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OpenAI and Taiwan’s Foxconn to partner in AI hardware design and manufacturing in the US


Summary:

  • and announce U.S. partnership to co-develop AI hardware
  • Foxconn to build cabling, networking and power systems in U.S. factories
  • Collaboration part of OpenAI’s $1.4 trillion AI infrastructure expansion
  • Deal aims to bolster U.S. leadership and keep AI innovation local

TAIPEI, (AP) — OpenAI and Taiwan electronics giant Foxconn have agreed to a partnership to design and manufacture key equipment for in the U.S. as part of ambitious plans to fortify American AI infrastructure.

Foxconn, which makes AI servers for and assembles Apple products including the iPhone, will be co-designing and developing AI data center racks with OpenAI under the agreement, the companies said in separate statements on Thursday and Friday.

The products Foxconn will manufacture in its U.S. facilities include cabling, networking and power systems for AI data centers, the companies said. OpenAI will have “early access” to evaluate and potentially to purchase them.

Foxconn has factories in the U.S., including in Wisconsin, Ohio and Texas. The initial agreement does not include financial obligations or purchase commitments, the statements said.

The Taiwan contract manufacturer, formally known as Hon Hai Precision Industry Co., has been moving to diversify its business, developing electric vehicles and acquiring other electronics companies to build out its product offerings.

A sleek Model A EV made by the group’s automaking affiliate Foxtron was on display at Friday’s event.

“This year, Model A. ‘A’,’ for affordable,” said Jun Seki, chief strategy officer for Foxconn’s EV business.

The tie-up with OpenAI can also help Taiwan, a self-governed island claimed by China, to build up its own computing resources, said Alexis Bjorlin, a Nvidia vice president.

“This allows Taiwan’s domain knowledge and key technology data to remain local and ensure data security,” she said.

“This partnership is a step toward ensuring the core technologies of the AI era are built here,” , CEO of San Francisco-based OpenAI, said in the statement. “We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared.”

OpenAI has committed $1.4 trillion to building AI infrastructure. It recently entered into multi-billion partnerships with Nvidia and AMD to expand the extensive computing power needed to support its AI models and services. It is also partnering with US chipmaker Broadcom in designing and making its own .

But its massive spending plans have worried investors, raising questions over its ability to recoup its investments and remain profitable. Altman said this month that OpenAI, a startup founded in 2015 and maker of ChatGPT, is expected to reach more than $20 billion in annualized revenue this year, growing to “hundreds of billions by 2030.”

Foxconn’s Taiwan-listed share price has risen 25% so far this year, along with the surge in prices for many tech companies benefiting from the craze for AI.

The Taiwan company’s net profit in the July-September quarter rose 17% from a year earlier to just over 57.6 billion new Taiwan dollars ($1.8 billion), with revenue from its cloud and networking business, including AI servers, contributing the most business.

“We believe the importance of the AI industry is increasing significantly,” Liu said during Foxconn’s call this month.

“I am very optimistic about the development of AI next year, and expect our cooperation with major clients and partners to become even closer,” said Liu.

General Dynamics subsidiary wins $2.3B Columbia-class subs award

General Dynamics Electric Boat, the Connecticut subsidiary of -based Fortune 500 contractor , has been awarded a $2.28 billion contract modification from the U.S. for advance procurement and construction of Columbia-class fleet ballistic missile submarine hulls.

The (currently being rebranded the Department of War by the ) announced this week that the contract, awarded on Nov. 12, will require the General Dynamics subsidiary to work on SSBN hulls 828 through 832.

The company will perform 15% of the work in Newport News, 70% of the work in Groton, Connecticut, and the remaining 15% in Quonset Point, Rhode Island. Work is expected to wrap up by December 2031.

About $2.23 billion will come from the National Sea-Based Deterrence Fund, while $54.22 million will come from another Navy account used for investments in equipment and materials. The Naval Sea Systems Command is the contracting activity.

The Navy first awarded the contract in 2017, $5 billion to complete design work for the new ballistic-missile submarines and to develop components and technologies as well as missile tube module and reactor compartment bulkhead prototyping and manufacturing efforts.

The contract has been expanded several times since then. In 2020, the Navy added a $9.7 billion modification to fund construction and testing of the two Columbia-class submarines, SSBN 826 and SSBN 827. Another modification in December 2022 provided $5.13 billion for advance procurement and early construction of critical components and materials needed for five additional Columbia-class boats.

employs more than 24,000 people. General Dynamics employs more than 110,000 people worldwide and generated $47.7 billion in 2024 revenue.

