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Tuesday’s business headlines

Tuesday’s business headlines

INDIANAPOLIS (WISH) — Here is a look at Tuesday’s business headlines with Jane King.

interest rates

Federal government interest payments are a record high, and among the country’s largest expenditure annually.

The federal government spending more than it collects in tax revenue, causes the treasury department to issue new debt to cover the rest of its payment obligations. That debt is to be repaid with interest. The costs that grow as debt grows and interest rates rise.

This year’s sum was almost twice as much as two years ago.

home prices

Due to climbing mortgage rates, it’s now 52% more expensive to buy a home than to rent one.

A person that takes out a 30-year mortgage on a $430,000 home with a ten percent down payment would pay around $3,200 in monthly repayments. That is 60% more than if they’d bought the same house three years ago.

autoworkers strike

The United Auto Workers’ simultaneous, but limited, strike against the big three automakers has now cost the U.S. economy over $9 billion. This is more than twice the previous record for an auto industry strike this century. That’s according to consulting firm Anderson Economic Group.

That number will likely increase as UAW has expanded the strike to a Stellantis plant in Michigan that makes Ram full size pickup trucks, General Motors reports earnings today.

credit card interest

Average annual percentage rate for retail credit cards reached 29%, a record up from 27% last year, according to Bankrate.

The average interest rate on retail store credit cards are at 30%.

About 52% of Americans incurred credit card debt while holiday shopping last year. As of mid-August, nearly a third wave have yet to pay off their balances, according to Nerdwallet.

actors strike

Actors and Hollywood studios will resume contract talks today.

Talks were suspended two weeks ago as the sides remain far apart, especially in the area of streaming payments and artificial intelligence.