US homes sales fell sharply in January, even as mortgage rates continued to ease

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By ALEX VEIGA, AP Business Writer

Sales of previously occupied U.S. homes fell sharply in January as higher home prices and possibly harsh winter weather kept many prospective homebuyers on the sidelines despite easing mortgage rates.

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Existing home sales sank 8.4% in last month from December to a seasonally adjusted annual rate of 3.91 million units, the National Association of Realtors said Thursday. That’s the biggest monthly decline in nearly four years.

Sales fell 4.4% compared with January last year. The latest sales figure fell short of the 4.105 million pace economists were expecting, according to FactSet.

Home sales slowed sharply across the Northeast, Midwest, South and West.

“The decrease in sales is disappointing,” said Lawrence Yun, NAR’s chief economist. “The below-normal temperatures and above-normal precipitation this January make it harder than usual to assess the underlying driver of the decrease and determine if this month’s numbers are an aberration.”

Despite the sharp drop in sales, home prices continued to climb last month. The national median sales price increased 0.9% in January from a year earlier to $396,800. Home prices have risen on an annual basis for 31 months in a row.

The U.S. housing market has been in a sales slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows. The combination of higher mortgage rates, years of skyrocketing home prices and a chronic shortage of homes nationally following more than a decade of below-average home construction have left many aspiring homeowners priced out of the market. Sales of previously occupied U.S. homes remained stuck last year at 30-year lows.

Sales have been hovering close to a 4-million annual pace now going back to 2023. That’s well short of the 5.2-million annual pace that’s historically been the norm.

Still, mortgage rates have been trending lower for months, which helped give home sales a boost in December and brightened the outlook for the upcoming spring homebuying season — at least for home shoppers who can afford to buy at current rates.

The average rate on a 30-year mortgage briefly dropped last month to 6.06%, the lowest level since September 2022, according to mortgage buyer Freddie Mac. It has since inched higher, remaining just above 6% and roughly a percentage point lower than a year ago.

Affordability remains a challenge for many aspiring homeowners, especially first-time buyers who don’t have equity from an existing home to put toward a new home purchase. Uncertainty over the economy and job market are also keeping many would-be buyers on the sidelines.

The sales slowdown means more homes are staying on the market longer.

There were 1.22 million unsold homes at the end of January, down 0.8% from December and up 3.4% from January last year, NAR said. That’s still well short of the roughly 2 million homes for sale that was typical before the COVID-19 pandemic.

January’s month-end inventory translates to a 3.7-month supply at the current sales pace. Traditionally, a 5- to 6-month supply is considered a balanced market between buyers and sellers.

Finding adventure, friendship on a women-only trip in Vietnam

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By Lori Rackl, Tribune News Service

Light brown floodwaters lapped at the entrance to Vy’s, a restaurant, market and cooking school in Hoi An.

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Spill-off from the nearby river continued to rise while we spent the afternoon at this popular tourist spot, learning how to make spring rolls and the sizzling Vietnamese crepes known as banh xeo. By the time class ended, the streets looked like they were covered in iced coffee throughout Hoi An’s Old Town, a UNESCO World Heritage site.

We would have to leave Vy’s by boat.

“This is definitely an adventure,” quipped Cheryl from Cleveland as we gingerly stepped into a wooden vessel festooned with silk lanterns and fake flowers.

Cleveland Cheryl and I, along with 15 others, were on a Vietnam and Cambodia trip with AdventureWomen, a pioneer in the rapidly expanding world of female-only travel. The U.S.-based company has been running tours exclusively for women since 1982. More recently, many of the big names in active travel — Intrepid, Backroads, Butterfield & Robinson— also launched trips solely for females. They’re responding to women’s growing demand for small-group travel that promises elements of both safety and sisterhood.

Dr. Phan Thuan Thao serves a Vietnamese vegetable and noodle dish her mother helped cook in their home in Hue. (Lori Rackl/Lori Rackl/TNS)

“I like the camaraderie of traveling with other women,” said Peggy from California. She’d been on two other AdventureWomen trips before this one. “I still keep in touch with the Galapagos girls.”

