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    Rail unions tell Biden officials that workers have fallen ill at Norfolk Southern derailment site

    The presidents of U.S. railroad unions told Biden administration officials that rail workers have fallen ill at the Norfolk Southern derailment site in East Palestine, Ohio, in a push for more train safety.
    Leaders from 12 unions met with Transportation Secretary Pete Buttigieg and Amit Bose, administrator of the Federal Railroad Administration, in Washington, D.C., on Wednesday.
    Earlier Wednesday, a group of bipartisan senators introduced The Railway Safety Act of 2023, aimed at preventing future train disasters like the derailment that devastated the Ohio village.

    Pete Buttigieg, US transportation secretary, speaks during a news conference near the site of the Norfolk Southern train derailment in East Palestine, Ohio, US, on Thursday, Feb. 23, 2023.
    Matthew Hatcher | Bloomberg | Getty Images

    The presidents of U.S. railroad unions told Biden administration officials that rail workers have fallen ill at the Norfolk Southern derailment site in East Palestine, Ohio, in a push for more train safety.
    Leaders from 12 unions met with Transportation Secretary Pete Buttigieg and Amit Bose, administrator of the Federal Railroad Administration, in Washington, D.C., Wednesday to discuss the derailment, aftermath and needed safety improvements.

    “My hope is the stakeholders in this industry can work towards the same goals related to safety when transporting hazardous materials by rail,” said Mike Baldwin, president of the Brotherhood of Railroad Signalmen. “Today’s meeting is an opportunity for labor to share what our members are seeing and dealing with day to day. The railroaders labor represents are the employees who make it safe and they must have the tools to do so.”
    Jeremy Ferguson, president of the International Association of Sheet Metal, Air, Rail and Transportation Workers – Transportation Division, told CNBC that Buttigieg plans on more talks with the unions in the future.
    “This was a good start,” said Ferguson. “It’s important these safety issues are addressed. No one wants another East Palestine. The safety discussion of employees must be addressed. The running of these long trains was a point of discussion as well.”
    The meeting comes on the heels of letters sent to both the DOT and the FRA Wednesday in which union representations claimed rail workers had gotten sick at the derailment site. CNBC obtained the letters, addressed to Buttigieg, Bose, East Palestine Mayor Trent Conaway and Ohio Gov. Mike DeWine, from the general chairman of the American Rail System Federation of the International Brotherhood of Teamsters.
    According to the letter, Norfolk Southern rail workers who have worked or continue to work the cleanup site have reported experiencing “migraines and nausea.” One worker reportedly asked his supervisor to be transferred off the derailment site because of his symptoms, but never heard back from his supervisor and was left at the job site.

    The letter also claims workers are not being provided appropriate personal protective equipment such as respirators, eye protection or protective clothing. According to union representatives, 35 to 40 workers were on the track and were not supplied with proper breathing apparatuses — only paper and N95 masks — or rubber gloves, boots or coverups.
    A Norfolk Southern spokesperson told CNBC in a statement that the train company was “on-scene immediately after the derailment and coordinated our response with hazardous material professionals who were on site continuously to ensure the work area was safe to enter and the required PPE was utilized, all in addition to air monitoring that was established within an hour.”
    Earlier Wednesday, a group of bipartisan senators introduced The Railway Safety Act of 2023, aimed at preventing future train disasters like the derailment that devastated the Ohio village.

    Presidents of 12 U.S. railroad unions meet in Washington, D.C., on March 1, 2023 for a meeting with Biden officials.

    The legislation includes a number of safety protocols for the transportation of hazardous materials. It would also create requirements for wayside defect detectors, establish a permanent requirement for railroads to operate with at least two-person crews, as well as increase fines for wrongdoing committed by rail carriers.
    “If this legislation is adopted, the [Brotherhood of Railroad Signalmen] supports those efforts and looks forward to working collaboratively on common sense regulations that continue to improve safety,” Baldwin said.
    Present at the meeting with Buttigieg and others were:

