Weekly mortgage applications fall as the highest rates in a month are spooking spring buyers

Applications to refinance a home loan, which are most sensitive to interest rates, fell 11% for the week but were nearly 13% higher than a year ago. Mortgage rates were a significant 27 basis points higher last year. Mortgage applications to purchase a home, which had been holding strong amid higher rates, fell 4% for the week. “The strong economy and job market is keeping buyer interest high, but rising mortgage rates could add pressure to the budgets of some would-be buyers,” Fratantoni said.


Applications to refinance a home loan, which are most sensitive to interest rates, fell 11% for the week but were nearly 13% higher than a year ago. Mortgage rates were a significant 27 basis points higher last year. Mortgage applications to purchase a home, which had been holding strong amid higher rates, fell 4% for the week. “The strong economy and job market is keeping buyer interest high, but rising mortgage rates could add pressure to the budgets of some would-be buyers,” Fratantoni said.
Weekly mortgage applications fall as the highest rates in a month are spooking spring buyers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: diana olick, daniel acker, bloomberg, getty images
Keywords: news, cnbc, companies, month, sensitive, applications, week, spooking, fall, rate, weekly, buyers, highest, spring, higher, interest, rates, homes, sales, mortgage, points


Weekly mortgage applications fall as the highest rates in a month are spooking spring buyers

Homebuyers had been brushing off the slight rise in rates during recent weeks, but as those rates move even higher, pruchasers are now pulling back.

Overall mortgage application volume fell 7.3% last week from the previous week, but it was 6.6% higher than a year ago, thanks to stronger refinance volume, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 4.46% from 4.44%, with points increasing to 0.44 from 0.42 (including the origination fee) for loans with a 20% down payment. The rate has risen 10 basis points in the past three weeks and is now at its highest level in over a month.

“Borrowers remain extremely sensitive to rate changes,” said Mike Fratantoni, MBA senior vice president and chief economist. “Borrowing costs have recently drifted higher because of ebbing geopolitical concerns, as well as signs of strengthening in the U.S. economy, including the recent data pointing to robust retail sales.”

Applications to refinance a home loan, which are most sensitive to interest rates, fell 11% for the week but were nearly 13% higher than a year ago. Mortgage rates were a significant 27 basis points higher last year.

Mortgage applications to purchase a home, which had been holding strong amid higher rates, fell 4% for the week. They were still 3% higher than a year ago, but that annual comparison is shrinking. Purchase applications should be strengthening as the spring season progresses and the supply of homes for sale rises.

Supply was up 2.4% annually at the end of March, according to the National Association of Realtors, but much of that increase is not from more new listings. Instead, listings are sitting for a longer time and piling up.

“The strong economy and job market is keeping buyer interest high, but rising mortgage rates could add pressure to the budgets of some would-be buyers,” Fratantoni said.

Recent home sales reports are showing just how sensitive today’s buyers are. Sales of existing homes in March, which are based on closings and therefore contracts signed in January and February, were disappointing. Sales of newly built homes, however, were stronger than expected, but those numbers are based on contracts signed in March, not closings.

Mortgage rates took a steep dive in March, and that likely juiced sales. With rates now higher again, sales could falter.


Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: diana olick, daniel acker, bloomberg, getty images
Keywords: news, cnbc, companies, month, sensitive, applications, week, spooking, fall, rate, weekly, buyers, highest, spring, higher, interest, rates, homes, sales, mortgage, points


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Only 11% of college students correctly answered these 4 money questions—can you?

The first question was the one most students and college grads got right. Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow? Assuming the following individuals have the same credit card with the same interest rate and balance, which will pay the most in interest on their credit card purchases over time? Imagine that there are two options when it comes to paying back a l


The first question was the one most students and college grads got right. Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow? Assuming the following individuals have the same credit card with the same interest rate and balance, which will pay the most in interest on their credit card purchases over time? Imagine that there are two options when it comes to paying back a l
Only 11% of college students correctly answered these 4 money questions—can you? Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: megan leonhardt, eric liebowitz, netflix, universal television, nbcu photo bank
Keywords: news, cnbc, companies, answered, pays, loan, students, credit, card, minimum, college, balance, money, 11, pay, rate, option, correctly, interest, questionscan


Only 11% of college students correctly answered these 4 money questions—can you?