Our group ranged in age from 45 to 72, plus a younger AdventureWomen employee — Emily from Pittsburgh — who was there to make sure things went smoothly. Depending on the destination, local female guides usually lead AdventureWomen trips. We had a man. Mr. Nam. This unflappable father of two looked after us like we were his children but treated us like adults.

“Ladies, stay close together like sticky rice,” Mr. Nam would say when it was time to usher us across the frenetic streets of Hanoi, where swarms of cars and motorbikes can rattle even the boldest pedestrians.

Swarms of motorbikes fill the streets of Hanoi. (Lori Rackl/Lori Rackl/TNS)

“Traffic in Vietnam isn’t about waiting in line,” he warned. “It’s fill-in-the-blank.”

The buzzing capital city marked the jumping-off point for our 11-day trip, which called for using planes, motor coaches and a boat to hopscotch across Vietnam. Our journey would end with a two-night stay in neighboring Cambodia, where we’d be blessed by Buddhist monks and visit Angkor Wat, a sprawling religious site on many travelers’ bucket list. But there was a lot of game to be played between that first, sensory-overloaded November day in Hanoi and our tranquil sunrise visit to the most famous temple complex on the planet.

A Buddhist monk talks to a child not too far from the famed temple complex of Angkor Wat in Cambodia, where we spent the final two days of the trip. (Lori Rackl/Lori Rackl/TNS)

A cup of Hanoi’s legendary egg coffee helped shake off some of my jet-lag stupor as Mr. Nam shepherded us through the Old Quarter, where shops flanking the crowded streets sold everything from wedding cakes to tombstones. On the sidewalk, people sat in kindergartner-sized plastic chairs, eating bowls of mung bean sticky rice and fragrant pho, the national dish of Vietnam. Motorbikes whizzed by, the meep-meep honk of their horns ingrained in the city’s soundtrack.

It felt good to escape the cacophony the next day on a 13-mile bicycle ride through nearby rice fields. Women working in the paddy put down their machetes to come over, say hi and offer us snacks and tea. We took turns snapping photos of each other, with them in their conical hats made of palm leaves and bamboo and us sporting bike helmets.

The chaos of Hanoi faded even further when we boarded our private boat in Ha Long Bay, a watery maze made up of more than 1,000 limestone islands. The UNESCO site has evolved into a magnet for traditional wooden “junk” boats full of day-tripping tourists.

Mr. Nam, right, loads our AdventureWomen group into boats he hired to transport us across the flooded streets of Hoi An. (Lori Rackl/Lori Rackl/TNS)

Our two-night cruise ventured beyond this crowded playground to the equally dramatic Bai Tu Long Bay, where we kayaked and bonded over sunsets and the ship’s happy-hour drink specials. A few of the women in our group were friends back home. Most of us had never met. Having a 12-cabin ship all to ourselves, we got to know each other quickly. Days started with morning tai chi on the top deck. They culminated with fishing for tiny squid near the stern of the boat, under the stars.

Morning tai chi as we cruised Bai Tu Long Bay on our private boat. (Lori Rackl/Lori Rackl/TNS)

Back on land, we clung to the coast as Mr. Nam led us south, hitting highlights like the Imperial City of Hue (more UNESCO) and Hoi An, an ancient trading port brimming with colorful lanterns, illuminated boats and countless silk shops hawking quick-turnaround, bespoke clothing. The latter led to some spirited communal shopping as we hit each other up for fashion advice.

AdventureWomen guests take turns posing for photos in a stall full of lanterns in Hoi An, a town that’s famous for these colorful souvenirs. (Lori Rackl/Lori Rackl/TNS)

We mostly managed to avoid the punishing rain that’s become more common in this flood-prone nation. In Hue, we had dinner at a woman’s home where hundreds of her books were piled high on a top shelf. She put them there to protect them from a recent flood. She left them there because more storms were on the way.

