What is the correlation between credit card debt and rates? Like if you are delinquent, I see normal like 14-25% late fees. So if rates go up do they start adjusting those higher I assume?
I was talking with a CFO of a small bank over the weekend and we agree that under the surface it's really not good. We don't know if it's student loan debt or credit card debt or mortgage debt that is going to get us next.
I was quoted a 3.875% 30 year with Cornerstone in late February the last week. He got quoted last week at 4.9% and I have heard people getting as high as 5.5-6%. That's in a period of a month. Young people and most people for that sake, have never seen a rising rate environment. Lot of young people I know (even finance and business majors) saying they will now wait to buy a house in Houston until rates go back down. I told them they may never buy a house. 5% isn't terrible historicaly, but when one guy gets 2.5% a year ago and now you are paying 5%, you feel like there is no way you should be paying double.
I'm talking purely from a mentality standpoint it is going to and already is mind ficking younger generations.
I was talking with a CFO of a small bank over the weekend and we agree that under the surface it's really not good. We don't know if it's student loan debt or credit card debt or mortgage debt that is going to get us next.
I was quoted a 3.875% 30 year with Cornerstone in late February the last week. He got quoted last week at 4.9% and I have heard people getting as high as 5.5-6%. That's in a period of a month. Young people and most people for that sake, have never seen a rising rate environment. Lot of young people I know (even finance and business majors) saying they will now wait to buy a house in Houston until rates go back down. I told them they may never buy a house. 5% isn't terrible historicaly, but when one guy gets 2.5% a year ago and now you are paying 5%, you feel like there is no way you should be paying double.
I'm talking purely from a mentality standpoint it is going to and already is mind ficking younger generations.