Trump administration unveils new offshore drilling plan

Summary

  • proposes off , , and
  • Plan includes six California lease sales and over 20 in Alaska through 2030
  • Critics warn of environmental risks, oil spills, and harm to coastal economies
  • Administration emphasizes boosting U.S. energy production and jobs

WASHINGTON (AP) — The Trump administration announced on Thursday new oil drilling off the California and Florida coasts for the first time in decades, advancing a project that critics say could harm coastal communities and ecosystems, as President Donald Trump seeks to expand U.S. oil production.

The has been seeking access to new offshore areas, including Southern California and off the coast of Florida, as a way to boost U.S. energy security and jobs. The federal government has not allowed drilling in federal waters in the eastern Gulf of Mexico, which includes offshore Florida and part of offshore Alabama, since 1995, because of concerns about oil spills. California has some offshore oil rigs, but there has been no new leasing in federal waters since the mid-1980s.

Since taking office for a second time in January, Trump has systematically reversed former President Joe Biden’s focus on slowing climate change to pursue what the Republican calls U.S. “energy dominance” in the global market. Trump, who recently called climate change “the greatest con job ever perpetrated on the world,” created a National Energy Dominance Council and directed it to move quickly to drive up already record-high U.S. energy production, particularly fossil fuels such as oil, coal and natural gas.

Meanwhile, Trump’s administration has blocked renewable energy sources such as offshore wind and canceled billions of dollars in grants that supported hundreds of clean energy projects across the country.

Even before it was released, the offshore drilling plan met strong opposition from California Gov. Gavin Newsom, a Democrat who is eyeing a 2028 presidential run and has emerged as a leading Trump critic. Newsom pronounced the idea “dead on arrival” in a social media post. The proposal also is likely to draw bipartisan opposition in Florida. Tourism and access to clean beaches are key parts of the economy in both states.

Plans to allow drilling off California, Alaska and Florida’s coast

The administration’s plan proposes six offshore lease sales between 2027 and 2030 in areas along the California coast.

It also calls for new drilling off the coast of Florida in areas at least 100 miles from that state’s shore. The area targeted for leasing is adjacent to an area in the Central Gulf of Mexico that already contains thousands of wells and hundreds of drilling platforms.

The five-year plan also would compel more than 20 lease sales off the coast of Alaska, including a newly designated area known as the High Arctic, more than 200 miles offshore in the Arctic Ocean.

Interior Secretary Doug Burgum said in announcing the sales that it would take years for the oil from those parcels to get to market.

“By moving forward with the development of a robust, forward-thinking leasing plan, we are ensuring that America’s offshore industry stays strong, our workers stay employed, and our nation remains energy dominant for decades to come,” Burgum said in a statement.

The American Petroleum Institute said in response that the announced plan was a “historic step” toward unleashing vast offshore resources. Industry groups have pointed to California’s history as an oil-producing state and say it already has infrastructure to support more production.

Opposition from California and Florida

Sen. Rick Scott, a Florida Republican and Trump ally, helped persuade Trump officials to drop a similar offshore plan in 2018 when he was governor. Last week, Scott and fellow Florida Republican Sen. Ashley Moody co-sponsored a bill to maintain a moratorium on offshore drilling in the state that Trump signed in his first term.

“As Floridians, we know how vital our beautiful beaches and coastal waters are to our state’s economy, environment and way of life,” Scott said in a statement. “I will always work to keep Florida’s shores pristine and protect our natural treasures for generations to come.”

A Newsom spokesman said Trump officials had not formally shared the plan, but said “expensive and riskier offshore drilling would put our communities at risk and undermine the economic stability of our coastal economies.”

California has been a leader in restricting offshore oil drilling since the infamous 1969 Santa Barbara spill that helped spark the modern environmental movement. While there have been no new federal leases offered since the mid-1980s, drilling from existing platforms continues.

Newsom expressed support for greater offshore controls after a 2021 spill off Huntington Beach and has backed a congressional effort to ban new offshore drilling on the West Coast.

A Texas-based company, with support from the Trump administration, is seeking to restart production in waters off Santa Barbara damaged by a 2015 oil spill. The administration has hailed the plan by Houston-based Sable Offshore Corp. as the kind of project Trump wants to increase U.S. energy production as the federal government removes regulatory barriers.