The woman, Dr. Phan Thuan Thao, is a single mom, music scholar and descendant of one of Vietnam’s last emperors. She showed us an upper section of the house where she was trapped for days as a child, waiting for floodwaters to recede. Her 86-year-old mother helped cook our multicourse feast, garnished in typical Vietnamese fashion with intricately carved carrots, cucumbers and other veggies.

Buddhist monks in Cambodia gave our group a water blessing that culminated with tying string bracelets around our wrists. (Lori Rackl/Lori Rackl/TNS)

Getting a glimpse into the lives of local women and hearing their stories adds a special element to female-only trips. At Vy’s cooking school in Hoi An, our instructor, Lulu, talked about the challenges of raising a teenage daughter and the stress of dealing with major floods for the fourth time that year — more than she’s ever seen in such a short span. The adjoining restaurant’s heavy freezers had to be carried up flights of stairs. Reservations canceled.

The water level outside was already ankle-deep when we arrived at Vy’s. Mr. Nam bought all of us plastic sandals at the market so we wouldn’t ruin our shoes.

On the top-floor cooking studio, where it was dry, Lulu guided us through the steps of making mango and prawn salad. The 45-year-old chef shared a story about leaving her poor village in the mountains and coming to Hoi An at age 13. The owner of Vy’s, cookbook author and restaurateur Trinh Diem Vy, took the young Lulu under her wing. She gave her a job. Later, when Lulu got married, she gave her a house.

Exploring Bai Tu Long Bay, a less crowded alternative to Vietnam’s popular Ha Long Bay. (Lori Rackl/Lori Rackl/TNS)

“She saved me,” Lulu said, getting a little choked up. She soon snapped back into work mode, beckoning us to the front of the kitchen classroom so we could get a closer look at how to prep and pour the batter for the sizzling crepes.

Lulu surveyed our faces as we gathered around her cooking station.

“You family?” she asked.

We laughed and shook our heads no.

The last day of the trip started with a sunrise visit to Cambodia’s famed Angkor Wat temple complex. (Lori Rackl/Lori Rackl/TNS)

“Friends?” she asked again, trying to understand what brought 17 women from the U.S. to her corner of Southeast Asia.

The silence lasted a couple seconds before Jill from Minnesota swooped in with the perfect response: “New friends.”

©2026 Tribune Content Agency, LLC.

US stocks drift as investors try to separate AI winners from losers

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By STAN CHOE, Associated Press Business Writer

NEW YORK (AP) — U.S. stocks are drifting in mixed trading Thursday as the market splits further between perceived winners and losers from the rush into artificial-intelligence technology.

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The S&P 500 rose 0.2% and was sitting a bit below its all-time high set late last month. The Dow Jones Industrial Average was up 267 points, or 0.5%, as of 10:15 a.m. Eastern time, and the Nasdaq composite was 0.2% lower.

On the winning side of the market was Equinix, which jumped 11.6% even though the digital infrastructure company’s results for the latest quarter came up short of analysts’ expectations. It gave financial forecasts for 2026 that topped analysts’ expectations, and CEO Adaire Fox-Martin said that “demand for our solutions has never been higher.”

The company’s data centers are helping to power the world’s move into AI.

So are Nvidia’s chips, and its stock ticked up by 0.9%. Because the AI frenzy has turned Nvidia into Wall Street’s most valuable stock, the chip company was the strongest single force lifting the S&P 500.

At the same time, some companies are feeling the downside of the rush into AI.

AppLovin fell 15.5% even though it reported a stronger profit for the latest quarter than analysts expected. Like other software companies, it’s come under pressure recently from worries that AI-powered competitors will steal customers, and its stock came into the day with a loss of 32.2% for the young year so far.

AppLovin CEO Adam Foroughi pushed back on such worries, saying in a conference call with analysts that indicators show his company is doing well. “There’s a real disconnect between market sentiment and the reality of our business,” he said.

