Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Schenk tells paper what lower mortgage rates mean
MADISON, Wis. (12/19/08)--A Credit Union National Association (CUNA) economist told The Milwaukee Journal Sentinel Wednesday what lower mortgage rates will mean to consumers. The newspaper asked Mike Schenk, CUNA senior economist, how far he expects 30-year fixed-rate mortgages to fall during the next few weeks. “I don’t know about the next few weeks, but I wouldn’t be surprised to eventually see them down near 4.5%,” Schenk said. “That’s been a stated number. I think we are approaching about 5% on average, and I fully expect them to go lower yet.” Lower rates should help stimulate home building and buying, but if consumers are concerned about their job security and existing debt levels, then they are less likely to consider a big purchase, Schenk told the paper. Homeowners who can refinance will reap the biggest benefits of lower rates, he added. “If you tell me, ‘I can drop your monthly payment by $200,’ that will get my attention real fast,” Schenk said. Regarding the effect of lower rates on the foreclosure problem, Schenk told the paper, “Certainly lower rates will help in that regard.” As adjustable-rate mortgage reset, the rates won’t go up as high as people expected and might even drop in some instances. That, in turn, will allow more consumers to afford their monthly payments and remain in their homes, he added.
Other Resources

RSS print
News Now LiveWire
Aug. consumer confidence highest since 10/07, says @Conferenceboard See #NewsNow http://t.co/pzGAYvIjYp
4 minutes ago
Kill-switch to protect phones? Calif gov signs bill that may lead to natl trend http://t.co/KCWOPJRtJi
16 minutes ago
How FICO 9 could change #creditunion lending from @FAACreditUnion via @Cornerstone_CUL http://t.co/CO4l8LRrpR
38 minutes ago
.@FORUMTalk awards BrightStart award to young entrepreneur with good biz sense, community service http://t.co/H7w4TSzAru
50 minutes ago
#NewsNow: @SecretaryCastro, @HUDgov secretary, seeks improved quality assurance for FHA program. http://t.co/lCNYSFiW8s
1 hours ago