    Jeremy Ferguson, of the International Association of Sheet Metal, Air, Rail and Transportation Workers – Transportation Division (SMART-TD)
    Tony Cardwell, of the Brotherhood of Maintenance of Way Employees (BMWED)
    Edward Hall, of the Brotherhood of Locomotive Engineers and Trainmen (BLET)
    Don Grissom, of the Brotherhood Railway Carmen (BRC)
    Michael Baldwin, of the Brotherhood of Railroad Signalmen (BRS)
    Josh Hartford, of the International Association of Machinists and Aerospace Workers (IAM)
    Lonnie Stephenson, of the International Brotherhood of Electrical Workers (IBEW)
    Arthur Maratea, of the Transportation Communications Union (TCU)
    Vince Verna, of the Brotherhood of Locomotive Engineers and Trainmen Vice President (BLET)
    Dean Devita, of the National Conference of Firemen and Oilers (NCFO)
    Leo McCann, of the American Train Dispatchers Association (ATDA)
    John Feltz, of the Transport Workers Union (TWU)
    Al Russo, of the International Brotherhood of Electrical Workers (IBEW)

    Correction: This story has been updated to correct the list of union representatives present at a meeting with Transportation Secretary Pete Buttigieg. An earlier version included a union leader who did not attend.

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    Peloton hires former Twitter executive Dalana Brand to be chief people officer

    Peloton has tapped former Twitter executive Dalana Brand to be its new chief people officer as the company continues its transformation.
    The fitness company, known for its Bike and Bike+, has brought in two former Twitter executives in recent weeks.
    CEO Barry McCarthy said the hire completes the leadership team buildout he’s been working on for a year.

    Dalana Brand, new Peloton Chief People Officer.
    Courtesy: Peloton

    Peloton said Wednesday it hired former Twitter executive Dalana Brand to be its new chief people officer, as the fitness company continues its transformation and attempts to return to profitability. 
    The hire – the second executive appointment to come from Twitter in recent weeks – completes the leadership team CEO Barry McCarthy has been building since he took over the company from founder John Foley last February, he said in a statement. 

    “Talent density has been a top priority for me at Peloton. Dalana’s addition is the culmination of that strategy, rounding out and completing the leadership team,” McCarthy said. “As we continue Peloton’s transformation and pivot to growth, her vision and leadership will be critical to our success.”
    Brand, who previously served as the chief people and diversity officer at Twitter, resigned in November days after Elon Musk bought the social media giant, took it private and installed himself as its CEO, throwing the company into turmoil.
    She follows behind Leslie Berland, the former chief marketing officer of Twitter, who took the same job at Peloton in mid-January. She also left the social media company soon after Musk took over. 
    Brand will serve an important role at Peloton as the company seeks to retain talent, attract new hires and boost morale after McCarthy issued in a new era of fiscal rigor at the once-profitable company and laid off more than half of its staff. 
    Current and former employees previously told CNBC the transition has been difficult at times and morale has fluctuated. 

    Peloton has been looking to fill the role since October after its former chief people officer, Shari Eaton, left the company as a series of other executives vacated their posts, including co-founder and former chief legal officer Hisao Kushi and former marketing head Dara Treseder.
    “I’ve made a career out of fostering inclusive employee experiences and leading with transparency and accountability,” Brand said in a statement. “I’m thrilled to join the team at Peloton as the company continues striving to make fitness accessible for all.” 
    In a news release, Peloton touted Brand’s “strong reputation for organizational transformation” across multiple industries. While at Twitter, she led the company’s global workforce and helped speed up its processes to make the workplace more inclusive. 
    She previously served as vice president of total rewards for Electronic Arts and held senior leadership roles at Whirlpool Corporation. 
    Brand starts the new job on March 13 and will report to McCarthy. 

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    Sen. Bernie Sanders calls vote on possible subpoena for Starbucks CEO Howard Schultz over allegations of union-busting

    Sen. Bernie Sanders said the Senate’s HELP Committee will vote March 8 on whether to issue a subpoena for Starbucks CEO Howard Schultz.
    Schultz previously declined to appear at the Senate hearing on allegations of union-busting.
    Nearly 290 company-owned Starbucks cafes in the U.S. have voted to unionize as of mid-February, according to a tally from the National Labor Relations Board.

