Posts Tagged ‘leasing’

Credit Card Delinquencies on the Rise

Posted on October 18, 2017 by Laura Lam

Credit card delinquency rose for the third straight month in September, data from JPMorgan Chase & Co. and card issuer Discover Financial Services suggested.  The data add to signs that U.S. consumers are struggling amid rising household debt, after bank results last week pointed to an increase in provisions for future losses. September delinquencies for JPMorgan rose 1.22%, while those at Discover Financial were up 1.64% from August. Those at Bank of America also rose 1.56% — the second rise in three months.  Credit quality at several banks appears to be deteriorating as lenders target consumers with worse credit ratings to…

Meet the Next Generation of Homebuyers: Gen Z

Posted on October 13, 2017 by Laura Lam

In its most recent study, Zillow Group examined the newest generation to enter the housing market – Generation Z.  Generation Z is considered to be those born from 1995 to 2010, meaning the oldest in the generation are now 22 years old.  The Zillow Group Report on Consumer and Housing Trends 2017 shows this new generation now makes up more than 21% of the U.S. population, and is the most ethnically and racially diverse generation in our history. They are beginning to enter the housing market – as renters. However, this generation is just as likely as older generations to…

Leasing Delinquencies Remain at Historic Lows

Posted on October 11, 2017 by Laura Lam

Recent statistics from the Federal Reserve validate what leasing professionals have understood about their industry for years. The data reach back to the first quarter of 1985 and underscore the fact that, when it comes to delinquencies and charge-offs, equipment leasing remains one of the best performing sectors under the broader umbrella of commercial finance. According to Bob Rinaldi, CEO of Commercial Industrial Finance, Inc., the most recent data on charge-offs and delinquencies offer no surprises. Rinaldi stated, “There’s nothing in this data that should alarm anyone in the industry…the data points are exactly where they should be. Everything here…

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.”…

Renters Finally Turning Toward Homeownership

Posted on May 04, 2017 by Laura Lam

The homeownership rate has been on the decline ever since the peak of the housing bubble a decade ago.  However, last month, the Census Department said American home ownership was 63.6% in the first quarter, down a bit from the fourth quarter of 2016, but up from a year ago, which is economists’ preferred way to gauge the data. According to Trulia Chief Economist Ralph McLaughlin, the number of owner-occupied households rose more quickly than renter households for the first time since 2006. The number of new owner households was up 850,000, compared to a 365,000 increase in the number of…

Should You Finance Business Equipment?

Posted on February 27, 2017 by Laura Lam

The vast majority (78%) of U.S. businesses lease or finance their equipment.  The Equipment Leasing and Finance Association (ELFA) has released a new infographic highlighting why this method of equipment acquisition is so popular.  The infographic showcases a variety of ways businesses can use equipment finance to their strategic advantage, including: Finance 100% – Arrange 100% financing of your equipment, software and services with 0% down payment. Save cash – Save your limited cash for other areas of your business, such as expansion, improvements, marketing or R&D. Keep up-to-date – Keep up-to-date with technology by acquiring more and better equipment than you could…

Luxury Apartment Boom to Cool Off in 2017

Posted on January 11, 2017 by Laura Lam

Landlords of upscale properties across the U.S. are bracing for rough conditions in 2017 that will likely force them to slash rents and offer deep concessions as a glut of supply brings a 7-year luxury-apartment boom to an end.  The turnaround follows a more-than-26% jump in U.S. apartment rents since early 2010, far outstripping inflation and income growth. But in 2016, rents rose a modest 3.8%, a significant drop from the recent high of 5.6% year-to-year growth in the third quarter of 2015, according to a recent report by MPF Research. MPF Vice President Jay Parsons said he expects little or no…

Trucking Is Growth Business for Leasing

Posted on October 05, 2016 by Laura Lam

New business volume grew 12.4% in the equipment finance industry in 2015, according to the 2016 Survey of Equipment Finance Activity (SEFA) released by the Equipment Leasing and Finance Association (ELFA). The rise in new business volume marked the sixth consecutive year that businesses increased their spending on capital equipment, according to the report. As an end-user of equipment finance, the trucking industry represented 7.3% of new business volume reported by ELFA member companies, up from 6.4% in 2014. Trucks/trailers represented 13.4% of equipment financing new business volume reported by ELFA member companies, up from 12.8% in 2014. “The equipment…

Nationwide Report Finds Housing Stable

Posted on October 21, 2015 by Saldutti

Despite a slowdown of home sales nationally in August, the U.S. housing market continues to look bright, according to Nationwide’s quarterly Health of Housing Markets Report. The report uses employment, demographic, housing and mortgage data to gauge the underlying health of housing, with any score above 100 considered healthy. The current score is 109.1. According to the report, “most U.S. housing markets are healthy with little chance of a downturn in the near term.”  Nationwide did, however, downgrade the health of several communities, notably in states that rely on the oil and coal industries, such as Texas, Louisiana, Wyoming and…

Home Ownership at Lowest Level in Almost 50 Years

Posted on August 06, 2015 by Saldutti

The U.S. homeownership rate fell to 63.4% in the second quarter of 2015, according to the U.S. Census. That is down from 63.7% in the first quarter and from 64.7% in the same quarter of 2014. It marks the lowest homeownership rate since 1967.  Homeownership peaked at 69.2% at the end of 2004, when the housing market was in the midst of an epic boom. The 50-year average is 65.3%. “It is now just five-tenths from the record low seen in 1965 in data going back also to 1965,” noted Peter Boockvar, an analyst with The Lindsey Group. “All the…