Financial Watch

The Obama mortgage debt relief plan was designed to help homeowners stay in their homes and avoid foreclosure. If you have had difficulty making your monthly mortgage payment then you should consider going through a mortgage refinance to lower your interest rate. Another option is going through home loan modification.

If you have a good credit score, above 740, and a significant amount of equity in your home then there is a good chance that you can refinance to a lower interest rate in the current economic environment. Please be aware of the fact that mortgage rates are likely to move up in the near future so you will want to take action soon.

Federal Reserve Chairman Ben Bernanke Thursday said record-low interest rates are still needed to support the U.S. economy, but the central bank has to be ready to tighten credit to prevent inflation.

Senate Democrats staved off an attempt by Republican lawmakers Wednesday night to reduce the maximum interest rate the federal government can charge on loans to student borrowers, keeping intact its overhaul of the college lending market.

The Democratic plan would see private lenders banned from originating student loans and replace them with the federal government making all loans.

Sen. Lamar Alexander (R., Tenn.), an opponent of the student lending overhaul, introduced the measure on the Senate floor Wednesday. It would lower the maximum rate of interest the government could charge on loans to 5.3% from 6.8%.

DISAPPOINTING TURNOUT: Interest rates jumped in the bond market Wednesday after a government debt auction drew weaker demand. An auction Tuesday also saw lower demand.

NOT THAT INTERESTED: The auction of $42 billion in five-year notes saw demand fall from the past two months. That means the government could have to start offering higher interest rates to attract buyers.

LUCKY NUMBER SEVEN: The government plans to auction $32 billion in seven-year notes on Thursday in the final auction of the week. The yield is higher on the seven-year note. The sale could draw more investors.

The economic outlook for Australia appears considerably brighter than that for the other advanced economies and it is likely that interest rates will need to continue their gradual move towards “more normal levels”, Reserve Bank of Australia assistant governor Philip Lowe said on Thursday.

“With the economy having relatively limited spare capacity, it is likely that interest rates will need to continue their gradual move towards more normal levels,” he said at an event in Sydney.

Lowe said that he expects to see Asian economies continuing to grow solidly in the months ahead, but expects growth in the advanced economies to remain subdued.