Current Industry News
Consumer borrowing up in June after three months of declines
WASHINGTON — The pandemic still has Americans easing off the plastic. U.S. consumer borrowing rose in June after three months of declines but the key category of credit card debt extended its decline. The Federal Reserve reported Friday that overall consumer borrowing rose by 2.6 percent, or $8.95 billion, in June after big declines in March, April and May as many parts of the country went into lockdown to combat the coronavirus.
Trump extends student loan relief through year’s end
President Donald Trump on Saturday signed an executive order continuing the pause on monthly payments and interest for many federal student loan borrowers until the end of the year. Trump’s order is aimed at circumventing Congress to extend the emergency student loan relief granted in March under the CARES Act.
Mortgage rates drop below 3% for the first time — and economists say rates could stay that low through 2021
At the beginning of the coronavirus pandemic, mortgage industry experts forecast that benchmark interest rates might fall, but wouldn’t drop below 3%. But now, that’s just what has happened. And many economists predict that mortgage rates will remain below that threshold into 2021. The 30-year fixed-rate mortgage averaged 2.98% for the week ending July 16, down five basis points from the previous week, according to Freddie Mac FMCC,
Subprime Buyers May Face Worsening Credit Conditions This Fall
Buyers with bad credit could find it harder to get an auto loan in the coming months, according to Cox Automotive. The prediction comes following worsening coronavirus outbreaks in many areas of the country. The resulting uncertainty for subprime buyers could be a cause for concern in a market that was recovering.