colin Graves

The post Judge Blocks DHS Four-Year Student Visa Cap, Says Security Rationale “Borders On The Absurd” appeared first on The College Investor.

Oil is back above $100—but economists say that number isn’t the real threat to the U.S. economy



When the news this week came out about oil spiking back up above $100 a barrel, analysts didn’t seem to be too concerned. This may be unusual: in the past, oil price surges sent shockwaves through markets and the economy, causing long lines at gas stations and frustrating drivers. But this time, economists say $100 oil is less alarming than the number traditionally suggests.

Brent crude oil climbed as high as nearly $110 a barrel on Monday, up 4%—its highest price since May, before easing to around $107 on Tuesday. The increase raised concerns about inflation and borrowing costs, evoking memories of the oil shock stories from years ago. Back in 1980, Americans spent about 6% of their income on gas because they used more and prices were relatively high, according to JPMorgan’s analysis. Today, that share is about 2.5%.

That doesn’t mean economists are completely at ease. Their greater concern is not that crude crossed the $100 benchmark, but that shortages have pushed up the prices of gas and diesel—fuels that directly affect people and businesses. If those prices remain high, Americans might have to cut back on spending while businesses may have to pay more to ship goods, run factories, and operate farm equipment. 

The re-emergence of the U.S. as a net energy exporter means oil shocks “hit differently” today, according to Michael Pearce, chief U.S. economist at Oxford Economics. Pearce told Fortune that higher oil prices are bad news for households, but good news for energy producers. 

“There is not a ‘tipping point’ for crude oil prices that will tip the economy into recession,” Pearce said.

Inflation has also changed what the $100 number actually means. Patrick De Haan, head of Petroleum Analysis at the gas tracking app GasBuddy, told Fortune that $100 today does not carry the same weight it did decades ago. He said oil may need to reach closer to $200 to have a similar effect on the economy today.

The war has inevitably put pressure on refined fuels such as gasoline and diesel, Pearce said. But at the same time, a shortage of refinery capacity has caused their prices to rise more than one would expect based on oil prices alone. Simply,  gas takes money directly from consumers, while diesel powers the trucks, farms, and factories that keep goods moving across the country.

The national average for regular gasoline was trending toward $4.43 a gallon Thursday, up from $3.20 a year earlier, according to AAA. Diesel reached a record of $6.39 a gallon, compared with $3.70 a year earlier. 

If today’s prices persist, Oxford Economics estimates they could shave a few tenths of a percentage point from consumer-spending growth next year. Pearce said oil closer to $140 would begin causing more serious problems, although the damage would be smaller in the U.S. than in countries where energy takes up more of household budgets. 

Lower-income Americans take the bigger hit and are already more exposed. JPMorgan said they spend more of their income on other essentials needed to live besides just gas, leaving them less room to absorb higher prices. De Haan said diesel’s indirect costs have not become “insurmountable” just yet, but consumers could face more pressure around or shortly after the holidays if prices remain high. 

For now, De Haan said, “Americans can grimace and bear it.”

Maybe Mortgage Rates Did Like the Fed Rate Hike After All


Mortgage rates are lower today after the market finally digested the first Fed rate hike since 2023.

The Federal Reserve hiked its short-term rate 0.25% yesterday, leading to a temporary drop in mortgage rates, followed by a snap back higher.

That had a lot of folks fearing for the worst, but today it’s a different story.

MBS prices are up and mortgage rates are down, as most expected them to be.

And things could get even better for 30-year fixed mortgage rates, even if the Fed hikes another 0.25% later this year.

Mortgage Rates a Rollercoaster Ride Over the Past 24 Hours

It’s been a weird 24 hours or so for mortgage rates, which initially got relief from the Fed’s FOMC announcement, then got worse after Fed chair Kevin Warsh’s presser.

But today it’s a different story, with bellwether 10-year bond yields a lot lower (at last glance about 5 bps lower), which bodes well for consumer mortgage rates.

The 30-year fixed hit a fresh 2026-high of 7.24% after the press conference yesterday, per Mortgage News Daily.

That had many fearing for the worst, but today it’s a completely different story.

MBS prices are a lot stronger, oil prices are down, and things are looking up (actually down!) for mortgage rates.

Sometimes it just takes a little bit of time for things to shake out. Sometimes it’s not about the Fed at all.

And that’s actually something I want to point out.

Does the Fed Even Matter?

While everyone is fussing about the Fed, what’s happening behind the scenes matters more.

The reason the stock market is rallying today, bond yields are lower, and mortgage rates are improving is because of the situation in the Middle East.

