Though rates are low and credit seems to be opening up somewhat, mortgage delinquencies are on the rise and some expiring tax cuts could mean more homes on the already-flooded market. That doesn’t necessarily mean doom and gloom for homeowners, just more obstacles to overcome.
New numbers from the Mortgage Bankers Association show that mortgage delinquencies rose last quarter, only the second time this has happened in two years.
However, this isn’t necessarily a huge cause for concern, as the delinquency increase has been seen as more of a pause than a setback.
“It’s more of an arresting in the decline. We had gotten used to seeing these delinquencies go down pretty steadily,” Jay Brinkmann, the trade group’s chief economist, told the Wall Street Journal.
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In more housing news, there’s a growing concern over the expiration of Bush-era tax cuts that could have a domino effect on the housing market.
Specifically, the capital gains tax is what is vexing many homeowners, since any profits made from a home sale after the cuts expire would be taxed at a 23.8% rate instead of the 8.8% rate currently in place.
Patty Lance, a Realtor at Coldwell Banker Previews International, told AOL Real Estate that she’s seeing many luxury homeowners anxious to sell, even though the tax cuts could be extended by Congress.
As the back-to-school season just starts to heat up, many new college students may be getting their first credit card, courtesy of mom and dad. And while most teenagers think they know better than their parents, we’ve all made credit card mistakes.
One of the largest mistakes many college kids may make when they have a credit card — either one in their own name co-signed by their parents, or become an “authorized user” on an existing account — is that they simply spend a significant amount on it in the first few months they have the account and start accruing interest charges. Further, many might not understand all the pitfalls that come with missing a payment, even if it’s just by a single day.
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In the biggest tech news of the week, Starbucks and Square inked a deal to bring the mobile payment processor to every one of the coffee chain’s U.S. locations.
The deal, which is set to begin this fall, would mean that all credit and debit card transactions will be processed by Square. And, as the New York Times reports, it also means that eventually Starbucks would use the GPS in customers’ phones to notify the cashier when the customer is in the store and allow the customer to order without even pulling out their phone. A big move for mobile payments.
Image: NS Newsflash, via Flickr