Banks are preparing for more loans to go bad as interest rates rise

Aug 8, 2022
They're setting aside more cash to cover delinquencies and taking closer looks at prospective borrowers.
Consumers are saving less and using credit cards more as prices and interest rates rise. Above, a person on the floor of the New York Stock Exchange watches TV screens on July 27, after the Federal Reserve raised the benchmark interest rate by three-quarters of a percentage point.
Timothy A. Clary/AFP via Getty Images

Why mortgage rates have been falling recently

May 31, 2022
They're sliding even though the Federal Reserve has been raising interest rates this year.
Given how much mortgage interest rates have risen over the last year, demand could be slowing down.
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Payments for new mortgages are soaring. That's why home sales are slowing.

May 27, 2022
The median monthly payment on a new mortgage is up more than 40% over last year.
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What the Fed’s rate hike means for one community bank

May 5, 2022
Mortgage rates are rising, but deposit rates will lag, says Laurie Stewart, president of Sound Community Bank in Seattle.
The Belltown Branch of Sound Community Bank, which is headquartered in Seattle, Washington.
Courtesy of Sound Community Bank

Anticipated Fed interest rate hike already being felt

May 3, 2022
Mortgage rates, for example, probably already have the Fed hikes built in.
The Federal Reserve is planning to raise interest rates this week. If you're trying to take out a mortgage, chances are you're already feeling the effects.
Anna Moneymaker/Getty Images

The mortgage business has "come to a screeching halt"

Apr 26, 2022
Vivian Gueler of Pacific Trust Group said rising rates are slowing the housing market, but it could be months before prices fall.
"The market was just too crazy," said mortgage broker Vivian Gueler. "The low rates drove up too much business, too much demand — and the prices, ultimately."
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The Fed's interest rate hike is already reducing demand for mortgages

Apr 7, 2022
Getting demand to soften is the point because that's expected to help tame inflation.
Applications for home mortgages and loan refinancings are slowing down. Will inflation follow the trend?
Justin Sullivan/Getty Images

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The staying power of Case-Shiller, a marquee housing metric

Apr 6, 2022
It’s not the most timely home price indicator, but it does have advantages, including mapping prices over long periods.
Homes line a Southern California street in 2003. An approach for tracking house prices developed by economists Karl Case and Robert Shiller in the 1980s remains an important market indicator today.
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Borrowing for second homes to become more expensive

Jan 7, 2022
Demand for vacation homes has crowded out would-be homeowners, but will higher fees make a dent?
Upfront fees for some second-home loans could increase by as much as 3.9% starting in April. Above, beachfront vacation homes in Florida.
felixmizioznikov via Getty Images

How mortgage algorithms perpetuate racial disparity in home lending

Aug 25, 2021
A new investigation finds that people of color are more likely to have their mortgage applications rejected than comparable white applicants.
A new investigation finds that people of color are more likely have their mortgage applications rejected than similar white applicants.
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