RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

Majority Using Tax Refunds for Savings Boost

February 24, 2016 2:00 am

How are taxpayers planning to use their refunds this season? Many are prioritizing future financial security, according to the National Retail Federation.

“Consumers are boosting their confidence and building their spending power as they set aside their checks from Uncle Sam,” NRF President and CEO Matthew Shay says. “Americans this year see refund season as a time to improve their financial health by using their refunds to get ahead on savings goals, pay down debt and plan for purchases in the future. Money saved is spending potential down the road.”

Americans are exercising forethought beyond savings, as well. According to the NRF, nearly 35 percent of taxpayers—and 45 percent of millennial taxpayers—plan to pay down debt with their refunds.

“Millennials are being wise and putting saving ahead of splurging as they look for ways to get ahead,” Prosper Consumer Insights Director Pam Goodfellow says. “Young consumers see their refund as an opportunity to build their savings without making a dent in their monthly budget.”

Splurges will happen, but not by many. According to the NRF, just over 10 percent of refund recipients will spend their refunds on  a vacation, approximately 9 percent will make a major purchase (e.g., car, television), and about 8 percent will indulge in a night out or a trip to a spa.

Source: NRF

Published with permission from RISMedia.


Report: Mortgage Repayment Rates Recovering

February 24, 2016 2:00 am

Housing appears to be benefitting from the steadily improving economy. According to a recent report by the Federal Reserve Bank of New York, mortgage repayment rates are recovering, with just 2.2 percent of mortgage balances 90 or more days delinquent. More than half of all new mortgage balances went to borrowers with credit scores averaging 760.

“Non-housing debt balances have been rising, but the same cannot be said for mortgages,” says Andrew Haughwout, senior vice president at the New York Fed.  “Mortgages are being paid down faster, helping to offset the generally rising volume of originations.”

The report found 90-plus day delinquencies for all forms of household debt have dropped to their lowest level since the beginning of 2008. Only 5.4 percent of outstanding debt was in some stage of delinquency—the lowest rate since 2007.

Balances on home equity lines of credit (HELOCs) have also declined, a trend continuing for the last four years. Balances fell last quarter by $5 billion in total.

Total household indebtedness, mortgages included, stands at $12.2 trillion, according to the report.

Source: Federal Reserve Bank of New York

Published with permission from RISMedia.