Consumer Gains on Credit-Card Law Pared by Rate Hikes

By Jeff Plungis

Aug. 19 (Bloomberg) -- Americans with the best credit may be hurt the most as the first phase of a credit card reform law takes effect tomorrow, said Schwark Satyavolu, founder of a card-comparison Web site.

Lenders are raising rates across the board, according to Satyavolu, president and co-founder of BillShrink.com, which compares terms offered to consumers for credit cards, mobile phones and gasoline. The company says the average lowest card rate is about 11.25 percent, up from 8.85 percent in January. The average for less credit-worthy customers rose to 15.75 percent in July, from 13.75 percent in January.

“Banks are setting the bar high enough so they’ll only go down from here,” Satyavolu said.

The law gives cardholders some of the tools Congress promised to exercise more control over their accounts. They’ll have 45 days to reject proposed rate increases and they’ll have the option of paying off their existing balances at the current rates over a period of at least five years. Companies will have to mail bills 21 days before the due date, up from 14 days.

Read full article :

US Mortgage Rates Fall to 5.08% Freddie Mac Says

By Brian Louis

Sept. 3 (Bloomberg) Mortgage rates for 30-year fixed U.S. home loans fell this week, reducing borrowing costs for buyers amid signs the U.S. housing market is stabilizing.

The average 30-year rate fell to 5.08 percent from 5.14 percent, mortgage buyer Freddie Mac of McLean, Virginia, said today in a statement. The 15-year rate was 4.54 percent.

“The drop in mortgage rates is probably a function of the longer-term Treasuries coming down a bit,” said George Mokrzan, senior economist at Huntington National Bank in Columbus, Ohio. “That’s a good thing. That should help to further support housing markets and give a little bit more support to that early stage of recovery.”

Read full article

Aussie and Kiwi Dollars Near One Year High After G20 Meeting

Australian, N.Z. Dollars Near One-Year High After G-20 Meeting

By Candice Zachariahs

Sept. 7 (Bloomberg) The Australian and New Zealand dollars traded near the strongest levels in a year as the Group of 20’s pledge to maintain economic stimulus boosted demand for higher-yielding assets.

The currencies extended last week’s gain versus the greenback after reports showed Australia’s building industry shrank at a slower pace and house prices in New Zealand climbed for a fourth month. Australia’s dollar advanced for a fourth day versus the yen after an industry report showed job vacancies rose in August for the first time in 16 months.

“The market has taken a little comfort from the strength with which the commitment to keeping the stimulus in place was talked about,” John Horner, a foreign-exchange strategist at Deutsche Bank AG in Sydney, said in a Bloomberg Television interview. “That’s going to underpin risk currencies like the Australian dollar and New Zealand dollar.”

Read Full Article :