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

Mortgage Default Rates Stabilize

August 25, 2015 2:18 am

The S&P Dow Jones Indices recently pointed to a stable consumer credit default rate, showing activity indicative of an improving economy. The Indices are a comprehensive measure of changes in consumer credit defaults.

The first mortgage default rate remained unchanged at 0.80 percent. The second mortgage default rate also remained unchanged at 0.55 percent. The auto loan default rate increased to 0.86 percent, and the bank card default rate decreased to 2.79 percent.

“The stable consumer credit default rates confirm the recent economic improvements seen in the unemployment rate and GDP growth,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “Recent increases in outstanding consumer credit combined with stable default rates and strong consumer sentiment point to stable individual financial conditions. However, wage increases are running at about 2 percent annually–or under 1 percent after inflation–which means that there is little margin for error should the economy stumble. At the same time, concerns over the impact of an expected Federal Reserve rate increase are exaggerated. Interest rates on consumer loans are unlikely to be affected and no immediate economic fallout is anticipated.”

Source: S&P Dow Jones Indices

Published with permission from RISMedia.


Tags:

Is Your Home Protected against the Most Common Natural Disaster?

August 25, 2015 2:18 am

Flooding is the most frequent natural disaster in the United States. According to the U.S. Federal Emergency Management Agency (FEMA), just three inches of floodwater in a home will require replacing drywall, baseboards, carpet, furniture and other necessary repairs, costing $22,500 in a 2,000-square-foot house. The deeper the floodwater, the higher the repairs – 12 inches of water in a 2,000-square-foot house can cost $50,000 or more!

Having flood insurance through the National Flood Insurance Program (NFIP) can save homeowners and renters thousands of dollars in repairs from flood damage. Homes located outside flood-prone areas need flood insurance, too. Nationally, 25 percent of the total structures that flood each year belong to policyholders whose properties are not in high-risk areas.

Flood insurance is available to homeowners and renters in communities that participate in the NFIP and enforce their local flood plain management ordinances. To determine if a community participates in NFIP, visit www.floodsmart.gov. Homeowners in a Special Flood Hazard Area (SFHA) must buy flood insurance if they have a mortgage from a federally regulated lender. When obtaining flood insurance, keep in mind there is normally a 30-day waiting period when purchasing a new policy.

Homeowners can insure their homes for up to $250,000 and contents for up to $100,000. Renters can cover their belongings in amounts up to $100,000. Flood insurance premiums average about $700 a year for homeowners.

Source: FEMA.gov

Published with permission from RISMedia.


Tags: