30-year fixed mortgages nudge up to 4.87 percent

Fixed mortgages were essentially unchanged this week, as the average rate on the 30-year fixed loan stayed below 5 percent.

Freddie Mac said Thursday the rate on the 30-year fixed mortgage rose to 4.87 percent from 4.86 percent the previous week. It hit a 40-year low of 4.17 percent in November.

The average rate on the 15-year fixed mortgage increased to 4.10 percent from 4.09 percent. It reached 3.57 percent in November, the lowest level on records dating back to 1991. 

World food prices drop, but spike may not be over

Global food prices have fallen for the first time in eight months, but it’s premature to conclude that means the recent sharp spike is over, a U.N. agency said Thursday.

The Rome-based U.N. Food and Agriculture Organization said in a report that its price index averaged 230 points in March 2011, down 2.9 percent from its peak in February but still 37 percent above March of 2010.

Consumer borrowing up, but credit card use down

U.S. consumers borrowed more money in February to buy new cars and attend school, but they cut back on using their credit cards to make purchases.

Borrowing increased by $7.6 billion, or 3.8 percent, in February, the Federal Reserve said Thursday. It was the fifth consecutive monthly gain.

All of the strength in February came in the category that includes car loans and student loans. That increased 7.7 percent. Borrowing in the category that covers credit cards fell 4.1 percent. That has risen only once in the more than two years since the 2008 financial crisis peaked, a cautionary sign for an economy in which consumer spending drives 70 percent of growth.

IRS may look at HSBC India customers for evading taxes

The Justice Department is asking a federal court in San Francisco to authorize the Internal Revenue Service to request information from HSBC Bank USA about U.S. residents who may be using accounts at the bank’s Indian counterpart to evade federal income taxes.

If the court approves the request, the IRS will serve HSBC with a so-called “John Doe” summons that instructs the bank to turn over records identifying U.S. taxpayers with accounts at HSBC India.

The IRS uses a John Doe summons to get information about possible tax fraud by people whose identities are not known.

Dish Network wins OK for bid to buy Blockbuster

Blockbuster says a bankruptcy judge has approved Dish Network’s $228 million offer for the movie-rental chain, paving the way for a combination of the two media companies.

Dish, the No. 3 pay-TV provider, won an auction for Blockbuster Inc.’s assets earlier this week. Judge Burton R. Lifland of the U.S. Bankruptcy Court of the Southern District of New York approved the bid on Thursday.

Dish says it expects the deal to close in the second quarter.

Once the dominant movie-rental chain, Blockbuster filed for bankruptcy protection in September. 

JPMorgan CEO gets pay hike to $21 million in 2010

Jamie Dimon, the CEO of JPMorgan Chase & Co., saw his 2010 compensation rise to $20.8 million from $12.7 million in 2009, according to an analysis of data filed with regulators on Thursday.

Dimon received a salary of $1 million, a cash bonus of $5 million, stock awards of $7.9 million, and stock options worth $6.2 million for the year. He also received perks worth $579,624, which included the use of an aircraft and a car.

— From news service reports

 

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