Suit & Times Daily Briefing – May 23, 2025

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📬 What We’re Covering Today

🏠 Mortgage Rates Hit Highest Level Since February as Home Sales Slow
The 30-year fixed mortgage rate rose to 6.86%, marking the highest level since mid-February and contributing to the weakest April sales pace since 2009.

🏛️ Trump Weighs Plan to Take Fannie Mae and Freddie Mac Public (Again)
President Trump says he's "seriously considering" privatizing the mortgage giants to boost housing market liquidity, reigniting a long-standing debate.

🪙 Trump Administration to Retire the Penny, Citing Waste and Rising Costs
The U.S. Mint will stop producing new pennies after the current supply of blanks runs out, saving an estimated $56 million annually.

🏡 New GOP Tax Bill Could Deliver Big Deduction for Homeowners in High-Tax States
The "One Big Beautiful Bill" lifts the SALT deduction cap from $10,000 to $40,000 for households earning under $500K, offering relief to property tax-heavy regions.

💳 Citi Launches New ‘Strata’ Credit Card With Bigger Everyday Perks
Replacing the Citi Rewards+ card, the new Citi Strata offers 5x points on travel and 3x on groceries, gas, and select categories—still with no annual fee.

📈 The Ledger

Tracking key market indexes to give you a pulse on global financial movements. 

These indexes cover U.S. markets, global equities, small-cap stocks, volatility, and economic trends, offering a snapshot of where the market is heading.

🔹 Why These Indexes Matter:

• Broad Market Trends: The S&P 500, Dow Jones, and Nasdaq show how major U.S. companies are performing.

• Volatility & Risk: The VIX measures market uncertainty and investor sentiment.

• Global Perspective: FTSE 100, Nikkei 225, and MSCI World reflect international market health.

🏠 Mortgage Rates Hit Highest Level Since February as Home Sales Slow

The Story: Mortgage rates rose to 6.86% this week, the highest level since mid-February, according to Freddie Mac. The increase — driven by rising Treasury yields and concerns over U.S. debt following Moody’s downgrade — adds more pressure to a housing market already showing signs of strain. Home sales dipped 0.5% in April, marking the slowest April since 2009. While higher inventory gives buyers more leverage, affordability remains tight, and economists warn the spring market is off to a sluggish start.

🔻 Bullet Points:

• 30-Year Mortgage Rate Rises to 6.86%: The average rate hit its highest point since Feb. 13, tracking closely with bond yield spikes.

• Sales Fall to 4M Units Annually: April home sales dipped 0.5%, disappointing forecasts and reflecting lower contract signings from earlier in the year.

• 15-Year Fixed Rate Hits 6.01%: A modest climb from last week, though still down from this time last year.

• Debt Downgrade & Tariffs Blamed: Moody’s downgrade and Trump’s trade policies have spiked borrowing costs, stalling affordability.

• Inventory Hits 5-Year High: More listings give buyers room to negotiate, though rising rates may blunt purchasing power.

🔗 Read the full story → FOX Business

🏛️ Trump Weighs Plan to Take Fannie Mae and Freddie Mac Public (Again)

The Story: President Trump said he’s giving “very serious consideration” to bringing Fannie Mae and Freddie Mac out of government conservatorship, a move he attempted but failed to push through in 2019. The two mortgage giants, which were taken over during the 2008 housing crisis, currently operate under federal oversight — but Trump now argues they’re “throwing off a lot of CASH” and ready to go public. Housing experts are split: some warn the move could spike mortgage rates, while others say it might unlock new development and homeownership opportunities.

🔻 Bullet Points:

• Trump Signals Shift for Mortgage Giants: The president announced he’s considering taking Fannie Mae and Freddie Mac public again, saying a decision is coming “soon.”

• Previous Attempt Failed in 2019: Trump tried to release them from government control during his first term but couldn’t push it through.

• 2008 Crash Legacy: Fannie and Freddie were bailed out during the housing collapse and have remained under federal conservatorship since.

• Housing Costs Still Soaring: The median price of a new single-family home is around $460K, with mortgage rates sitting near 6.5%.