Trump signed an executive order on the first day of his second term reversing Biden’s ban on future offshore oil drilling on the East and West coasts. A federal court later struck down Biden’s order to withdraw 625 million acres of federal waters from oil development.

Environmental and economic concerns over oil spills

Democratic lawmakers, including California Sens. Alex Padilla and Rep. Jared Huffman, the top Democrat on the House Natural Resources Committee, warned that opening vast coastlines to new offshore drilling would hurt coastal economies, jeopardize national security, ravage coastal ecosystems, and put the health and safety of millions of people at risk.

“With this draft plan, Donald Trump and his Administration are trying to destroy one of the most valuable, most protected coastlines in the world and hand it over to the fossil fuel industry,” Padilla and Huffman said in a joint statement.

One disastrous oil spill can cost taxpayers billions in lost revenue, cleanup costs and ecosystem restoration, they said.

Joseph Gordon, campaign director for the environmental group Oceana, called the Trump administration’s latest plan “an oil spill nightmare.”

Coastal communities “depend on healthy oceans for economic security and their cherished way of life,” he said. “There’s too much at stake to risk more horrific oil spills that will haunt our coastlines for generations to come.”

Virginia National Bank CFO to retire

After nine years, Tara Y. Harrison will retire as the chief financial officer of -based , which has 13 offices around the state, and its parent company, . Her successor is Cathy W. Liles, the bank holding company announced Wednesday.

Liles, a certified public accountant, will step into the position Friday, with Harrison serving as a senior adviser to assist with the transition.

Cathy Liles. Photo courtesy Old Point Financial Corporation
Cathy Liles. Photo courtesy Old Point Financial Corporation

Previously, Liles served as senior vice president and chief financial officer of Hampton-based Old Point National Bank and its bank holding company, Old Point Financial.

Prior to that, she served as senior vice president and chief accounting officer at Danville-based American National Bankshares for more than eight years. Liles has a degree in accounting and finance from Belmont Abbey College in North Carolina.

Before joining Virginia National Bank in 2016, Harrison, who is also a CPA, worked for more than a decade as director of internal audit for Charlottesville-based Stellar One Corp., which was acquired by Union First Market Bankshares Corp. in 2014. Harrison has a degree in accounting from the University of Virginia.

Harrison, who recently became a grandmother, is retiring to devote more time to friends and family.

“It’s always tough to lose a critical member of your team, but I truly understand Tara’s decision,” Glenn W. Rust, president and CEO of Virginia National Bankshares, said in a news release.

During Harrison’s tenure, she navigated the pandemic, new bank regulations and laws and a 2021 merger with Warrenton-based Fauquier Bankshares.

“Through all these challenges, the bank grew from $800 million to $1.6 billion in assets and became one of the more profitable community banks in Virginia,” Rust added.

For many years, Harrison and Liles worked together on the Committee of the Virginia Bankers Association. “I am confident that she has the skills and experience to succeed in this role,” Harrison said of her successor in a statement.

Virginia National Bankshares reported net income for 2024 of $17 million, an 11.9% decrease from the previous year. Virginia National Bank has seven offices throughout Fauquier and Prince William counties, four branches in Charlottesville and Albemarle County, and locations in Winchester and Richmond. At the end of last year, the bank had 146 full-time equivalent employees.

New York firm buys Chesapeake apartments as part of $58.2M portfolio

New York-based investment firm Newbrook Capital Properties announced this week it has acquired a two-property, 340-unit portfolio of apartment complexes in the Virginia-North Carolina border region for $58.2 million.

The portfolio includes Green Tree, a 208-unit garden-style apartment community at 749 Green Tree Circle in , and Emerald Lake, a 132-unit garden-style complex about 40 minutes south at 1500 Emerald Lake Circle in Elizabeth City, North Carolina. Newbrook purchased both properties from MRKT Capital, and they were 98% occupied at the time of the sale.

Built in 1990, Green Tree offers ranging from 575 to 950 square feet, with rents from $1,175 to $ 1,550.

Newbrook plans to renovate 70% of the unit interiors, but a company spokesperson said it was “too early” to discuss what the renovations may entail. The spokesperson also declined to discuss how the improvements may affect rent and whether Newbrook had plans to sell the property after it eventually made the improvements.

The firm tapped StoneCreek, a St. Louis-based property management firm, to manage the two complexes.

