Reported by Star-Bulletin staff & wire
Thursday, December 17, 1998
30-year mortgages steady at 6.69%
McLEAN, Va. -- The benchmark U.S. mortgage rate this week stayed at its lowest level in more than two months, providing further evidence the housing market will remain solid, Freddie Mac said.The average rate on a 30-year fixed-rate mortgage was unchanged at 6.69 percent this week, according to the weekly survey from Freddie Mac. This week marked the 27th in a row that the 30-year rate has stayed below 7 percent, the longest stretch on Freddie Mac's records. The latest report also showed the average rate on an adjustable mortgage rose to 5.55 percent this week from 5.53 percent the previous week; the 15-year mortgage rate rose to 6.35 percent from 6.34 percent.
Starbucks buys coffee company
SEATTLE -- Starbucks Corp., the largest U.S. coffee retailer, said it will buy Pasqua Coffee, a closely held operator of 54 coffee shops in California and New York, for an undisclosed amount.Pasqua, based in San Francisco, had revenue of $26 million last year. Seattle-based Starbucks, with sales of $1.31 billion last fiscal year, said the cash transaction would be completed by February.
Starbucks, with more than 1,700 stores in North America, wants to add 400 in the United States and Canada this year.
In April, it paid about $81 million in stock for U.K. operator Seattle Coffee Co.
Federal Express delivers strong net
MEMPHIS, Tenn. -- FDX Corp., parent of Federal Express, the largest overnight-delivery company, said fiscal second-quarter profit rose a greater-than-expected 22 percent as it benefited from low fuel prices and cost controls.Net income rose to $183 million, or $1.23 a share, from $150 million, or $1 a share, as oil prices near 12-year lows made jet fuel cheaper.
Earnings topped the average estimate of $1.06 a share in a First Call poll.
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