The financial situation for banks continues to be volatile, and the situation they face has caused them to reduce their mortgage rates again, for the sixth consecutive week. Now, the rates sit at their lowest level in over several months, which have spurred an interest in homeowners wanting to apply for refinancing. Read more
The subprime mortgage mess is taking its toll on the nation’s investors. Financial experts say that fixed income investors have seen their share of losses this year because of the precipitous decline in the subprime mortgage market.
At the same time, defaults on car loans appear to be rising, increasing worries for investors. As a result, some investors are wondering whether another major market for fixed income investors, student loans, may be the next sector to fall. Read more
The Federal Reserve Board has once again tried to ignite a sputtering economy by cutting interest rates.
The Fed has decreased the federal funds rate, the rate that banks charge each other for overnight loans.
The rate cut marks the third one for the Fed this year. It follows a nationwide housing crisis—the worst housing slump in some 16 years. It also comes in the wake of a subprime loan crisis which has caused some financial institutions to leave the subprime business altogether. Subprime loans are those loans which are extended to individuals with shaky credit histories. The default rate on subprime loans has been incredibly high, giving rise to the current crisis. Read more
Consumer advocates are leading the charge for a federal bailout of the troubled housing industry.
The housing market has been in free fall for many months, the result of plunging home prices and sluggish sales. It’s also become increasingly difficult for prospective homebuyers to purchase houses because of stricter loan standards. Meanwhile, the foreclosure rate has doubled over the past year and additional foreclosures are expected because of the resetting of interest rates on adjustable rate mortgages. Read more
Recent Comments