| Credit Card Change Is On The Way |
 With all the talk about mortgage reform, most consumers have forgotten about the Credit Card Accountability, Responsibility and Disclosures Act (known as the CARD Act) signed into legislation back in May. These consumer-friendly changes are aimed at some of the industry's most controversial practices and the majority of them take effect in February of 2010.
The Top 5 changes you can expect are:
- The elimination of retroactive interest rate hikes.
- People under 21 will not have easy access to credit.
- Payments must be applied to higher rate balances first.
- Fixed credit limits will limit overdraft fees.
- 45 day notice of term changes (in easy-to-understand language.)
Now for the other side of the coin. Credit card issuers are already scrambling to work the loopholes. For instance, expect a few rounds of interest rate hikes PRIOR to this going into effect - like around Christmas. And those "low rate balance transfers" many consumers have come to rely on - come February, they will be a thing of the past.
If you desire more information on how to prepare for this newest round of credit reform, e-mail me and I will forward you some information. |
| Interest Rate Movements |
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A good rule of thumb regarding interest rate movements is that good news for the economy is bad news for interest rates. With that being said, last week's stock market rally (which saw the Dow creep up over the 10,000 benchmark level) caused an unfortunate increase on mortgage rates. As the Dow continues to hover around the 10,000 benchmark, rates have been subject to some slow, upward pressure as lenders and investors watch.
Overall, it will likely be an active week for the markets and mortgage rates. The single most important day will probably end up being Thursday with the extremely important GDP release in the morning and the Treasury auction results during afternoon hours. If GDP is less than what has been forecasted, we may experience a downward shift in interest rates.
As far as specific programs are concerned, interest rates on ARMs (adjustable rate mortgages) and Jumbo mortgages (loan amounts greater than $417K) have suddenly become very note-worthy.
We have ARM rates starting in the mid-3%s and fixed, Jumbo rates as low as 5.25%
If you are in the market for an ARM or a Jumbo mortgage, on a purchase OR a refinance - check out our Rate Quoter for a quick and easy interest rate quote. |
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