Click to enlarge

Here are all four questions, if you’d like to put your own knowledge to the test. The first question was the one most students and college grads got right.

1. Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow?

a. More than $102

b. Exactly $102

c. Less than $102

d. Not sure

2. Assuming the following individuals have the same credit card with the same interest rate and balance, which will pay the most in interest on their credit card purchases over time?

a. Joe, who makes the minimum payment on his credit card bill every month

b. Jane, who pays the balance on her credit card in full every month

c. Joyce, who sometimes pays the minimum, sometimes pays less than the minimum, and missed one payment on her credit card bill

d. All of them will pay the same amount in interest over time

e. Not sure

3. Imagine that there are two options when it comes to paying back a loan and both come with the same interest rate. Provided you have the needed funds, which option would you select to minimize your total costs over the life of the loan (i.e., all of your payments combined until the loan is completely paid off)?

a. Option 1 allows you to take 10 years to pay back the loan

b. Option 2 allows you to take 20 years to pay back the loan

c. Both options have the same out-of-pocket cost over the life of the loan

d. Not sure

4. Which of the following best defines the term “interest capitalization”?

a. The type of interest charged on high-balance loans

b. The addition of unpaid interest to the principal balance of a loan

c. Interest that is charged when you postpone payments on your loan


Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: megan leonhardt, eric liebowitz, netflix, universal television, nbcu photo bank
Keywords: news, cnbc, companies, answered, pays, loan, students, credit, card, minimum, college, balance, money, 11, pay, rate, option, correctly, interest, questionscan


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Wealthfront’s new high-yield accounts bring in $1 billion in just a few months

The company, which started as an automated wealth advisor, unveiledthe account offering in February with a higher-than-average 2.24 percent interest rate. In the months that followed, Wealthfront ushered in $1 billion in customer deposits, the company announced Tuesday. Because of what it said was a sooner-than-expected billion-dollar milestone, Wealthfront is raising interest rates on those accounts to 2.29 percent. That new rate puts Wealthfront’s rate above some notable options in the industr


The company, which started as an automated wealth advisor, unveiledthe account offering in February with a higher-than-average 2.24 percent interest rate. In the months that followed, Wealthfront ushered in $1 billion in customer deposits, the company announced Tuesday. Because of what it said was a sooner-than-expected billion-dollar milestone, Wealthfront is raising interest rates on those accounts to 2.29 percent. That new rate puts Wealthfront’s rate above some notable options in the industr
Wealthfront’s new high-yield accounts bring in $1 billion in just a few months Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: kate rooney, source
Keywords: news, cnbc, companies, company, interest, billion, months, accounts, banking, bank, bring, deposits, rates, rate, highyield, wealthfronts, wealthfront


Wealthfront's new high-yield accounts bring in $1 billion in just a few months

Customers in search of yield are piling into Wealthfront’s new cash accounts.

The company, which started as an automated wealth advisor, unveiledthe account offering in February with a higher-than-average 2.24 percent interest rate. In the months that followed, Wealthfront ushered in $1 billion in customer deposits, the company announced Tuesday.

Because of what it said was a sooner-than-expected billion-dollar milestone, Wealthfront is raising interest rates on those accounts to 2.29 percent.

“Once we passed $1 billion dollars in deposits, we were able to get cost savings and pass that directly down to our clients,” Wealthfront founder Dan Carroll told CNBC in a phone interview. “You really have to go above and beyond to actually earn clients’ trust in the banking system.”

That new rate puts Wealthfront’s rate above some notable options in the industry.

Goldman Sachs’ consumer banking arm Marcus offers a 2.25 percent yield on its savings account. Ally Bank and Barclays have a high-yield offering that kicks back 2.2 percent. Meanwhile, the national average on checking accounts stands at a .08 percent rate, according to the latest data from Bankrate.com. Money market accounts return an average .21 percent.

In the case of Wealthfront, the assets aren’t actually held with the company. Like many of its financial start-up peers, the company works with FDIC-insured partner banks to hold customers’ deposits. Wealthfront partners with East West Bank, New York Community Bank, and others and because they use multiple bank partners, said deposits are insured up to $1 million.

The decade-old fintech company, which said it now manages $13.5 billion in customer assets, began with free financial planning, investment management and lending through its portfolio line of credit. The cash account is meant to complement those planning and investing programs. Wealthfront told CNBC it plans to launch direct deposits and a debit card by the end of this year.

