Interest rates – Online Payday Loans In US http://onlinepaydayloansinus.com/ Fri, 20 May 2022 02:05:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://onlinepaydayloansinus.com/wp-content/uploads/2022/02/icon-2022-02-03T165216.312.png Interest rates – Online Payday Loans In US http://onlinepaydayloansinus.com/ 32 32 Philippines central bank raises interest rates to curb inflation https://onlinepaydayloansinus.com/philippines-central-bank-raises-interest-rates-to-curb-inflation/ Thu, 19 May 2022 09:41:00 +0000 https://onlinepaydayloansinus.com/philippines-central-bank-raises-interest-rates-to-curb-inflation/ The Philippines’ central bank on Thursday raised interest rates for the first time in more than three years, in a bid to rein in inflation as rising fuel prices and food shortages drive up the cost of living . Robust economic growth and jobs in the first quarter gave the monetary authority the leeway it […]]]>

The Philippines’ central bank on Thursday raised interest rates for the first time in more than three years, in a bid to rein in inflation as rising fuel prices and food shortages drive up the cost of living .

Robust economic growth and jobs in the first quarter gave the monetary authority the leeway it needed to continue “undoing its pandemic-induced interventions,” said Benjamin Diokno, the bank’s governor.

For the latest headlines, follow our Google News channel online or through the app.

Reducing inflationary pressures was now the focus, as rising global oil prices, the conflict in Ukraine and a domestic shortage of pork and fish weighed on household budgets.

“Average inflation is expected to exceed the upper end of the 2-4% target range in 2022 at 4.6%, while the forecast for 2023 has moved closer to the upper end of the target range at 3.9 %,” Diokno said.

The 25 basis point increase comes after the central bank held rates at an all-time low of 2% since November 2020. The last time it raised rates was in November 2018.

The monetary authority’s overnight reverse repo facility increased to 2.25% from Friday, while the overnight deposit and lending facilities were raised to 1.75% and 2 .75% respectively.

Diokno warned that the central bank was “just beginning the monetary policy tightening cycle,” suggesting further rate hikes were likely.

Thursday’s increase would help avoid “second-round effects,” such as higher-than-expected minimum wage increases in some regions, he said.

RCBC chief economist Michael Ricafort said economic growth was stronger than expected at 8.3% in the first quarter and other data indicated the “economy could hold up” to further rises.

Economic activity was boosted in the first three months of the year by the lifting of COVID-19 restrictions and the start of the election campaign, which boosted consumer spending.

Ricafort said pork supplies had been affected by African swine fever outbreaks while fish shortages were caused by bans on fishing in certain waters.

Read more:

Philippines election victory brings Marcos back to power and polarization

Eight people killed in a house fire in the Philippines

Filipino Expert Says Some Drug War-Related Death Certificates Were Forged

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5 impacts of inflation on interest rates | News https://onlinepaydayloansinus.com/5-impacts-of-inflation-on-interest-rates-news/ Wed, 18 May 2022 21:00:00 +0000 https://onlinepaydayloansinus.com/5-impacts-of-inflation-on-interest-rates-news/ Like the Federal Reserve rising interest rates half a percentage point, many Americans are wondering how this decision affects their wallets. The increase puts the federal funds rate at nearly 1%, up from 0.33%, the highest level since March 2020. The Bureau of Labor Statistics (BLS) announced in May 2022 that consumer prices increased by […]]]>

Like the Federal Reserve rising interest rates half a percentage point, many Americans are wondering how this decision affects their wallets.

The increase puts the federal funds rate at nearly 1%, up from 0.33%, the highest level since March 2020. The Bureau of Labor Statistics (BLS) announced in May 2022 that consumer prices increased by 8.3% over the year ending in April 2022. Restaurant and eat-out prices increased by almost 7% compared to last year, while grocery prices have increased by 10%according to the US Department of Agriculture.

The Fed anticipates the federal funds rate will reach 1.9% at the end of 2022, and 2.8% by the end of 2023. That may not seem like much, but it can significantly affect consumer spending and borrowing. Fed Chairman Jerome Powell’s goal of raising interest rates largest single rate increase since 2000 is to fight inflation, but without triggering a recession. The cooling of the housing market and the volatility of stock prices indicate that this task will prove difficult. the The rate of real estate loans over 30 years is already growing to 5% as house prices cool down in several metros.

To explain the different ways this will impact daily household budgets, PennyWorks has compiled a list of five ways inflation affects interest rates. Data sources include the Federal Reserve, Reuters and The New York Times.

