BANK TREASURERS SAVE OUR HOMES
Dear Bank Treasury Podcast Subscribers,
What if there were a way to convince some of your locked-in homeowners, those with 3% rates, to sell their homes, move, and buy a new home at a higher rate? With mortgage rates over 7% today, what if you offered them 5%? According to FHFA data, 20% of outstanding mortgage loans carry a rate under 3%. Even if you can earn a spread on these low-rate loans today, there is no guarantee it will last as deposit competition heats up, and the Fed’s hawkish turn continues. If you like this idea, you are not alone. So, what’s stopping you from executing a clear way to increase NIM and grow NII?
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