Carroll said the flood of deposits came from existing customer and an “encouraging” amount of new users who “had enough” with their existing banks and low interest rates.

“As fintech and client-friendly companies come into the banking space there’s been a rude awakening,” Carroll said. “Consumers are fed up.”

Carroll and his co-founder Andy Rachleff, who also co-founded well-known investing firm Benchmark Capital, are betting on tech-savvy millennials who don’t want human interaction in their banking experience. The two are modeling the company after viral technology names like Netflix, instead of more obvious comparisons like Charles Schwab.

All of this hinges on its customers trusting computers. Wealthfront’s long-term strategy is to automate the investing and banking process in what it calls “self-driving money.”

Still, the rates on these cash accounts are still subject to the overall interest rate environment. Interest rates began climbing last year after almost a decade at zero. The Fed Funds rate began rising in 2015, and is now at a target range of between 2.25 and 2.5 percent.

But this year, the Federal Reserve changed its tune and signaled that it was done raising rates, at least for now.

“As the fed rates go up or down we would be making similar decisions on if our rate goes up or down,” Carroll said.


Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: kate rooney, source
Keywords: news, cnbc, companies, company, interest, billion, months, accounts, banking, bank, bring, deposits, rates, rate, highyield, wealthfronts, wealthfront


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Kevin O’Leary: Don’t make this home-buying mistake, even when mortgage rates are low

While mortgage rates have been low as of late, on Wednesday, they inched higher. But don’t let falling or rising interest rates influence your decision on whether or not to buy a home, says finance guru and star of ABC’s “Shark Tank” Kevin O’Leary. And you know, with certainty, regardless of what interest rates are, you’re going to pay interest. “Don’t get lulled into an effective ‘gee, the rates are low, that means I should go into debt,'” he advises. “It doesn’t matter what interest rates are


While mortgage rates have been low as of late, on Wednesday, they inched higher. But don’t let falling or rising interest rates influence your decision on whether or not to buy a home, says finance guru and star of ABC’s “Shark Tank” Kevin O’Leary. And you know, with certainty, regardless of what interest rates are, you’re going to pay interest. “Don’t get lulled into an effective ‘gee, the rates are low, that means I should go into debt,'” he advises. “It doesn’t matter what interest rates are
Kevin O’Leary: Don’t make this home-buying mistake, even when mortgage rates are low Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: sarah berger
Keywords: news, cnbc, companies, youre, low, thats, rates, debt, pay, money, oleary, dont, mistake, kevin, mortgage, interest, homebuying


Kevin O'Leary: Don't make this home-buying mistake, even when mortgage rates are low

While mortgage rates have been low as of late, on Wednesday, they inched higher. But don’t let falling or rising interest rates influence your decision on whether or not to buy a home, says finance guru and star of ABC’s “Shark Tank” Kevin O’Leary.

“What I hate about mortgages, they’re very finite,” O’Leary tells CNBC Make It. “You owe money, lots and lots and lots of money. And you know, with certainty, regardless of what interest rates are, you’re going to pay interest. That’s what happens.”

“Don’t get lulled into an effective ‘gee, the rates are low, that means I should go into debt,'” he advises. “It doesn’t matter what interest rates are — debt is debt and you have to pay it back.”

So the critical thing to remember about buying a home — regardless of rates — is that it should be a thoughtful and careful decision.

“Ask yourself this question before you even consider [buying a home]: ‘Do I actually want to have a mortgage? Do I want to owe hundreds of thousands of dollars to somebody?'” O’Leary adivses.

“Maybe I should just rent for awhile, get a feel for the neighborhood I’m in and make sure that my job that’s providing the income to pay for my life and my mortgage is stable.”

If you decide it is time to take out a mortgage and buy a place, paying off your mortgage in a timely manner is then critical, especially for younger people, O’Leary says. That’s because the longer you’re paying off mortgage debt, the less money you can invest.

“Particularly if you’re starting out and you’ve just had your first child with your significant other, you want to pay off that mortgage. You want to get rid of that so you can start saving money and investing in your future,” O’Leary previously told CNBC Make It.

“Don’t fall in love with being in debt through a mortgage,” he cautions. “Fall in love with being debt free. Feels way better.”

