Archive for August, 2017

Foreclosures at Lowest Level in Over 10 Years

Posted on August 31, 2017 by Laura Lam

A new report from Black Knight Financial Services shows that there were fewer loans in foreclosure in the month of July than in any month in more than 10 years.  According to the report, there were 398,000 properties in foreclosure pre-sale in July. That’s down 12,000 from June and down more than 150,000 from the same time period last year, a decline of 28%.  July also marked the first time that the number of loans in foreclosure was below 400,000 since February 2007. Additionally, Black Knights report showed that the national foreclosure rate sat at 0.78% in July, down 2.96% from the…

Equipment Finance Confidence Up in August

Posted on August 30, 2017 by Laura Lam

The Equipment Leasing & Finance Foundation recently released the August 2017 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI).  Overall, confidence in the $1 trillion equipment finance market is 64.4 in August, up from 63.5 the previous two months. When asked about the outlook for the future, Thomas Jaschik, President of BB&T Equipment Finance, said, “The political dysfunction in Washington continues to stifle the U.S. economy. Despite this lack of leadership the equipment finance industry has experienced solid growth in 2017. However, with some action on tax and regulatory reform the economy and equipment finance industry could greatly accelerate.”…

Auto and Mortgage Loan Defaults at Lowest Level in Decade

Posted on August 29, 2017 by Laura Lam

Despite a slight increase in July, the default rate for first mortgage loans still sits at its lowest point in the last 10 years, according to the latest S&P/Experian Consumer Credit Default Indices.  In fact, the mortgage default rate for first and second mortgages aren’t too far off from their July 2016 level, as homebuyers get better at paying their mortgage on time. The indices represent a comprehensive measure of changes in consumer credit defaults and include bank card and auto loan default rates. As seen in the chart on the left, the first mortgage default rate increased two basis…

Mortgage Delinquencies Hit New Post-Recession Low

Posted on August 28, 2017 by Laura Lam

Mortgage delinquencies are continuing to fall, hitting a new low in the second quarter, a recent report from TransUnion showed.  This confirms reports from S&P Dow Jones Indices and Experian, which showed the average mortgage default rate hit its lowest level in a decade.  TransUnion’s report showed mortgage delinquency rates dropped below 2% for the first time in nearly 10 years as it hit 1.93% in the second quarter. This is down 16.5% from the second quarter of 2016 when it decreased to 2.3%. “In the second quarter, we hit a new milestone for mortgage delinquencies as the rate dropped below 2%,” said Joe…

Consumer Confidence Rises to Highest Level Since January

Posted on August 25, 2017 by Laura Lam

Consumers became more confident during the first half of August than at any point since January, according to the Survey of Consumers conducted by the University of Michigan.  The Index of Consumer Sentiment jumped 4.5% from last month’s 93.4 to 97.6 at the beginning of August. This is also up 8.7% from 89.8 in August 2016. “Consumer confidence rose in the first half of August to its highest level since January due to a more positive outlook for the overall economy as well as more favorable personal financial prospects,” Survey of Consumers Chief Economist Richard Curtin said. “The two component indices moved in…

Banks Cut Back on Risky Lending

Posted on August 24, 2017 by Laura Lam

For the first time since 2012, lenders are making fewer subprime loans, according to a new report from TransUnion.  Subprime loans are those made to consumers with lower credit scores and usually carry less-favorable terms than prime loans. In most cases they carry higher interest rates and may have other disadvantages. The TransUnion report found 4.63 million consumers received a subprime auto loan or lease, personal loan, or credit card in the first quarter of this year. That compares to 4.89 million in the first quarter of 2016. “Across product lines, we saw a decline in subprime originations at the beginning…

14 Million Homeowners Now “Equity Rich”

Posted on August 23, 2017 by Laura Lam

Home equity is growing as home prices rise across the U.S., and the number of equity-rich properties increased by 1.6 million from last year, according to the Q2 2017 U.S. Home Equity and Underwater report from ATTOM Data Solutions, a multi-sourced property database.  By the end of the second quarter, ATTOM recorded more than 14 million equity-rich properties, properties where the combined loan amount secured by the property was 50% or less than the estimated market value. This increase is up by nearly 320,000 properties from the previous quarter and up 1.6 million properties from last year to 24.6% of all…

Young Women Have Better Credit Scores Than Men

Posted on August 21, 2017 by Laura Lam

A recent Lending Tree survey found points of major disparity in the responses from men and women regarding debt and personal financial health.  The survey’s findings suggest that millennial women are trailing their male counterparts when it comes to income, home ownership and financial satisfaction despite having higher credit scores and responsible financial priorities. According to the survey, women find themselves struggling to pay off higher levels of debt compared to men, much of which comes from student loans. The average total debt for millennial men is $53,017, which is almost 30% lower than the average total debt for millennial…

2017 Back-to-School Spending to Reach $83.6 Billion

Posted on August 18, 2017 by Laura Lam

With consumer confidence rising and more young people in school, back-to-college spending is expected to hit an all-time high this year while back-to-school spending is expected to see its second-highest spending level on record, according to NRF’s annual survey conducted by Prosper Insights & Analytics. Total combined spending is expected to reach $83.6 billion, an increase of more than 10% over last year’s $75.8 billion. U.S. parents are expected to spend an average of $688 on back-to-school items this year, an increase over 2016 spending of $674. The best deals will be available to parents who shop either very early…

No Housing Bubble … Just Yet

Posted on August 17, 2017 by Laura Lam

As home prices continue to rise across the U.S., the dreaded b-word is beginning to be heard in some overheated markets.  However, many companies insist that despite the 8.3 million low-income residents who can’t afford their local rent, according to a new study from the U.S. Department of Housing and Urban Development, the housing market is still not in a bubble. The most recent Case-Shiller results pointed out the housing market is growing more expensive, however it is not about to repeat the bubble years.  Ten-X, an online real estate company, became the latest company to explain the housing market is not at risk of…