Consumer News: The increase in car insurance can cost families the equivalent of months of groceries

But affordability remains strained

By Mark Huffman of ConsumerAffairs

• The average 30-year fixed mortgage rate slipped to 6.67% this week, its first decline in six weeks, but remained above 6.58% a year earlier.

• High borrowing costs and record prices pushed existing-home sales down 1.7% in July, while first-time buyers continued to lose ground.

• Buyers are gaining negotiating power in some markets as listings and price reductions increase, but affordability remains the central obstacle.

Mortgage rates edge lower, but housing market remains stuck in an affordability squeeze

The average U.S. mortgage rate declined slightly this week, offering prospective homebuyers a measure of relief but little immediate escape from the affordability pressures weighing on the housing market.

The average rate on a 30-year fixed mortgage fell to 6.67% as of Aug. 13, down from 6.69% the previous week, according to Freddie Macs Primary Mortgage Market Survey. It was the first weekly decline in six weeks, although the rate remained higher than the 6.58% average recorded a year ago.

The average 15-year fixed rate also fell, to 5.96% from 6.01%. A year earlier, it averaged 5.71%.

Better than a year ago

Freddie Mac said housing affordability had improved from a year ago and noted that recent increases in purchase and refinancing applications showed borrowers responding to even modest changes in rates. Mortgage applications rose 3.6% in the first week of August, including a 3% increase in purchase applications and a 5% rise in refinancing demand, according to Mortgage Bankers Association data.

Still, the latest decline is too small to change the financial equation substantially for most households. A buyer borrowing $400,000 at 6.67% would face a monthly principal-and-interest payment of about $2,574. That excludes property taxes, insurance, homeowners association fees and other ownership expenses.

Rates also remain far above the exceptionally low levels available during the pandemic. Many current homeowners have mortgages below 4%, creating a lock-in effect that discourages them from selling and taking out a new, substantially more expensive loan.

Expensive combination

The combination of elevated rates and high prices is keeping the market unusually sluggish. Sales of previously occupied homes declined 1.7% in July to a seasonally adjusted annual rate of 4.06 million, according to the National Association of Realtors. Sales were nevertheless 0.7% higher than a year earlier.

The national median existing-home price rose 2% from a year ago to $434,100, setting a record for July. The market had 1.54 million unsold homes at the end of the month, equivalent to a 4.6-month supply at the current sales pace.

First-time buyers accounted for just 29% of July transactions, well below their historical share of roughly 40%. That group is especially sensitive to rates because its members generally have less home equity or sale proceeds to apply toward a down payment. The share of all-cash buyers and older homeowners in the market can further disadvantage younger, mortgage-dependent shoppers.

Sellers face more pressure

The result is a market that is loosening without becoming more affordable. Sellers are facing more pressure to adjust expectations, particularly in regions where supply has recovered, but prices have not fallen enough to offset financing costs.

The median U.S. listing price was $428,950 in July, down 2.4% from a year earlier, according to Realtor.coms monthly housing report. Active listings increased 2.1%, while 20% of homes on the market had received a price cut. Inventory, however, was still 11.6% below typical 20172019 levels.

Conditions vary sharply by region. July listing prices were down 3.9% in the West and 2.5% in the South, while prices edged 0.2% higher in the Midwest. More than 30% of listings in Portland and Denver had price reductions, compared with fewer than 10% in Hartford and New York City.

That divergence means buyers in some Sun Belt and Western markets may have room to negotiate over price, repairs or closing costs. Buyers in parts of the Northeast and Midwest, where inventory remains comparatively tight, can still face competition for desirable properties.

The outlook depends heavily on inflation and the bond market. Mortgage rates do not move directly with the Federal Reserves benchmark rate; they tend to track the 10-year Treasury yield and investors expectations for inflation and economic growth. Recent easing in Treasury yields helped mortgage rates retreat this week.

Charitable donations up to $1,000 per taxpayer are now deductible

By Mark Huffman of ConsumerAffairs

• A new federal tax provision will allow non-itemizers to deduct up to $1,000 in qualifying cash donations, or $2,000 for married couples filing jointly, beginning in 2026.

• Donors must keep a bank record or written receipt for every cash gift, while contributions of $250 or more require a detailed acknowledgment from the charity.

• Taxpayersnot charitable organizationsare responsible for ensuring donation records satisfy IRS requirements before filing.

A federal tax break for charitable giving will return in 2026, allowing millions of Americans who claim the standard deduction to receive a tax benefit for qualifying cash donationsbut only if they keep the proper records.

Single filers will be permitted to deduct up to $1,000 in eligible cash contributions, while married couples filing jointly may deduct as much as $2,000, according to Samuel Handwerger, an accounting lecturer at the University of Marylands Robert H. Smith School of Business.

The above-the-line deduction could apply to roughly 90% of taxpayers, many of whom have had little reason to retain charitable receipts since the standard deduction was substantially increased under the 2017 tax law.

