Everyone has a story about something they said or asked that they shouldn’t have. “When are you due?” is a good one, as is asking, “When did you turn 60?” when the person is only 55. But forecasters are out in force, saying things about interest rates they may, or may not, regret later. Analysts at Citigroup and Goldman Sachs, for example, expect an interest-rate increase likely forthcoming from the Federal Reserve to be less than the widely predicted half-percentage point, noting a quarter point is a better bet. I heard an analyst this morning on the radio saying he believed that the yield on the risk-free 10-year should be up to 2.90 percent! Meanwhile, managers are trying to predict “where the puck is going” in terms of the pandemic and work from home moves. As staffers at financial institutions begin to return to the office in large numbers, there is an increasing trend to allow workers greater choice in the office-remote work balance. While most banks are thought to prefer a full office return, Jefferies, BNY Mellon and Citigroup are among those offering hybrid options. In my conversations with lenders, many MLOs and AEs were working from home prior to the pandemic, but lenders are offering hybrid arrangements for operations staff. Unlike residential lending, in other industries, profits and wages are increasing. If you have a manufacturing facility near an Amazon distribution center, you have to pay up for workers. Interesting times indeed. (Today’s audio version of the commentary is available here and this week’s is sponsored by MCT and its hedge advisory division, pairing industry leading experience with award-winning technology to assist you in locking, coverage, best execution, and reporting. Today’s includes an interview with MCT CMO Ian Miller on building a thought-leading mortgage marketing operation.)

Published On: February 10, 2022 / Categories: Mortgage News /