have seen nothing in the price action that tells me that the market is in trouble. financials are strong. commodity prices are ticking up. that could mean better economic numbers. the price of copper is moving up. i m not sweating it just yet. get me a 2% correction before i can even start worrying. again, just not there yet. i nice price action to change and it s not happened. i ve been saying this a lot. i ve covered the market for years. back in 99 into 2000 and back in 2007 and 2008, i mean, i was worried about 2003. i could see it coming. you could just see it. rates were so long and there were these teaser rates on the homes. i kept thinking what will happen when these mortgages reset? you could see it playing out. i don t see a ton of scenarios right now, dan. i hear you on interest rates. at some point they have to go
29-year-old nurse, ashley warren, has been searching for her first home for a year, all the while watching those mortgage rates creep higher. that s definitely made me more aware of the time that i have to buy a home, and i want to be make sure that i buy it in a timely fashion. reporter: mortgage rates already factoring in today s hike, now a $250,000 30-year-fixed rate mortgage will cost almost $100 a month more than it would have last year, a difference of more than $25,000 over the life of the loan. interest on private student loans, car loans, and credit cards also now going up. the average credit card balance now more than $5,000 with the fed expected to hike rates two more times this year, experts recommend moving fast. and paying it down, or consider converting to a 0% interest rate credit card but pay attention to fees, and when those teaser rates expire. so rebecca, more expensive to borrow, but a silver lining tonight? reporter: that s right, david.
to consider that the issue is not just about the numbers. i talk a lot about math but the senate s decision about student loans is a decision about our values and a decision about how we build a future. we shouldn t treat our students like a profit center. we shouldn t ask them to pay an extra tax to go georgia to school, and we shouldn t try to trick them by shuffling numbers around, hitting them with teaser rates and declaring that a problem is solved while students just keep paying more and more. joining us now from capitol hill, democratic senator from ohio, sherrod brown. senator brown, thanks so much for joining us. please, please bring us some good news from capitol hill. there has been so much reason for heartache this morning and i ask you with, senator, do you think that the student loan question is something the senate can and will do something about before the august recess? well, we should. i can t predict because it s not even reasonable about what
eight critericriteria, credi history, assets and things automatically applying. no more high fees, that sounds good. how does that work? it s great, cap off at 3%. you the borrower to get that mortgage won t be paying more than 3% of the loan. mike: and no more teaser rates. how are we being teased? we saw with the subprime mortgage crisis and all of the lax lending that led town that, exotic loans and toxic assets. and misleadingly low teaser rates and people qualify for that interest rate and take out loans that maybe eventually couldn t afford. no more of that. alisyn: no more exotic loans, that s intriguing, what s exotic loans? interest only mortgages or loans with balloon payments, that exceed 30 years in duration of the loans. not going to see more of these.
one in three chance of blowing up and burning down the house, that would never be allowed. but certain kinds of mortgages that had crazy teaser rates and ballooned in the end would be allowed. she draws the analogy. the question is, do you have the power that the consumer product safety commission has. does the consumer financial protection bureau have the authority to say no, you cannot make that kind of loan? well two things about the toaster situation. first, what we re doing is actually more important than toasters. can you live without toast. american families can t get by without mortgages, access to student loans. a way to save money for the future what we re doing is just fundamental to americans and their success over time. in terms of authority, congress has given us the two sets of authorities that matter most. one is a range of tools. so that we re not trying to fit a square peg into a round hole. we have the ability to make rules. we have the ability to supervise