MORTGAGE WORRIES
Every time we read about a surge in the economy house holders with a mortgage quite rightly shudder. The economy has rebounded in the last three months at the fastest pace for four years and so the threat is supposedly now persistently high inflation. And that means an increase in interest rates.
Do that and business and the housing market are going to have a rough ride. The British Chambers of Commerce chief economist says ‘ Businesses are still facing huge pressures and it is important for interest rates to remain as low as possible for as long as possible.’
Obtaining a mortgage is still very difficult with banks remaining so suspicious about lending money to for example first time buyers. Indeed mortgage approvals for house purchases has fallen to a four month low and is well below the 13 year average.
Add a hike in the interest rate on top of the woes of the last few years and this Country faces disaster.
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Comments
wow this all sounds rather costly and scarey and very advanced.
As promoted by Elliot Spitzer on radio this past weekend, we should have had the desperate infusion of taxpayer dollars going to the defaulting homeowners instead of the banks. Granted, not a whole lot morally cleaner making banks richer for those that played by the rules, except after tranfusing dollars to the banks, our housing is still in the mud and employment ball-and-chained to it.
Most incredibly galling of all is that among the short term loans with no credit check lenders, raters, bankers and government, arguably the biggest runaway train was a Congress that walked away from investigating Fannie Mae, repealed Glass-Steagal, and gladly accepted campaign donations to promote the Disneyesque notion of everyone can own a home. A very close second place is the width and breadth of corruption at Fannie Mae. A particulary “bad” day at the office when the bankers finsh third in corruption.
You want to read something that will make you close-out your stocks, bonds, and bank accounts, and take refuge in a safer third-world country?
Its so dramatic.Overdraft fees were the focus of an enormous class action suit including Bank of America, which the bank just recently arrived at a settlement agreement in. The settlement will cost B of A $410 million. B of A and more than two dozen other banks are named in a gigantic class action involving more than 1 million people suing various banks over extreme overdraft fee policies. Don’t worry; you will still be able to get your installment loans from these banks.