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Report: Myrtle Beach real estate market remains hot as interest rates and prices climb https://onlinepaydayloansinus.com/report-myrtle-beach-real-estate-market-remains-hot-as-interest-rates-and-prices-climb/ Wed, 18 May 2022 09:00:00 +0000 https://onlinepaydayloansinus.com/report-myrtle-beach-real-estate-market-remains-hot-as-interest-rates-and-prices-climb/ MYRTLE BEACH, South Carolina Coming out of the pandemic, Myrtle Beach’s housing market was so strong that some industry analysts compared it to other southern real estate giants like Bradenton, Fla. or Charleston, as loan applications Mortgages for homes in the city jumped nearly 18% between 2019 and 2020. But the current conditions, namely rising […]]]>

Coming out of the pandemic, Myrtle Beach’s housing market was so strong that some industry analysts compared it to other southern real estate giants like Bradenton, Fla. or Charleston, as loan applications Mortgages for homes in the city jumped nearly 18% between 2019 and 2020.

But the current conditions, namely rising interest rates, could start the trend. .

The findings of a new publication study issued by Inspection Support Network – a major maker of software for home inspection companies – meant Myrtle Beach had the 15th highest year-over-year increase in nationwide mortgage applications among cities of similar sizes between 2019 and 2020, placing it just behind other real estate hotspots, including Bradenton, Fla., and the Charleston area.

But in its April market report, the Coastal Carolina Association of Realtors said rising house prices and rising interest rates have affected purchasing power.

Fixed mortgage rates are currently at 5.3%, according to Freddie Mac. This is the highest level since 2011.

“We continued to think that interest rates were going to push buyers out of the close. But we’ve also seen a number of sellers come out of the fence” as interest rates fluctuate. “We didn’t expect to see this much urgency,” said Jamie Broadhurst, a Myrtle Beach-based agent and the association’s new president.

Cole Williams, broker at Myrtle Beach-based Revolution Mortgage, said the Grand Strand area will still be attractive to homebuyers, even if momentum slows at times.

“Rates and house prices are up across the country, so everyone feels the same way. One thing we have in Horry County is an extremely low tax rate that will continue to attract many new homeowners from the Midwest and Northeast,” he said. “If you live in one of those places, you might be paying $1,200 a month or more in taxes and that would be your annual insurance in Horry County.”

In the Grand Strand, median home sale prices have jumped nearly a quarter since April 2021, from $274,920 to $342,500.

“Interest rates are only one of the factors contributing to the overall market slowdown. Inventory issues discourage financial buyers,” Williams said. “There seem to be multiple offers on every home under contract, and cash is king.”

Home availability in South Carolina’s fastest growing county is shrinking. Between April 2021 and this year, inventories have fallen by more than a quarter, while available homes are on the market five days less.

“Do I see it (inventory) going back to where we were before COVID? Absolutely not,” Broadhurst said.

Related Stories from Myrtle Beach Sun News

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Banks raise interest rates on deposits based on demand for funds and inflation https://onlinepaydayloansinus.com/banks-raise-interest-rates-on-deposits-based-on-demand-for-funds-and-inflation/ Wed, 18 May 2022 03:44:00 +0000 https://onlinepaydayloansinus.com/banks-raise-interest-rates-on-deposits-based-on-demand-for-funds-and-inflation/ VIETNAM, May 18 – A customer makes a deposit in a bank in Bình Dương province. HCM CITY – Many banks raised interest rates on deposits by 0.1 to 0.6 percentage points amid growing demand for funds. Last year, the average interest rates on six-month and 12-month bank deposits were 4.7% and 5.5%, down half […]]]>

VIETNAM, May 18 –

A customer makes a deposit in a bank in Bình Dương province.

HCM CITY – Many banks raised interest rates on deposits by 0.1 to 0.6 percentage points amid growing demand for funds.

Last year, the average interest rates on six-month and 12-month bank deposits were 4.7% and 5.5%, down half a percentage point from 2020, said Bảo Việt Securities.

The State Bank of Việt Nam said that in 2021 rates were at their lowest level in five years.

But rates, especially at small and medium banks, have risen sharply since the start of this month.

Currently, peak rates are 6.5 to 7.4%.

NamABank offers the highest rate for online savings, even for small amounts. Customers who deposit money through its online banking app for 16-36 months can earn 7.4% interest. For 12 months, it is 6.4%.

The Sài Gòn – Hà Nội Commercial Joint Stock Bank (SHB) raised its rates by 0.2 to 0.4 percentage points. For 36 months, the rate is 0.4 percentage points up to 6.5-6.6%. For 12-month terms, it went from 5.7-5.8% to 6.1-6.2%.

Bản Việt Bank (Viet Capital Bank) has raised its rates to a maximum of 7% for 24 months if deposited online and 6.8% if deposited at the counter.

Eximbank, VPBank, Techcombank, OCB, SCB, LienVietPostBank, HDBank and ACB have also increased their rates.

According to data from the State Bank of Vietnam, deposits increased by 1.38% to nearly VNĐ 11.2 quadrillion in the first two months of 2022, with individual customers accounting for VNĐ 5.46 quadrillion and client companies 5.63 quadrillion VNĐ..

