Sales of new single-family houses in April 2012 were at a seasonally adjusted annual rate of 343,000 units, according to U.S. government estimates.

This represents a 3.3 percent increase over the revised March rate of 332,000 and is 9.9 percent above the April 2011 estimate of 312,000.

Economists polled by Reuters had forecast sales at a 335,000-unit rate in April. The median estimate in a Bloomberg News survey of 72 economists was also 335,000.

The median sales price of new houses sold in April 2012 was $235,700; the average sales price was $282,600.

The seasonally adjusted estimate of new houses for sale at the end of April was 146,000, representing a supply of 5.1 months at the current sales rate.

The National Association of Realtors reported yesterday that existing-home sales rose more than forecast in April, with the median resale price for all housing types jumping 10.1 percent to $177,400 compared to a year ago.

Nationwide housing affordability hit a new record high for a second consecutive quarter in the first three months of this year, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), released last week.

However, tight lending conditions continue to pose a major obstacle to many prospective home buyers.

The latest HOI data found that 77.5 percent of all new and existing homes that were sold in this year’s first quarter were affordable to families earning the national median income of $65,000.

This is the third consecutive weekly increase in the association’s Refinance Index, which is at its highest level since February 10, 2012.

The Refinance Index increased 5.6 percent from the previous week.

A big factor in the refinancing wave is the Obama Administration’s enhanced Home Affordable Refinance Program, more commonly known as HARP 2.0. The program has been extended to eligible borrowers deeply “underwater” in their mortgages, owing more than the worth of their homes.

HARP 2.0, which has been up and running since March, has drawn half a million applications as of the last report by U.S. housing officials.

The HARP share of refinance applications was essentially unchanged over the week at 28 percent, according to the mortgage bankers.

“Mortgage rates again dipped to new record lows in the survey, which spurred more borrowers back into the refinance market,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “As a result, applications for refinance loans have increased for the third straight week and are at the highest level since February of this year.”

The overall Market Composite Index, a measure of mortgage loan application volume, increased 3.8 percent on a seasonally adjusted basis from one week earlier.

The refinance share of mortgage activity increased to 76.6 percent of total applications from 74.9 percent the previous week.

This is the highest refinance share since March 2, 2012.

While 40 percent of Americans used plastic to cover these expenses, nearly the same percentage of households have experienced tighter credit, such as having cards canceled, credit limits reduced, or being denied a card when applying.

The survey by the think tank Demos is the third such study since 2005.

However, the results are striking because the rate of dependency on credit cards is about the same as that found in the last survey conducted in 2008, the height of the financial crisis.

Those who relied on credit cards did so because they did not have did not have enough money in their checking or savings accounts.

In February and March 2012, Demos surveyed a nationally representative sample of 997 low- and middle-income American households who carried credit card debt for three months or more.

In 2012, the average credit card debt totaled $7,145, down from $9,887 in our 2008 survey.

That lower average credit card debt is indicative of a wave of American’s “getting our financial house in order” during economic hardship, Demos said.

But the same is not necessarily true for low-income and many middle-income households struggling during the prolonged economic recovery.

Three years ago, President Obama signed into law landmark credit card reform – the Credit Card Accountability Responsibility and Disclosure Act, or Credit CARD Act – that restricts some interest rate hikes and penalty fees, and provides many other first-time protections for consumers.

The Demos survey found that the Credit CARD Act is helping households pay down balances faster and avoid fees.

One third of households are responding to new information included on credit card statements by paying their balances down faster.

The number of households who report paying late fees on their credit cards has declined dramatically. In the 2008 survey, half of households reported accruing late fees – in 2012, it was just 28 percent.

Those who did make late payments were significantly less likely to see their interest rate increase as a result: 24 percent fewer households reported interest rates increasing as a result of a late payment in 2012 than in 2008.

Comcast, Time Warner Cable, Cablevision, Bright House and Cox will allow each other’s high-speed Internet customers access to more than 50,000 hotspots.

