Mid-Week last week, a NY Federal Reserve Research tweet lead to the following report….
Q 2 2020 Consumer Debt DECREASE?
Not believing the headline…. How could there have been a DECREASE ?
A deeper dive into the report was due!
In prior writings/research this report has been a staple of a resource so familiarity in the set up made the review easier…
In fact, Q 2 2020 shows a decrease in total consumer debt!
Notice the rise up to the great slowdown of 2007-2009 and then a pull in the wings for about five years, until early 2014?
Did it take five years to regain confidence?
Certainly, this could be just a blip, as one quarter does not a trend make.
If it does continue down, as it did during the post 09 peak, we should be able to infer there is a great belt tightening ability across the board for the consumer….
The following chart, also from the same report shows a drop in delinquency status, predominantly in the 120 day range … this may be a result of some of the forbearance ability due to the stimulus packages, but logically that should hit the shorter term, in our opinion.
Lastly, digging even deeper, the drop by loan type is showing the most movement in the shorter term and most evil credit card balance, followed by the less evil Auto Loan….
Could we really be turning Lemons into Lemonade ?
Hope So!
Have a Great “Puzzling but Hopeful Consumer Debt” day!
John A. Kvale CFA, CFP
Mortgage Rates Reach ALL TIME LOW According to Freddie Mac … Get Ready, but Wait (days, not weeks) to Pull the Trigger …
As the experience notches in the belt gain in quantity, we have learned the follies of attempting to PREDICT or FORECAST events …. luckily we gave a soft “heads up” that rates MAY be in our corner due to the Corona Virus, and help with longer term Mortgage and other longer term fixed interest rate loans ….
Freddie Mac Reports Lowest Mortgage Rates EVER
According to Freddie Mac….
Here is the deal…. rates fell AGAIN in the most recent week due to fears of Economic slowdown from the Corona Virus…. but maybe TOO FAST for Mortgage and other longer termed Fixed Rate loans to adjust … On Friday, after the above rates were calculated, the 10 year Treasury, our guidepost for rates, dropped another 22 Basis Points or almost another 1/4 point …..
Far right, the 10 year treasury yield fell like a rock as fear stoked investment from across the globe…. yesterday for the first time it took a breather as bonds fell and rates rose…no matter, these are Low Low Low rates!
Reach out to your bank, Mortgage Broker, or other refinancing officer, and get your documents in order … begin the qualification process but WAIT (days, not weeks) just a bit and check with your loan professional before locking that rate as it is likely the recent drop in rates has not yet dripped through the loan system…. hopefully better loan rates may be in our very near future…
Here is your friendly reminder on Refinancing or not:
Here is the complete Post which contains 11 items to remember when refinancing!
Take advantage of what cards we are dealt!
Have a Great “All Time Low Rates” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents
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Posted in Debt - Debt Management, Interest Rates, Investing/Financial Planning, Market Comments
Tagged Freddie Mac, Home Mortgage, Loan, Mortgage Refinance, Refinance, Refinancing