Fed Keeps Rate At Rock Bottom, No Changes Likely Until 2014
Jan 25th, 2012 @ 2:17 PM by Amber NelsonAfter its two day meeting, the Federal Reserve decided to leave its target interest rate unchanged, and also forecasted that it will not raise rates until the end of 2014. The federal funds rate, the Fed’s main method of affecting inflation and the economy, will remain in the range of zero to 0.25 percent for at least the next six weeks. It was predicted in a statement that, “Economic conditions…are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.” Low Fed rates have kept mortgage, car and student loan rates exceptionally low for... Read full article »
- Posted in Auto Loans Mortgages Student Borrowing
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Small Business Loans Increase But Obstacles Remain
Jan 18th, 2012 @ 3:19 PM by Amber NelsonTotal lending to U.S. small businesses grew again in November, according to the latest Thomson Reuters/PayNet Small Business Lending Index, adding to a positive trend. The Index, a measure of overall small business loan volume, posted an 18 percent increase in November 2011 from November 2010, reaching the highest level since February 2008. This yearly upswing is an indication of: “A new phase of the business cycle,” PayNet’s founder said in a Reuters article . “Businesses are betting on the future with increased investment spending.” Small business owners are also getting better at keeping up with their loans. The Thomson... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
Consumer Borrowing Makes Biggest Jump since 2001
Jan 11th, 2012 @ 2:37 PM by Amber NelsonConsumers borrowed money at a higher rate in November than they have in a decade, according to the latest report from the Federal Reserve. Total consumer borrowing grew $20.4 billion in November to $2.48 trillion, posting the largest monthly gain since November 2001 when loans increased by $28 billion. The new total is almost back up to pre-recession levels and significantly above the September 2010 decrease of $2.39 billion. Credit card borrowing and other revolving credit accounts jumped up $5.6 billion, the largest increase since March 2008 and the third consecutive monthly gain. Auto loans also rose $14.8 billion, almost... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
Middle Age Students Taking Out More Loans
Jan 4th, 2012 @ 8:30 PM by Amber NelsonStudents in the middle-age bracket are accumulating college loan debt at a faster pace than any other age, according to analysis from Reuters, standing as another visible effect of the sluggish economy. The Reuters data found that while borrowing is up among all student age groups, it has really skyrocketed in the past three year among those who are between ages 35 and 49. Borrowing was up 47 percent for that age category, according to information Reuters obtained from credit tracking firm Credit Karma. The increase can be attributed, Credit Karma reports, to the turbulent economy that has found many... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
- Posted in Student Borrowing
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Parents Helping Kids Get Mortgage Loans
Dec 28th, 2011 @ 3:10 PM by Amber NelsonIn these days of economic uncertainty, many potential homebuyers are asking their parents for help. Today buyers are facing the most stringent lending standards in decades as well as a shaky job market. They are often in need of a good chunk of change in order to qualify for a home purchase. According to a survey from Better Homes and Garden Real Estate as reported in a CNN Money article , one in five baby boomer couples have already helped at least one of their children buy a house. That help has come in the form of giving cash for... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
- Posted in Mortgage Rates, Mortgages
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Subprime Borrowers Boost Auto Lending
Dec 21st, 2011 @ 1:25 PM by Amber NelsonThe automotive lending pipeline has started to open up again for borrowers with less than stellar credit. According to new reports, car loans for subprime buyers, or those with credit score between 550 and 620, have risen substantially this year, indicating a revival of lending among that market segment. Information from CNW Research and Experian, as reported in a CNBC article, shows that the number of car loan approvals for those with poor credit have jumped up 15.72 percent already this month over the whole month of November, while approval for individuals with good scores rose just 1.36 percent from... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
- Posted in Auto Loans
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Small Business Lending Suggests Stronger Economy
Dec 14th, 2011 @ 9:20 PM by Amber NelsonU.S. small businesses are borrowing more these days, after having consolidated and tightened up during the recession. Increased borrowing points to a stronger, more solid economic foundation than before the recession, according to PayNet President William Phelan. The Thomson Reuters/PayNet Small Business Lending Index, a measure of the total loan activity to small businesses, grew 20 percent in October marking the 15th straight month of double-digit increases in borrowing. And as lending standards have tighten considerably since the economic crash, it is implied that small businesses have improved their risk profiles. Plus, increased lending shows that businesses are looking more... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
Consumer Borrowing, Credit Card Use Up in October
Dec 7th, 2011 @ 9:24 PM by Amber NelsonConsumers continued to borrow more money in October, according to the latest figures from the Federal Reserve, and the trend could suggest either progress or danger. Total consumer credit grew by $7.6 billion to $2.457 trillion, outpacing September’s $6.88 billion increase. Americans have upped their spending and borrowing for 12 of the past 13 months, with August being the notable trend-breaker. Borrowing during that month fell by the most in 16 months. Still, in general U.S. consumers have been taking on more debt. Non-revolving credit, including student loans and car loans, rose 5.3 percent, or $7.28 billion in October. This... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
Home Prices Dip in September
Nov 30th, 2011 @ 10:34 PM by Amber NelsonHome prices across the nation fell in September, after posting gains during the spring and summer, according to the latest reading of the Standard & Poor’s/Case-Shiller index. Prices fell 0.6 percent from September to October, and 3.6 percent from the previous year. Out of the 20 cities tracked by the index, prices dipped in 17, breaking the five month streak where at least half of the cities showed monthly increases. “The plunging collapse of prices seen in 2007 to 2009 seems to be behind us,” says David Blitzer, chairman of the S&P index committee, as quoted in a USA Today... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
- Posted in Mortgages
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Auto Delinquencies Post Slight Seasonal Rise
Nov 23rd, 2011 @ 2:04 PM by Amber NelsonThere were more auto loan borrowers behind on their payments during the third quarter of this year compared to the previous quarter, but the small uptick is nothing to worry about, according to credit reporting agency TransUnion. The percent of customers who were late by 60 days or more on their car payments rose to 0.47 percent between June and September, up from 0.44 percent in the second quarter. The new rate is still part of a downward trend, as it is down from 0.58 percent one year ago. TransUnion reports that auto delinquencies typically rise in the third quarter... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
- Posted in Auto Loans, Used Car Loans
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Lawmakers Plan to Raise FHA Loan Limits Again
Nov 16th, 2011 @ 9:36 PM by Amber NelsonCongressional and senate lawmakers are seeking to raise FHA mortgage loan limits. Originally, FHA loan limits were raised during the housing crisis in 2009. As private lenders high-tailed it out of the market and government-backed agencies were left to pick up the mortgage lending slack, loan limits for loans backed by Fannie Mae and Freddie Mac were temporarily raised as well. In New York, Los Angeles, and San Francisco, where home prices were above the $625,000 loan limits, Congress temporarily raised the loan imits to $729,750 due to the expensiveness of an area. This raise aimed to help people who... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
- Posted in Federal Loans, Mortgages
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