Last year, retail deposits declined as many retreated to invest in more attractive asset classes amid low deposit interest rates.

Experts said the increase in interest rates on deposits comes at a time when demand for credit is increasing significantly.

Outstanding loans were 5.04% at the end of March compared to a year earlier, as demand for capital increased to serve production and business after a long period of stagnation due to the COVID-19 pandemic.

VNDirect Securities Company said inflationary pressure and fierce competition from other asset classes such as real estate and securities would drive up interest rates on deposits.

This year, he expects deposit interest rates to rise by 0.3 to 0.5 percentage points to 5.9 to 6.1 percent. –VNS

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COVID-19 Update: Interest Rate Hikes, Fed Intervention, and Increase in Monthly Payments https://onlinepaydayloansinus.com/covid-19-update-interest-rate-hikes-fed-intervention-and-increase-in-monthly-payments/ Tue, 17 May 2022 08:20:11 +0000 https://onlinepaydayloansinus.com/covid-19-update-interest-rate-hikes-fed-intervention-and-increase-in-monthly-payments/ Adobe Stock The current economic landscape is categorized by “seemingly contradictory” elements, according to Zonda chief economist Ali Wolf. In the latest COVID-19 Update webinar, Wolf shares that things like April’s “stellar” jobs report, low unemployment, 6% wage growth and high inflation rates , go together. However, GDP growth in the first quarter of 2022 […]]]>
Adobe Stock

The current economic landscape is categorized by “seemingly contradictory” elements, according to Zonda chief economist Ali Wolf. In the latest COVID-19 Update webinar, Wolf shares that things like April’s “stellar” jobs report, low unemployment, 6% wage growth and high inflation rates , go together. However, GDP growth in the first quarter of 2022 has contracted and many “soft data”, measuring consumer sentiment and expectations, are starting to trend more negatively.

“If you look at consumers, some of the sentiment data, they’re not feeling very good, whether it’s the economy or how much they’re paying each day,” Wolf says. “[Thinking] in the housing market, few people think it’s a good time to buy. »

While inflation, as measured by the consumer price index, eased slightly from 8.5% year-on-year growth in March to 8.3% in April, it there is still no inflationary relief at the moment, according to Wolf. Following its first increase in short-term interest rates in March, the Federal Reserve announced the second increase in short-term rates in April, a 50 basis point increase aimed at combating high levels of inflation and help relieve the overheated economy. While the short-term federal funds rate rose 75 basis points, mortgage rates rose more than 200 basis points, in part because “the market isn’t waiting for the Fed,” Wolf says.

The response on the ground has been varied, according to data from the Zonda builder survey. According to a survey conducted in mid-April, 30% of builders surveyed said demand was slower than expected. However, more than 60% of builders said demand was either as expected or remained stronger than expected.

“Builders see different responses in terms of what’s happening with affordability and interest rates, and consumers have different reactions to what’s happening,” Wolf says. “You have buyers who are market driven: prices are up, inventory is up and people are afraid to miss out. There are also people who are watching the market, thinking inflation is to 8.3% and costs are rising, want[ing] to lock in most of their monthly budget.

Wolf says many buyers are also discouraged in the current market, either out of fear of buying at the top or out of force due to growing affordability issues. Due to house price appreciation and changes in mortgage rates, monthly payments in many major cities, including Dallas and Austin, TX; Vegas; Jacksonville and Tampa, Florida; and Raleigh, North Carolina, are up 40% since the end of 2021.

Wolf says that while 30-year fixed-rate mortgages are approaching 6%, adjustable-rate mortgages (ARMs) represent only about 11% of outgoing loans, well below the rate of 35% at the height of the last real estate cycle.

“While nowhere near as high as the last cycle, we are seeing an increase in ARMs as people try to use them,” Wolf says. “ARMs are not inherently bad, but we know that some of the problems associated with the latest cycle [came] when the [ARM] the payment was reset and people found themselves unable to buy. »

Partly due to the rapid pace of monthly payment increases, 35% of builders surveyed by Zonda said cancellations were increasing. Despite the increase, Wolf says there has generally been enough demand from potential buyers that canceled homes will eventually be purchased.

Wolf says rising cancellations, coupled with rising monthly payments, a higher proportion of builders offering incentives and many fringe buyers deciding to opt out, suggest the market is reaching “a point of inflection”.

Price Appreciation and Buyer Cohorts
According to data from Zonda, between 80% and 90% of actively selling communities across the country were raising prices in March. Additionally, the builder survey conducted in mid-April found that 84% of builders were increasing their prices month over month.

“As we’ve seen interest rates go up and demand go down, right now we still have more people ready to buy a home than there are available houses on the lot,” Wolf says.

