Mortgage Rates News

Consumer Credit Rises Above Forecast in June

Consumer debt increased by $14.3 billion in June, according to data released Thursday from the U.S. Federal Reserve, which also showed that total consumer credit had risen to $2.586 trillion from the prior month's $2.572 trillion.

Canadians Top List of Foreign Buyers of U.S. Property, NAR Says

Canadians are flocking to snatch up property in the U.S. as a result of affordable house prices and attractive exchange rates, the National Association of Realtors says.

Since May 2007, NAR estimates that between 150,000 and 190,000 homes in the U.S. were bought by foreign nationals.

Not-so-Happy Credit Squeeze Milestone

Several television financial correspondents were announcing at the beginning of this week that Monday was the first anniversary of the credit squeeze. It is unclear whether any one day can claim that dubious distinction, but August 2007 was certainly a cruel month.

We take a look at where the Credit Crisis has been and where we may be headed next.

Citigroup Ordered to Buy Back up to $20 Billion in Auction-Rate Securities

Citigroup could have to take as much as $20 billion in securities from failed auctions on to its balance sheet and will pay a variety of fines and reimbursements in a settlement with U.S. regulators.

Citigroup has agreed to buy back all the securities it marketed to individuals and institutions without admitting any wrongdoing...

Foreclosed Home Sales Likely Driving Up U.S. Pending Home Sales

Economists say the second unexpected rebound in three months in the U.S. pending home sales index is likely due to sales of foreclosed homes. The June report from the National Association of Realtors (NAR) defied expectations for a 1.0% decline and rebounded 5.3% in June, following the 4.9% loss of sales in May.

The bounce is better than the most optimistic forecasts beforehand...

Pending Home Sales Rebound 5.3% in June

Pending home sales rebounded by 5.3% in June, according to the National Association of Realtors (NAR), against expectations that the index would fall by 1.0%. The bounce is better than the most optimistic forecasts and follows a downwardly revised 4.9% drop in the prior month.

Thursday's Events: BOE, ECB Rates; CA Building Permits; U.S. Jobless Claims

The Bank of England and the European Central Bank rate decisions are the highlights of the early morning, followed by Canadian building permits, U.S. jobless claims and pending home sales for the United States. In the afternoon, the Treasury department will sell $10 billion in 30-year bonds.

Initial Jobless Claims are "Useless" Due to Distortion, Economist Says

Claims for unemployment benefits in the U.S. rose to their highest level since March 2002 with 455k initial claims reported in the week ending Aug. 2, but economists say new rules that make it easier to file a claim is putting upward pressure on the figures.

"The larger than expected rise is not a complete shock," said TD Securities economics strategist Charmaine Buskas. "The labor department did recently announce a 13 week extension to the benefits period and this has clearly caused a huge influx of re-filers."

Fed Funds Price Out Rate Hikes Following ECB Hold on Rates

Despite a better-than-expected pending home sales report coming out of the U.S. on Thursday, the day's soft jobless claims figures are instead dictating the direction of the Fed fund futures market.

Year-end rate hikes are consequently in the midst of being priced out. Markets are pricing in a 62.3% chance that the Federal Reserve will keep rates on hold. That represents an 18% greater chance than...

Preview: Pending Home Sales Index to Slow its Decline in June

The consensus forecast is expecting Thursday's pending home sales index (PHSI) from the National Association of Realtors to fall by 1.0% in June, following a 4.7% decline in the May survey and an unexpected 7.1% rebound in April...