Average rate on 30-year mortgage rises to 4.53 percent

Average U.S. rates for fixed mortgages edged higher this week for the third straight week but remained low by historical standards.

Mortgage buyer Freddie Mac said Thursday that the average for the 30-year loan rose to 4.53 percent from 4.48 percent last week. The average for the 15-year loan increased to 3.55 percent from 3.52 percent.

Mortgage rates peaked in August at 4.6 percent amid expectations the Federal Reserve would reduce its $85 billion a month in bond purchases. The purchases push mortgage and other long-term rates lower. Last month the Fed deemed the economy strong enough for it to reduce the monthly purchases by $10 billion.

Mortgage rates are sharply higher than they were a year ago when the 30-year fixed rate was 3.35 percent and the 15-year was 2.65 percent. That’s contributed to a decline in home sales over the past three months.

Dispute over smart meters put to a vote

The Kauai Island Utility Cooperative will mail out ballots today to about 30,000 residential and business members asking them to approve or overturn a decision by the KIUC board to charge a fee for those who chose not to have a wireless smart meter.

The board received approval from the state Public Utilities Commission in November to levy a $10.27 per month charge on about 3,000 cooperative members who opted out of the smart meter program.

The charges cover the costs of sending technicians to read and service their old meters.

The charges were challenged by a group of KIUC members who were able to put the question to a vote as stipulated under the cooperative’s bylaws.

Members can vote by mail, online or by phone. Instructions are included with the ballots, which will arrive in specially marked envelopes. Ballots must be received by noon Jan. 25, and results of the election will be announced later that day, according to a news release from the KIUC.

Breach spurs app firm to update Snapchat

NEW YORK » Snapchat says it plans to put out a more secure version of its application following a breach that allowed hackers to collect the user names and phone numbers of some 4.6 million of its users.

The disappearing-message service popular with young people said in a blog post late Thursday that the updated version of its app would allow users to opt out of its "Find Friends" feature, which was apparently at the heart of the breach, and would stem future attempts to abuse its service.

The breach occurred after security experts warned the company at least twice about a vulnerability in its system.

Before announcing its plans to update the app, Snapchat had been quiet. Its seemingly detached response caused some security specialists to wonder whether the young company can handle the spotlight that it’s been thrust into over the last year as its service has become enormously popular.

In response to a warning by Gibson Security on Dec. 25 —which followed an earlier alert in August — Snapchat said in a blog post last Friday that it had implemented "various safeguards" over the past year that would make it more difficult to steal large sets of phone numbers. Snapchat hasn’t detailed the changes it made.

Manufacturers raised spending last month

WASHINGTON » Expectations are rising for a stronger U.S. economy in 2014 after reports showed solid growth in manufacturing spending at the end of last year.

Factory activity in December stayed near a 2 1⁄2-year high. Americans are buying more cars and homes, increasing demand for steel as well as furniture and other manufactured goods. Manufacturers have boosted hiring to meet that demand and might add jobs at a healthier pace this year.

Macy’s, Martha Stewart settle lawsuit

NEW YORK » Macy’s and Martha Stewart Living Omnimedia say they have settled a breach-of-contract lawsuit involving J.C. Penney.

But Macy’s said the settlement does not affect its separate lawsuit against J.C. Penney Co., which is still ongoing. Macy’s Inc. and Martha Stewart Living Omnimedia Inc. said their settlement terms are confidential and not material to their businesses.

Both companies said that they look forward to "a continued, successful partnership together."

Construction spending grew in November

WASHINGTON » U.S. construction spending rose in November at the strongest pace in more than four years, driven by solid gains in home construction and commercial projects.

The Commerce Department said construction spending increased 1 percent in November to a seasonally adjusted annual rate of $934.4 billion.

That’s the fastest rate since March 2009 and a slight improvement on the revised 0.9 percent gain in October.

Residential construction rose 1.9 percent in November, after falling in October. Spending on single-family homes increased 18.4 percent year over year, while spending on apartment buildings was up 36.3 percent during the same period.

On the Move

A local accountant and attorney involved in real estate has been appointed to head a state agency that helps facilitate affordable-housing development.

Craig K. Hirai was named executive director of the Hawaii Housing Finance and Development Corp. He replaced Karen Seddon, who in May announced she would retire as of Sept. 1.

Hirai left his position as a senior member of the Hono­lulu-based accounting firm Bowen Hunsaker Hirai Inc. to take the state job, and is no longer a shareholder and director of Bowen Hunsaker Hirai Inc.

Until recently Hirai chaired an affordable-housing subcommittee at the Hawaii Association of Realtors. He is a member of the Hawaii State Bar Association, has a real estate broker license and once served on the board of the HHFDC’s predecessor agency, the Housing and Community Development Corp. of Hawaii.

Ralph Mesick, HHFDC board chairman, called Hirai a highly qualified, experienced leader in the affordable-housing community. “His expertise and insight will be a valuable asset to the agency,” Mesick said in a statement announcing Hirai’s appointment.

Hirai is a graduate of Punahou School and the University of Southern California. He holds master’s degrees in accounting, business administration and taxation law.