After the Fed raised rates seven times in 2017 and 2018, it's now signaling a pause for 2019That has reversed the previous steady climb in interest ratesAs lower rates filter down to loans and credit cards, several groups stand to benefitAmong the winners are borrowers, homebuyers and homeowners, and stock investorsSo much for those worries about rising interest rates. Just a few months ago, rising rates were bearing down on everyone from homebuyers to stock investors after the Federal Reserve put through seven quarter-point increases in 2017 and 2018. But some rates began easing early this year after the Fed opened the door to a "patient" approach to further rate increases. On Wednesday, the central bank surprised the market when it said it may not raise rates at all during 2019.The move -- or anticipated lack of future moves -- reverberated immediately through the bond market: The yield on the 10-year Treasury note tumbled to its lowest level in more than a year. It fell as low as … [Read more...] about Interest rates now: Who benefits as they drift lower
20 year mortgage refinance rates
The economic history of the United Kingdom deals with the economic history of England and Great Britain from 1500 to the early 21st century. (For earlier periods see Economy of England in the Middle Ages and Economic history of Scotland). After becoming one of the most prosperous economic regions in Europe between 1600 and 1700, Britain led the industrial revolution and dominated the European and world economy during the 19th century. It was the major innovator in machinery such as steam engines (for pumps, factories, railway locomotives and steamships), textile equipment, and tool-making. It invented the railway system and built much of the equipment used by other nations. As well it was a leader in international and domestic banking, entrepreneurship, and trade. It built a global British Empire. After 1840, it abandoned mercantilism and practised "free trade," with no tariffs or quotas or restrictions. The powerful Royal Navy protected its global holdings, while its legal … [Read more...] about Economic history of the United Kingdom
The Bank of NZ has dropped its two-year fixed interest rate to a "historic" 3.99% as it returns fire in a burgeoning mortgage war between the country's lenders. ANZ - the nation's largest bank - last week offered the lowest rate by a major bank since just after World War II with a fixed one-year term of 3.95%. It then followed this up by offering a $3000 cash back incentive for customers, who took out a new home loan and committed to keeping their mortgage with ANZ for three years. Westpac also announced it will match ANZ's offer of a one-year fixed rate at 3.95%, beginning tomorrow. Smaller banks had earlier tempted customers with rates under 4% during the past month but major lenders have not dropped so low since the 1940s. The highest rate on record was a staggering 19.72% in 1988. Loan Market mortgage adviser Bruce Patten says spring is traditionally the time when banks released interest-rate specials, but the current low rates showed they were in a fight for customers. "It means … [Read more...] about Major banks unveil historic low rates in fight for customers
Janna Herron USA TODAY Published 1:47 PM EDT Oct 10, 2018 Buying a home just got a bit more expensive. Rates on the most common mortgage topped 5 percent for the first time since February 2011, making it even harder for buyers to get an affordable house. The average rate on the 30-year fixed-rate home loan – the most popular mortgages for purchases – increased to 5.05 percent last week, up from 4.96 the previous week and 4.16 percent a year earlier, according to the Mortgage Bankers Association. Rates on other types of home loans – jumbo, FHA, 15-year and 5/1 adjustable-rate – all hit multi-year highs. The steadily rising 30-year rate also has cooled the appetite from borrowers. The volume of purchase applications slid 1 percent last week from the previous one, while the number of refinance applications sank 3 percent, according to the MBA. “Up until two weeks ago, I was quite busy," said Scott Sheldon, branch manager of New American … [Read more...] about Mortgage rates on 30-year home loan hit 5 percent
The US economy is cranking out robust figures 10 years after the start of the global financial crisis: strong growth, historically low unemployment, a soaring stock market. But with the good news come rising interest rates as the Federal Reserve -- which on Wednesday is expected to raise the key lending rate for the third time this year -- tries to keep the economy from overheating. And after a decade of very low rates that enticed many to load up on debt, rising borrowing costs can expose hidden risks lurking in the US and world economies. So where are they? - Mortgages? Not this time - Unlike the runup to 2008, this time mortgages are not expected to be the root of the next crisis. While US home loans continue to form the large bulk (68 percent) of household debt, and totaled $9 trillion through June 30, according to the New York Federal Reserve Bank, they are much healthier now. The share of loans going to homebuyers with low credit scores is very small, and the delinquency rate on … [Read more...] about Do economic risks lurk as US interest rates rise?