Don’t miss: Kevin O’Leary on college admissions scandal: ‘I’ll tell you who you really screwed: Your kid’

Like this story? Subscribe to CNBC Make It on YouTube!

Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank.”


Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: sarah berger
Keywords: news, cnbc, companies, youre, low, thats, rates, debt, pay, money, oleary, dont, mistake, kevin, mortgage, interest, homebuying


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

US banks’ first-quarter profits may be the best that they can get this year, Citi analyst says

U.S. banks have delivered a mixed bag of first-quarter financial results so far — but that’s probably the sector’s best this year, especially if the Federal Reserve does not increase interest rates at all, according to a Citi analyst. Four of the six largest American banks have released their first-quarter financial results over the past week. “When we look at profitability, particularly net interest margins … we think we’re at peak margins right now, we think this is as good as it gets both i


U.S. banks have delivered a mixed bag of first-quarter financial results so far — but that’s probably the sector’s best this year, especially if the Federal Reserve does not increase interest rates at all, according to a Citi analyst. Four of the six largest American banks have released their first-quarter financial results over the past week. “When we look at profitability, particularly net interest margins … we think we’re at peak margins right now, we think this is as good as it gets both i
US banks’ first-quarter profits may be the best that they can get this year, Citi analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-16  Authors: yen nee lee, justin sullivan, getty images
Keywords: news, cnbc, companies, thats, think, margins, ghose, analyst, profits, firstquarter, profitability, rates, citi, interest, best, banks, results, net


US banks' first-quarter profits may be the best that they can get this year, Citi analyst says

U.S. banks have delivered a mixed bag of first-quarter financial results so far — but that’s probably the sector’s best this year, especially if the Federal Reserve does not increase interest rates at all, according to a Citi analyst.

Four of the six largest American banks have released their first-quarter financial results over the past week. Among them, J.P. Morgan and Wells Fargo reported quarterly profit and revenue that exceeded analysts’ expectations, while Goldman Sachs and Citigroup both missed estimates on their revenue.

Morgan Stanley and Bank of America are scheduled to report earnings this week.

With the Fed already signalling that it did not expect to hike interest rates this year, the banking industry’s ability to generate higher profits in the coming months may be limited, said Ronit Ghose, the global head of banks research at Citi.

“When we look at profitability, particularly net interest margins … we think we’re at peak margins right now, we think this is as good as it gets both in terms of net interest margins and profitability,” he told CNBC’s “Capital Connection” on Tuesday.

Net interest margin is a widely watched indicator that measures a bank’s lending profitability. The potential absence of further interest rates increases by the Fed means that banks may not be able to charge more on loans in the coming months.

“If we don’t see more rate raises, which is likely … that’s not great news for margins going ahead,” said Ghose.


Company: cnbc, Activity: cnbc, Date: 2019-04-16  Authors: yen nee lee, justin sullivan, getty images
Keywords: news, cnbc, companies, thats, think, margins, ghose, analyst, profits, firstquarter, profitability, rates, citi, interest, best, banks, results, net


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Can European banks be saved by a fresh round of deal making?

The comparisons with U.S. peers just got a lot harder for European banks after a strong showing from J.P. Morgan to kick off earnings season, but could there be fresh revenue on the way for European investment banks, even if it is of their own making? European banks have found themselves wedged into the same category as basic resources back in 2015: uninvestable. One banking commentator told CNBC this month that investors should forget about European banks’ NIMs expanding for a few years now. Ju


The comparisons with U.S. peers just got a lot harder for European banks after a strong showing from J.P. Morgan to kick off earnings season, but could there be fresh revenue on the way for European investment banks, even if it is of their own making? European banks have found themselves wedged into the same category as basic resources back in 2015: uninvestable. One banking commentator told CNBC this month that investors should forget about European banks’ NIMs expanding for a few years now. Ju
Can European banks be saved by a fresh round of deal making? Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-16  Authors: karen tso, prisma dukas, universal images group, getty images
Keywords: news, cnbc, companies, fresh, european, bank, making, banks, capital, round, nims, deutsche, saved, investors, investment, interest, consolidation, deal


Can European banks be saved by a fresh round of deal making?

The comparisons with U.S. peers just got a lot harder for European banks after a strong showing from J.P. Morgan to kick off earnings season, but could there be fresh revenue on the way for European investment banks, even if it is of their own making?

