Tag Archives: rates

‘How quickly the tables have turned’: Falling mortgage rates have homebuyers so emboldened they’re asking sellers for cash After a string of steady increases, mortgage rates fell this week — a mixed blessing for the fragile U.S. economy. The lower rate on a 30-year fixed mortgage is a relief for home shoppers who have been watching rates climb, but it’s also a sign that a recession could very well be around the corner as the market slows. Rates tend to mirror 10-year Treasury yields,… Source link

Average annual percentage rates (APR) for new credit cards have reached a record high. The average bank card borrowing rate in America in June rose to around 20%, revealing a steep increase of about 6% compared to the pre-pandemic average credit card rate of 14.87% in 2019. “Credit card interest rates are basically the highest they’ve ever been. I’ve been watching credit card rates on a monthly basis for more than a decade now. And it’s the highest that they’ve been since I’ve… Source link

Americans were sitting on $815.3 billion worth of savings as of April. This may be good news for consumers individually, but bad news for the Federal Reserve, whose efforts to slow inflation could be delayed by this extra pile of cash lying around. “The problem is there is so much cash on household sector balance sheets and corporate sector balance sheets that it’s going to take more rate hikes to slow the economy down, simply because the starting point is a level of cash that is much higher… Source link

‘They’ll chicken out’: Fund legend Rick Rule says the Fed won’t keep hiking rates aggressively to prevent ‘amazing damage.’ Here are 3 spots he likes for your dough The Fed is raising interest rates aggressively in an attempt to tame raging inflation. But according to legendary investor Rick Rule — former president and CEO of investment fund Sprott U.S. Holdings — things may not go as planned for America’s central bank. “I think they’ll chicken out,” he told Stansberry… Source link

(Bloomberg) — US house prices are likely to fall as mortgage rates exceeding 6% crimp affordability for the average buyer, according to Capital Economics. Most Read from Bloomberg Property prices could contract an annual 5% by the middle of next year, Matthew Pointon, senior property economist, said in a research note Monday. He’d previously projected no change in values by that time. An average household looking to buy a home for the median price will now have to put more than a quarter of… Source link

(Bloomberg) — Most Read from Bloomberg Saudi Arabian shares closed at the lowest level in about six months, leading declines in Middle East markets, following the global sell-off last week and oil’s plunge on Friday. The Tadawul All Share Index dropped 4.4% at close, with the index posting its longest losing streak since 2020. Aramco fell 4% to the lowest since March 15. Still, the state-controlled oil firm is the world’s biggest listed entity with a market value of $2.17 trillion compared… Source link

As big name investors such as Bill Ackman and Jeff Gundlach clamor for the Federal Reserve to hike interest rates by 100 basis points or more, one top strategist thinks observers should really think through what they are calling for. “Be careful what you wish for,” 22V Research Founder Dennis DeBusschere on Yahoo Finance Live (video above). “You want to take it to an extreme. Let’s go 100 basis points, 200 basis points, or 400 basis points. Let’s crush the economy. I don’t think that would be… Source link

Lumber prices hit a nine month low as borrowing costs surge.Carolyn Cole/Getty Images Lumber prices are spiraling as red-hot house prices and the rising cost of mortgages is hitting affordability. Nearly 80% of National Housing Survey respondents reported now is the worst time to buy a home. It’s set to worsen as Americans foresee their financial situations deteriorating over the next year. Lumber prices have been on a steep decline as a combination of rising interest rates, record-high… Source link

(Bloomberg) — Stanley Druckenmiller has a warning for Wall Street: The sharp decline in the stock market isn’t over just yet. Most Read from Bloomberg Story continues “My best guess is that we’re six months into a bear market,” Druckenmiller, who runs Duquesne Family Office, said Thursday at the 2022 Sohn Investment Conference. “For those tactically trading, it’s possible the first leg of that has ended. But I think it’s highly, highly probable that the bear market has a ways to… Source link

Mortgage rates fall a third week in a row as housing market tilts in homebuyers’ favor Mortgage rates fell again this week amid relentless inflation and persistent doubt around the health of the U.S. economy. The rate drop — the third in as many weeks — was slight but still meaningful given rising home prices and generally higher borrowing costs. America’s most popular home loan — the 30-year fixed mortgage — is still significantly more expensive than it was last year. That’s… Source link