Among buyer cohorts, upper-tier buyers, relocation buyers, and entry-level buyers remain the most active buyers. However, the share of active entry-level buyers has declined year-over-year since April 2021, as many potential entry-level buyers are interest rate sensitive.

Housing data in real time
Zonda Senior Managing Director Tim Sullivan said builders are signaling first-time buyer prices are showing the most interest rate pressures as construction and cycle times stretch. Most automakers also continue to report that they are capping sales, according to Zonda data, while interest rate changes have different impacts depending on buyer sentiment.

“Some buyers are still pushing ahead, especially those locked into mortgages, but others are a little more scared and looking to wait,” Sullivan said. “We are also seeing signs of slowing sales.”

Sullivan says the top concerns for builders in the current environment still center on rising mortgage rates and costs. Additionally, the majority of builders are still reporting supply chain disruptions, labor shortages, land disruptions and government service challenges.

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Asian stocks mixed as markets eye U.S. interest rates and prices https://onlinepaydayloansinus.com/asian-stocks-mixed-as-markets-eye-u-s-interest-rates-and-prices/ Mon, 16 May 2022 03:50:16 +0000 https://onlinepaydayloansinus.com/asian-stocks-mixed-as-markets-eye-u-s-interest-rates-and-prices/ People wearing protective masks walk past an electronic board displaying Japan’s Nikkei 225 index at a securities firm on Monday, May 16, 2022 in Tokyo. Asian stocks were trading mixed on Monday as investors watched soaring energy costs and how quickly interest rates could rise in the United States (AP Photo/Eugene Hoshiko) Eugene Hoshiko PA […]]]>

title=s

People wearing protective masks walk past an electronic board displaying Japan’s Nikkei 225 index at a securities firm on Monday, May 16, 2022 in Tokyo. Asian stocks were trading mixed on Monday as investors watched soaring energy costs and how quickly interest rates could rise in the United States (AP Photo/Eugene Hoshiko)

PA

Asian stocks traded mixed on Monday as investors watched soaring energy costs and prospects for U.S. interest rate hikes

Benchmarks rose slightly in Japan and Australia, while they fell in South Korea and China.

Some analysts worry that if the US Federal Reserve raises interest rates too quickly or too much, it could trigger a recession. A slowdown in the US would almost certainly hurt the Asian region, which exports and manufactures for the US economy.

The Fed said it would continue raising interest rates to temper rising inflation. The benchmark short-term interest rate was at an all-time high near zero for much of the coronavirus pandemic.

“Many others had spotted recession risk in 2024, but we were aggressive early on in our forecast of a possible US recession this year,” said Clifford Bennett, chief economist at ACY Securities.

Japan’s benchmark Nikkei 225 gained 0.2% in morning trade to 26,492.29. Shares of SoftBank Group rose despite reporting heavy losses on its investments last week. The Uniqlo chain of stores also rose after falling in previous weeks due to concerns over the lockdown in China.

In other regional trade, Australia’s S&P/ASX 200 edged up 0.2% to 7,092.30. The South Korean Kospi fell 0.1% to 2,601.41. Hong Kong’s Hang Seng fell 0.2% to 19,851.63. while the Shanghai Composite fell 0.3% to 3,074.79.

Even though concerns about interest rate hikes have eased somewhat, investors are still watching closely what Fed Chairman Jerome Powell might say next, said Stephen Innes, managing partner at SPI Asset Management. .

“That doesn’t mean the bear market is over, especially with the recession on everyone’s mind,” Innes said.

Wall Street ended last week with a broad rally, but the market still recorded its sixth straight weekly decline, the longest such streak since 2011.

The S&P 500 rose 2.4% to 4,023.89. The index is now down 15.6% for the year. The Dow gained 1.5% to 32,196.66, while the Nasdaq rose 3.8% to 11,805. Smaller company stocks also staged a strong rally. The Russell 2000 gained 3.1% to 1,792.67.

Although some tech stocks rose, Twitter fell 9.7% on Friday after Tesla CEO Elon Musk said he was suspending his deal to acquire the social media company. Tesla rose 5.7%.

The next set of corporate results could provide some insight into how inflation affects businesses and consumers. Several major US retailers are reporting results later this week, including Walmart, Target and Home Depot.

Markets have slumped since late March as traders fear the Fed will fail in its delicate mission to slow the economy to tame the highest inflation in four decades without triggering a recession.

In energy trading, benchmark U.S. crude fell $1.61 to $108.89 a barrel in electronic trading on the New York Mercantile Exchange. It jumped from $4.36 to $110.49 on Friday. Brent, the international standard, fell $1.68 to $109.87 a barrel.

In currency trading, the US dollar fell slightly to 128.89 Japanese yen from 129.28 yen. The euro traded at $1.0397, down from $1.0402.

