JPMorgan Chase’s future is starting to look bleaker as rising mortgage rates dampen the bank’s outlook, an article in National Mortgage News reports.

After JPMorgan (JPM) posted its earnings last week, the mega bank noted that mortgage production may drop as much as 40% if rates stay at their current levels.

Chairman and CEO Jamie Dimon was cited as saying it’s difficult to make broad comments about the impact of interest rates on the bank overall.

Higher rates could hurt mortgages, but at the same time, it can help in other areas, the CEO explained.

“Corporate America is very liquid right now and has access to the capital markets, and that obviously affects demand,” Marianne Lake, chief financial officer with JPMorgan, said. “Our customers are still very cautious and also still very liquid. We need confidence to pick up.”