Latest news with #interestrates
NHK
2 days ago
- Business
- NHK
Trump meets Fed Chair Powell on rate policy
US President Donald Trump and Federal Reserve Chair Jerome Powell met amid concern about inflation and slowing economic growth in the US. The Fed said in a statement that Powell came to the White House Thursday at Trump's invitation. The central bank also said Powell stressed that policy will depend entirely on incoming economic information. He said he and his Fed colleagues will make decisions solely on careful, objective and non-political analysis. A White House spokesperson also commented on the meeting. White House Press Secretary Karoline Leavitt said, "The President did say that he believes the Fed Chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage to China and other countries." Trump has repeatedly called on the Fed to cut interest rates, calling Powell "Mr. Too Late." US inflation has slowed in recent months. At the same time, Powell has expressed caution about cutting rates. Concern that the Trump administration's tariff increases could push consumer prices higher has been rising.
The Australian
2 days ago
- Business
- The Australian
Retail trade falls despite Easter and Anzac Day
Australians are still not spending despite back-to-back public holidays in April, which could force the Reserve Bank of Australia to come to the rescue with additional rate relief. The latest figures by the Australian Bureau of Statistics shows retail sales fell by 0.1 per cent in the month of April despite having two holidays. This follows growth of 0.3 per cent in March 2025 and 0.2 per cent in February 2025. Food-related spending was up, with growth in cafes, restaurants and takeaway services growing 1.1 per cent to be the standout. Oxford Economics Australia lead economist Ben Udy said the RBA may cut rates even sooner than expected. 'This weakness is one indication that households are being a little cautious in the face of rising global uncertainty,' he said. 'We still expect consumption to rise over the rest of the year, supported by the recovery in real household incomes and RBA rate cuts. 'But unless consumption picks up a little more strongly in the coming months, the RBA may cut rates even sooner than we currently expect.' RBA governor Michele Bullock delivered further rate relief in May. Picture: NewsWire / Nikki Short The Reserve Bank of Australia began its rate cutting cycle in February, pausing on the cash rate in April before cutting again in May. It has reduced the official cash rate from 4.35 per cent at the start of 2025 to 3.85 per cent after the second interest rate reduction. The ABS data was in April occurring prior to the second interest rate reduction. ABS head of business statistics Robert Ewing said retail spending eased in April, particularly on clothing. 'Falls were partly offset by a bounce-back in Queensland as businesses recovered from the negative impacts of ex-Tropical Cyclone Alfred last month,' he said 'The rise in food-related spending was driven by more dining out in Queensland this month. The bounce-back comes after adverse weather negatively impacted cafe and restaurant sales,'Mr Ewing said. Australians kept their hands in their pockets in April. Picture: NewsWire / Gaye Gerard There were mixed results across the industries with the largest falls in clothing, footwear and personal accessory retailing down 2.5 per cent while department stores also slumped 2.5 per cent. This was partially offset by rises in other retailing up 0.7 per cent and household goods retailing which rose 0.6 per cent. 'Clothing retailers told us that the warmer-than-usual weather for an April month saw people holding off on buying clothing items, especially new winter season stock,' Mr Ewing said. Retail turnover rose in Queensland by 1.4 per cent and Western Australia 0.4 per cent with all other states and territories recording a fall since March. 'Queensland retailers recovered from last month's temporary business closures and fewer customers,' Mr Ewing said. 'In April, we saw higher spending in the industries most impacted by ex-Tropical Cyclone Alfred. More people dined out and made recovery purchases on household items like furniture and electrical goods.'
News.com.au
2 days ago
- Business
- News.com.au
Property shakeup: Big bank flags surprise trends since rate cuts
A big bank executive has revealed savvy Aussies are outsmarting sky-high property prices and the soaring cost of living, with shock trends emerging since rate cuts. In a surprise move considering how badly the cost of living crisis has hit Australia, National Australia Bank has found 95 per cent of home borrowers have elected to maintain mortgage repayments at previous higher levels despite lower interest rates. NAB executive for home lending Denton Pugh said they've also seen a massive 10 per cent spike in people choosing an investment for their first property – sharing below the trends that have emerged since rate cuts and a shock forecast for what this means for the mortgage and housing market. Australia's biggest political property moguls revealed Australia's property market is picking up again. With school and public holidays, an election, and an RBA decision out of the way, we're seeing buyers and sellers re-enter the market. The Reserve Bank's decision to cut interest rates again this month wasn't a shock. With inflation now sitting comfortably inside the RBA's 2-3 per cent target range, most economists expected this move. When NAB cut its variable rate back in February, we saw activity increase. For mortgage holders, some chose to reduce their monthly repayments to free up cash, but more than 95 per cent of NAB customers have kept their repayments at the same level to pay down their home loan quicker and save more in the long term. Zac Efron's Aussie long lunch haunt is on the market On the buyer side, the cut provided a bit of a sugar hit for the market, but momentum eased in April as a mix of holidays, election uncertainty and anticipation around the RBA's next move saw many potential home buyers hit pause. Now that some of this uncertainty has cleared, and further cuts have been announced, more buyers are back searching for their dream home. At NAB, we've seen steady growth in first home buyer activity since February, with some entering the market through investment. We've seen a 10 per cent increase this year in buyers purchasing an investment property as their first home – a trend known as 'rent-vesting'. NAB insights show this strategy is especially popular in NSW and WA, where a home buyer buys in one suburb while choosing to rent in another. This is a popular strategy for younger buyers who want to get on the property ladder without giving up the lifestyle or location they love. MORE: Buyer of $12m mansion plans to give it away Culture Kings founders' bold $30m push Through May, new listings have started to recover. Consumer confidence, which dipped in April, is also trending up. And that matters because when people feel more confident, they're more likely to make a big purchase on something like a home. Lower rates and growing confidence should help carry the momentum we're seeing through the typically quieter winter months. But we're not expecting house prices to take off in 2025. While lower rates do give buyers a bit more borrowing power, stretched affordability and ongoing cost-of-living pressures are still holding price growth back. So, what should potential buyers be doing now? Start by getting clarity on your borrowing power. Speak to a banker and get pre-approval. In many instances, this can be done in under an hour. I was talking to a first home buyer who told me how quick her home buying journey was. She spoke to her banker to understand how much she could borrow, got pre-approved in under an hour, and just six weeks later she had the keys to her new home. With the market moving again, opportunities are there. Being ready to act can make all the difference. * This is an opinion piece by Denton Pugh who is the National Australia Bank executive for home lending.