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Citibank Quick Cash Personal Loan: Interest Rates, Calculator and App, Lifestyle News https://onlinepaydayloansinus.com/citibank-quick-cash-personal-loan-interest-rates-calculator-and-app-lifestyle-news/ Sun, 15 May 2022 02:22:00 +0000 https://onlinepaydayloansinus.com/citibank-quick-cash-personal-loan-interest-rates-calculator-and-app-lifestyle-news/ If you are considering taking out a personal loan to go on vacation, please close this browser window and slowly walk away from the computer. Personal loans are not meant to be a quick fix for your cash flow problems and should never be used to pay for anything that is not an emergency or […]]]>

If you are considering taking out a personal loan to go on vacation, please close this browser window and slowly walk away from the computer. Personal loans are not meant to be a quick fix for your cash flow problems and should never be used to pay for anything that is not an emergency or a necessity.

However, if you are facing something that counts as an emergency – for example, a medical emergency or an urgent home repair, and you really don’t have the money for it, a personal loan can be an alternative to low interest rate credit card debt. .

So, let’s take a look at the Citi Quick Cash personal loan to see what it entails and what factors you need to consider, including interest rates, repayments, and more.

By the way, this is only a review, not an advertisement, so you should always compare personal loans between different banks such as popular DBS and POSB personal loans, OCBC personal loans and UOB personal loans before deciding which one to sign up for. for.

Citibank Personal Loan Application Criteria

Citi Quick Cash is a little different from your regular personal loan. It’s for people who have a Citi Credit Card or Citi Ready Credit account and haven’t used all the money in their credit limit. Citi Quick Cash allows them to convert this available credit limit into cash, at lower interest rates.

If you do not already have a Citi Credit Card or Citibank Ready Credit, you will need to obtain one or the other first before you can access Citi Quick Cash.

Additionally, you must meet the following annual income requirements to qualify for Quick Cash:

  • Singapore citizens and PR: $30,000
  • Foreigners: $42,000

Citi Personal Loan Application and Approval Time

Before making your request, you can check your potential monthly repayments on the Citi Quick Cash Loan website. On the Loan Calculator, you can also select the reason you are borrowing money. (If you selected “branded luxury” or “vacation,” do yourself a favor and forget about taking out the loan.)

You can also use the MoneySmart Personal Loan Comparison Page to get a quote and at the same time compare with other banks.

To request Quick Cash, existing Citibank customers can go through the Citibank mobile app.

For non-Citibank cardholders, you must first register for a credit card. If so, I suggest applying for your card at MoneySmart to take advantage of our exclusive promotions.

Current Citi Credit Card holders and Ready Credit account holders do not need to provide any documents.

For new Citibank customers applying for a Credit Card or Ready Credit, you can apply online with the following documents:

  • NRIC or Passport
  • CPF statement for the last 12 months submitted via the CPF website OR last tax notice and last computerized payslip (for employees and all foreigners)
  • Income tax notice for the last two years and bank statements for the last three months (for the self-employed)
  • Employment Pass (foreigners only)

For existing Citibank customers who submit a request through the Citibank mobile app, approval is instant.

For new Citibank customers, approval may take three to five business days.

READ ALSO : Citi to sell its Southeast Asia retail business in $5 billion deal to Singapore’s UOB

Citibank QuickCash Personal Loan Interest Rate (2022)

Citibank does not publish its interest rates transparently on its site, which is a major annoyance.

You can only see the actual interest rate you will get when you apply for the loan.

The website says rates go down as low as 3.45% per annum, which equates to an effective interest rate (EIR) of 6.5%. But these lowest interest rates are usually reserved for wealthier customers, such as those with annual incomes of at least $120,000.

Citibank Personal Loan vs DBS, POSB, OCBC, UOB Personal Loan Interest Rates

For purposes of comparing the Citibank loan with those of the three local banks, consider the hypothetical example of a person taking out a $10,000 loan, repayable over three years.

Assuming that person is a Singaporean or a PR earning $2,500 a month, here’s what the interest rates might look like:








Interest rate RIE Monthly payment Total amount to pay
Citibank 3.45% 6.5% $307 $11,035
DBS/POSB 3.88% 7.9% $310 $11,164
OCBC 5.43% 11.47% $323 $11,629
UOB 3.4% 6.42% $306 $11,020

As you can see, in this particular example, Citi Quick Cash is actually quite competitive against the three local banks, with only UOB being slightly cheaper.

Citibank Quick Cash Personal Loan Promotions

In the spirit of sharing the lobangs, here are the current Citibank promotions to watch:

  • MoneySmart Promotion: New Quick Cash loan customers receive $150 + $400 cash through PayNow when they apply for Citi Quick Cash via MoneySmart. Valid until April 30, 2022.
  • Citibank Mobile App Promotion: Get $50, $150 or $450 GrabFood vouchers. Valid until May 31, 2022.

