It’s a week until Black Friday, and headlines are dishing Black Friday deals and their secrets while, in other news, unemployment rates are rising in 29 states. Any predictions for how the shopping season will fare if retailers keep slashing prices to spur consumption, while around 10% of Americans nationwide are still unemployed?

While that thought sets in, here’s the buzz on Credit Karma and what’s happening in the housing market:

Credit Karma News

• Dallas Morning News reports on how to get an idea of your credit score without paying a fee.
• Tips for beefing up your credit score at Investor’s Business Daily.
• MarketWatch features CK in discussing how credit-card balances move higher.
• Hawaii’s credit score beats U.S. average reports Pacific Business News.
• My BankTracker uses CK data to report on credit card problems rise and fall: defaults down but delinquencies increase.

Home & Mortgage News

• CNN Money claims that you don’t have to be a millionaire to buy a house, as more than 70% of homes sold last quarter were deemed affordable for those who are still working.
• Contrary to the common belief that its better to buy a house rather than rent, Own the Dollar shows that the advantages of renting might be gaining on home ownership.
• Fiscal Frizzle shares his roadbumps on the path to home ownership to give readers advice on what to do when you decide to take that road.
• Ever wondered about the cost of running your home? Chicago Tribune discusses the cost of energy in your home with the article, How much is your home costing you?
• Save money in your home in this alternative way: Your Money Relationship shares 31 medical home remedies you should know so you can try to do-it-yourself before shelling out money at the doctor’s.

According to Bankrate.com’s weekly national survey, mortgage rates are at a record low ideal for interested home buyers and also represent a golden opportunity for homeowners looking to refinance. These rates are significantly lower than rates one year ago, and since mortgage rates don’t stay at records levels for very long, borrowers should act with urgency to take advantage of these record low rates while they are still affordable. Here are Bankrate’s recent survey results:

• 30-year fixed: 5.06% — down from 5.19% last week (avg. points: 0.40)
• 15-year fixed: 4.48% — down from 4.61% last week (avg. points: 0.34)
• 5/1 ARM: 4.58% — down from 4.58% last week (avg. points: 0.30)

Its Friday the 13th and Credit Karma’s latest press release has me feeling a little superstitious. The Credit Climate Report trend data for October 2009 shows that consumer credit card debt is on the rise, approximately at an average $7,573 per consumer, which could signal that consumers are growing more confident about using credit and spending ahead of the holidays. Let’s hope that these numbers aren’t an omen of bad credit karma to come, but a good sign that healthy spending habits will also spell healthy debt management too.

Credit Karma News

• Marketplace Radio puts Credit Karma in the spotlight to talk about what to do with your credit cards.
• What has your credit-card issuer done for you lately? Kiplinger dares to ask.
• The Harbus figured out why most twentysomethings don’t understand personal finance.
• Credit Union Times features CK as new company touts free access to credit scores.
• San Francisco area’s credit scores are the best, brags the San Francisco Business Times.

Home & Mortgage News

• Forbes pinpoints ten cities where home prices are improving.
• How the first time home buyer credit can create economic growth from Moolanomy.
• CNN Money renews some housing market hope in How to make money in 2010: your home.
• Saving to Invest features simple tips and ideas on what to do before you sell your home.
• Save money by selling your house without a real estate agent suggests Canadian Finance Blog.

Here’s a glance at current mortgage rates to keep you up-to-date. The table shows the overnight average interest rate for two of the most common mortgage loan types (keep in mind, refinance rates typically vary from purchase rates listed below). Happy house hunting!

Capitol Hill seems to be taking up the pro-consumer fight on two fronts this week with the extension and expansion of the Home Buyer Tax Credit and the sped-up start date of the Credit Cardholder’s Bill of Rights. Today, Obama officially signed off on the Homebuyer Tax Credit extension, which will extend the original November 30, 2009 deadline to April 30, 2010 and also opens up a $6,500 tax credit to eligible repeat buyers. On the frontlines of credit card reform, the proposed measure to speed up the Credit Cardholder’s Bill of Rights, from its original February 2010 date to December 1, 2009 was signed off by the House and is now awaiting Senate approval.

The passing of the revised Homebuyer Tax Credit, coupled with mortgage rates dropping below 5% again for the first time in 4 weeks, has many politicians and analysts hoping for another boom in the housing market to last well into 2010.

