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Fed increases interest rate to 0.75, largest increase since 1994 By KATHERINE ZEHNDER NEWS-PRESS STAFF WRITER
On Wednesday, the Federal Reserve approved a 0.75 interest rate increase, the largest increase since 1994. Not only that, but the Fed also indicated that it would continue to raise rates this year at the most rapid rates in decades in an effort to slow the economy and combat inflation, which is running at a 40-year high. The 0.75 percentage-point rate increase will increase the Fed’s benchmark federal funds rate to a range between 1.5% and 1.75%, according to the Wall Street Journal (WSJ). The Fed approval
interest rate increase will affect credit card debt, as well as the housing market and auto loans. The News-Press interviewed local experts on the impact this will have on Santa Barbara’s economy. “The recent Fed interest rate hikes are having a mixed effect on the Santa Barbara real estate market. On one hand, buyers are getting priced out of the market as even small interest rate increases make large increases in monthly mortgage payments. On the other hand, it is spurring demand as buyers are anxious to purchase a home before there are further increases which are
expected,” Bob Curtis, a real estate agent with Village Properties, told the NewsPress. “Inflation has skyrocketed, as we all know. There is no CPI for Santa Barbara but the acceleration in prices is widespread. Prices are rising much faster than wages, meaning people are getting a real wage cut, that is, every dollar buys less than it did a year ago. Along with rising rates the fed sets, mortgage rates have also climbed to their highest level since 2008, now at 5.8% for a 30 year fixed. This will slow down the housing sector some, but many recent purchases have been all cash,” said Peter Rupert of the
Department of Economics at UCSB. “Our market remains tight in terms of inventory, which is keeping prices steady and, in some cases, still rising. The inventory is slightly up recently because some sellers are concerned that prices are going to drop and are putting their houses on the market. Despite this, inventory remains at record or new record lows. For example, currently there are only 3 condominiums available for under $1 million and there are only 12 single family homes under $1.5 million. This is from Carpinteria to Goleta,” said Mr. Curtis. The News-Press asked Mr. Rupert if we
are in danger of going into a recession: “We are certainly in the middle of a correction, but these are different times given we are coming out of the pandemic that upset so many different facets of business and life. So it is hard to use history to judge whether this slowdown leads to an overall recession. Having said that, the slowdown is real and whether we end up in a recession is hard to predict, although many business economists say it is getting more likely,” he said. “Our market is ‘normalizing,’ we are still seeing almost 70% of the homes that come on the market receive multiple Please see INTEREST on A6
Girls Inc. celebrates fathers By KATHERINE ZEHNDER NEWS-PRESS STAFF WRITER
Girls Inc. of Carpinteria emphasizes the importance of fathers in the lives of their daughters. “Our mission is to inspire girls to be strong, smart and bold. We have programs in literacy, STEM and college readiness and access, breaking down barriers for girls so they can grow up healthy, educated and independent,” said Jamie Collins, Executive Director of Girls Inc. “Being an older generation and watching my husband navigate parenthood, it’s really about breaking down stereotypes. It’s about breaking down the stigma surrounding mental health and building education around that for males and females. It’s really important to have male allies that are helping to push women forward into seats at the table and breaking down barriers to being leaders. One such ally is local father Mynor Muralles, who works in a printing shop in Ventura and is the father of three children including nine-year old daughter Danna Muralles. Mr. Muralles daughter Danna has attended Girls Inc. of Carpinteria since kindergarten, and he says the organization is “a lifesaver to all the parents out there. It’s a great program.” Mr. Muralles said of fatherhood, “In general being a father is really special … (fathers need to) step up and show their kids the real world and guide them to the future. Especially with all the mental health issues.” “We really try to have girls navigate what healthy
relationships look like. Seeing what is modeled in their home. Having a father figure that is a good role model and pushes girls to break down barriers and be the best they can it sets up the child and future family for breaking cycles,” said Ms. Collins. Mr. Muralles gave advice to young girls: “Just be a nine-yearold girl. Don’t try to be 15. Play with barbies. Don’t grow up so fast. You have to grow at every stage of your life … enjoy every year of your life.” Ms. Collings recommended for fathers to “support your daughters’ dreams and help them push through and navigate the world we are living in with a lot of unknowns for females.” “It’s good advice to talk to your kids,” said Mr. Muralles as advice to other fathers. “I’m going to be 47. We aren’t living in the same world, with the media and mental health issues. It was great to be a kid. My daughter doesn’t live the way we used to live. Any simple thing can ruin your kid’s life. Keep your eyes open … Good fathers try to raise their children the best they can.” According to Girls Inc. of Carpinteria’s website, the organization’s mission is to “inspire girls to be strong, smart and bold. Our programs empower girls and women to achieve personal, social, political, and economic success. In partnership with schools in Ventura and Santa Barbara Counties and at our Girls Inc. campus in Carpinteria, we focus on the development of the whole girl. Our comprehensive approach helps girls to value themselves, take risks, and discover and develop their inherent strengths.” email: kzehnder@newspress.com
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By KATHERINE ZEHNDER NEWS-PRESS STAFF WRITER
On Saturday morning, SpaceX launched a German military satellite and landed the returning rocket. The SpaceX Falcon 9 twostage rocket lifted off in foggy conditions from Vandenberg Space Force Base at 7:19 a.m. According to flight broadcasters, the rocket pierced the cloud layer about forty seconds after liftoff. As the Falcon descended it came back through the cloud layer and successfully landed. It was the third successful landing for the booster according to broadcasters. It also marks the 125th overall successful recovery of an orbital class rocket. The launch delivered into orbit the German military’s SARah1 Earth Observation Satellite, a reconnaissance satellite built by Airbus. News-Press Associate Editor Matt Smolensky contributed to this report. email: kzehnder@newspress.com
Mynor Muralles and his daughter Danna.
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The launch delivered into orbit the German military’s SARah-1 Earth Observation Satellite.
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SpaceX launches German satellite
Saturday’s SUPER LOTTO: 2-10-11-18-39 Mega: 15
Saturday’s DAILY 4: 9-6-6-1
Friday’s MEGA MILLIONS: 20-36-53-56-69 Mega: 16
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Saturday’s DAILY DERBY: 01-07-06 Time: 1:47.47
Saturday’s POWERBALL: 10-19-40-45-58 Meganumber: 25
Saturday’s DAILY 3: 9-3-8 / Midday 9-0-1
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