Be careful with personal loans

Despite what the banks’ marketing slogans might have you believe, personal loans are NOT a convenient band-aid to all your money troubles, allowing you to afford all the vacations and shopping sprees you desire.

In fact, it’s best to avoid personal loans unless you absolutely need to spend the money and your only other option is to go into credit card debt. Some examples of needs are: emergency medical care, your child/parent/pet becomes ill, your window or front door is broken, or your refrigerator is broken.

For anything less urgent or less necessary, give yourself time to save up rather than go into debt.

READ ALSO : Citi, Fave, convertCASH: New BNPL Players Enter Singapore Market (July 2021)

This article was first published in MoneySmart.

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Interest rates and fintech: how Affirm and Upstart reacted https://onlinepaydayloansinus.com/interest-rates-and-fintech-how-affirm-and-upstart-reacted/ Fri, 13 May 2022 15:49:05 +0000 https://onlinepaydayloansinus.com/interest-rates-and-fintech-how-affirm-and-upstart-reacted/ Hello and welcome to Protocol Fintech. This Friday: the divergent perspectives of Affirm and Upstart, the Terra mess and David Marcus’ bitcoin bet. out of the chain Here’s some nonsense from the crypto world: Terra shut down its blockchain for the second time, but you can still trade luna and UST on exchanges like FTX. […]]]>

Hello and welcome to Protocol Fintech. This Friday: the divergent perspectives of Affirm and Upstart, the Terra mess and David Marcus’ bitcoin bet.

out of the chain

Here’s some nonsense from the crypto world: Terra shut down its blockchain for the second time, but you can still trade luna and UST on exchanges like FTX. The meaning of these transactions is unclear, as they cannot be settled. It’s the kind of Catch-22 you get when you mix decentralized blockchains with centralized trading systems, and a perfect encapsulation of the weirdness of the 2022 crypto crash.

—Owen Thomas (E-mail | Twitter)

Assessing the effect of the rate hike

The Federal Reserve’s inflation fight isn’t slowing down, with more rate hikes coming. Higher borrowing costs are hitting fintechs in all sorts of ways, threatening their margins but perhaps also prompting consumers to try new ways to borrow like “buy now, pay later”. There are also the macroeconomic effects of higher rates and the economic slowdown that likely accompanies them: a slowing economy hurts demand. Fears have already hit fintechs hard in the consumer lending space.

Higher rates are generally bad for the consumer lending industry. When interest rates are higher, fewer consumers generally want loans – and fewer can qualify as borrowing costs rise.

  • Online lending firm Upstart reported results this week that beat analysts’ expectations, but shares plunged a staggering 56% Tuesday on macroeconomic fears. Upstart generated $310 million in revenue for the first quarter, above expectations of $300 million. But it cut its revenue forecast for 2022 to $1.25 billion from $1.4 billion.
  • “It’s really that simple that when consumption rates go up, it means that at the margin, a whole bunch of people who would have been approved are no longer approved,” said Dave Girouard, co-founder and CEO of Upstart, during a call. with analysts. “So there’s a whole bunch of loans that never happened. And there’s a bunch of people who are still approved, but the interest rate is a few percentage points higher, and some fraction of them are going to decide that’s not the product they want . They don’t need it.
  • Upstart’s average loan price has jumped more than 300 basis points since October 2021, Girouard said.

“Buy now, pay later” activity could move away from broader consumer lending. The Upstart contagion caused Affirm shares to sell off ahead of its earnings, but the company’s share price quickly rallied after the earnings announcement.

  • Shares of Affirm soared 33% after markets closed Thursday to nearly $24, rebounding from the hit largely on stronger-than-expected quarterly results and a weaker-than-expected loss.
  • The company generated approximately $354.8 million in total revenue, with a net loss of $54.7 million, compared to $287.1 million in the third quarter of 2021.
  • Affirm said it has so far had nothing to do with interest rate hikes. “It is true that as rates go up, there is pressure on the financing of our business. But it’s a mistake to view this as a full flow on a linear basis,” Chief Financial Officer Michael Linford said on his third-quarter earnings call. “I think in the very long term, so going out more than a year, you would expect us to shrink, but that’s more of a long term thing.”
  • “Buy now, pay later” is a different type of loan, as it is usually short-term and often subsidized by merchants. Merchants may want to offer zero-rate offers to entice consumers, and pay-later plans may seem more attractive compared to buying by credit card as rates rise.

Fears of a possible recession are also weighing on credit. If a recession hits, consumer spending will plummet and the lending industry will be hit even harder.

  • Upstart saw delinquencies increase between November and February, leading to higher interest rates for consumers and lower conversion to business for Upstart, the company said. Although this rate has now stabilized, a recession could worsen defaults. The risk of recession as well as general macroeconomic concerns prompted Upstart to cut its earnings forecast.