There’s a mooted capital raising for Deutsche Bank before any possible consolidation with Commerzbank. Meanwhile, Italian lender UniCredit is waiting in the wings let alone any other rival jumping on the bandwagon.

European banks have found themselves wedged into the same category as basic resources back in 2015: uninvestable.

The European Central Bank (ECB) folded and conceded its current hand of cards meant no chance of hiking its benchmark interest rate for the foreseeable future, delivering a dose of realism.

The loser wasn’t the ultra-dovish ECB President Mario Draghi, but bank investors stuck in a much dreaded value trap. Hope vanished for a long-awaited expansion in net interest margins (NIMs) for banks in 2019, which is essentially the profits that these banks make and is usually much better if rates are higher.

One banking commentator told CNBC this month that investors should forget about European banks’ NIMs expanding for a few years now.

To be fair bank bosses are trying everything. UBS resorted to verbal kitchen sinking recently, telling investors it had been saddled with the worst start to the year in many years.

Others are keeping a brave face, Santander is steadfast it can deliver lofty ROTE (return on tangible equity) targets of 13% to 15% in the medium term, up from 11.7% last year — because it has done it before in the face of headwinds.

Then there is all the noise of consolidation driven by the German lenders Deutsche Bank and Commerzbank. Typically, this news flow would mean “game on” for buying on mere consolidation hopes. Just not in European banks where merger and acquisitions have been slim. Any sector action — and that’s being kind using the word action — can be viewed as recovery after freefall last year.

There is a long laundry list of fears around the banks which can be best summarized as a lack of growth. But can deal-making actually save the day? Perhaps. Without growing capital, banks could be forced to sell assets or raise more capital. Activists have called for smaller investment banks at Deutsche Bank, Credit Suisse and Barclays so any extra business even from ill-fated mergers would be welcome.


Company: cnbc, Activity: cnbc, Date: 2019-04-16  Authors: karen tso, prisma dukas, universal images group, getty images
Keywords: news, cnbc, companies, fresh, european, bank, making, banks, capital, round, nims, deutsche, saved, investors, investment, interest, consolidation, deal


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Here’s what Americans would do with a $5,000 windfall

“Spending is much easier than saving for most people,” said Stephen Brobeck, a senior fellow at the Consumer Federation of America. At the same time, he added, “those without substantial assets receive much less encouragement from the marketplace to save regularly.” “Saving is not what neuropsychologists call a ‘selective trait,'” Ghilarducci said. While interpersonal skills and trust are qualities that lead us to reproduction, she said, “a young person saving for retirement is a bit weird.” Whe


“Spending is much easier than saving for most people,” said Stephen Brobeck, a senior fellow at the Consumer Federation of America. At the same time, he added, “those without substantial assets receive much less encouragement from the marketplace to save regularly.” “Saving is not what neuropsychologists call a ‘selective trait,'” Ghilarducci said. While interpersonal skills and trust are qualities that lead us to reproduction, she said, “a young person saving for retirement is a bit weird.” Whe
Here’s what Americans would do with a $5,000 windfall Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-12  Authors: annie nova, source, teresa ghilarducci
Keywords: news, cnbc, companies, thats, 5000, youd, ghilarducci, trait, bonus, saving, retirement, interest, debt, save, heres, windfall, americans


Here's what Americans would do with a $5,000 windfall

You want to do the financially responsible things, so why is it so hard to actually do them?

“Spending is much easier than saving for most people,” said Stephen Brobeck, a senior fellow at the Consumer Federation of America.

Companies, of course, set out to separate us from our cash.

“We’re bombarded by ads for products and shop in stores designed to encourage spending,” he said. At the same time, he added, “those without substantial assets receive much less encouragement from the marketplace to save regularly.”

A $5,000 bonus can go far if used well. If you invested that amount at an annual return of 8%, you’d have $50,313 in 30 years, $108,623 in 40 years and $234,508 in 50 years. If you directed that bonus toward debt, you could save years of bills. That’s because if you made only the minimum payments on a credit card with a $5,000 balance and an interest rate of nearly 18%, you’d be stuck in the red for more than 18 years and have forked over $6,400 in interest, according to Ted Rossman at CreditCards.com.

Add to capitalism another force against our bank balances — evolution, said Teresa Ghilarducci, an economics professor at the New School for Social Research.

