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How Will Banks Ride Out the Latest Mortgage Industry Cycle?
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KBurger
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KBurger,
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1/6/2014 | 5:17:22 PM
re: How Will Banks Ride Out the Latest Mortgage Industry Cycle?
I hope you are not talking about yourself!
Jonathan_Camhi
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Jonathan_Camhi,
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1/3/2014 | 6:40:39 PM
re: How Will Banks Ride Out the Latest Mortgage Industry Cycle?
The interest rates are so low on savings and CD's right now that it doesn't really encourage people to save. Of course that's part of the idea, we're keeping interest rates low to get the economy going. But it might also encourage bad behaviors among young consumers who are starting to develop their spending/saving habits right now.
IvySchmerken
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IvySchmerken,
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1/2/2014 | 11:32:03 PM
re: How Will Banks Ride Out the Latest Mortgage Industry Cycle?
Not only do CDs provide value, (or used to), they provided security. CDs provide a fixed rate of return and they are guaranteed by the FDIC up to $100k. Contrast that with stocks and bonds. Today's low rates have made CDs unattractive, but that could change as rates rise.
KBurger
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KBurger,
User Rank: Author
1/2/2014 | 5:29:49 PM
re: How Will Banks Ride Out the Latest Mortgage Industry Cycle?
Well, back in the day you actually could earn meaningful interest on a CD or even a savings account. So they had actual investment value. It does seem like educating younger consumers about the value of savings (and combining that with convenience/experience) is a great opportunity for banks. Those younger customers are going to be geezers one day.
Jonathan_Camhi
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Jonathan_Camhi,
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1/2/2014 | 2:49:49 PM
re: How Will Banks Ride Out the Latest Mortgage Industry Cycle?
I don't think I know anyone who buys them, but apparently they were big back in the day.
Byurcan
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Byurcan,
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12/31/2013 | 4:07:32 PM
re: How Will Banks Ride Out the Latest Mortgage Industry Cycle?
My 91-year old great aunt is the only person I know that buys CDs. She goes down to the bank branch to get them. No omnichannel for her!
Jonathan_Camhi
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Jonathan_Camhi,
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12/31/2013 | 3:06:56 PM
re: How Will Banks Ride Out the Latest Mortgage Industry Cycle?
I've seen some research - related to savings accounts and CD's, not mortgages - that rates are more important to older demographics but younger customers are more easily swayed by convenience and experience.
KBurger
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KBurger,
User Rank: Author
12/30/2013 | 9:00:45 PM
re: How Will Banks Ride Out the Latest Mortgage Industry Cycle?
It will be interesting to see if prices/rates trump convenience/experience. The process is improving, more automated, more mobile, more transparent -- will that be more important than $$?
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
12/27/2013 | 4:22:42 PM
re: How Will Banks Ride Out the Latest Mortgage Industry Cycle?
Depends on the consumer. If you're someone who is saving a lot then the higher interest rates will benefit your savings account, but if you're in debt it certainly won't help. And anyone who is planning on refinancing their mortgage any time soon better jump on that opportunity now before those interest rates go up.
IvySchmerken
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IvySchmerken,
User Rank: Author
12/25/2013 | 4:26:14 PM
re: How Will Banks Ride Out the Latest Mortgage Industry Cycle?
Banks have improved the tools they offer consumers to apply for mortgages and to figure out their payments based on how much they put down as a downpayment. But interest rates are expected to rise in 2014 as the Fed curtails its mortgage buying program. I wonder if high rates will influence how consumers feel about banks.
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