Cushman & Wakefield’s Hunter Bowling and Paul Marley represented the seller on Emerald Lake, while Berkadia’s Drew White and Carter Wood handled the Green Tree sale.

Newbrook was co-founded in late 2023 by hedge fund manager Robert Boucai and James Broyer, former president of multifamily investments at JRK Property Holdings. Since then, the firm has acquired $400 million in assets under management, encompassing over 2,000 units across Colorado, North Carolina, Ohio, Missouri and Virginia.

“Our strategy is built around identifying mispriced, high-quality assets in primary and secondary markets with durable multifamily fundamentals, limited supply, elevated occupancies, and rental upside,” said Broyer in a statement. “This approach allows us to acquire properties at an attractive cost basis with long-term fixed-rate financing and hold them for longer durations, while generating stable income growth and consistent, outsized cash yields for our investors.”

SAIC wins $1.4B task order to speed warfighting tech development

The awarded -based Fortune 500 government contractor Science Applications International Corp. ()  a $1.4 billion Collaborative Operations for Battlespace Resilient Architecture (COBRA) to assist the federal government with fast-tracking warfighting technologies from concept to combat, the company announced Thursday.

The goal behind COBRA is to give military commands flexibility to modernize existing systems across the Combined Joint All-Domain Command and Control (CJADC2) ecosystem. CJADC2 is the federal agency’s approach “to developing both material and nonmaterial solutions to deliver information and decision advantage to commanders,” according to the DOD, also known as the Department of War.

“COBRA highlights the urgent need to deliver integrated, all-domain capabilities to our warfighters,” Vincent DiFronzo, executive vice president of Air Force and combatant commands business group, stated in the announcement. “SAIC will use our proven experience, speed and flexibility to fast-track warfighting technologies from concept to combat. With rigorous execution, we will rapidly deliver next-gen capabilities that accelerate decision superiority, strengthen readiness and enhance lethality.”

As an example of COBRA’s impact, SAIC said in a news release that the U.S. Indo-Pacific Command, which is responsible for defending and promoting U.S. interests in the Pacific and Asia, could use COBRA “to deliver technological innovation for mission requirements.”

SAIC’s work on the task order will include digital engineering and new system development for CJADC2, modeling and simulation, rapid prototyping, testing, data analytics, modernization in unmanned systems and cybersecurity.

The task order comes during a time of transition at SAIC. Following on the heels of former CEO ‘s departure in October, SAIC’s executive vice presidents of its Army sector and its Space and Intelligence group, Josh Jackson and David Ray, as well as Chief Innovation Officer Lauren Knausenberger, have left “to pursue other opportunities,” the company announced Nov. 13.

That day, the company also announced it is consolidating its five business groups into three. Effective Jan. 31, 2026, the current Army and business groups will be combined as ANG, and the Air Force and Space and Intelligence (AFSI) business groups will be consolidated.

SAIC has about 24,000 employees and annual revenue of about $7.5 billion.

Data center developer to build $3B campus in Caroline

CleanArc is building a $3 billion in , Gov. Glenn Youngkin announced Thursday.

Located in Ruther Glen, the campus is expected to create 50 jobs once it’s operating at its full 900-megawatt capacity.

“Virginia is the data center capital of the world, and I am thrilled that CleanArc has selected Caroline County as the site to invest $3 billion for their newest data center campus,” Youngkin said in a statement, describing the CleanArc project as “the largest announced economic investment in the history of Caroline County.”

CleanArc, a Las Vegas-based hyperscale data center developer and operator, held a groundbreaking for the project, dubbed VA1, on Thursday. The company’s data center campus in Virginia will be its first, according to prior news releases.

“Today marks an important milestone for CleanArc Data Centers and ,” CleanArc founder and CEO James Trout said in a statement. “This new leading-edge campus reflects our commitment to delivering reliable, efficient and sustainable data center solutions while supporting the local economy and workforce.”

The facility’s first 300 megawatts of grid capacity is expected to come online in the first quarter of 2027, with the second 300-megawatt increment following in 2030. The final  300 megawatts are expected to be online in the 2033-2035 window.

CleanArc will use modular data center design and off-site manufacturing to deliver pre-engineered systems to the Caroline County site.

New York private equity firm Snowhawk is a majority investor in CleanArc, and Nuveen — the investment manager for TIAA — and Cleveland-based investment advisory firm Townsend Group are minority investors.

