WASHINGTON – US consumer borrowing jumped $ 35.3 billion more than expected in May as Americans, buoyed by the reopening economy and rising employment levels, resumed heavy use of credit . The Federal Reserve reported Thursday that credit card, auto and student loans posted strong gains in May. It was the fourth consecutive month of strong growth in consumer borrowing and followed a $ 20 billion advance in April. Fed officials said the seasonally adjusted increase of $ 35.3 billion in May was the largest month-on-month gain among records dating back to 1943.
DETROIT – Toyota has backed down and said its Political Action Committee will no longer contribute to Republican lawmakers who voted against certifying Joe Biden’s presidential victory. The move comes after a social media backlash against the contributions, including threats to stop purchasing Toyota vehicles. The company says it understands the donations have troubled some of its stakeholders, including employees and government officials, and that it has listened to them. Toyota will not request a refund of contributions and has not decided whether contributions will resume. Last week, the Axios website reported that Toyota led all companies in donating to lawmakers who voted against certification of results in January on the grounds that the election was stolen from then-President Donald Trump. .
DETROIT – Stellantis is a bit late for the world electric vehicle festival, but on Thursday it vowed to catch up and overtake its competition. CEO Carlos Tavares said that by 2025, 98% of its models in Europe and North America will have fully electric or plug-in gas-electric hybrid versions. The automaker that has combined Fiat Chrysler and Peugeot is developing four electric vehicle platforms with ranges of up to 800 kilometers (497 miles). Models include a fully electric Ram pickup and Jeep Grand Cherokee hybrid and even a Dodge electric muscle car. The company says it will spend as much as 30 billion euros ($ 35.6 billion) over the next five years on electric vehicles. It will build five battery factories in the United States and Europe.
WASHINGTON – Mortgage rates continued to fall this week, following lower yields on Treasuries as the bond market continues to signal concerns about the strength of the recovery from the pandemic recession.
Mortgage buyer Freddie Mac reported on Thursday that the 30-year average home loan had fallen from 2.98% last week to 2.90%. In contrast, the rate stood at 3.03% a year ago.
The rate on a 15-year loan, a popular option among homeowners refinancing their mortgages, fell to 2.20% from 2.26% last week. Economists at Freddie Mac expect economic growth to gradually push mortgage rates higher in the second half of the year.
The bond market has been signaling concerns about the economic recovery for months, particularly that it may have peaked and is now stabilizing at a more sustained pace. Mortgage rates tend to follow movements in the yield on 10-year Treasuries – which rise when bond prices fall. The benchmark yield has been falling steadily in recent weeks as traders shifted money into bonds. It was listed at 1.30% around noon Thursday, after reaching 1.74% at the end of March.