As for the credit card reform, if approved, the earlier-than-expected December date would be “just in time for the holidays,” when consumers are likely to more heavily rely on credit cards and could most benefit from the restrictions the reforms will place on the price-gouging practices of the credit industry. Cardholders and lawmakers in support of the proposal complain that since the passage of the Act in May, credit card companies have been abusing the grace period as a last ditch effort to raise interest rates, change card terms, add fees, lower credit limits, and even close accounts in order to recoup losses that the coming regulations will cost them. The reform is needed to help protect consumers by “locking a ban on interest rate hikes on existing balances, and tricks that have kept far too many consumers trapped in a never-ending cycle of debt,” reports CNNMoney.

On the other hand, credit card issuers have contested that the expedited start date would ultimately hurt the entire industry. Making the reforms effective a full two months sooner than planned won’t give their systems enough time, issuers argue, to get acclimated to the new regulations, and they have even gone so far as to defend the recent interest rate hikes—some as high as 30%–as fair considering the current state of the economy. Another lawmaker defended the measure, saying, “They have retained the right unilaterally and retroactively to raise the interest rate on what you already owe them. It is the single unfairest (sic) economic transaction I can think of that doesn’t involve a pistol!”

The CARD Act’s major provisions that will affect cardholders includes prohibiting arbitrary rate increases on existing card balances, requiring customer permission to opt into the ability to overdraw on accounts, and the “reasonable and proportional” penalty fees that require issuers to review all interest rates and reduce it where warranted. The measure awaits the Senate’s vote and Obama’s signature to become law.

The consumer protections and consumer incentives of these two key pieces of legislation are under hot debate as to whether the stimulus measures will be effective enough to spark sustainable activity in the struggling economy.

At Credit Karma Blog, what goes around comes around… So what do you think about this post? Agree, disagree, or have something more to say? We’d love to hear your reactions!

The bigger and better extended Home Buyer Tax Credit cleared both the House and Senate vote this week, and now sits on President Obama’s desk expecting to be signed and approved today. As soon as pen hits paper, the law will go into effect and ensure that the original $8,000 tax credit is extended to April 30 plus qualified repeat buyers can take advantage of a new $6,500 credit. It could be a stabilizing force for the crippled housing market, or it could be a band-aid that won’t last long. Read ahead for more opinions and perspectives on what new measures Uncle Sam is taking to cool off the heat of recession.

Credit Karma News

• Money Matters: when ‘free’ isn’t free from Keloland Television.
• The Today Show mentions CK in their Wednesday morning segment!
• The New York Times puts in a good word about CK in, “A Free Credit Score Followed by a Monthly Bill.”

Home & Mortgage News

• 6 signs your home will increase in value straight from SmartMoney.
• DebtKid asks, if money = freedom, why buy a home?
• The New York Times reports on fraud watch for homeowners.
• Good news! Mortgage applications rose 8.2% last week reports MarketWatch.
• More good news! Mortgage rates fall below 5% reports The Oakland Tribune.
• WiseBread gives fun tips on how to make money from what you could find in your attic.
• Deadline for home tax credit extended writes The Money Times.
• Moolanomy throws in its two cents– Why the first time home buyer credit is terrible for the economy.
• The Baltimore Sun’s blog has a few points to make about the expanded home buyer tax credit.

Here’s a glance at current mortgage rates to keep you up-to-date. The table shows the overnight average interest rate for two of the most common mortgage loan types (keep in mind, refinance rates typically vary from purchase rates listed below). Happy house hunting!

Prospective homebuyers may no longer need to rush to open houses or speed through paperwork—senators have hammered out a plan to extend the popular First Time Homebuyer Tax Credit past the November deadline, plus offer a reduced tax credit to repeat homebuyers who qualify. While lawmakers have figured out the bulk of the tax credit deal, it still awaits approval from the entire Senate and the House before it becomes law.

Despite recent allegations of homebuyers fraudulently claiming the $8,000 tax credit and criticisms that the extended tax credit would be unnecessary spending of stimulus funds, renewed life for the tax credit appears very popular among legislators. The expanded tax credit plan would accept contracts until the end of April 2010 and must be closed before July 1. In addition to the potential $8,000 tax credit for new home buyers, the new tax credit would also provide up to $6,500 credit for repeat homebuyers who have lived in their home for at least five consecutive years and are looking to move. Repeat homebuyers qualify if they make less than $125,000 a year for individuals and $225,000 a year for couples.

