by Calculated Risk on 6/01/2014 08:21:00 PM

From Jon Hilsenrath at the WSJ: Heloc Payment Jump to Take Bite Out of Consumer Spending

At issue are home-equity lines of credit, known as Helocs, which allow homeowners to tap their equity to fund home improvement, college tuitions and other expenses. Those loans typically let borrowers make interest-only payments for the first 10 years before requiring principal payments as well.

That reckoning will come this year for an estimated 817,000 borrowers owing more than $23 billion in Helocs, more than double last year's level, according to estimates by Equifax, the credit-reporting firm, and the Office of the Comptroller of the Currency. An average of about $50 billion in loans will reset in each of the next three years.

Weekend:
• Schedule for Week of June 1st

Monday:
• At 10:00 AM ET, the ISM Manufacturing Index for May. The consensus is for an increase to 55.5. The ISM manufacturing index indicated expansion in April at 54.9%. The employment index was at 54.7%, and the new orders index was at 55.1%.

• Also at 10:00 AM: Construction Spending for April. The consensus is for a 0.7% increase in construction spending.

From CNBC: Pre-Market Data and Bloomberg futures: the S&P futures are down slightly and DOW futures are up slightly (fair value).

Oil prices were mixed over the last week with WTI futures at $102.97 per barrel and Brent at $109.52 per barrel.

Below is a graph from Gasbuddy.com for nationwide gasoline prices. Nationally prices are around $3.65 per gallon (at about below the level of a year ago).  If you click on "show crude oil prices", the graph displays oil prices for WTI, not Brent; gasoline prices in most of the U.S. are impacted more by Brent prices.

Orange County Historical Gas Price Charts Provided by GasBuddy.com