Although the deduction is changing, the documentation rules are not. Handwerger said the restored benefit remains subject to the substantiation requirements of Section 170 of the Internal Revenue Code.

Youll need these records

Every cash donation requires either a bank recordsuch as a canceled check or credit card statementor a written record from the charity identifying the organization, donation date and amount.

For individual contributions of $250 or more, taxpayers must obtain a written acknowledgment from the charity by the time they file their return. The document must also state whether the donor received any goods or services in exchange, such as a meal, event ticket or merchandise, and give their value when applicable.

That language can be decisive even when there is no dispute that a donation was genuine.

In the 2012 case Durden v. Commissioner, David and Veronica Durden claimed more than $25,000 in donations to their church. Although they retained canceled checks and received a letter listing their gifts, the IRS disallowed more than $22,000 because the acknowledgment failed to say whether the church had provided anything in return.

The church later issued a corrected letter, but the Tax Court rejected it because the document was obtained after the relevant filing deadline and was therefore not contemporaneous.

The donor bears the responsibility

The case illustrates an often-overlooked aspect of charitable deductions: the donor bears responsibility for obtaining a compliant acknowledgment. If a receipt is incomplete, taxpayers should ask the charity for a corrected version before submitting their return.

Handwerger advised donors to rebuild the recordkeeping habits that may have faded during the years when most households received no tax benefit from charitable contributions.

The product was distributed in 12 states and online

By Mark Huffman of ConsumerAffairs

• Omas Pride is recalling 639 six-pound bags of frozen raw Woof Complete Canine Chicken Recipe after the product was found to contain Salmonella.

• The recall covers only lot BB012729, with a manufacturing date of Jan. 27, 2026, and a best-by date of Jan. 27, 2029.

• Consumers should stop feeding the product immediately, dispose of it safely and contact the company for a refund.

Omas Pride has recalled one lot of its frozen raw dog food because of Salmonella contamination, a health risk that can affect both pets eating the food and people handling it.

The Avon, Connecticut-based company is recalling 639 six-pound bags of Woof Complete Canine Chicken Recipe, according to an announcement posted by the U.S. Food and Drug Administration.

The recall applies specifically to:

• Product: Woof Complete Canine Chicken Recipe

• Package size: 6 pounds

• Lot number: BB012729

• Item/SKU: F-WOOFC-6

• UPC: 8 7938400145 9

• Manufacturing date: Jan. 27, 2026

• Best-by date: Jan. 27, 2029

Sold in 11 states

Each stand-up pouch contains 12 individually wrapped, eight-ounce vacuum-sealed portions. The product was distributed frozen to retail and wholesale customers in Arizona, California, Indiana, Kentucky, Louisiana, Maryland, New Jersey, Nevada, New York, Pennsylvania and Virginia. It was also shipped directly to consumers through online orders.

No other Omas Pride products, package sizes or lots are included in the recall, the company said. The FDA notice did not specify whether any illnesses had been reported in connection with the recalled food.

Salmonella can cause illness in dogs that consume contaminated food. Symptoms in pets may include lethargy, diarrhea or bloody diarrhea, fever, vomiting, reduced appetite and abdominal pain. Some infected animals may appear healthy but can still carry the bacteria and spread it to people or other animals.

What to do

Pet owners should contact a veterinarian if an animal ate the recalled food and subsequently developed symptoms.

People can be exposed by handling contaminated pet food or touching bowls, utensils, storage containers and other surfaces that came into contact with it. Human symptoms can include nausea, vomiting, diarrhea or bloody diarrhea, abdominal cramps and fever.

In uncommon cases, Salmonella infection can lead to more serious conditions, including arterial infections, endocarditis, arthritis, muscle pain, eye irritation and urinary tract symptoms. Anyone who develops symptoms after contact with the product should consult a healthcare provider.

Consumers should stop feeding the recalled food immediately and dispose of it where children, pets and wildlife cannot reach it. The product should not be sold or donated.

The company also advised customers to wash and sanitize pet bowls, cups, storage containers and any utensils or surfaces that may have touched the food. Hands should be washed thoroughly after handling the product or cleaning contaminated items.

Consumers may contact Omas Pride for a refund by calling 1-800-678-OMAS between 8 a.m. and 5 p.m. Eastern time, Monday through Friday, or by emailing hello@omaspride.com.

Omas Pride said it is investigating the contamination and conducting the voluntary recall in coordination with the FDA.

Stop buying storage bins and start making decisions these practical rules can help

• Stop organizing and storing stuff you dont actually need. Declutter first, then buy storage only if you still need it.

• Set rules that make decisions easier. Ask whether you'd buy an item today and use a seven-day deadline for selling it.

• Make clutter actually leave your home. Create a donation spot, use a one-in-one-out rule, and end every session with something going out the door.

Most of us don't have a storage problem. We have a too-much-stuff problem.