“This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide,” Treasury Secretary Timothy Geithner said in a statement to MarketWatch.

The extended credit could further prop up the housing market because many more homebuyers can benefit from the tax credit than before. Home sales rebounded to the highest level in two years with a near 10% increase in September—we could see these figures magnify in the coming months to get the housing market back on its feet.

However, more recent home sale dips have stalled signs of recovery and suggests that the market is slowing down as the current tax credit nears its November deadline. Legislators are hoping that the new extension may be enough of a jumpstart to pick-up home sales, get home values increasing, and properties hot enough to get the market booming again. Like putting in a more gas until the engine gets up and running by itself, supporters insist that it’s the bigger boost needed to keep the economy revving again. On the other hand, these temporary government stimulus measures can’t prop up the economy forever.

At Credit Karma Blog, what goes around comes around… So what do you think about this post? Agree, disagree, or have something more to say? We’d love to hear your reactions!

Will your credit score be a trick or treat for you this Halloween? Are rising mortgage rates spooking you out of the new home market and back into your apartment? Here are some good reads from the headlines and blogosphere because personal finance shouldn’t be such a scary experience.

Home & Mortgage News

• Surprise drop in new home sales CNN money reports.
• Money Under 30 sets it straight: Pre-qualification vs pre-approval: whats the difference?
• The New York Times follows homeowners walking away.
• Frugal Dad dives into Q&A on the new rules for mortgages.
• Do you know about the ‘double bubble’? MSNBC explains more on the current real estate trouble.
• How to buy a home you can afford blogs Free Money Finance.
• The Wall Street Journal asks, is an expanded home buyer tax credit a good deal?

Credit Karma News

• The Collier Citizen mentions CK in, “Tracking a Credit Score”.
• Lesson learned: Now you can get credit scores free! @ JournalStar.com.
• Thanks to San Francisco Chronicle for listing CK in Money-saving sites to check out, Part 2.

There is a mini-boom in the housing market as September sales, propped up by homebuyers taking advantage of the $8,000 Tax Credit and record-low mortgage rates, beat Wall Street forecasts. But it’s difficult to say outright that the current housing market has made it through the storm of foreclosures, plummeting prices, and deserted markets we’re become familiar with in the last few years. Despite hiccups in the housing market, can we still remain upbeat? Here’s the latest news on what’s happening on the housing front.

On the brighter side

• Last September, home sales rebounded to the highest level in two years with a 9.4 percent increase, reports Reuters. These figures are better than Wall Street expected and overall show a 24 percent increase in home sales since hitting rock-bottom in January. Largely spurred by the tax credit’s looming deadline, sales are increasing also because of greater affordability and an improving economic outlook.
• Low mortgage rates have been maintaining at or below 5% for about a month now, have spurned homeowners to look into new-home purchasing and also refinancing, which was at a 38% demand increase shortly after the rates dropped below 5% in early October.
• Another positive sign: the inventory for unsold homes fell 8 percent to 3.6 million nationwide, which is at the lowest level since March 2007. Home sales are still 23 percent off-pace from the its peak 4 years ago, but if homebuyers keep biting, a decreasing pool of homes on the market coupled with the current increasing demand of home sales will foster a more robust market ripe with plump home values and active sales.
• The First-Time Homebuyer’s Tax Credit has contributed vastly to the pick-up in home sales leading up to its deadline date on November 30th, 2009. Congressional talks about extending the tax credit till June next year and expanding it to encompass all homebuyers is already hotly contested. Realtors and homebuilders state that extending the credit is what the market needs to boost prices and sales to finally get it back on track, while others argue that it will be a $16.7 billion dollar expense that will only be a band-aid on a larger housing crisis.

Yellow flags

• The housing market is still underperforming as home prices continue to drag due to foreclosures and short sales. The median price for a home in September was $174,900, down 9 percent since last year, and signals an influx in distressed properties which accounted for nearly 30% of sales in September. [But back on the brighter side, these bargain-priced foreclosure sales have contributed to the big boost in home sales.]
• Unemployment, now at 9.8 percent nationwide, is expected to hit 10.5 percent next year. More unemployment leads to more foreclosures as people fall behind on mortgages. So expect the housing market to drop further if unemployment rises.
• Congress is currently investigating questions that a possible 100,000 claims out of the 1.5 million submitted applications for the tax credit may have been fraudulent. People who hadn’t bought a home, already owned a home, were illegal immigrants, or were under the age of 18 committed fraud in trying to take advantage of the potential $8,000 rebate; one taxpayer to claim the tax credit was only 4 years old, the Associated Press reports. This could definitely compromise the possible extension or expansion of the tax credit.

