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Posts tagged with "interest rates"

09/19/2019

The key to mortgage originations? Savvy marketing

We entered the summer in a surprise low-rate mortgage environment. But given the sudden and volatile path to where we are now, many lenders aren’t staffed to capitalize on a rate-and-term environment. Against this backdrop, lenders need tools to help them protect and grow their portfolio; maintain a healthy, balanced pipeline; and prioritize their prospects….

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09/18/2019

Mortgage lending and the interest rate environment

Anyone tracking mortgage interest rate activity this year has been on a roller coaster ride. After rising in April, they began their decline in May, and they’re still low. While forecasts predict steady growth in the housing market, a quick glance at the latest housing data shows some of the volatility and challenges facing mortgage…

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08/19/2019

Rates are falling. Margins Are Shrinking. Why, and What Next?

Last month we wrote about an upcoming cut in interest rates. At the time, we wrote about what financial institutions—especially smaller institutions—should expect. A couple of days later the Federal Reserve announced the first target Fed Funds rate cut in a decade. So now we have some clarity—what can we learn? Managing rates is a…

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07/30/2019

Interest rates, market instability, and what it all means

“Turbulent” is probably the safest way to describe the interest rate landscape for financial institutions in 2019. Opinions about upcoming rate movements have taken a rollercoaster ride over the past several months. This is based on comments from Federal Reserve Chairman Jerome Powell, and the Federal Open Market Committee meeting again this week. We will…

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05/15/2019

Rates have dropped. How does that impact mortgage lending?

Is your phone ringing off the hook for mortgage applications and refinances yet? Mortgage lenders have been anticipating an increase in applications because of this juggernaut of a job market, with unemployment rates hovering at historic lows. In March, the Bureau of Labor Statistics reported that the national unemployment rate stayed at a rock-bottom 3.8%….

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04/24/2019

Why banks should institute rate floors if they haven’t already

Ah, the ever-changing economy. One day interest rates are up, the next day they’re down. Not exactly a roller coaster, but it’s at least a merry-go-round. Those rates impact the mortgages banks offer to their customers, adjustable rate mortgages most of all. Customers choose ARMs because they’re betting the rates aren’t going to go up…

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04/22/2019

The yield curve is inverting. That’s signaled recession since the ’60s. Now what?

Can we predict the future by looking at the past? When you’re talking about finance, the answer may well be yes. Every recession we’ve had since the 1960s occurred about a year after an inversion of the Treasury yield curve. And, it looks like that’s starting to happen right now. But it’s not time to…

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