Tag Archives: Rates

Mortgage Rates Holding Steady

June 22, 2011   Alexander Stewart   No comments

Mortgage rates remained largely unchanged again this week, amid another round of discouraging reports on the housing market and the economy in general.

Average interest rates on 30-year fixed-rate mortgages were unchanged from last week, according to the weekly Freddie Mac rate survey, remaining at 4.50 percent. Average rates on 15-year fixed-rate loans ticked up slightly to 3.69 percent, up from 3.67 percent last week, while initial rates on 5-year Treasury indexed adjustable rate mortgages fell by the same amount, to 3.25 percent, down from 3.27 percent last week.   “Mortgage rates were virtually unchanged this week amid further indications of a soft housing market,” said Frank Nothaft, Freddie Mac chief economist. “Alt Read the full post

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Bank of America Customers Beware: Your Credit Card Penalty Rates Could Soar

April 29, 2011   Alexander Stewart   No comments

Savings Accounts and Money Market Rates provided by 27 April 2011 If you’re a Bank of America customer, your dander will definitely rise within seconds. The North Carolina-based bank said it could begin charging customers who miss a payment on their credit cards a higher penalty interest rate on future purchases, according to a recently published report.

The Wall Street Journal reports that Bank of America has begun telling its customers that it may apply the higher interest rates as soon as June. Moreover, the biggest bank by assets in the U.S. said it may charge as much as 30 percent on future purchase balances for some customers who miss . Read the full post

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Fed Action Not Likely to Boost Rates

April 27, 2011   Alexander Stewart   No comments

The Federal Reserve sent mortgage rates plummeting two years ago when it initiated a series of large-scale bond purchases to boost the economy. But don’t expect the reverse to happen when those purchases finally end in a couple months, according to the head of the Federal Reserve.

“Our view is that the end of the program is unlikely to have significant impact on the market or the economy,” said Federal Reserve Chair Ben Bernanke, speaking of the end of the “quantitative easing” initiatives that have characterized Fed’s response to the economic downturn.   The Fed is scheduled to complete the current round of $600 billion in Treasury bond purchases in June, after which no further purchases are planned.   Speaking a Read the full post

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Inflation Fears Boost Mortgage Rates

March 27, 2011   Alexander Stewart   No comments

Mortgage rates ticked upward this week, nudged by higher-than-expected inflation data that drove up the cost of borrowing.

Average rates on 30-year fixed-rate mortgages rose to 4.81 percent this week, according to the weekly Freddie Mac rate survey, up from 4.76 percent previously. Rates on 15-year fixed rate loans increased to 4.04 percent, up from 3.97 percent last week.   Initial interest rates on adjustable rate mortgages rose as well, with 5-year Treasury Indexed ARMs rising to 3.62 percent, up from 3.57 percent previously.   Frank Nothaft, Freddie Mac chief economist, attributed the rise in part to last week’s release of higher-than-expected inflation figures for February. The Read the full post

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Australian Treasury Secretary Says Not Practical For Government To Regulate Interest Rates

October 22, 2010   Alexander Stewart   No comments

The head of the Federal Treasury says it would be difficult to implement laws which regulate interest rates whilst having an independent central bank that was responsible for monetary policy.

Earlier in the week Joe Hockey, shadow treasury spokesperson suggested that the treasurer should legislate to ensure that lenders do not raise their interest rates higher than any hike enacted by the Australian central bank.

Ken Henry, the Treasury secretary told a senate hearing that the practice of regulated interest ended in 1986, and that since then, the Reserve Bank of Australia sets monetary policy.

Treasury secretary Ken Henry told a Senate estimates hearing that regulated interest rates ended in 1986, and monetary policy since has been set by the RBA.

“It would be rather difficult to have a central bank independently operating monetary policy through interest rates at the same time another body – the government – regulating those interest rates, It doesn’t sit too well together.” Dr Henry said.

Dr. Henry rec

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Further Legislation to Cut Credit Card Interest Rates

April 15, 2009   admin   No comments

Ignoring threats by the banking industry that further legislation will hurt consumer credit, Senate Democrats moved to limit credit card interest rates and proposed additional restrictions on card issuers. Passing in committee by 12-11 votes, the Credit Card Accountability, Responsibility and Disclosure Act of 2009 is even more comprehensive than the rules adopted by the Federal Reserve in December. In addition to prohibiting interest charges on late payments or for exceeding credit limits, the Act would also require card issuers to disclose how long it will take to pay off a balance if only the minimum monthly payment is made and that statements be mailed at least 21 days before the payment due date.

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