Bloomberg
2 days ago
- Business
- Bloomberg
US Mortgage Rates Rise for a Third Time While Sticking Below 7%
By Mortgage rates in the US rose for a third straight week. The average for 30-year, fixed loans was 6.89%, the highest since early February and up from 6.86% last week, according to Freddie Mac.
CBS News
2 days ago
- Business
- CBS News
Will home equity loan and HELOC rates drop this June? Experts weigh in
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Home equity borrowing rates have remained flat recently, but when could they decline again? Getty Images The latest inflation reading showed a decline to 2.3%, heading closer to the Federal Reserve's 2% target. But that good news may be short-lived and ongoing economic uncertainty threatens to upend that downward trajectory. The Federal Reserve kept the federal funds rate paused as it believes the risks of higher unemployment and inflation have increased. With no rate cuts, the borrowing landscape continues to be costly with elevated interest rates. While home equity borrowing options are generally a lower-cost alternative to credit cards or personal loans, home equity lines of credit (HELOCs) and home equity loans aren't immune to the effects of these broader economic decisions. A couple of months ago, home equity line of credit interest rates were below 8% and were slightly lower than home equity loan rates. Now HELOC rates are ticking up and closing that gap. Average HELOC rates are now at 8.14%, according to the most recent Bankrate data. Average home equity loan interest rates now stand at 8.24%. With so much uncertainty on the horizon, where will home equity borrowing rates land in June? We asked some experts for their insight and their thoughts surrounding a potential rate drop in the month. See how low a home equity loan rate you could qualify for here. Will home equity loan and HELOC rates drop this June? Home equity loans and HELOCs are useful borrowing tools for homeowners, but have different interest rate structures. Home equity loans, which offer borrowers a lump sum, have the benefit of a fixed rate that remains stable throughout repayment. HELOCs, on the other hand, allow borrowers more flexibility to draw on funds as needed and have variable rates that adjust monthly for borrowers. When interest rates fall, homeowners can save on interest charges and reduce the cost of borrowing. But holding out hope for home equity borrowing rates to drop may come with a side of disappointment. "At this point I do not anticipate that the Fed will make any changes at their meeting in June and we can expect that the prime rate will remain the same," says Sarah DeFlorio, vice president of mortgage banking at William Raveis Mortgage. "Home equity loans tend to have a fixed rate, while a HELOC's rate will adjust monthly based on prime rate. For the month of June, these rates should remain stable – unlike first mortgage rates. Those react in tandem with movements in 10-year treasury bond yields, which have spiked again." Learn more about your current home equity loan options here. While home equity borrowing rates probably won't decrease in June, they could instead remain flat. In other words, while rates may not be getting better, they may not get worse either. "I anticipate rates to hold steady with a risk of increases. I know the Fed has plans to lower rates, but those plans were implemented before the tariffs and the inflationary effects they will cause," says Adam Ailion, associate broker at RE/MAX Town and Country. The Fed is closely monitoring the situation, upholding a wait-and-see approach. These latest developments put the Fed in a tough position, trying to maintain its dual mandate focused on price stability and maximum employment. Some are anticipating rate cuts getting pushed to later this year, but no one knows for certain what will happen and how things will change over time. At the same time, while home equity borrowing rates are likely to stay in the same range in June, some situations could cause rates to increase further. "I think if we started to see inflation tick back up, you'd see the Fed increase rates to try and get inflation back under control…Hopefully, the effects of the tariffs will be short-lived, but I think that cat is already out of the bag and prices are already increasing," says Ailion. That probability of that is still up in the air, but for now, borrowers looking into home equity loans or HELOCs can likely expect rates to stay roughly the same. "I just really don't see any type of interest rates increasing too much. They're just not coming down," says Christopher Thomas, mortgage loan originator at Iris Mortgage. The bottom line If you're looking into home equity borrowing products, you may not see substantial rate changes anytime soon. Despite the fact that interest rates remain higher than many borrowers want, they're still down from the past year. Home equity loans and HELOCs can still provide more competitive rates than credit cards or even personal loans, if you want to pursue a home renovation or consolidate debt. However, you could still put your home on the line, so it's important to be a responsible borrower. "Be comfortable with the total amount you're borrowing. Be comfortable with the monthly payment and how it fits into your budget," says Thomas. Understand the pros and cons of each type of home equity product and comparison shop with home lenders to find the optimal rates and terms.