“Saving is not what neuropsychologists call a ‘selective trait,'” Ghilarducci said. “It’s not a trait that helps propagate the species.”

While interpersonal skills and trust are qualities that lead us to reproduction, she said, “a young person saving for retirement is a bit weird.”

The blame shouldn’t be put on consumers for not managing their money well enough, she said, but on the student lenders, banks and auto dealers that offer them more debt than they can realistically handle.

When it comes to saving for retirement, Ghilarducci believes there should be a mandatory system in place that’s not based on “unrealistic discipline.”


Company: cnbc, Activity: cnbc, Date: 2019-04-12  Authors: annie nova, source, teresa ghilarducci
Keywords: news, cnbc, companies, thats, 5000, youd, ghilarducci, trait, bonus, saving, retirement, interest, debt, save, heres, windfall, americans


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

IMF’s Lipton warns that volatility hasn’t left markets yet

The IMF’s David Lipton has told CNBC that the current swing to a dovish tone from global central banks should not lead investors to believe that market volatility will just disappear. Markets sold off heavily towards the end of 2018, spooked by the U.S.-Sino trade spat and the suggestion that the Federal Reserve was set to press ahead with interest rate rises. Sluggish data and tepid inflation in 2019 has led central banks around the world to reevaluate their interest rate strategies and stimulu


The IMF’s David Lipton has told CNBC that the current swing to a dovish tone from global central banks should not lead investors to believe that market volatility will just disappear. Markets sold off heavily towards the end of 2018, spooked by the U.S.-Sino trade spat and the suggestion that the Federal Reserve was set to press ahead with interest rate rises. Sluggish data and tepid inflation in 2019 has led central banks around the world to reevaluate their interest rate strategies and stimulu
IMF’s Lipton warns that volatility hasn’t left markets yet Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: david reid
Keywords: news, cnbc, companies, left, volatility, imfs, world, led, central, lipton, washington, interest, warns, investors, markets, banks, rate


IMF's Lipton warns that volatility hasn't left markets yet

The IMF’s David Lipton has told CNBC that the current swing to a dovish tone from global central banks should not lead investors to believe that market volatility will just disappear.

Markets sold off heavily towards the end of 2018, spooked by the U.S.-Sino trade spat and the suggestion that the Federal Reserve was set to press ahead with interest rate rises.

Sluggish data and tepid inflation in 2019 has led central banks around the world to reevaluate their interest rate strategies and stimulus policies. That change in rhetoric has led to a bump up for stocks as investors predict a longer period of cheap cash.

“It is correct for capital markets to take their cue from central banks but I think they shouldn’t assume that volatility has gone forever just because central banks are in an accommodative posture,” said Lipton at the Spring Meetings of the International Monetary Fund and the World Bank Group in Washington D.C. on Thursday.


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: david reid
Keywords: news, cnbc, companies, left, volatility, imfs, world, led, central, lipton, washington, interest, warns, investors, markets, banks, rate


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Here’s one easy way to pay less to your credit card company

You may be paying off your credit card debt wrong—here’s the best way 4:33 PM ET Tue, 8 Jan 2019 | 01:01The nation’s credit card tab has reached $944 billion, according to NerdWallet. Since 2016, the Federal Reserve has made eight increases to a key interest rate that affects consumer debt. Nevertheless, getting your interest rate down is a key way to reduce the cost of carrying a balance month to month. It would take 26 months to pay off and you’d pay about $1,450 in interest. “Otherwise you co


You may be paying off your credit card debt wrong—here’s the best way 4:33 PM ET Tue, 8 Jan 2019 | 01:01The nation’s credit card tab has reached $944 billion, according to NerdWallet. Since 2016, the Federal Reserve has made eight increases to a key interest rate that affects consumer debt. Nevertheless, getting your interest rate down is a key way to reduce the cost of carrying a balance month to month. It would take 26 months to pay off and you’d pay about $1,450 in interest. “Otherwise you co
Here’s one easy way to pay less to your credit card company Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: sarah obrien, joe raedle, getty images
Keywords: news, cnbc, companies, study, way, credit, pay, heres, reduction, card, interest, youd, paying, company, easy, rate


Here's one easy way to pay less to your credit card company

You may be paying off your credit card debt wrong—here’s the best way 4:33 PM ET Tue, 8 Jan 2019 | 01:01

The nation’s credit card tab has reached $944 billion, according to NerdWallet. The average interest rate is about 17.7%, separate data from CreditCards.com shows. That compares to about 15.2% three years ago.