The price of U.S. crude fell below $100 per barrel today for the first time since September 11th, and there are whispers that Trump plans to hold talks again with Iran.

Imagine if they iron out some sort of deal there? Who cares if the federal funds rate is 0.25% higher than it was in 2023?

If we can agree to some sort of truce with Iran and Yemen, all of a sudden you’ve got a much better outlook.

You’ve got falling energy prices, you’ve got falling bond yields, which are now close to 20-year highs.

Then you can actually see a scenario where mortgage rates are falling while the Fed is in hiking mode.

And back to the Fed, they could still hike one more time, as is laid out in their latest dot plot, and longer rates could fall.

While the Fed rate hike seems bearish and hawkish, it’s actually telling the market that the Fed is serious about combatting inflation.

And inflation is the #1 enemy of bonds and mortgage rates.

So Warsh essentially established credibility yesterday, instead of succumbing to President Trump’s demand to “lower rates NOW.”

Taken together, mortgage rates could have a really good 2027.

[Check out my mortgage rate calculator to compare rates side by side.]

What If Middle East Conflicts Worsens?

Now that’s just one rosy scenario. If things don’t improve or get worse, inflation could ramp up again.

The price of gasoline and diesel could get even more expensive, sending shockwaves throughout the economy.

That could lead to more rate hikes than anticipated, while also putting additional pressure on the 10-year bond yield that dictates mortgage rates.

If that’s the case, things could get worse before they get better, and a 30-year fixed in the low 7s will quickly be missed.

Then you’re looking at 30-year fixed mortgage rates in the mid-7s or higher.

Hopefully it doesn’t come to that, but it’s something to consider.

And it tells you that the Fed aside, mortgage rates could move up or down regardless of this hike and future hikes.

It’s really the underlying data that matters, whether it’s oil prices, unemployment numbers, etc.

So keep a closer eye on that than the Fed if you want to know where mortgage rates go next.

Colin Robertson
Latest posts by Colin Robertson (see all)

SEC Publishes Innovation Exemption For Tokenized Stocks


As expected, the Securities and Exchange Commission (SEC) has published its “Innovation Exemption” for tokenized or digital securities. The new rules will allow tokenized securities to trade on marketplaces or Tokenized Securities Venues (TSVs), each of which is a “TSV” under the definition of “exchange” in the Securities Exchange Act of 1934. The SEC is providing conditional exemptive relief for markets trading tokenized securities. The exemption is live today.

The five-year, temporary order will also provide a conditional exemption from the definition of “dealer” as defined by the Exchange Act.

The exemption will give the SEC a way to monitor and review how tokenized securities are traded.

The exemption is not for DeFi.

SEC Chairman Paul Atkins said the Commission is taking an important step forward to bring capital markets into the digital age by enabling onchain trading of stocks.

“The Innovation Exemption, while temporary, would allow TSVs to trade tokenized NMS stock in a permissioned environment today while the Commission considers the need for additional action to facilitate onchain trading. As we take this important first step, we invite public comment on all aspects of the Innovation Exemption to help inform the Commission as it considers further changes.”

Atkins has strongly supported beneficial innovation that improves ecosystems for both investors and issuers.

Jamie Selway, Director of the SEC Division of Trading and Markets, said that exemptive relief for on-chain secondary trading is an important milestone.

“The division stands ready to work with interested parties seeking to operate a TSV and field questions from investors and market participants,” said Selway.

Conditions of the Innovation Exemption include:

  • Real ownership only. Tokens must confer the same rights as the underlying NMS stock (dividends, voting, etc.). Synthetics and derivatives are out.
  • Issuer veto. If a third party tokenizes a stock, the TSV must give the issuer written notice and 30 days to object. An objection bars that token from the venue. Issuers can opt out.
  • Limits. Symbol counts and volume caps, calibrated to limit-up/limit-down tiers.
  • Tech and market integrity. Smart contracts must be public, auditable, and deployed on a public permissionless ledger. Trading in a tokenized stock must halt when the underlying stock is halted on its primary listing exchange.
  • Access and sanctions. TSVs must be U.S. persons, comply with OFAC sanctions, and restrict who can trade.
  • Transparency. Public notice of operations; regular publication of USD-denominated trade data (price, size, time, pool address, end-of-day pool size, daily volume); books and records; technology safeguards.

Commissioner Hester Peirce explained, “Temporary, limited exemptions like this one are intended to provide the Commission and market participants with an opportunity to observe how tokenized NMS stocks are used and traded in different onchain contexts and how onchain and traditional markets interact with one another.” She added:

“Making practical, careful, and sensible adjustments to the existing framework allows us to accommodate innovation without undermining our regulatory objectives of protecting investors and market integrity.”

