Top 4 credit and debt news of this week
Below are the top 4 news of this week:
1. Major decrease in credit score – According to survey, the credit score of average Americans have decreased considerably. The industry experts are of the opinion that more or less around 35% of the debtors have a credit score below 650. Thus, they are considered as sub-prime borrowers. This low score will have a long lasting negative effect on US credit.
2. Credit for small businesses – On Monday, 12th July Federal Reserve Chairman Ben Bernanke advocated that lenders should ease credit flow to small businesses. According to him, the lack of flow of credit to small businesses is hampering US economy. He said that lending to small businesses had dropped to less than $670 billion from $710 billion in the first part of the year 2010.
3. 25% of home sales due to foreclosures – According to the recent industry updates, more than 25% of sell of home in the first quarter of 2010 were due to foreclosures. More people turned to foreclosure in order to find affordable home prices.
4. 30 year mortgage rate drops – The 30 year mortgage rate dropped by 0.70 points. Last week the mortgage rate was at 4.70%. This lowered by 0.70 points to 4.63%. As the 30 year mortgage rate is going down, this is considered to be the most apt time for investing in real estates, and refinancing. More people turned to foreclosure in order to find more affordable home prices.