Here are three of the week's top pieces of financial insight, gathered from around the web:
A slow spring start for housing
The annual spring housing frenzy is looking distinctly un-frenzy-like, said Diana Olick at CNBC. New listings were down 20 percent year over year in March, "and total inventory was about half of what it was in March 2019." The lack of available homes may be discouraging some potential buyers. Demand for mortgage applications is 35 percent lower than the same week a year ago. However, it may not just be because of low inventory. The interest for a 30-year fixed-rate mortgage has been falling in recent weeks, from 7 percent to 6.40 percent. But the rates on jumbo loans above $726,000 are on the rise. That "suggests banks may be tightening credit in response to recent challenges."
Google's low-price airfare promise
Google is now guaranteeing its low price predictions, said Natalie Compton in The Washington Post. Currently, if you book a flight through Google's travel page, you can see whether current prices are low, typical, or high compared with historical averages. Now, some flights will include a Price Guarantee badge, meaning that Google "predicts a flight won't get any cheaper before takeoff." The company is so confident in its prediction mechanism that if Google gets it wrong, "and your flight price does drop, they'll pay the difference" (up to $500 per calendar year). Flights must begin at a U.S. airport. Prices are tracked from the time you book until departure, and it costs nothing to participate in the program.
The IRS bets on data science
The IRS last week unveiled its plan to transform itself into a "digital first" tax collector, said Alan Rappeport in The New York Times. The Inflation Reduction Act signed in August included $80 billion to narrow the estimated $600 billion or more in taxes that go uncollected. In a report released last week, the agency said it would replace "antiquated technology and introduce systems that will allow taxpayers greater access to their financial information" and ease communication with the IRS. But more than half the money will be devoted to cracking down on tax evasion. Facing strong opposition from Republicans, the agency promises that the focus will be on "high-income and high-wealth individuals, complex partnerships, and large corporations." The agency plans to introduce more "machine-learning technology to better detect cheating," and to hire additional agents, tax attorneys, and data scientists.
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