CableWiFi is the network name created as an extension of the Wi-Fi services offered by the Internet service providers.

By year’s end, the five companies will launch their 50,000  hotspots across the country, opening up access to competitors’ customers. In out-of-network areas, users will be able to log on to hotspots labeled “CableWifi.”

The first phase is already complete as Bright House Networks and Cablevision launched “CableWiFi” alongside their branded Wi-Fi networks in the New York City area and central Florida earlier this month.

“We believe that Wi-Fi is a superior approach to mobile data, and that cable providers are best positioned to build the highest-capacity national network offering customers fast and reliable Internet connections when away from their home or business broadband service,” said James L. Dolan, Cablevision’s President and CEO.

The participating cable operators combined offer Wi-Fi hotspots throughout New York City and the surrounding Tri-State area, Los Angeles, Tampa, Orlando, and Philadelphia.

The cable providers plan to continue to grow the number of Wi-Fi hotspots and expand into several additional cities. The network has both indoor and outdoor hotspots located in popular, high traffic locations, such as shopping districts, cafes, malls, arenas, restaurants, parks and beaches.

This is the largest Wi-Fi sharing effort among cable operators to date.

In early 2010, Cablevision, Comcast and Time Warner Cable entered into an agreement allowing their customers in New York City, Long Island, New Jersey, Philadelphia and Connecticut to access Wi-Fi hotspots offered by each operator in these areas.

The latest venture marries the venerable charge card and the Serve digital wallet with FarmVille, the make-believe society that features plastic payments as prominently as real life on Facebook or other platforms.

Under its latest partnership with Zynga, the provider of FarmVille and other social games, American Express will initially issue prepaid cards that carry both its name and that of FarmVille or Zynga.

To get a card, FarmVille users must sign up for a Serve account, which customers can fund with existing bank accounts, debit and credit cards.

“We’re thrilled to expand our relationship with Zynga and provide an easy way for players to earn Zynga virtual game cash by learning about Serve and signing up to receive the many benefits of our digital wallet,” said Dan Schulman, President of Enterprise Growth, American Express

FarmVille allows players to cultivate their Farms by plowing, planting and harvesting crops and trees.

As part of the Zynga Serve Rewards phased program, FarmVille players now have the ability to plant an interactive “Serve Money Tree” in their farms, giving them the ability to level up in game and earn Zynga “farm cash” for virtual awards redemption.

Once players place the tree, they will be prompted to take certain steps to earn “farm cash” in connection with the co-branded card through July 31, 2012.

Similar Zynga Serve Rewards programs will be introduced in additional games such as CastleVille and CityVille over the course of the year, so players can redeem rewards to purchase a variety of virtual goods from their favorite games.

For more information on Zynga Serve Rewards, visit: www.Serve.com/Zynga.

Joe Mihalic

Harvard graduate Joe Mihalic paid off his $90,000 student loan debt in a remarkable seven months, becoming a blog celebrity after his story hit most major media outlets.

His blog, nomoreharvarddebt.com, has gone from 300 hits a day to tens of thousands.

Mihalic’s success has struck a chord with a nation beset with a stunning $1 trillion in overall student loan debt.

President Obama has made easing student loan terms an issue in his campaign. And lawmakers have been trying to reach an accord on how to prevent a doubling of rates from 3.4 percent to 6.8 percent on federally subsidized Stafford loans. They must take action before July 1 to extend the lower rate for another year.

Meanwhile, Mihalic’s e-mail inbox is overwhelmed with advice seekers, students in debt and congratulatory remarks from strangers.

“Over the past few days, my inbox has been flooded with hundreds of emails thanking me for being an inspiration; some folks have asked for advice on how they can do the same thing,” Mihalic, who is from Austin, Texas, wrote yesterday in his blog.