    Starbucks Chairman and former CEO Howard Schultz
    Jason Redmond | AFP | Getty Images

    Sen. Bernie Sanders is making good on his threat of a subpoena for Starbucks CEO Howard Schultz on what Sanders has called union-busting activity at the company’s coffee shops.
    Sanders said Wednesday that the Senate’s Health, Education, Labor and Pensions, or HELP, Committee will vote March 8 on whether to issue a subpoena for Schultz, who previously declined to appear in front of the committee.

    Sanders said in a statement that Schultz has denied meeting and document requests and refused to answer questions from him and his fellow senators.
    “Unfortunately, Mr. Schultz has given us no choice, but to subpoena him,” Sanders said in a statement.
    Starbucks said it would keep talking to Sanders’ staffers about the heating.
    “This is a disappointing development, but we will continue our dialogue with Chairman Sanders’ staff and are optimistic that we’ll come to an appropriate resolution,” Starbucks spokesperson Andrew Trull said in a statement to CNBC.
    The HELP committee originally scheduled a hearing for March 9 about the coffee chain’s handling of its baristas’ union push and invited Schultz to testify.

    However, Starbucks general counsel Zabrina Jenkins wrote in a letter viewed by CNBC that since Schultz is stepping down as interim CEO in March, it makes more sense for another senior leader with ongoing responsibilities to testify. The company instead put forward Chief Public Affairs Officer AJ Jones II as the best person to address the committee.
    In response, Sanders, who chairs the Senate committee, hinted that lawmakers could compel Schultz to appear by issuing a subpoena.
    Schultz owns 1.9% of Starbucks’ shares, according to FactSet. The company’s market value stands at about $124.6 billion.
    Nearly 290 company-owned Starbucks cafes in the U.S. have voted to unionize as of mid-February, according to a tally from the National Labor Relations Board. Schultz has pushed back aggressively against the union, and workers have accused the company of breaking federal labor law, leading to scrutiny from sympathetic lawmakers such as Sanders.
    The allegations of union-busting have damaged Starbucks’ reputation as a progressive employer, although they don’t appear to have hurt the company’s U.S. sales. The chain reported U.S. same-store sales growth of 10% for its latest quarter, boosted by strong demand over the holiday season.

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    Schumer, Jeffries pressure Murdoch, Fox News over Trump’s false election fraud claims

    Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries are calling foul on Rupert Murdoch.
    The top Democrats in Congress sent a letter to Murdoch, urging Fox News leadership “to stop spreading false election narratives.”
    Court papers revealed that Murdoch said some of the anchors on Fox News parroted false election fraud claims in the months after the 2020 election.

    Members of Rise and Resist participate in their weekly “Truth Tuesday” protest at News Corp headquarters on February 21, 2023 in New York City. 
    Michael M. Santiago | Getty Images News | Getty Images

    Two top Democrats in Congress are calling on Fox Corp. Chairman Rupert Murdoch and the leadership of Fox News “to stop spreading false election narratives and admit on the air that they were wrong to engage in such negligent behavior.”
    Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, both Democrats from New York, sent a letter this week to Murdoch and Fox News leadership. The letter comes days after further revelations in Dominion Voting Systems’ $1.6 billion defamation lawsuit against Fox Corp. and its TV networks.

    “As noted in your deposition released yesterday Tucker Carlson, Sean Hannity, Laura Ingraham, and other Fox News personalities knowingly, repeatedly, and dangerously endorsed and promoted the Big Lie that Donald Trump won the 2020 presidential election,” the lawmakers wrote in the letter, which was released Wednesday.
    Trump has repeatedly spread false claims that the election was stolen from him. His attempts to pressure a top official in Georgia to “find” votes for him are the subject of a criminal probe in that state, which Trump lost to Democrat Joe Biden.
    Earlier this week, Dominion filed court papers that revealed parts of the testimony from Murdoch and other top Fox Corp. leadership. In his deposition, Murdoch acknowledged that some of Fox’s top TV hosts endorsed false election fraud claims.
    When Murdoch was asked if he was “now aware that Fox endorsed at times this false notion of a stolen election,” Murdoch responded, “Not Fox, no. Not Fox. But maybe Lou Dobbs, maybe Maria [Bartiromo] as commentators,” according to court papers.
    “Some of our commentators were endorsing it,” Murdoch said in his responses regarding election fraud during the deposition. “They endorsed.” Murdoch and other top Fox executives also remained close to Fox News CEO Suzanne Scott during the election coverage, according to the court papers.

