If you're thinking about refinancing or buying a home, you might not want to wait too long. Mortgage rates are climbing again.
The average rate on a 30-year, fixed-rate mortgage hit 5.39 percent this week, up a hefty 14 basis (hundredths) points from the previous week, a survey released Tuesday by the Cincinnati Area Board of Realtors showed.
The gain came just two weeks after the Federal Reserve cut a key short-term interest rate a quarter of a point, showing that mortgage rates often don't follow the Fed's action. They generally move in tandem with long-term vehicles like Treasury notes.
Why are mortgage rates rising?
One theory is that the economy will get stronger in coming months, so long-term interest rates such as mortgages will rise, experts say.
Still, the latest rate of 5.39 percent is much lower than the 6.69 percent rate a year ago.
Outlook good in Q2 for banking corporations
Loan growth and fewer problem loans should help the parent companies of many of the Tristate's largest banks post solid second-quarter profits, an analyst says.
Fred Cummings of McDonald Investments in Cleveland predicts that some of the larger banks his firm tracks - including Fifth Third Bancorp, U.S. Bancorp and Huntington Bancshares Inc. - should post an 8.9 percent median gain in second-quarter earnings.
But he said many of those larger banks could see sluggish growth in business lending. Cummings said only Fifth Third - helped by expanding its sales staff - is expected to see strong commercial loan growth.
He also said middle-sized banks - including Provident Financial Group Inc. and First Financial Bancorp - will post a median 1.2 percent decline as sluggish net interest income and continued high credit quality costs will weaken profits.
Cummings remains bullish on many bank stocks with local operations. His favorites include Fifth Third, U.S. Bancorp, Provident and Oak Hill Financial.
Here's Cummings' 2002 second-quarter share earnings outlook, compared with a year ago.
• Fifth Third Bancorp, 74 cents vs. 68 cents.
• U.S. Bancorp, 49 cents vs. 45 cents.
• Huntington Bancshares, 37 cents vs. 30 cents.
• Provident Financial Group, 55 cents vs. 58 cents.
• First Financial Bancorp, 26 cents vs. 29 cents.
Lenders must pass test to give payday loans
The regulator that insures deposits at the nation's banks and thrifts has issued examination guidelines for institutions it oversees offering payday loans.
The Federal Deposit Insurance Corp. said the examination guidance is necessary because of the high-risk nature of payday lending and the substantial growth of the business.
Payday loans are small-dollar, unsecured, short-term advance money offered at high annual percentage rates.
The FDIC said the guidelines mean that those banks will be subject to special exams to verify and monitor their performance. The regulator said those entities that do not meet the standards could face enforcement actions, including orders to close the business.
Huntington sells insurance to seniors
Two units of Huntington Bancshares have started offering a whole life insurance policy with investment perks to attract older customers, industry trade publication 
