Democrats Press Biden to Extend Freeze on Student Loan Payments​​​

Democrats in Congress are pressing the Biden administration to extend the suspension of student loan payments before it’s set to expire May 1 as they seek to avoid cutting off a pandemic-induced benefit in the middle of an election year, The Hill reported. The federal student loan payments suspension has already been extended five times throughout the COVID-19 pandemic since it began under former President Trump in March 2020. That means millions of people who owe student loans to the federal government haven’t been required to make payments on their debt in two years, all while interest rates on those loans have been set to zero. But President Biden has yet to say whether he’ll renew it again, after last extending it in December amid surging cases of COVID-19. The freeze on federal student loan payments has had more staying power than other popular federal aid programs designed to help people stay afloat during the pandemic. By contrast, the ban on evictions, enhanced unemployment benefits and expanded child tax credit have all lapsed over the past year. And the longer that millions of people have adapted to budgets that don’t include monthly student loan payments, the harder it will be for Democrats to reinstate them. Dozens of Democrats are calling for an extension that lasts at least through the end of this year. “Millions of borrowers have benefited from the pause in payments,” a group of more than 40 House Democrats ranging from progressives to lawmakers in competitive districts wrote in a letter to Biden this week. “Although progress has been made, we believe it is vital to ensure that we continue to work to alleviate the continued impact the pandemic is having on families across the country.”

Commentary: Rising Interest Rates Will Shift Housing’s Foundations​​​

Rising interest rates will stagger the housing market, according to a Wall Street Journal commentary. Mortgage rates have been very low for a very long time. Even though they have risen significantly over the past year as the pandemic has loosened its grip and inflation has picked up, the average rate on a 30-year mortgage has risen from 3.2% to just 4.4% over the past year, according to Freddie Mac. That compares with what had been a historically low average of 4.1% during the decade before the pandemic struck and 6.7% in the decade before the 2008-09 financial crisis. The persistence of low mortgage rates has reshaped people’s perceptions of what is a reasonable price to pay for a house. Consider: The monthly payment on a 30-year mortgage for $500,000 carrying a 6.7% rate is $3,226, but it is $2,176 at 3.25%, which CoreLogic estimates that as of January was the median rate on outstanding mortgages. The difference helps explain why home prices have been able to rise so much without killing demand. As of December, U.S. home prices were 31% higher than two years earlier, according to the Federal Housing Finance Agency. (Subscription required.)

February Rent Prices Jumped 17% Since Last Year​​​
The cost of monthly rent reached a new high in February, with the typical apartment now $283 more expensive each month than it was two years ago, before the onset of the pandemic, CNN reported. The national median rent was $1,792 last month, up 17% from a year ago, according to a report from Realtor.com. Rent for studio apartments, one bedrooms and two bedrooms all saw double-digit increases over the past year. February marked the seventh straight month of rents soaring by double-digit percentages, after rents cratered in some of the biggest cities during the pandemic. “With rents up by nearly 20% over the past two years, rental prices are likely to remain high, but we do expect some cooling from the recent accelerated pace,” said Danielle Hale, chief economist at Realtor.com. In some cities, the rent increases have been staggering. Miami saw the fastest growth, with the median rental price spiking 55% in February from a year ago, making it the least affordable market of the top 50 cities, according to the report.

From the pandemic to Europe’s largest military conflict since World War II, it seems the world is moving from one extraordinary period to another. The conflict in Europe has generated a maze of rapid legal, political and economic responses from authorities around the globe. Those actions are rippling through capitals, markets and boardrooms as businesses grapple with how to respond. Click here to watch a replay of a webinar with experts assembled by Squire Patton Boggs and ABI discussing where we are headed and what businesses should consider.

Jobless Claims Fall to Lowest Level Since 1969​​​

New weekly applications for jobless aid fell last week to the lowest seasonally adjusted level since September 1969, according to data released today by the Labor Department, The Hill reported. In the week ending March 19, initial claims for unemployment insurance totaled 187,000, falling 28,000 from the previous week’s revised level. Last week’s total was the lowest since 182,000 Americans filed claims to start receiving jobless aid during the week of Sept. 6, 1969. The sharp dip in jobless claims is the latest signal of high demand for workers as businesses continue to face labor shortages and other hiring challenges. The U.S. has already added more than 1 million jobs in 2022 after adding 6.8 million last year, pushing the unemployment rate down 3.8 percent. Even so, businesses are still struggling to fill a record number of job openings from a labor force down millions of workers from its pre-pandemic size.

California Gov. Gavin Newsom Proposes $400 Debit Cards for Car Owners, Free Transit, Gas Tax Cuts​​​
California Gov. Gavin Newsom proposed a new plan to help ease the burden of higher gasoline prices on his state’s drivers, including giving car owners cash, temporarily providing free public transportation and reducing fuel taxes, the Wall Street Journal reported. Newsom’s $11 billion relief package, unveiled Wednesday, includes $400 direct payments to Californians per vehicle they own, capped at two vehicles. The proposal doesn’t have an income cap. His plan comes as the average price of regular unleaded gasoline in California is $5.88 a gallon, according to AAA data, with some neighborhoods charging more than $6 a gallon. That compares with the national average of $4.24 a gallon. Gasoline prices hit record highs after Russia invaded Ukraine, as traders, shippers and financiers rejected Russian oil, omitting much of it from the daily global supply. Lawmakers in other states are also pushing to pause or reduce the collection of gasoline taxes. At the federal level, some members of Congress are calling on the Biden administration to suspend federal taxes on fuel. Gasoline prices in California are often higher than in other states due to higher fuel taxes and stricter regulations. An average California driver spends about $300 in gasoline excise tax in a year, according to the governor’s office. Newsom’s proposed tax refund would take the form of $400 debit cards for registered vehicle owners, including electric-vehicle owners, with individuals eligible to receive up to two payments. The rebates would cost the state about $9 billion. (Subscription required.)

Senior Election Analyst David Wasserman to Provide Noteworthy Insights on Pivotal Upcoming Congressional Elections at ABI's 2022 Annual Spring Meeting

David Wasserman, the U.S. House editor and senior election analyst for nonpartisan newsletter The Cook Political Report with Amy Walter and a contributor to NBC News, will provide insights on the upcoming 2022 congressional elections at a special keynote sponsored by Skadden, Arps, Slate, Meagher & Flom LLP at ABI’s Annual Spring Meeting. An enthusiast for data and maps, Wasserman serves as a contributing writer to the Almanac of American Politics. A frequent speaker and guest lecturer, he has shared his insights into the latest political trends with audiences at Harvard's Institute of Politics, the Dole Institute of Politics and the University of Chicago Institute of Politics – where he was named a resident Pritzker Fellow in 2019. Register today for the Annual Spring Meeting to hear Wasserman's analysis and unique perspectives on the upcoming 2022 congressional elections!

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