    A representative for Fox didn’t immediately respond to a request for comment.
    On Monday, when the court papers were filed, a Fox News representative said in a statement that Dominion mischaracterized the facts by cherry-picking soundbites, “When Dominion is not mischaracterizing the law, it is mischaracterizing the facts.”
    Dominion sued the right-wing cable networks, Fox News and Fox Business, and their parent company, arguing the networks and their top anchors made false claims that Dominion’s voting machines rigged the results of the 2020 election. Fox News has consistently denied that it knowingly made false claims about the election.
    In court papers filed in February, the parent company said that the past year of discovery has shown Fox Corp. played “no role in the creation and publication of the challenged statements – all of which aired on either Fox Business Network or Fox News Channel.”
    Murdoch and his son Fox CEO Lachlan Murdoch, in addition to Fox’s chief legal and policy officer, Viet Dinh, and Paul Ryan, the former Republican speaker of the House and a Fox board member, have all been questioned in recent months.
    The revelations that have come out in court papers in recent weeks stem from months of discovery and depositions. Top Fox TV personalities, including Carlson and Hannity, also faced questioning.
    The faces of Fox News and Fox Business also expressed disbelief in Sidney Powell, a pro-Trump attorney who aggressively promoted claims of election fraud at the time, according to court papers. Ryan said that “these conspiracy theories were baseless,” and that the network “should labor to dispel conspiracy theories if and when they pop up.”
    The lawsuit has been closely watched by First Amendment watchdogs and experts. Libel lawsuits typically focus on one falsehood, but in this case Dominion cites a lengthy list of examples of Fox TV hosts making false claims even after they were proven to be untrue. Media companies are often broadly protected by the First Amendment. Fox News has said in earlier statements, “the core of this case remains about freedom of the press and freedom of speech.”
    A status conference is slated for next week, while the trial is set to begin in mid-April.
    Read the letter below:
    Dear Mr. Rupert Murdoch et al:
    As noted in your deposition released yesterday Tucker Carlson, Sean Hannity, Laura Ingraham, and other Fox News personalities knowingly, repeatedly, and dangerously endorsed and promoted the Big Lie that Donald Trump won the 2020 presidential election. Though you have acknowledged your regret in allowing this grave propaganda to take place, your network hosts continue to promote, spew, and perpetuate election conspiracy theories to this day.
    The leadership of your company was aware of the dangers of broadcasting these outlandish claims. By your own account, Donald Trump’s election lies were “damaging” and “really crazy stuff.” Despite that shocking admission, Fox News hosts have continued to peddle election denialism to the American people.
    This sets a dangerous precedent that ignores basic journalistic fact-checking principles and public accountability. This is even more alarming after Speaker McCarthy is reportedly allowing Tucker Carlson to review highly sensitive security camera footage of the events surrounding the violent January 6 insurrection.
    We demand that you direct Tucker Carlson and other hosts on your network to stop spreading false election narratives and admit on the air that they were wrong to engage in such negligent behavior.
    As evidenced by the January 6 insurrection, spreading this false propaganda could not only embolden supporters of the Big Lie to engage in further acts of political violence, but also deeply and broadly weakens faith in our democracy and hurts our country in countless other ways.
    Fox News executives and all other hosts on your network have a clear choice. You can continue a pattern of lying to your viewers and risking democracy or move beyond this damaging chapter in your company’s history by siding with the truth and reporting the facts. We ask that you make sure Fox News ceases disseminating the Big Lie and other election conspiracy theories on your network.

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    Netflix announces a ‘Stranger Things’ stage play is coming to London’s West End

    Netflix announced Wednesday that “Stranger Things: The First Shadow,” an adaptation of the popular science fiction series, will premiere in London’s West End later this year.
    The play will take place more than two decades before the show’s first scene and will include characters such as police chief Jim Hopper.
    The play joins a growing array of in-person events inspired by Netflix films and shows like “Bridgerton” and “Glass Onion: A Knives Out Mystery.”