How did Mihalic accomplish the feat of paying of $90,000 in student loans? For one, he has a good job with a six-figure salary at Dell, Inc. But he also had plenty of other expenses beside his student loan debt.

“I had a mortgage on my house and two cars and a motorcycle, and I had become accustomed to spending $1,300 per month on entertainment,” Mihalic wrote in his blog. “I wouldn’t say I was living above my means, but I certainly wasn’t living below them, either.”

Mihalic applied his savings toward lowering the debt, but it “barely made a dent.”

Here are the highlights of his journey toward a zero balance in student debt – in his own words:

• During the past seven months, I haven’t gone on a single dinner date or been to the movies;
• I took a flask with me every time I went out with friends;
• I stopped contributing to my 401k;
• I didn’t go home for Christmas;
• I missed my friends’ bachelor parties and weddings;
• I got better at DIY (do-it-yourself) and figured out things like how to use duct tape to repair my car and zip-ties to repair my house;
• In the past seven months, I haven’t bought a single article of clothing or a single “must-have” gadget or gizmo. I’ve completely eschewed consumerism, and it actually felt pretty good;
• To make extra money, I rented my spare bedrooms to strangers on Craigslist, I tried pedi-cabbing, and I started a landscaping business;
• I sold my second car, my motorcycle, my roadbike, and a bunch of random junk on Craigslist. I got rid of things that I thought I could never live without, and it actually felt pretty good.

Home resales remain above a year ago, while home prices continue to rise – a double dose of optimism for the struggling housing market if the trends hold.

Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – increased 3.4 percent to a seasonally adjusted annual rate of 4.62 million in April, from a downwardly revised 4.47 million in March, and are 10.0 percent higher than the 4.20 million-unit level in April 2011.

The national median existing-home price for all housing types jumped 10.1 percent to $177,400 in April from a year ago. The March price showed an upwardly revised 3.1 percent annual improvement.

It was the biggest year-over-year home price jump since January 2006.

“This is the first time we’ve had back-to-back price increases from a year earlier since June and July of 2010 when the gains were less than one percent,” said Lawrence Yun, NAR chief economist.  “For the year we’re looking for a modest overall price gain of 1.0 to 2.0 percent, with stronger improvement in 2013.”

Distressed homes – foreclosures and short sales sold at deep discounts – accounted for 28 percent of April sales (17 percent were foreclosures and 11 percent were short sales), down from 29 percent in March and 37 percent in April 2011.

Foreclosures sold for an average discount of 21 percent below market value in April, while short sales were discounted 14 percent.

The IRS said the more flexible terms focus on the financial analysis used to determine which taxpayers qualify for an OIC, an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.

An OIC is generally not approved if the IRS believes the liability can be paid in full as a lump sum or a through payment agreement.

The IRS examines the taxpayer’s income and assets to determine the taxpayer’s “reasonable collection” potential.

The OIC modification enables some taxpayers to resolve their tax problems in as little as two years, compared to four or five years in the past.

In certain circumstances, the new announced changes include:

• Revising the calculation for the taxpayer’s future income.
• Allowing taxpayers to repay their student loans.
• Allowing taxpayers to pay state and local delinquent taxes.
• Expanding the Allowable Living Expense allowance category and amount.

“This phase of Fresh Start will assist some taxpayers who have faced the most financial hardship in recent years,” said IRS Commissioner Doug Shulman. “It is part of our multiyear effort to help taxpayers who are struggling to make ends meet.”

When the IRS calculates a taxpayer’s “reasonable collection” potential, it will now look at only one year of future income for offers paid in five or fewer months, down from four years – and the agency will now review two years of future income for offers paid in six to 24 months, down from five years.

All offers must be fully paid within 24 months of the date the offer is accepted. The Form 656-B, Offer in Compromise Booklet, and Form 656, Offer in Compromise, has been revised to reflect these changes.

Nearly two-thirds of current owners surveyed said they expected their next vehicle to register better fuel mileage than the one they’re driving now.

