PLASTIC TAKES PRIORITY.
Consumers are paying more attention to their credit card payments and making sure they are current according to a newly released report from TransUnion.
The credit information management company analyzed 27 million anonymous consumer records randomly sampled during the six quarters from 2008 to 2009. Their selection criteria included consumers with at least one credit card and a current mortgage.
Consumers who are delinquent on their credit cards and current on their mortgages decreased to 3.6% from 4.1% in the time period of the study.
However, during the first quarter of 2008 a “flip” occurred where the percentage of consumers with current credit card balances and delinquent mortgages rose. This trend continued during the study time period logging an increase to 6.6% from 4.3%.
“Conventional wisdom has always been that, when faced with a financial crises, consumers will pay their secured obligations first, specifically mortgages,” stated Sean Reardon, author of the study in the company’s analytics and decisioning business unit.
This flip was more pronounced in the Florida and California markets and also for the lowest-scoring segment of the consumer market.
Analysts predict that this flip would revert since the worst of the recession has passed, but apparently that has not been the case according to TransUnion .
St. Louis Mortgage Interest Rates – March 24, 2010 *
- 30-year fixed-rate mortgage 5.00% no points
- 15-year fixed-rate mortgage 4.375% no points
- 5/1 adjustable rate mortgage 3.750% no points
- FHA/VA 30-year fixed rate mortgage 5.25%
- Jumbo 5/1 ARM 4.125% no points
For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
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