The economy is showing signs of improvement as home prices look to rebound in the coming years and auto and mortgage loan defaults decline. In other financial news, it seems that the government’s idea to take over 401ks has fallen flat.
Economists Say Home Prices Are Expected to Rebound
A new survey conducted by MacroMarkets LLC shows that U.S. home prices will see a gradual recovery. The 92 economists and housing analysts surveyed say they expect prices to rise about 12 percent in the five years ending Dec. 31, 2014.
Of course, this is always good news for the economy but not always the best for homebuyers, so if you’re looking to get a home loan, it’s good to take advantage of reasonably-low mortgage rates while you can. (Wall Street Journal)
Mortgage and Auto Loan Defaults Drop
Both the default rates for first and second mortgages and auto loans declined in April, according to data from Standard and Poor’s Ratings Services and Experian PLC. The data showed that first and second mortgage default rates were 3.7 percent and 2.5 percent, respectively. Auto loan defaults were 1.9 percent, which was a drop from 2.4 percent.
The stats give an indication that home and car owners are better able to keep up with their payments. If this is the case, there may be hope for the economy. (Wall Street Journal)
Workers Want the Government’s “Slimey Hands” Off Their 401ks
After announcing in February that it was interested in taking over 401ks and IRAs and changing them to annuities, the government asked the masses for their opinions on the idea. And boy did it get an earful. While insurance and investment industry groups sent their normal responses, the government received an estimated 700 letters from workers and retirees who gave responses like “Keep your slimy hands off my money.”
Government officials insist that the annuity option would be a choice, but even more, it’s too early to determine what, if any, changes will be made. In other words, there’s no need to bite the government’s head off just yet. (USA Today – AP Story)
