My New Blog

The national average rate on a 30 year conforming fixed loan dropped by nine basis points to settle at 6.53%. Many predict that the next trouble spot in the economy will be car loans that will begin to suffer delinquencies. That is certainly reflected in the average new car loan rates that rose up slightly to 7.06%. Bank of America completed its acquisition of Countrywide Financial (CFC) thereby becoming the largest originator and servicer of mortgages in the U.S. One hopes that the diversified areas of operations of BofA would serve as a good and important cushion as the mortgage-related problems of CFC would continue to go through a painful but eventually healthy correction phase. We will continue to pay more than a passing interest in the fortunes of the new company as it will serve as a bellwether for the health of the mortgage industry and the larger economy in general.

Hope you had a nice fourth of July.