Brian McMullen, Snowhawk managing partner and co-founder, said in a statement: “We are thrilled to support this project, which represents a significant investment in the future of digital infrastructure and underscores our commitment to building advanced, sustainable facilities that empower businesses and communities.”

VA1 is expected to generate about $13 million in annual local tax revenue for Caroline County, about 17% of the county’s current general fund, according to a news release from CleanArc. The company is eligible for the state’s data center sales and use tax exemptions on qualifying computer equipment and enabling software.

Founded in 2022, CleanArc describes itself as a “sustainability-focused data center development and operation solutions” provider focusing on hyperscale projects. Along with its Las Vegas office, CleanArc has offices in and in Arlington, Texas.

The VA1 campus will use closed-loop water systems to reduce usage and design features to reduce noise and light pollution, according to CleanArc.

FDIC files counterclaim against Capital One in special assessment case

This week the Federal Deposit Insurance Corp. filed a counterclaim against -based , National Association, which is suing the over its 2023 of $474 million, which the bank claims is a major overcharge.

The FDIC claims in its Nov. 17 filing that Capital One, National Association, a national bank and subsidiary of , has withheld payment of about $99.4 million it allegedly owes the federal government, part of the $474 million assessed after the March 2023 failures of Silicon Valley Bank and Signature Bank.

According to Capital One’s lawsuit filed in the U.S. District Court of the Eastern District of Virginia in September, the FDIC improperly charged the bank about $149 million of the $474 million after the federal insurer took action to protect the two failed banks’ insured and uninsured depositors, using funds from the Deposit Insurance Fund.

As one of the nation’s largest FDIC-insured banks, Capital One was assessed $474 million in November 2023 to help replenish the FDIC’s insurance fund for emergencies, but that amount was “outsized and improperly calculated,” the bank alleges in its complaint.

Capital One argues that the federal special assessment rule, which the FDIC employed to determine the amount assessed to the bank, was supposed to use the uninsured deposit amount on the bank’s revised December 2022 call report. Instead, the FDIC used the intercompany position — a statistic not listed on the call report — and charged the bank a higher amount. An intercompany position refers to financial exchanges between two or more legal entities within a parent company.

The FDIC says in its counterclaim that Capital One has withheld $99.4 million of the special assessment “because it claims that funds of one of its subsidiaries … are not subject to the special assessment.”

Both Capital One and its subsidiary “identified $56 billion in funds as deposits at the time, and the subsidiary received the benefit of FDIC deposit insurance on these funds up to applicable limits. Nevertheless, [Capital One] now claims that these funds should not be counted as deposits for purposes of calculating … special assessments,” the counterclaim alleges.

It’s not clear why the two amounts — the $149 million Capital One says it does not owe the FDIC and the $99.4 million the FDIC claims the bank owes — differ. Capital One did not respond immediately to requests for comment Thursday, and an FDIC spokesperson said it had no comment beyond its counterclaim.

Nvidia sales soar as AI chip demand beats forecasts

Summary

  • ‘s AI chip sales far exceeded Wall Street forecasts
  • Results ease concerns over a potential slowdown
  • AI spending continues driving markets and the broader economy
  • Nvidia shares jumped more than 5% after the release

SAN FRANCISCO (AP) — Nvidia’s sales of the computing chips powering the craze surged beyond the lofty bar set by analysts in a performance that may ease recent jitters about a Big Tech boom turning into a bust that topples the world’s most valuable company.

The results announced late Wednesday provided a pulse check on the frenzied spending on AI that has been fueling both the stock market and much of the overall economy since released its ChatGPT three years ago.

Nvidia has been by far the biggest beneficiary of the run-up because its processors have become indispensable for building the AI factories that are needed to enable what’s supposed to be the most dramatic shift in technology since Apple released the iPhone in 2007.

But in the past few weeks, there has been a rising tide of sentiment that the high expectations for AI may have become far too frothy, setting the stage for a jarring comedown that could be just as dramatic as the ascent that transformed Nvidia from a company worth less than $400 billion three years ago to one worth $4.5 trillion at the end of Wednesday’s trading.

Nvidia’s report for its fiscal third quarter covering the August-October period elicited a sigh of relief among those fretting about a worst-case scenario and could help reverse the recent downturn in the stock market.

“The market should belt out a heavy sigh, given the skittishness we have been experiencing,” said Sean O’Hara, president of the investment firm Pacer ETFs.