Commissioner Mark Uyeda said the exemption offers a path to data-driven rulemaking while embracing public feedback.

Digital securities or tokenized shares are widely expected to replace their more analog brethren over time. By leveraging technology, tokenized shares can benefit from streamlined settlement and transfers, improved security, and automated services.

While the previous administration did what it could to inhibit beneficial innovation, the Commission under Chairman Atkins has supported change and innovation, which clearly improves capital markets.

Commissioner Uyeda said the “Innovation Exemption is the latest instance of the Commission using scoped relief to experiment responsibly, learn, and translate old protections to new contexts.”

The Innovation Exemption arrives just as Congress failed to pass updated laws to support the digital asset ecosystem. The CLARITY Act, which was voted down this week, would have provided regulatory clarity, investor protections, along with rules that would support innovation in the digital asset industry.



 



Greg Abel Exited a Consumer Brand Warren Buffett Backed for 6 Straight Quarters. Here’s Why That Was the Wrong Move.


Greg Abel has the unenviable task of succeeding legendary investor Warren Buffett as CEO of Berkshire Hathaway (BRKA -1.66%) (BRKB -1.61%). Still, it’s only natural that Abel will put his own stamp on the company he leads.

That includes making changes to the portfolio. Since becoming CEO at the start of the year, company filings show that Abel has whittled down Berkshire Hathaway’s equity portfolio. He’s also added and subtracted positions. This includes selling Domino’s Pizza (DPZ -0.29%) shares this year.

However, here’s why investors shouldn’t follow Berkshire Hathaway’s lead on this stock. In fact, it’s a good time to buy shares.

Image source: Getty Images.

Berkshire Hathaway’s previous holding

Before examining Domino’s Pizza, it’s instructive to see when Berkshire Hathaway built its position. The firm bought Domino’s Pizza shares during the third quarter of 2024. During that period, it purchased nearly 1.3 million shares, valued at nearly $550 million as of Sept. 30, 2024.

Showing confidence in the company, Berkshire Hathaway bought more shares over time. At the end of 2025, the company owned over 3.3 million shares, which were worth nearly $1.4 billion. However, Abel acted decisively early in his tenure as CEO. Under Abel’s stewardship, Berkshire Hathaway sold all of its Domino’s Pizza shares during the first quarter.

Long-term fundamentals remain intact

Still, the company’s fundamentals suggest Berkshire Hathaway made the wrong decision. Domino’s, the largest pizza company in the world, believes in providing quality food at reasonable prices. Its delivery and takeout business seeks to offer customers convenience.

That business philosophy led to a successful long-term track record. However, the company’s recent sales have been tepid. But with consumers’ wallets squeezed by higher prices for basic items like gas, it’s not surprising that they’ve cut back on eating out. Domino’s second-quarter same-store sales (comps) at its U.S. locations grew a scant 0.1%. And they fell 0.1% at international restaurants.

Investors can take comfort in Domino’s growing market share, which will put the company in a stronger competitive position when economic conditions ease. For instance, the company expanded its share of the quick-service pizza market from 22.5% in 2024 to 23.3% last year.

Although founded in 1960 and already the world’s largest pizza company, management still sees expansion opportunities. Over the last four quarters, Domino’s added 995 restaurants, including 209 in the second quarter. Most of these have been outside the U.S., with 825 new international locations over the last year. It ended the period with 22,531 worldwide restaurants.

Domino’s franchise model (99% of restaurants) means it can expand without expending a lot of capital. Franchisees make initial investments to build restaurants. They also pay an up-front fee and an ongoing royalty to Domino’s.

Domino's Pizza Stock Quote

Today’s Change

(-0.29%) $-0.87

Current Price

$300.43

Stock valuation presents a buying opportunity

Investors haven’t been pleased with recent results. They’ve sent the share price down 25.2% through Sept. 11 this year. Meanwhile, the S&P 500 gained 11.9%.

However, this has created a better valuation that long-term investors should view as a buying opportunity. Since the start of the year, the stock’s price-to-earnings (P/E) ratio has dropped from 24 to 18. The shares trade at a much lower multiple than the S&P 500’s P/E ratio of 26. Domino’s stock also looks attractive compared to its historical valuation. The shares have a 10-year median P/E ratio of 31.

Granted, it’s not easy to go against the market and, given its investment track record, Berkshire Hathaway. But with Domino’s gaining market share during a challenging period, an expansion opportunity ahead, and an attractive valuation, long-term investors should view the stock as a major buying opportunity.