    (L-R) Actors Noah Schnapp, Caleb McLaughlin and actress Sadie Sink pose after the Stranger Things panel during day 2 of Argentina Comic Con 2018 at Costa Salguero on December 08, 2018 in Buenos Aires, Argentina.
    Ricardo Ceppi | Getty Images | NETFLIX

    A new “Stranger Things” stage spinoff is coming to London’s West End later this year, Netflix announced Wednesday.
    “Stranger Things: The First Shadow,” an adaptation of the popular science fiction series, will premiere at the Phoenix Theatre as the streaming giant’s first live stage production.

    The play will be set in 1959 in the fictional town of Hawkins, Indiana, taking place more than two decades before the show’s first scene. In a press release, Netflix said it will include a handful of the show’s main characters, including the town’s police chief, Jim Hopper, and Joyce Byers’ boyfriend, Bob Newby.
    The play — based on an original story by the Duffer Brothers, Jack Thorne and Kate Trefry — was written by Trefry and will be directed by Stephen Daldry, with co-direction from Justin Martin. It will be produced by Sonia Friedman Productions. Thorne also wrote the stage play for “Harry Potter and the Cursed Child.”
    “You will meet endearing new characters, as well as very familiar ones, on a journey into the past that sets the groundwork for the future of ‘Stranger Things,'” Matt and Ross Duffer said in a statement.
    The “Stranger Things” series debuted in 2016 and has been one of the streaming platform’s most popular shows. Its fourth season tops Netflix’s Most Popular English TV list with 1.35 billion hours viewed.
    In Netflix’s most recent shareholder letter, the company said subscribers watched more returning seasons and sequels in 2022 than in any year prior. Netflix blew away subscriber expectations for the fourth quarter, adding 7.66 million paid subscribers during the fourth quarter.

    The play joins a growing array of in-person events inspired by Netflix films and shows, including the immersive multi-city “Stranger Things: The Experience.” Other events have included balls with “Bridgerton” themes and an escape room live experience based on “Glass Onion: A Knives Out Mystery.”
    Netflix has also been gaining traction in the comedy space with a live standup special starring Chris Rock set for March 4, during which he will discuss Will Smith’s Oscar slap.
    Tickets for “Stranger Things: The First Shadow” are expected to go on sale in the spring.

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    MSG Networks to launch streaming service for Knicks, Rangers games

    MSG Networks – which features Knicks, Rangers, and Devils games – is launching a streaming service.
    MSG+ will launch this summer and will cost $29.99 a month, or $309.99 annually.
    MSG is the latest regional sports network to launch a streaming service as customers continue to flee the traditional cable-TV bundle.

    Artemi Panarin #10 of the New York Rangers celebrates with teammates after scoring a goal in the third period against the Los Angeles Kings at Madison Square Garden on February 26, 2023 in New York City.
    Jared Silber | National Hockey League | Getty Images

    MSG Networks, James Dolan’s cable-TV channels that feature local New York and New Jersey professional sports games, is launching its own streaming service.
    MSG+ will launch this summer with games for the NBA’s New York Knicks, as well as the NHL’s New York Rangers, Buffalo Sabres and New Jersey Devils. The streaming service will cost $29.99 a month, or $309.99 annually, according to a company release on Wednesday.

    MSG Networks also said it recently launched a free, ad-supported streaming TV, or FAST, channel called MSG SportsZone, which is available nationally on Vizio televisions and the Plex streaming platform. Additional platforms are coming soon. The FAST channel features MSG Networks’ programming centered around sports betting and classic games.
    MSG+ will only be available in the region that already carries its MSG Networks on cable-TV. Traditional TV subscribers will also get access to MSG+ for free.
    The launch comes as regional sports networks in particular have felt the pain of consumers leaving the cable-TV bundle, opting for streaming services instead. However, watching local sports teams is often difficult for cord-cutters as few online bundles carry regional sports networks and the networks have been slow to offer their own direct-to-consumer options.
    These networks also must be careful when pricing their streaming options so not to further disrupt the pay-TV model, and breach contracts with distributors. The pay-TV contracts for regional sports networks help support the billions of dollars in fees that the networks pay professional sports teams to air their games.
    Launching direct-to-consumer streaming services is a bid to keep or bring back customers that have cut the cord. Last year, New England Sports Network, the local TV home of the MLB’s Boston Red Sox and NHL’s Bruins, launched a streaming option similarly priced at $29.99 a month, or $329.99 annually.

