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Posts tagged with "interest rates"

12/19/2019

Interest rates and rate floors: survive and thrive in 2020

Last year, when rates were rising, Deluxe warned that banks should learn from the 2008 financial crisis that rate cuts are not always predictable, and can be devastating to earnings. And at the beginning of this year, when interest rates were fluctuating unpredictably, Deluxe wrote about structural factors placing pressure on banks’ margins. In both…

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11/15/2019

Another drop in interest rates – is the end nigh?

Around Halloween, perhaps to scare all of the bankers out there, the Federal Reserve dropped rates again, this time by 25 basis points to a range of 1.5% to 1.75%. The widely expected move was the third such drop in as many months. With little wiggle-room remaining this looks like the last drop for a…

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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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