Since 2016, the Federal Reserve has made eight increases to a key interest rate that affects consumer debt. It recently indicated that rates won’t move higher this year unless economic conditions change.

Nevertheless, getting your interest rate down is a key way to reduce the cost of carrying a balance month to month.

More from Personal Finance:

1 in 5 homeowners is making this costly mistake

America’s juiciest money secrets, as told to CNBC

Grandparents spend $179 billion annually on grandkids

In the CompareCards study, the average rate reduction that survey participants had been able to get was 6 percentage points. The median — half fell above, half below — was about 5 percentage points.

Say you have a balance of $5,000 on a card that charges you 24% in interest and you pay $250 a month. It would take 26 months to pay off and you’d pay about $1,450 in interest. If you could get that rate to 18%, you’d save more than $450 in interest and pay it off two months earlier, the study shows.

Schulz pointed out that if you already are paying a lower-than-average interest rate, it’s less likely you’ll get a huge reduction. You can also explore 0% deals, which typically charge you an upfront fee but no interest for a certain amount of time.

And, because the poll was random, Schulz said the success rate is likely not limited to consumers with high credit scores.

“That’s a really positive sign and a good indicator that even folks with not-perfect credit should take time to ask,” he said. “Otherwise you could end up paying more to your credit card company than you probably need to.”


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: sarah obrien, joe raedle, getty images
Keywords: news, cnbc, companies, study, way, credit, pay, heres, reduction, card, interest, youd, paying, company, easy, rate


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

S&P 500 rises as ‘majority’ of Fed sees no change in rates this year

The S&P 500 rose slightly on Wednesday, as the Federal Reserve reaffirmed that it would keep rates unchanged this year. The S&P 500 finished the day up 0.4% while the Nasdaq composite ended 0.7% higher. The Federal Reserve released the minutes of its March monetary policy meeting at 2 p.m. Last month, the U.S. central bank decided to maintain interest rates and hold off an any further increases this year. “We’ve agreed that both sides will establish enforcement offices that will deal with the on


The S&P 500 rose slightly on Wednesday, as the Federal Reserve reaffirmed that it would keep rates unchanged this year. The S&P 500 finished the day up 0.4% while the Nasdaq composite ended 0.7% higher. The Federal Reserve released the minutes of its March monetary policy meeting at 2 p.m. Last month, the U.S. central bank decided to maintain interest rates and hold off an any further increases this year. “We’ve agreed that both sides will establish enforcement offices that will deal with the on
S&P 500 rises as ‘majority’ of Fed sees no change in rates this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-10  Authors: michael sheetz, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, sp, majority, rates, rises, interest, minutes, change, reserve, 500, outlook, sees, fed, leaving, unchanged, rose, mnuchin


S&P 500 rises as 'majority' of Fed sees no change in rates this year

The S&P 500 rose slightly on Wednesday, as the Federal Reserve reaffirmed that it would keep rates unchanged this year.

The Dow Jones industrial average pared small early gains, ending the day 7 points higher. Boeing shares weighed on the Dow, falling 1.1%, while Goldman Sachs rose 1.1%, leading the index. The S&P 500 finished the day up 0.4% while the Nasdaq composite ended 0.7% higher.

The Federal Reserve released the minutes of its March monetary policy meeting at 2 p.m. ET. Last month, the U.S. central bank decided to maintain interest rates and hold off an any further increases this year.

“A majority of participants expected that the evolution of the economic outlook and risks to the outlook would likely warrant leaving the target range unchanged for the remainder of the year,” the minutes said.

The minutes revealed that Fed officials are leaving room for possible interest rate increase by the end of the year but currently do not expect to make any changes.

In regard to closely-watched trade negotiations, Treasury Secretary Steven Mnuchin told CNBC that the U.S. and China have “pretty much agreed on an enforcement mechanism” for when a deal is struck.

“We’ve agreed that both sides will establish enforcement offices that will deal with the ongoing matters,” Mnuchin said.


Company: cnbc, Activity: cnbc, Date: 2019-04-10  Authors: michael sheetz, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, sp, majority, rates, rises, interest, minutes, change, reserve, 500, outlook, sees, fed, leaving, unchanged, rose, mnuchin


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post