That's an important distinction because the first solution usually involves buying shelves, plastic tubs and elaborate closet organizers. The second solution is considerably cheaperowning less stuff.

But getting rid of things is harder than it sounds. There's the $150 appliance you haven't used in years, the clothes that might fit again someday, and the mysterious charging cable you're afraid to throw away because you're certain you'll need it again.

If youre feeling a bit overwhelmed, try these practical tips designed to make decluttering faster, cheaper, and considerably less painful.

1. Start with the stuff that requires zero thought

Don't begin with your wedding photos or the box of your kids' kindergarten artwork.

Start with the easy victories. Things like expired food, broken toys, dried-up pens, empty boxes, and if youre like me, those instruction manuals for appliances you no longer own.

These items require almost no emotional decision-making, and getting them out immediately creates visible progress which is important.

Once you've filled one trash or recycling bag, tackling the harder stuff doesn't seem nearly as intimidating.

Pro tip: Start with trash, not treasures. Give yourself 15 minutes and walk through the house looking only for things that unquestionably belong in the trash or recycling. Don't make any difficult decisions yet.

2. Ask the replacement question

Here's one of the most useful questions you can ask while decluttering: If I didn't already own this, would I buy it today?

It's a much better question than, "Could I possibly use this someday?" You could potentially use almost anything someday. And that's how garages end up containing 14 extension cords and six half-empty cans of paint.

Instead, imagine that the item disappeared overnight. Would you spend your hard-earned money replacing it?

If the answer is no, you've learned something important about how much you actually value it.

3. Don't turn a $15 item into a three-week project

This is where good decluttering intentions go to die.

You find something you don't want and immediately think: "I could sell this."

Next thing you know, youre snapping pics of a $15 lamp, writing a Facebook Marketplace listing, and answering "Is this available?" multiple times. Not worth the hassle in most cases.

Your time absolutely has value, so be sure to set a minimum selling threshold before you consider reselling things. Maybe you'll only individually sell items likely to bring in $30-$40 or more.

Everything below that gets bundled, donated, given away, or recycled.

Pro tip: I like to use the seven-day sales rule. If an item doesn't attract a legitimate buyer within seven days, reduce the price once. If it still doesn't sell, donate it. Dont let your "for sale" pile become permanent dcor in your bedroom or garage.

4. Create an outgoing lane

Most homes have places where clutter enters. Could be the kitchen counter, the table near the front door, or maybe the Amazon boxes in the laundry room. Far fewer homes have a designated place for all things that are leaving. So consider creating one.

Put a donation box somewhere accessible that the whole family can use. Maybe in the garage, laundry room, or coat closet. Then, when someone encounters something they don't want, they know exactly where it goes. There's no more throwing it in the corner to deal with it later.

When the box is full, its a goner. This turns the idea of decluttering from an occasional exhausting project into something that happens continuously and keeps it from getting out of control.

5. Don't buy organizers until you're finished

Don't start your decluttering project at The Container Store. This tip may save you more money than anything else in this article.

Storage bins are excellent at one simple thing: allowing us to keep more of our stuff.

Before buying a single organizer, remove everything you don't need. Then put what's left away.

You may discover you don't need additional storage at all. If you still need organizers, measure the space and buy exactly what fits.

Pro tip: Declutter first, organize second, shop third. Reversing that order often means spending money to neatly store possessions you should have gotten rid of.

6. Close the front door to new clutter

There's no point removing 10 items if you're going to buy 15 replacements. Instead, try a simple "one-in, one-out" rule for the categories that tend to multiply.

When you buy a pair of shoes, one pair leaves. New coffee mug? Goodbye, old mug. New sweatshirt? Pick one you don't wear.

For serious clutter zones, make it one-in, two-out until you've reached a comfortable amount. Better yet, institute a 30-day buying pause on nonessential household items while you're decluttering. By thinking this way, you'll often discover that you already own most of what you need.

7. Be smart about where your stuff goes

Not everything belongs in a trash can.

Items in good condition can go to charities, thrift stores, Buy Nothing groups, friends, or family. Electronics, batteries, paint, and other potentially hazardous materials may require specialized recycling at places like Best Buy or Home Depot.

If you're donating to an unfamiliar organization, verify it first. The Federal Trade Commission (FTC) recommends researching charities and checking their names along with terms such as "complaint," "review," "rating," or "scam."

Also, check donation rules before loading up your truck. Many organizations will reject mattresses, damaged furniture, recalled products, or other items they can't safely resell.

And don't use "I need to find the perfect person to give this to" as another excuse to keep something indefinitely. Finding a good enough destination today is usually better than finding the perfect destination six months from now.

The final rule: Something has to leave today

Make sure every decluttering session ends with something physically leaving your house.

Put the trash in the outside bin. Take the donations to your car. Drop off the electronics for recycling. Hand the giveaway to your neighbor.

And always keep in mind that the goal isn't to make massive organized piles in the living room, it's to have less stuff cluttering your life.