While gasoline costs (90 percent) were the number one reason cited for wanting a more fuel-efficient vehicle, more than half of respondents also had other reasons, including a desire to be more environmentally friendly (62 percent) and concern about dependence on foreign oil (56 percent).

To a much greater extent, women said they were motivated by the environmental benefit of better fuel economy – 65 percent vs. 58 percent of men. Women were also more concerned about dependence on foreign oil (63 percent vs. 49 percent of men), and affected by changes on the home front (38 percent vs. 31 percent).

“These results make it clear that high fuel prices are continuing to impact driver behavior and influencing future purchase considerations,” said Jeff Bartlett, Consumer Reports deputy auto editor.  “While quality, safety and value are still important, this may be foreshadowing a market shift by folks seeking relief at the pump.”

Some 90 percent of respondents agreed or strongly agreed with the statement: “Auto manufacturers should offer a greater variety of cleaner, more fuel-efficient vehicles in the near future.”

The federal government is expected to finalize new fuel efficiency standards later this year that would require manufacturers’ average fuel economy to reach 54.5 miles-per-gallon by 2025.

For more information, visit http://www.ConsumerReports.org.

Most credit consumers aren’t even aware that there was a shift in the most commonly used scoring system that started in 2009.

More consumers are becoming aware of FICO 8 thanks to a New York Times blog and an omission by FICO itself in a just-published study of Americans’ improving credit scores.

The percentage of U.S. consumers with FICO Scores between 800 and 850, the top range for credit worthiness, has reached a post-recession high not seen since October 2008, according to FICO Labs’ much published research.

Moreover, the percentage of consumers between 700 and 749 (15.5 percent) is the lowest that FICO has recorded since it began tracking this data in 2005.

The Times blog, however, made a valid point when it called out FICO for not mentioning that it was using its newer credit scoring system, FICO 8, rather than the initial FICO, as a basis for its findings. That would skew the study results somewhat since FICO 8 is a bit more forgiving in its rating of consumer credit habits.

For example, FICO 8 ignores small-dollar “nuisance” collection accounts, with original balances less than $100. It also is more lenient toward borrowers who have consistently solid credit, but may have had a rare late payment.

Rachel Bell, of FICO Labs, told the Times it did not matter that the report used FICO 8.

Individual credit scores might differ under the latest formula, she said, but the trend would be the same, even if an older scoring model were used, the Times blog said.

Consumers with solid credit histories would likely see their scores go up a bit with FICO 8, while those who are riskier might see their scores decline, Bell said.

The intent of FICO 8 is to better predict borrower risk.

Here’s an overview of FICO 8 from myfico.com:

High credit card usage
FICO 8 score is more sensitive to highly utilized credit cards. So if your credit report shows a high balance close to the card’s limit, your score will likely lose more points than it would have previously. You may want to consider keeping any monthly credit card balance low.

Isolated late payments
If a lender reports to the credit bureau that you were at least 30 days late with your payment, your FICO 8 score will likely lose points. If the late payment is an isolated event and your other accounts are in good standing, the FICO 8 score is more forgiving compared with scores from previous FICO formulas. However, if your credit report shows numerous late payments, the reverse is true and your FICO 8 score will likely lose more points.

Authorized user of credit card
Every generation of the FICO score formula has included authorized user credit card accounts when calculating a person’s score. FICO 8 score continues that policy. This can help people benefit from their shared management of a credit card account. It also helps lenders by providing scores that are based on a full snapshot of the consumer’s credit history.

To protect lenders and honest consumers, the FICO 8 formula substantially reduces any benefit of so-called tradeline renting. That’s a credit repair practice that entices consumers into being added to a stranger’s credit account in order to misrepresent their credit risk to lenders.

Small-balance collections accounts
FICO 8 score ignores small-dollar “nuisance” collection accounts in which the original balance was less than $100.