    Meanwhile, Diamond Sports Group launched Bally Sports+ last fall, priced at $19.99 a month, or $189.99 per year.
    MSG Networks’ new streaming service will also allow fans to purchase single game streaming feeds for $9.99 per game. This offering has yet to be made available by other regional sports networks that have created a streaming platform.
    However, the cable-TV providers have seen the rate of customers fleeing the bundle accelerate in the last year, which has exacerbated their issues.
    Diamond’s Bally Sports is on the brink of bankruptcy due to a hefty debt load. Warner Bros. Discovery is reportedly looking to get out of the regional sports networks business.

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    Delta pilots wrap voting on new contract with big raises

    Delta’s pilots are voting on a new four-year contract that will provide 34% raises.
    United, American and Southwest are still negotiating new contracts with pilot unions.
    Negotiations have been fraught as pilots seek higher pay and better working conditions.

    A pilot walks past the windows at the newly renovated Delta terminal D at LaGuardia Airport in New York March 6, 2021.
    Timothy A. Clary | AFP | Getty Images

    Delta Air Lines pilots on Wednesday will wrap up voting on a new contract that includes 34% raises over four years and other improvements as the industry faces a protracted shortage of aviators and strong travel demand.
    Delta and the pilots’ union had reached a preliminary agreement in December. The Delta pilots are expected to approve the deal Wednesday. That would make the Atlanta-based airline the first of the largest U.S. carriers to finalize a labor deal with its pilots. United, American and Southwest pilots’ unions are still in negotiations.

    The start of the Covid pandemic three years ago had delayed negotiations at major airlines. Travel demand has since rebounded, and airline executives have said pilot shortages have limited capacity growth, a factor that has kept airfare high.
    “The pilots as a whole are striking when the iron is hot,” said Savanthi Syth, airline analyst at Raymond James. “They probably realize this is the best moment in time to get a deal done.”
    In January, Delta forecast a drop in non-fuel costs this year of as much as 4%, including “all expected labor cost increases.”
    Contract talks between airlines and labor unions have been fraught at times, as aviators seek higher pay and better schedules. Delta’s pilots last year voted in favor of allowing the union to authorize a strike when contract talks hadn’t yielded an agreement, and the airline’s pilots picketed several times.
    Alaska Airlines pilots won raises in their latest labor deal last year. JetBlue Airways and Spirit Airlines, which are awaiting a government response to their planned merger, have each struck deals with their pilots recently.
    Regional airlines, where the pilot shortage has been most severe, have also hiked pay recently to attract and retain pilots.

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    Mortgage demand from homebuyers drops to a 28-year low

    Mortgage demand fell for the third straight week as interest rates increased.
    Mortgage applications to buy a home dropped 6% last week from the previous week.
    Mortgage rates have moved half a percentage point higher in the past month.

    A potential buyer with her realtor view a home listed for sale during an open house in Parkland, Florida.
    Carline Jean | Tribune News Service | Getty Images

    Mortgage rates moved higher again last week, pushing buyers back to the sidelines just as the spring housing market is supposed to be heating up.
    Mortgage applications to purchase a home dropped 6% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 44% lower than the same week one year ago, and is now sitting at a 28-year low.

    This as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.71% from 6.62%, with points rising to 0.77 from 0.75 (including the origination fee) for loans with a 20% down payment. That is the highest rate since November of last year.
    Mortgage rates have moved 50 basis points higher in just the past month. Last February, rates were in the 4% range.
    “Data on inflation, employment, and economic activity have signaled that inflation may not be cooling as quickly as anticipated, which continues to put upward pressure on rates,” said Joel Kan, an MBA economist.
    Applications to refinance a home loan fell 6% for the week and were 74% lower year over year.
    “Refinance applications account for less than a third of all applications and remained more than 70% behind last year’s pace, as a majority of homeowners are already locked into lower rates,” added Kan.
    Mortgage rates haven’t done much to start this week, but the trajectory now appears to be higher, after a brief respite in January. Lower rates to start the year caused a brief surge in homebuying, but mortgage demand from homebuyers would seem to indicate a very slow spring is ahead.

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