Best automation opportunities for loan processing

Join our expert panelists to learn how lenders can achieve their goals using the integration of intelligent document automation and RPA technology.

4 Strategies to Strengthen Customer Relationships

Discover the right strategies to execute fast-acting campaigns, track results and improve your bottom line – all while strengthening customer relationships.

HousingWire's 2021 Spring Summit

We’ve gathered four of the top housing economists to speak at our virtual summit, a new event designed for HW+ members that’s focused on The Year-Round Purchase Market.

An Honest Conversation on minority homeownership

In this episode, Lloyd interviews a senior research associate in the Housing Finance Policy Center at the Urban Institute about the history and data behind minority homeownership.

CoronavirusPolitics & Money

Wells Fargo reverses Fed rate forecast due to coronavirus fallout

The largest bank lender is now predicting a 1% cut in Fed rate

Wells Fargo reversed its Federal Reserve forecast on Monday as coronavirus slowed economic growth across the globe.

The largest U.S. bank mortgage lender now is predicting a 1% cut in the Fed’s benchmark rate by the end of June. Before the coronavirus outbreak spread beyond China, Wells Fargo had been forecasting the Fed would hold the rate in its current 1.5% to 1.75% range through 2020.

“If financial markets continue to spiral lower, the FOMC may very well decide to cut rates before the committee’s next scheduled meeting on March 18,” Wells Fargo economists wrote in a note to clients. “Or the committee could wait until March 18 to cut rates 50 basis points with a follow-up 50 basis-point rate cut on April 29.”

There are now more than 88,000 global cases of the disease named COVID-19, with infections on every continent except Antarctica, and more than 3,000 people have died, according to the World Health Organization.

The U.S. has about 100 cases of COVID-19 in the United States in 11 states, according to the Centers for Disease Control and Prevention. About half of those are Americans exposed to the virus overseas and repatriated to the U.S. At least six Americans have died from the virus.

On Friday, Fed Chairman Jerome Powell issued a rare inter-meeting statement hinting at rate cuts as he tried to calm jitters about the global spread of COVID-19.

“The fundamentals of the U.S. economy remain strong,” Powell said. “However, the coronavirus poses evolving risks to economic activity. The Federal Reserve is closely monitoring developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy.”

Many economists interpreted that as a pledge to cut rates if needed. While that would be helpful, it won’t address some of the core issues, such as supply chain interruptions, the Wells Fargo note said.

“In some sense, Fed rate cuts are ill-suited to offset the supply shock that the COVID-19 outbreak has imparted to the global economy,” the Wells Fargo economists wrote. Still, “there would be some beneficial effects stemming from lower interest rates,” they said.

Most Popular Articles

Chopra warns of post-COVID housing market fallout

Rohit Chopra warned of housing market fallout and said he would focus on helping struggling homeowners at his Senate Confirmation hearing.

Mar 03, 2021 By

Latest Articles

CFPB delays QM compliance date to October 2022

The Consumer Financial Protection Bureau released a notice of proposed rulemaking on Tuesday to delay the mandatory compliance date of the Qualified Mortgage final rule from July 1, 2021 to October 1, 2022.

Mar 04, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please