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Mortgages bite into bank profits
The real estate slowdown is taking a bite out of Citigroup, Wells Fargo, J.P. Morgan Chase and Wachovia as the blockbuster banks report their first-quarter results.
Mortgage applications have been declining as interest rates move up, leaving banks to sing the mortgage blues despite robust business conditions overall.
With the fed funds rate up near 5%, the cost of borrowing for banks has been increasing. As the 10-year Treasury note yield rises, mortgage defaults are more likely in another blow to banks.
Were going through one of these transition period where its difficult for financial services companies to avoid some negative effects, said Mike Holland, a money manager for Holland & Co. The ones who do reasonably well in this are those who have been thinking about the changes and who are doing their best to anticipate the changes in the market.
More: marketwatch.com
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Syndicate Bank on Friday announced the reduction of credit rates on mortgages, SSI and SME lending, consumer credit and loans to women entrepreneurs ranging from 0.25 percent to 1.50 percent as of February 18, 2008. Interest rates on housing loans has been increased by 25 basis points for loans up to 20 lakh case
To increase the power of granting credits to small businesses and SMEs, the Bank has decided to reduce interest rates by 25 basis points to 1 percent depending on the credit rating of customers. To encourage women entrepreneurs, interest rates were increased by 1 percent on loans
Vietnam bank to fund MBA studies
The Asia Commercial Bank (ACB) announced Thursday that it will provide loans to students of all International MBA programs in Vietnam.
The joint stock bank said it would loan up to 80 percent of the fees or VND20 million (US$1,260), whichever was higher, at a preferential interest rate of 0.75 percent a month.
It also offers normal loans to these students backed by mortgages or salaries.
All the bank’s loans to MBA students are funded by the United States Agency for International Development, USAID.
Soure: thanhniennews.com
U.S. mortgage applications rose in latest week-MBA
Applications for U.S. home mortgages edged higher last week as lower loan rates helped encourage more home purchases for the first time since early August, an industry group said on Wednesday.
The seasonally-adjusted index of total mortgage applications including refinancings rose 1.8 percent in the week ended Sept. 1 to 566.3, according to the Mortgage Bankers Association.
The index is at its highest since early July, but is still well below the year-ago level of 771.6, the association said in a statement.
More : today.reuters.com
U.S. mortgage applications increase last week-MBA
U.S. mortgage applications rose sharply last week, reflecting a surge in home refinancing loans as interest rates remained near recent lows, an industry trade group said on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Nov. 3 increased 8.8 percent to 620.9 from the previous weeks 570.8.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.24 percent, unchanged from the previous week, but well-below a four-year high of 6.86 percent touched in June. Interest rates were also below year-ago levels of 6.31 percent.
More : today.reuters.com
U.S. mortgage applications decrease last week --MBA
U.S. mortgage applications slumped last week, weighed down by a plunge in demand for home refinancing loans, as interest rates climbed from recent lows, an industry trade group said on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Dec. 15 decreased 10.2 percent to 647.6 from the previous weeks 721.2, which was its highest level in over a year.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.10 percent, up 0.08 percentage point from the previous week. Two weeks prior, 30-year mortgage rates fell to
U.S. mortgage applications rose last week -MBA
U.S. mortgage applications rose last week, led by an increase in demand for home purchase loans even as interest rates climbed for a fourth consecutive week, an industry trade group said on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Dec. 29 increased 3.6 percent to 575.6. The index stood at 555.8 in the previous week, which was its lowest level since early August.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.22 percent, up 0.10 percentage point from the previous week. Four weeks prior,
U.S. mortgage applications rebounded last week-MBA
U.S. mortgage applications rose for the first time in four weeks as long-term home loan interest rates plunged to their lowest levels since March, data from the industrys main trade group showed on Wednesday.
The Mortgage Bankers Association in a statement said its seasonally adjusted index of mortgage application activity for the week ended Aug. 4 rose 4.9 percent to 553.3 from the previous weeks 527.6.
Borrowing costs on 30-year fixed-rate mortgages last week averaged 6.45 percent, down from 6.62 percent in the previous week and the lowest since the week ending March 24. Last weeks rate
U.S. mortgage applications decrease last week-MBA
U.S. mortgage applications fell last week as interest rates hit their highest in over four years, an industry trade group said on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended June 23 decreased 6.7 percent to 529.6 from the previous weeks 567.6.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.86 percent, up 0.13 percentage point from the previous week, its highest level since April 12, 2002 when it reached 6.92 percent.
The MBAs seasonally adjusted purchase mortgage index fell 6.2 percent to 389.0. The index was
U.S. mortgage applications decrease last week-MBA
U.S. mortgage applications fell for a second consecutive week, reflecting a drop in demand for home purchase loans, an industry trade group said on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended July 21 decreased 1.3 percent to 533.8 from the previous weeks 540.8.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.69 percent, down 0.04 percentage point from the previous week. Interest rates were 0.17 percentage point below a four-year high reached one month prior.
The MBA seasonally adjusted purchase mortgage index fell 2.4 percent to
It is often observed that there is tendency of spending lavishly and neglecting wasteful expenditure, when a businessman feels comfortable with his profits. We must not forget that at no point of time one should be careless about ensuring economy in expenditure. Wasteful expenditure may amount to a huge loss. Economic use of money and materials can even compensate short fall in profits. Money saved is money earned.
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