Looking Ahead

There are signs of recovery in the housing market, but its spotty nationwide. The strongest market is the West with a high sales climb of 13%, while the South and Midwest have a lower rate of home sales and lower median prices. In general, metropolitan areas like Los Angeles and San Francisco are faring better in terms of home sales and home values than rural areas. So while positive trends may be popping up in the home market, it’s happening to various areas to different degrees. To pull the entire home market back up, it’s going to take the solid momentum of sales in all segments of the overcrowded market to jumpstart real and long-term economic growth.

TGIF and thank goodness mortgage loan rates are still at or below 5%! It’s another good house-hunting weekend, but headlines remind us to be weary of homebuyer hiccups in our uncertain home market. Plus, Credit Karma trends have been all over the blogosphere and news. Here’s today’s scoop:

Home & Mortgage

• MarketWatch reports on mountains of modifications.
• Refinancing: when is it worth it?, MSN Money asks.
• Kiplinger writes that there are more troubles for housing: mounting foreclosures.
• Saving to Invest blogs on 10 deadly mistakes buyers make when purchasing a home and how to avoid them.
• 7 red flags for home buyers and more advice from Kiplinger.
• Doughroller brings you a buyer’s guide to rent to own homes.
• The Associated Press delivers some good news: home sales rise 9.4 percent in Sept.

Credit Karma in the News

• Gmail users have higher credit scores than yahoo mail users blogs Mashable.
• MoneyWatch answers the questions, Why should you have to pay for your credit score?
• Finanacial start-ups form “coalition for new credit models” reports Reuters.
• WalletPop takes an interesting look at what your e-mail address says about your credit score.
• Financial start-ups form lobby group @ Finextra.com.

In this sunny mortgage climate, you might be wondering if you should join the recent frenzy of home refinancing. If you are interested in locking in a lower interest rate, reducing your monthly payment, shortening the term of the mortgage, or switching from a risky variable-rate loan to a secure fixed-rate loan, refinancing might be a good move for you.

But, there are many considerations to take before you jump in the bandwagon with other homeowners. You have to first qualify to refinance your home, pay for upfront costs, and if you are underwater on your mortgage, then you’re out of luck. Also, it will take a few years before you actually start saving money on your new mortgage. While refinancing is a great option, here are a few questions to ask yourself before you take the refinance plunge.

1. How’s your credit score? If your overall credit score is low, you can forget about refinancing right away. Lenders have raised the bar on the type of homeowners they approve, so if your credit score isn’t at least 740, you probably won’t be approved. If your credit score isn’t ready for refinancing, take a few months to raise your score by improving your credit history through on-time payments and polishing up your credit report by checking for errors and inaccuracies that ding your score. Just cross your fingers that mortgage rates will remain at a record low a few months down the road when your credit score is stellar and you are ready to refinance.
2. Do you qualify? Another factor when applying to refinance your loan is your loan-to-value ratio, or LTV ratio, in which you divide the loan amount of your current mortgage by the value amount. You need an 80% LTV ratio to qualify for the best refinancing rates, which can be a feat considering decreasing property values have dropped many homes below their original purchase price. Look on some websites such as Zillow or do some research at your local Registry of Deeds to get a range of what houses are selling for in your area. If you owe way more than your house is now worth, forget refinancing—it’s not going to happen.
3. Will you save $$ or not?This is the most obvious question—refinance your home if it’s worth it. If it won’t save you a significant amount of money in the long run, then don’t bother. The old rule of thumb was that if you can recoup the cost of your refinance in a year, then it’s worth it; however, that doesn’t take into account closing costs and other factors that make your refinance tab add up. Refinancing your home is taking out a new mortgage on your home, so you will be paying all the same closing costs, such as application fee, origination fee, appraisal fee, etc., as you did when you first purchased your home. These closing costs are added to your loan. Also keep in mind that lenders structure mortgages so that borrowers pay off interest charges for the first few years, and after that, monthly payments then go towards paying off the principal debt owed. So if you’ve been paying your current mortgage for the last 10 years, you may have already paid off the interest and are now paying off your principal debt. If you were to refinance now, you would have to start over with paying the interest, closing costs, and potentially a longer term on your new loan. Consider whether or not the short term gain of paying less on a monthly basis with a new loan is worth the long term effect of paying more interest from refinancing. Calculate your possible savings from refinancing to gauge if the refinance will be worth the savings.