Cisco Systems sank 9.8% despite likewise topping analysts’ expectations for profit and revenue last quarter. The tech giant indicated that it may make less profit off each $1 of revenue during the current quarter than it did in the past quarter.

Analysts said that could be an indicator of higher prices for computer memory that everyone is having to pay amid a rush driven by AI.

More broadly, questions are rising about whether the businesses spending heavily on AI and paying companies like Equinix and Nvidia will end up seeing high-enough profits and productivity to make the investments worth it.

Outside of tech, McDonald’s swung between gains and losses and then rose 0.3% after reporting a stronger profit for the latest quarter than analysts expected. The restaurant chain credited moves to improve its value and affordability, including cutting prices on some U.S. combo meals in September.

In the bond market, Treasury yields ticked lower after a report said slightly more U.S. workers filed for unemployment benefits last week than economists expected.

Still, the number was lower than the prior week’s, which is a signal that the pace of layoffs may be improving. It also followed a surprisingly strong report on the job market from Wednesday, which said the nation’s unemployment rate improved last month.

A strengthening job market could push the Federal Reserve to keep its cuts to interest rates on pause, even if President Donald Trump has been loudly and aggressively calling for lower rates. That’s because lower rates can worsen inflation at the same time that it gives the economy a boost.

It all raises the stakes for Friday’s upcoming report on inflation at the U.S. consumer level. Economists expect it to show inflation eased to 2.5% last month from 2.7% in December.

A separate report on Thursday said that sales of previously occupied homes slumped last month by more than economists expected, which also weighed on yields.

The yield on the 10-year Treasury slipped to 4.14% from 4.18% late Wednesday.

In stock markets abroad, South Korea’s Kospi rushed 3.1% higher thanks to gains for Samsung Electronics, SK Hynix and other tech stocks. The moves were more modest in other Asian markets.

In Europe, Germany’s DAX returned 1.2%, and France’s CAC 40 rose 1% for two of the world’s bigger moves.

AP Business Writers Chan Ho-him and Matt Ott contributed.

Q&A: Roxy Music’s Phil Manzanera shares stories from the Cuban Revolution to stardom

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In 1971, guitarist Phil Manzanera was a 20-year-old rock guitarist without a band. Then, a friend showed him an ad in Melody Maker magazine for a band that needed someone just like him.

“The Perfect Guitarist for Avant-Rock Group,” the ad read. “Original, creative, adaptable, melodic, fast, slow, elegant, witty, scary, stable, tricky.”

Call Roxy, it finished, and Manazanera did just that.

“I was sort of up to here with playing prog rock,” Manazanera says of his previous band, Quiet Sun. “I’d been playing 13/8 bars, 15/8 or 7/8,” he says of the complicated time signatures progressive rock bands required. “I just wanted out, and I loved the Velvet Underground.

“So I met these guys, arty guys, older than me, sort of grown-up,” he says on a recent video call from his home in England. “You know, they had bank accounts and a loan to buy a PA.

“They could hardly play, to be quite quite honest,” Manzanera says, laughing. “You know, ‘So let’s have a jam.’ OK, two chords.

“And a little bubble in my head said, ‘I’m joining the Velvet Underground. They only had two or three chords, and it worked.’”

The band, which would soon change its name to Roxy Music to avoid conflict with an American band called Roxy, included singer Bryan Ferry, saxophonist-keyboardist Andy Mackay, Brian Eno on electronics, with drummer Paul Thompson soon to join.

Manzanera felt a musical kinship with what the band, which was playing live gigs but had yet to make a record, was doing.

“I felt on my musical palette there was all sorts of music I had in common with the other guys,” he says. “The main one was the Velvet Underground, but we all loved Motown; we liked pop songs. Goes without saying the Beatles, the Stones, the Kinks, all that kind of thing.

“I thought, ‘Well, I could slip into this and be useful,’” Manzanera says. “Of course, I did fail the audition, didn’t I?,” he laughs. “But I did manage to wheedle my way in eventually.”