The company’s stock price gained more than 5% in Wednesday’s extended trading after the numbers came out. If the shares trade similarly Thursday, it could result in a one-day gain of about $230 billion in stockholder wealth.

Nvidia earned $31.9 billion, or $1.30 per share, a 65% increase from the same time last year, while revenue climbed 62% to $57 billion. Analysts polled by FactSet Research had forecast earnings of $1.26 per share on revenue of $54.9 billion. What’s more, the Santa Clara, , company predicted its revenue for the current quarter covering November-January will come in at about $65 billion, nearly $3 billion above analysts’ projections, in an indication that demand for its remains feverish.

The incoming orders for Nvidia’s top-of-the-line Blackwell chip are “off the charts,” Nvidia CEO Jensen Huang said in a prepared statement that described the current market conditions as “a virtuous cycle.” In a conference call, Nvidia Chief Financial Officer Collette Kress said that by the end of next year the company will have sold about $500 billion in chips designed for AI factories within a 24-month span Kress also predicts trillions of dollars more will be spent by the end of the 2020s.

In a conference call preamble that has become like a State of the AI Market address, Huang seized the moment to push back against the skeptics who doubt his thesis that technology is at tipping point that will transform the world. “There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different,” Huang insisted while celebrating “depth and breadth” of Nvidia’s growth.

The upbeat results, optimistic commentary and ensuring reaction reflects the pivotal role that Nvidia is playing in the future direction of the economy — a position that Huang has leveraged to forge close ties with President Donald Trump, even as the White House wages a trade war that has inhibited the company’s ability to sell its chips in China’s fertile market.

Trump is increasingly counting on the tech sector and the development of artificial intelligence to deliver on his economic agenda. For all of Trump’s claims that his tariffs are generating new investments, much of that foreign capital is going to for AI’s computing demands or the power facilities needed to run those data centers.

“Saying this is the most important stock in the world is an understatement,” Jay Woods, chief market strategist of investment bank Freedom Capital Markets, said of Nvidia.

The boom has been a boon for more than just Nvidia, which became the first company to eclipse a market value of $5 trillion a few weeks ago, before the recent bubble worries resulted in a more than 10% decline. As OpenAI and other Big Tech powerhouses snap up Nvidia’s chips to build their AI factories and invest in other services connected to the technology, their fortunes have also been soaring. Apple, Microsoft, Google parent Alphabet Inc. and Amazon all boast market values in the $2 trillion to $4 trillion range.

Average US long-term mortgage rate rises to 6.26%

Summary

  • Average 30-year mortgage rate rises to 6.26%
  • Third consecutive weekly increase, still near yearly low
  • Rate compares with 6.84% a year ago
  • Influenced by Fed policy and bond market expectations

The average rate on a 30-year U.S. mortgage edged higher for the third week in a row, though it remains close to its low point this year.

The average long-term mortgage rate ticked up to 6.26% from 6.24% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.84%.

Three weeks ago, the average rate was at 6.17%, its lowest level in more than a year.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also inched up this week. The rate averaged 5.54%, up from 5.49% last week. A year ago, it was 6.02%, Freddie Mac said.

When mortgage rates rise they reduce homebuyers’ purchasing power. The average rate on a 30-year mortgage has been stuck above 6% since September 2022, the year mortgage rates began climbing from historic lows.

That’s helped kept sales of previously occupied U.S. homes stuck at around a 4-million annual pace going back to 2023. Historically, sales have typically hovered around 5.2 million a year.

While sales have been sluggish this year, they received a boost this fall as mortgage rates eased, remaining below 6.4% since early September. Last month, they accelerated to their fastest pace since February.

Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

The 10-year yield was at 4.10% at midday Thursday. That’s down slightly from from a week ago, but up from around 3.95% on Oct. 22.

Mortgage rates began declining this summer ahead of the Federal Reserve’s decision in September to cut its main interest rate for the first time in a year amid signs the labor market was slowing. The Fed lowered its key interest rate again last month, although Fed Chair Jerome Powell cautioned that further rate cuts weren’t guaranteed.

Wall Street traders have reduced their bets that the Fed will cut its main interest rate at its next meeting in December, now giving it a roughly 44% probability, according to data from CME Group. That’s down from nearly 70% a couple of weeks ago, but better than the 30% chance before the release Thursday of the delayed September jobs report.

The central bank doesn’t set mortgage rates, and even when it cuts its short-term rates that doesn’t necessarily mean rates on home loans will necessarily decline.