Further interest rate hikes could force companies to act more quickly. Perhaps Upstart is simply more realistic about its outlook in a rising interest rate environment, and perhaps Affirm benefits from a differentiated business model. But if the Fed presses the brakes harder, it will be all the more crucial for companies to ensure that they are on the right track.

— Tomio Geron (E-mail | Twitter) and Lindsey Choo (E-mail | Twitter)

A MESSAGE FROM FOURSQUARE

To be successful at Flatiron, a restaurant will need to attract a weekday lunch crowd with healthy offerings and a work-friendly setting for professionals; To stand out among nearly twice as many restaurants in SoHo, a new restaurant must lean into arts and culture with a cutting-edge setting.

Learn more

on the money

On protocol: Terra shut down its blockchain as Luna and UST plummeted, falling almost to zero. The sharp decline in the value of luna and the UST’s loss of its dollar peg helped fuel a crypto crash, highlighting the risks in stablecoins and digital assets more broadly.

Then, somehow, things got worse. Earth restarted the blockchain after making changes to the code, then unplugged again.

The Chainsmokers release royalty-bearing musical NFTs. Royal, founded by DJ Justin Blau, is issuance of NFTs and management of royalty distributions. The group does not charge for NFTs; instead, it gives them away, with frequent concert ticket buyers getting early access.

Also on Protocol: SoftBank says it is dramatically cutting its planned seed investments to half or even a quarter of last year’s funding frenzy. This is the most dramatic sign of a setback in the world of VC.

FTX CEO Sam Bankman-Fried bought a 7.6% stake in Robinhood. In a possible Elon Musk-esque move, Emergent Fidelity Technologies, a vehicle controlled by Bankman-Fried, has taken a $648 million stake in the investment firm. Robinhood shares jumped more than 20% after the news.

David Marcus’ bitcoin bet

David Marcus, until recently a senior Meta executive, is back with a new crypto startup that will be reminiscent of much of his recent work – with a few crucial differences.

Los Angeles startup Lightspark has raised Series A funding led by a16z crypto and Paradigm, with participation from companies including Matrix Partners, Thrive Capital, Coatue, Felix Capital, Zeev Ventures, and Ribbit Capital. Lightspark declined to disclose the amount and did not explain why.

The company is focused on “extending the capabilities” of bitcoin and working to build technical infrastructure for the Lightning Network, he said. The Lightning Network is a project designed to create faster and cheaper transactions on top of the bitcoin network.

Read the full story on Protocol.com.

— Tomio Geron

Table

Bitcoin peaked in November above $60,000. Then came Super Bowl ads, Crypto.com Arena and a flood of TikTok influencers promoting the latest altcoin. It wasn’t going to end well, was it? The crypto crash hit nearly every token and even knocked some stablecoins off their pegs. But the carnage was not equal. Bitcoin, ether, and even dogecoin have proven to be more resilient than newer coins. The question now is when the market will bottom out.

A MESSAGE FROM FOURSQUARE

To be successful at Flatiron, a restaurant will need to attract a weekday lunch crowd with healthy offerings and a work-friendly setting for professionals; To stand out among nearly twice as many restaurants in SoHo, a new restaurant must lean into arts and culture with a cutting-edge setting.

Learn more

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Banks raising interest rates could affect housing demand: real estate agents https://onlinepaydayloansinus.com/banks-raising-interest-rates-could-affect-housing-demand-real-estate-agents/ Fri, 13 May 2022 10:32:00 +0000 https://onlinepaydayloansinus.com/banks-raising-interest-rates-could-affect-housing-demand-real-estate-agents/ Shortly after the central bank Reserve Bank of India (RBI) hiked the repo rate by 40 basis points, the banking industry mimicked the same by raising interest rates in lending and deposit schemes . From big banks to small corporate banks, many have joined the movement to increase lending and deposit rates. […]]]>

Shortly after the central bank Reserve Bank of India (RBI) hiked the repo rate by 40 basis points, the banking industry mimicked the same by raising interest rates in lending and deposit schemes .

From big banks to small corporate banks, many have joined the movement to increase lending and deposit rates.



A number of banks raised their benchmark external lending rates following a 0.40% increase in the repo rate – at which the RBI lends money to banks at short notice.

This decision by the banks should have an impact on the growth of the real estate sector and could affect the demand for housing.

“The historically low interest rate regime on home loans has boosted housing demand and helped the economy return to pre-Covid levels. It has also enabled a robust recovery in the housing sector,” said Kaushal Agarwal, Chairman of The Real Estate Guardians Council.

From now on, the decision of banks to raise interest rates as well as the rise in the cost of construction inputs could temporarily limit the growth momentum of the real estate sector.