If you’ve answered all these questions and found yourself itching to refinance your home, now is the best time to trade in your old mortgage for a new, improved loan in this (limited time) golden era of record-low mortgage rates.

A sunnier forecast of our stormy recession

The thought of today’s stagnant economy is enough to make consumers tighten their wallet, throw credit cards in the freezer, and brace for more fiscal hard times as we push through the U.S’s worst recession since the Great Depression. But forget the doomsday reports and take a closer look at the good and bad of the recession headlines right now because an understanding of our economy can help you change your personal economy –how you handle your finances– for the better. Let’s take a look at various segments of the economy that are rebounding.

JOBS

The national unemployment rate has been teetering at the 10% mark for some time now, but its primed for change. The federal government’s near $500 billion stimulus plan is powering up for a new media blitz to promote job growth and policies that the administration says will create 20 million new jobs over the next 10 years. The White House reports that stimulus spending has helped create or save 1 million jobs so far, new jobless claims have dropped to lowest levels since January, and economists say the willingness of companies to begin adding jobs is getting close. While the current unemployment rate is still a dark cloud hovering over Americans, job creation efforts hold the possibility of brighter prospects.

HOUSING MARKET

The mortgage rates dipping below 5% is a promising gauge of a stabilizing housing market. Refinancing has been on the rise, the First-Time Homebuyer Tax Credit has spurred traffic in house sales, and the Federal Reserve’s continued purchases of mortgage-backed securities has been keeping the housing market afloat in spite of foreclosures and dropping home prices. Also, buzz of Congress possibly expanding the $8,000 tax credit to apply to all homebuyers may jumpstart the housing market back to pre-recession activity. “The most fundamental argument for the Credit is that nothing works in the economy if housing is falling – it hurts household wealth and credit becomes tight,” writes CNN Money.

RETAIL SALES

Before you cringe at these numbers, this is actually good news. Retail sales in September were down 1.5%, but that’s better than the expected 2.1% fall economists predicted. Outside of auto sales, which plummeted about 10% after the Cash for Clunkers auto sales incentive expired, retail sales are actually up 0.5%, which is also higher than economists projected. And when consumers spend, everyone profits. Stronger-than-expected gain in retail shows a boost in consumer confidence, which is a great omen for the coming holiday season. More spending is both an effect and a cause of a slow, gradual recovery, and may be reflecting broader progress in other areas of the economy.

STOCK MARKET

Even the average consumer has reason to be excited about the Dow’s highest close in a year. Better-than-expected retail sales and strong earnings from some big-name companies have helped drive climbing index points, and continued upward market trends indicate a strengthening economy on a larger scope. Analysts say that while the 10,000 point threshold isn’t a significant technical milestone, it is “meaningful on a psychological level” and will bring more confidence in buying and selling on the floor. While the ongoing problems in the financial industry and a potential stock market pullback make some economists skeptical, growth on Wall Street is a general precursor for good things to come.

CREDIT DEBT

Trends of decreasing credit debt reflect an overall healthy shift in consumers’ financial lives and more responsible credit use in the economy’s current credit crunch. Better consumer management of debt suggests that consumers will also be better customers in the marketplace by being more creditworthy and thus less at risk of defaulting and throwing the economy into another credit spiral. On top of that, credit scores are on the rise for 39% of consumers. Healthier credit for consumers spells more liquidity in the market, more consumer activity, and a healthier, more productive economy.

FUTURE FORECAST

The coming holiday season may be the clearest temperature check on the state of our economy—it may explode into a spending frenzy or it might be another conservative Christmas for many of us, but there is hope for significant growth in a better-than-expected end to 2009 and a recovering 2010 if spending keeps up. By no means is this a concrete financial analysis of our economy, but step back and look at the bigger picture—economic recovery may not be smooth sailing but at least consumers are beginning to look forward. People are gaining back their appetite to shop as the U.S economy slowly but surely emerges from deep recession. Sure, credit is still tight and rising unemployment could stall a full recovery from recession, but consumer demand is up, markets are stabilizing, and there is more reason to hope that darker times could give way to sunny skies in our economy.