From Mortgages to Payday Loans
Low mortgage rates and payday loans help those who dream of owning a home and those who need a temporary shield against small-scale financial surprises and can help repair credit. Since mortgage rates have received welcome decreases from the Federal Reserve – making them low enough that more can afford to make payments and worry less about defaulting – home purchases are up.
The Mortgage Bankers’ index has increased by nearly 50 percent
New Home Construction
Home sales have increased appreciably (Conventional Purchase Index up 17.7 percent) , as have refinances (62.6 percent leap in the Refinance Index). The Mortgage Bankers Association (http://www.mbaa.org/default.htm) reported its overall Market Composite Index, which measures application volume, shot up 48 percent for the week ending December 19. The only index to fall was the Government Purchase Index, which monitors FHA loans. Yet that index went down by a mere 3.4 percent.
With mortgage rates at nearly zero percent, people are jumping at the dream of home ownership, a dream that poor credit may have barred them from previously. Being able to actually make mortgage payments is a great way to help repair credit. In addition to the rate cuts, the Fed also announced it would buy more mortgage-backed securities issued by Fannie Mae and Freddie Mac. Such improvements to America’s economic condition inevitably lead to increased consumer spending and a heightened willingness to exercise consumer credit options like payday loans.
Lower mortgage rates give the economy room to grow
It’s true – increased consumer spending and utilization of credit (in well-considered amounts) are keys to stimulating America’s economy. According to Freddie Mac, current rates have reached at least a 37-year low. Thirty-year fixed mortgages fell last week to 5.19% from 5.47% the week before.
The rising number of mortgage applications are definitely good news for the housing and home building markets. Puts a different face on things after the number of existing homes sold during November 2008 plummeted 8.6 percent as prices plunged by record amounts. New home sales were also lower.
Want to calculate what a mortgage would cost you under the new low mortgage rates?
Here’s an easy-to-use calculator to satisfy your curiosity. Nobody knows how long this mortgage rate decrease will last, and we know that the U.S. As we’ve learned in the last year, the American economy is very unpredictable, so the chance to lock in a fixed-rate mortgage at a record-low rate may be too attractive to pass up.
Low mortgage rates and payday loans are great ways to help repair credit.
Related articles
- Mortgage rates fall to 37-year low
- Treasurys rally on Fed programs
- Loan Modifications Reamortize, Don’t Affect Fixed Rates
This is definitely the time to buy. However, as with any kind of purchase this large – you have to buy smart. You shouldn’t buy the 5 bedroom, 3,000 square footer if it’s the first home you’re buying. It’s like Warren Buffet said – you have to be bold when everyone else is afraid.
Nice to read something positive for a change!
I don’t understand how you can say that a Payday loan will help your credit. This type of loan should only be used as a last resort, in the event of an unexpected emergency, if you don’t have a savings account. The fees that are charged by these companies are exorbitant, which leaves less money out of your paycheck to pay for other things, like bills. Budget your money wisely, pay your bills on time, and THAT will improve your credit.
sounds good to me!
Interesting story. Thanks!
Why are we not hearing this encouraging news from the mainline media TV sources? Based on their reports I thought the housing market was doomed. Thanks for providing an alternate source of news. It is most valuable.
This article is absolutely correct. Now is the time to take advantage of low rates and depreciated home pricing. If you have credit issues now is the time to get them resolved so that in 6 months to a 1 year you can be in the market place
Given this recession is a credit crisis and quite different from previous recessions it’s a good time to regroup and take full advantage of these new low rates to get back on track. Credit card interests rates are a huge rip-off. Thanks for a good article.
Rates on 30-year mortgages fell this week to the lowest level on record after the Federal Reserve launched a new effort to assist the staggering U.S. housing market.
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