Months later, just three days after Manazanera turned 21, Roxy Music invited him in to replace the guitarist who’d won the audition advertised in Melody Maker. Since February 1972, he, Ferry, Mackay, and Thompson have been the lineup of Roxy Music whenever the band’s been active.

“You know, how lucky were they?” he says, grinning. “Because the first time, they couldn’t see it.

“It turned out OK.”

Manzanera currently is touring “An Evening Of Words And Music With Roxy Music’s Phil Manzanera.” He’ll mix music with stories from his recent memoir, “Revolución to Roxy,” which traces a boyhood spent in Cuba, Venezuela, Colombia and Hawaii – his mother was Colombian – to his teenage years in a British boarding school – his father was English – and the life in rock and roll that followed.

In an interview edited for length and clarity, Manzanera discussed the discoveries he made while researching his memoir, his lifelong love affair with the guitar and more.

Q: We’ll talk about the memoir and its companion album, but is that your original Spanish guitar I see there in the background?

A: Funny enough, that is. That’s the Cuban one that was my mum’s that I started playing in 1957. It’s pretty cool when you look inside. It’s a made-in-Havana 1956 or ’57. [His father opened an office for the British airline BOAC in Havana in 1957.]

And actually, hanging down next to it is the gold epaulet of the dinner jacket of the chief of staff of the dictator [Fulgencio] Batista that I, as a 7-year-old, stole from his house after it was looted.

Q: Because you made friends with the guard after the revolutionaries toppled the government?

A: Took him some coffee, and he said, “Do you want to go in?” And so in I went.

Q: What motivated you to write a memoir?

A: You know, sometimes I hear people say, “Oh, my parents died, and I wish I’d asked more questions about what happened in the early parts of their lives.

I guess that makes one start thinking. I thought, “I wonder if my mum knew about my dad’s background.” [Late in life, after the death of his parents, Manzanera learned his father was born out of wedlock when his grandmother had an affair with a traveling Italian musician.]

We started exploring and going to the National Archives here in Kew and finding letters dating back to the ’30s. One thing led to another.

Q: That must have been fascinating.

A: There was a story there, I thought, for me to pass on to my grandchildren on one side. And I realized I’ve actually got 60 Colombian cousins who probably have no idea where they came from.

But actually, one of the big triggers was Brexit in the U.K. when England committed the biggest act of self-harm to themselves, when they came out of Europe. It meant you could no longer go to Europe with the British passport, really.

An article appeared in the Times newspaper here saying that if you had Sephardic Jewish ancestry, you could get a Portuguese passport or a Spanish passport. I was so annoyed about Brexit, I thought, “We’re going to fool the system.” So I started investigating everything. [He ultimately found proof of his Sephardic roots and got the Portuguese passport.]

Then I thought, “Well, why don’t I just put it all down?” I said, “Well, I must chuck in bits about being in a band, because they’ll want to know about that,” you know, and the music lives on. So hey, let’s just go and have some fun.

Q: And you’ve continued to research your family history even after the memoir came out in England in 2024?

A: So many other developments have happened. Just one little snippet. One of my ancestors, the great-great-great-great-grandfather, was the most famous Jewish pirate of the Caribbean [Moses Cohen Henriques], the right-hand man of Captain Morgan. I went to his website, he’s got a website, and I found that Sean Paul, the Jamaican dancehall rapper, is related to him.

I’m trying to send him a message, saying, “You’re not going to believe this … .

Q: Let’s talk about your boyhood and what it was like to focus on remembering how it was.

A: Remember that for the last 50 years I’ve been doing interviews. But to be fair, for the first 10 years, nobody ever asked me about my background in South America, being Latino, or whether my mum was British, or anything.

But the fact that I begged my parents to send me to boarding school in London, [and I] literally arrived in September 1960, was just so lucky. Because I arrived, and within a year, the Beatles happened, the Stones happened, the Who happened, the Kinks happened. Hendrix arrives in England. It just explodes.