• Mixed Reactions from Experts: Critics warn privatization could raise borrowing costs, while advocates say it might expand access to middle-class housing.

🔗 Read the full report → The Hill

🪙 Trump Administration to Retire the Penny, Citing Waste and Rising Costs

The Story: The Trump administration has officially ended production of the U.S. penny, citing rising material costs and low utility — a move expected to save $56 million annually. The U.S. Mint will stop minting the coin once current blank supplies run out, marking the end of a 230-year run for one of America’s oldest coins. While bipartisan bills have been introduced in Congress to make the decision permanent, some experts warn that ending the penny without addressing the cost of nickels could backfire.

🔻 Bullet Points:

• Final Penny Minted: The U.S. Mint has made its last order of penny blanks, ending new production after costs hit nearly 4 cents per coin.

• Trump’s Call: Trump first announced the move in February, calling the penny “wasteful” and ordering the Treasury to halt its creation.

• Big Savings: The Treasury expects to save $56 million per year in materials alone.

• 114 Billion Still Circulating: With over $1.1 billion worth of pennies still in use, it may take years for the coin to fully disappear from circulation.

• Nickel Cost Concern: Experts warn penny elimination could increase demand for nickels, which cost nearly 14 cents to make.

• Congressional Action Coming: Two bipartisan bills — the Make Sense Not Cents Act and the Common Cents Act — aim to codify the decision and address long-term currency reform.

🔗 Read the full story → AP News

🏡 New GOP Tax Bill Could Deliver Big Deduction for Homeowners in High-Tax States

The Story: A key provision in the newly passed House tax package—dubbed the One Big Beautiful Bill Act—would raise the SALT deduction cap from $10,000 to $40,000, offering relief to homeowners with steep property or state income taxes. The change, aimed at appeasing GOP lawmakers from high-tax states like New York and California, could cut taxes for millions but would also cost the U.S. $334 billion over the next decade, according to estimates.

🔻 Bullet Points:

• Bigger Deduction Coming: The new bill raises the SALT cap to $40,000, up from $10,000, starting in the 2025 tax year.

• Targeted Relief: The full deduction would apply to households earning under $500,000, phasing down to a $10,000 minimum for higher earners.

• Who Benefits Most: High-income homeowners in expensive, high-tax areas are expected to gain the most from the expanded cap.

• Inflation Adjustments Built In: Both the deduction cap and income limits will increase 1% annually over the next decade.

• Criticism Over Cost: The new deduction is projected to cost the federal government $334 billion over ten years, adding to the bill’s overall fiscal burden.

• Still Not Final: The bill heads to the Senate, where opposition remains—especially over unrelated spending cuts in the same package.

🔗 Read the full story → CBS News

💳 Citi Launches New ‘Strata’ Credit Card With Bigger Everyday Perks

The Story: Citi is replacing its quirky Citi Rewards+® Card with the revamped Citi Strata℠ Card, offering more valuable rewards and bonus categories starting May 22. The old Rewards+ card will be fully discontinued by July 20, and current cardholders will be automatically upgraded to the new Strata card, which keeps the $0 annual fee and World Elite Mastercard benefits.

🔻 Bullet Points:

• New Name, Same Fee: Citi Rewards+ is rebranding as Citi Strata with no annual fee and a new recycled-plastic design.

• Expanded Bonus Categories: Earn 5x points on Citi Travel bookings, 3x at supermarkets and gas/transit, and 2x at restaurants.

• Quarterly Flex Category: Choose 1 bonus category every quarter — from gyms and streaming to beauty salons and pet stores.

• Simpler Structure: Gone is the quirky “round-up to 10 points” feature; Strata opts for straightforward earning with better overall value.

• New Card Bonus Coming: When Strata launches for new applicants later this year, expect a 30,000-point bonus after spending $1,000 in 3 months.

• Not for Global Use: The card keeps a 3% foreign transaction fee, making it less ideal for international travelers.

🔗 Read the full story → Upgraded Points

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💡 That’s it for today’s briefing. Stay sharp, stay informed, and we’ll see you tomorrow!