“Sharp interest rate acceleration by banks will hurt home buyers concerned about EMIs on home loans. The state government, which is the biggest beneficiary of housing demand, is expected to come forward to support homebuyers by reducing the stamp duty rate to 3 percent,” said Pritam Chivukula, co-founder and director of Tridhaatu Realty and treasurer of CREDAI MCHI.

Estate agents believe there could be a short-term impact on sales as rising house prices further dampen aggregate demand.

“We have already started to see a vertical movement in house prices due to rising construction input costs and rising stamp duties. affect homebuyer sentiment, which will impact overall demand,” said Shraddha Kedia-Agarwal, Principal, Transcon Developers.

Bhushan Nemlekar, Director of Sumit Woods, believes that rising property prices would be a huge setback for the property sector, disrupting the continued growth momentum of the industry.

Echoing Nemlekar’s view, Sachin Chopda, Managing Director of Pushpam Group, said the upward revision in interest rates creates a huge impact on investors’ long-term goals.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Rising interest rates will weaken consumer spending and hurt REIT sector, says AmInvestment https://onlinepaydayloansinus.com/rising-interest-rates-will-weaken-consumer-spending-and-hurt-reit-sector-says-aminvestment/ Fri, 13 May 2022 04:25:04 +0000 https://onlinepaydayloansinus.com/rising-interest-rates-will-weaken-consumer-spending-and-hurt-reit-sector-says-aminvestment/ KUALA LUMPUR (May 13): AmInvestment Bank forecasts lower consumer spending ahead due to higher than expected interest rates and inflationary pressures, which in turn will affect the improvement in the real estate investment trust sector ( REIT). In an industry update Friday, May 13, the research house said its in-house economist forecast another 25 basis […]]]>

KUALA LUMPUR (May 13): AmInvestment Bank forecasts lower consumer spending ahead due to higher than expected interest rates and inflationary pressures, which in turn will affect the improvement in the real estate investment trust sector ( REIT).

In an industry update Friday, May 13, the research house said its in-house economist forecast another 25 basis points (bps) overnight rate hike (OPR) in July this year.

On Wednesday, the Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) had raised the OPR by 25 basis points to 2%, from a record low of 1.75% since July 7, 2020.

“It is estimated that the higher OPR rate will prevent the ringgit from weakening further against the US dollar due to the interest rate differential between the two countries,” AmInvestment said.

“Rising interest rates and inflation are expected to weigh on personal consumption spending due to rising borrowing costs and consumer goods prices.

“As a result, upcoming renter sales are expected to slow as consumers may become cautious about spending on discretionary goods.”

Therefore, he predicted that rent reversion would remain steady for malls in prime locations and possibly unfavorable reversion for less established malls.

“Rent reversion is expected to remain flat in prime malls, but could turn negative in unpopular malls with low traffic to retain existing tenants and attract new tenants.

“As malls can only renew leases with higher rental rates if tenant sales improve,” AmInvestment Bank said.

He said tenants will feel additional pain once Covid-19 rental discounts to mall tenants end in the next quarter in line with the easing of the lockdown and the reopening of the economy.

The removal of Covid-19 related support will lead to a normalization of rental income in the retail segment.

AmInvestment Bank further pointed out that “revenge spending,” possibly seen in the first quarter of 2022 (1Q22) of retail sales recovering to near pre-pandemic levels, is turning into “moderate spending,” such as the noted the Malaysian Institute of Economic Research (MIER).

He said REIT players that have a well-diversified revenue base such as Sunway, whose portfolio includes shopping malls, offices, hotels, universities, hospitals and industrial property across the country, have better odds against potential downside risks.

AmInvestment added that REIT distribution yields will remain unattractive due to lower yields relative to 10-year Malaysian government securities (MGS).

“With higher interest rate expectations in the United States, a further rise in the 10-year AMS and 10-year US Treasuries could lead to a deeper contraction in the yield spread between REITs and the MGS at 10 years.

“The corporate yield spread under our coverage is now mostly negative versus the 10-year AMS,” AmInvestment said.

He believes market sentiment on REITs will remain lackluster in the near term due to unattractive supply for investors looking for yield.

“The targeted average distribution yield for calendar year 2023 (CY23F) for the REITs under our coverage is 6.4%,” he said.

AmInvestment said its top ‘buy’ is Sunway REIT (fair value RM1.66), backed by its well-diversified revenue base, which could provide a cushion against potential downside risks, adding that its portfolio includes centers commercial, offices, hotels and universities. , hospitals and industrial property across Malaysia.

“We are also positive about the outlook for Sunway eMall, which offers in-store delivery and pickup for online purchases at its physical malls.

“The group is recognized for its environmental, social and governance (ESG) practices. Specifically, Sunway REIT is the first among its local peers to integrate a financial consideration of sustainability into its capital management strategy”, he said. he declares.

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