And then age 16, to go and meet David Gilmour [of Pink Floyd, whom Manzanera’s older brother knew through school] and ask him how to become a professional musician. It’s just mind-blowing. The chance, the accidents of birth. You get to my age, you’re trying to make sense of what happened. Hang on, what happened there?

Q: You were 7 when he started playing your mother’s guitar, and barely into your teens when you told your family you wanted to make guitar your career. Tell me about the appeal of the guitar to you so young.

A: Well, there is just the thing of vibrations. Any instrument, really, it affects the sound around you. And obviously, guitar is easy to sort of have around you because it’s small. But I guess because my mother started having guitar lessons.

She was from Barranquilla, Colombia, and she was very lively. She was into groove and dancing and she was slightly extroverted. When I was pulling on those strings and annoying her, she just said, “I’m going to have to show you because you’re going to destroy my guitar.”

So it caught me, the sound of moving frequencies, and it stayed with me the whole of my life. It’s been a companion and helped me with my life. Music is good for your mental health and also your physical health. You dance your troubles away quite frankly. Whatever is going on, you put on like a groovy beat, and you dance to it and people are sort of happy.

I have a 14-month-old grandson. I bought him a three-string guitar, and I taught him already not to pull the strings, just to strum them. I open-tune it and I have an open-tune guitar and we sort of communicate. It’s extraordinary.

Q: Roxy Music wasn’t like other bands at the time, and is considered one of the earliest art rock bands.

A: I knew about art rock in the sense [of the Velvet Underground], Andy Warhol, Lou Reed, John Cale, a guy from the U.K. But also, I knew the Who, who were very much like an art rock band, but a different kind of art. You know Pete Townshend’s teacher at art school was the game guy who taught Brian Eno.

So I saw connections there. And the Beatles were like, well, they were everything, but they were an art rock group too, and combined visual things with amazing imagery and metaphors and their lyrics. By then, the psychedelic has seeped into everything, which made everything so colorful.

Q: I was really interested in the chapters where you write about your experiences as a producer for Spanish-language rock bands like Heroes del Silencio and Aterciopelados and others.

A: What I’ve done is produce what they call Rock en Español. And one of the ways I could contribute was the fact that I had done loads of albums and been taught how to produce albums by somebody who had worked with George Martin, Chris Thomas, George Martin’s assistant. So the tradition of the Beatles, Abbey Road, how to lay down and record tracks properly.

When I started producing artists like Fito Páez from Argentina, Draco Rosa from Puerto Rico, Aterciopelados from Colombia, the grooves do have some element of each country’s grooves, but also coming from pop music and rock music. So Elvis Costello, the Beatles, or reggae or English ska, something like that.

Q: You write about how you really tried to enjoy Roxy Music’s 50th anniversary tour in 2022 more than you’d been able to enjoy earlier ones. What did it end up being like for you?

A: One of the great things about that tour, it was the first time ever we were able to play our songs in a visual context that actually was fabulous. We hadn’t realized how expensive it was until the tour was finished. [He laughs] But I don’t regret it one minute. Those screens and the way it was laid out. All the Warhol stuff.

Obviously, we’re numpty musicians. We didn’t get the proper permission to do it. When we went to New York, the Warhol people came and said, “What the [bleep]?” And a huge bill came in.

But it was great to be able to play the music in the visual context for the first time, and as it turns out, the last time ever people will see Roxy. That was such a thrill.

Q: I saw it at the Forum, and people were loving the whole show.

A: It was exciting to see the reaction of the people, the resonance. You could see them reliving moments. I was looking at them thinking, “Wow, this is such a vibe.” That’s why at the end I was sort of waving, saying, “This has been great. Thanks. You won’t see us again.”

So I really was so pleased that I enjoyed it. I’d say to Bryan, “I really hope you’re enjoying it, because this is about over. It’s not going to get any better than this.”

I feel so lucky to have had the opportunity.

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