6at4 Business Report: The $100 baggage fee; Low mortgages

May 3, 2012 2:15:10 PM PDT
An airline is upping some of its baggage fees; Another low for mortgage rates; Guess who's buying more cars!

Spirit Airline Increasing Baggage Fees
The first airline to charge passengers for carry-on baggage is raising the fee and in some cases it could cost you $100. Spirit Airlines will charge customers $100 for a carry on bag if they pay at the gate. The airline has raised fees by $5 if you pay for that checked bag when you book your ticket or at the check in counter. Those fees are now $35 and $40. Carry-ons that fit under the seat in front of you are free. Spirit Airlines flies out of Atlantic City International Airport.

30-Year Fixed Mortgage Hits 3.84%
Good news for those looking to buy a house or refinance. Mortgage rates for a 30-year fixed loan fell to a record low according to Freddie Mac, the average rate dropped to 3.84%. It's the lowest Freddie Mac's seen since it began keeping record in 1971. We're seeing a drop in borrowing costs as the economy cools off around the globe.

Jobless Rate Expected to Hold Steady
Ahead of tomorrow's big job's report, consulting firm Challenger, Gray and Christmas says employers in the U.S. announced more jobs cuts in April than a year ago, led by education and government. Friday we get the monthly jobs report, economists are expecting the jobless rate to hold steady at 8.2%. The Federal Reserve says the economy is lacking the strength to provide bigger job gains.

Baby Boomers Boosting Car Sales
Baby Boomers are buying new cars like never before, even though their retirement savings may have taken a hit during the financial crisis. A new study by AARP and JD Power says people age 50 and older now buy more than 6 of every 10 new vehicles sold; that's a whopping 62% of sales and looks like they are buying American. For Detroit automakers, boomers now account for 67% of sales.