The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

A real estate professor weighs in on the future of MLSs

According to research done by Sonia Gilbukh, a real estate professor at Baruch College, there are some reasons to be concerned about the current number of real estate agents and the future of MLSs.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Politics & MoneyInvestmentsMortgage

Trump blames Fed for stock market nosedive

President told reporters he thinks the Fed went "crazy"

President Donald Trump is quadrupling down on his ire toward the Federal Reserve and its rate hikes.

On the tarmac at Erie International Airport, Trump blamed Wednesday’s market meltdown on the Fed, telling reporters, “The Fed is making a mistake,” and saying, “I think the Fed has gone crazy.”

These are bold words for a president to levy at the Fed, and though many presidents have taken issue with the Fed raising rates – especially ahead of a midterm election­ – not many have dared to go so far as Trump and question the Fed’s sanity.

The stock market has been taking a beating for the last 6 days, taking a 3% tumble yesterday in the face of rising rate fears.

Trump has been incredibly vocal this year about his disapproval of the Fed’s repeated decisions to raise rates, saying that he disagrees with the idea that economy needs to be reined in quite as stiffly as it has been.

“The rise in Treasury yields has been the primary catalyst for the selloff in equities,” Steven Friedman, senior economist at BNP Paribas Asset Management, told The Wall Street Journal.

“Equity investors are growing concerned that the [Fed]’s projected rate path will choke off the expansion,” he added.

But, in a historical context, the country is still technically in a low-interest rate environment.

Following the most recent rate hike, Fed Chairman Jerome Powell said he and the Fed feel that incrementally raising interest rates is the best way to respect the Fed’s dual mandate of maintaining economic growth while curbing inflation.

Currently, inflation is right where the Fed wants it to be, at about 2%.

By all measures, the U.S. economy is still exhibiting strong fundamentals with robust employment and gross domestic product gains. It remains to be seen how the business community and the Fed will respond to these concerns over rates.

A new Capital Economics report indicates that in light of recent stock market volatility, the Fed will need to stop raising rates and possibly begin cutting them as the U.S. economy enters a slowdown within the next few quarters.

Capital Economics predicts that economic growth will have tapered off significantly by mid-2019 and the S&P 500 will drop 15% from its recent peak.

“As slower growth causes the Fed to call time on its tightening cycle and raises the prospects of rate cuts further ahead, we expect the 10-year Treasury yield to pull back to about 2.5% by end-2019, from 3.2% now. This would probably cap any increase in high-grade sovereign bond yields outside the U.S. too,” the report said.

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Existing home sales pop the 2021 housing bubble boys

So far this year, every existing home sales print has been higher in 2021 than the closing level of sales in 2020, which was 5,640,000. Even with the unhealthy home price gains that we have seen in the last two years, more Americans have bought homes with mortgages in 2020 and 2021 than any single year from 2008-2019, and this looks perfectly normal with our current demographics. HW+ Premium Content

Sep 22, 2021 By
3d rendering of a row of luxury townhouses along a street

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