Time to Hold 'Em or Fold 'Em? Economists Disagree on Mortgage-Rate Risk

July 2009
Credit Union Times;7/22/2009, Vol. 20 Issue 29, p6
The article offers the analysis of several economists on mortgage-rate risk in credit unions (CUs) in the U.S. It states that they agree on why CUs are booking more mortgages on their balance sheets, but those who advise CU financial managers disagree on whether holding mortgages is a good strategy. Tun Wai predicts that the federal funds rate will remain at 0.25 percent for the rest of 2009, but cost of funds will increase. Steve Rick says that economic recovery in 2009 will be very weak.


Related Articles

  • Latest Rate Cut Should Help CUs Boost Earnings, Two Experts Suggest.  // Credit Union Journal;3/24/2008, Vol. 12 Issue 12, p3 

    The article reports on the credit experts' analysis on the latest reductions in the federal funds rate in Wisconsin. Experts said that the latest cuts would help credit unions to improve their earnings and must be aggressive in managing their costs of funds. Credit Union National Association...

  • New Views On Economic Direction.  // Credit Union Journal;6/19/2006, Vol. 10 Issue 24, p12 

    The article discusses several predictions on economic growth by various economists including Martin Baily of the Institute of International Economics, WesCorp's Dwight Johnston, and Ron Araujo, in the U.S. Baily said that he does not foresee a decline in housing prices hence anticipates slower...

  • Macroeconomic Playbook Playback. Rick, Steve // Credit Union Magazine;Mar2008, Vol. 74 Issue 3, p92 

    The article forecasts the economic conditions of the U.S. in 2008 and its impact to credit unions. It claims that the country's decision to lower federal funds rate to address the worsening economy would yield positive effects on credit union balance sheets and on income statements. He, however,...

  • The Housing Bubble: How Much BI ame Does the Fed Really Deserve? Miles, William // Journal of Real Estate Research;Jan-Mar2014, Vol. 36 Issue 1, p41 

    Two recent empirical papers have blamed the Fed for the latest boom and bust in housing. Neither study includes long-term interest rates, which are more affected by global factors than the federal funds rate (FFR). In this paper, I include both the mortgage rate and the FFR as determinants of...

  • As Economy Strengthens, Mortgage Rates Rise. Emrich, Anne Bond // Grand Rapids Business Journal;11/22/2004, Vol. 22 Issue 48, pB3 

    Focuses on the impact of federal fund rates on mortgage rates in the U.S. Purpose of managing the federal funds rate; Factors that influenced mortgage rates; Treasury bonds that are used as index to rate mortgages; Impact of economic growth on interest rates.

  • Key Economic Indicators and Interest Rates.  // Mortgage Banking;Jul2014, Vol. 74 Issue 10, p86 

    A chart is presented that lists several economic indicators and interest rates in the U.S. as May 2014 including mortgage interest rate, federal fund rates and treasury securities.

  • AND FURTHERMORE.  // Bulletin with Newsweek;8/3/2004, Vol. 122 Issue 6432, p55 

    Despite robust consumer confidence in most economies, including Australia, financial markets are looking very wan around edges. Every major market index has fallen since the U.S. Federal Reserve moved its short-term rate by 25 basis points in June. The reason is that financial markets are...

  • Rates Seen Continuing Upward -- at Least for the Time Being. Sinnock, Bonnie // National Mortgage News;9/26/2005, Vol. 29 Issue 52, p5 

    Reports on the move of the Federal Open Market Committee to raise its target for the federal funds rate in the U.S. Projected impact of Hurricane Katrina on funds rate; Implications of the resiliency of the housing sector; Increase in mortgage rates as a good sign to the economy.

  • Greenspan: Fed Can Be Patient on Rates. Newman, Emily // Bond Buyer;2/12/2004, Vol. 347 Issue 31820, p2 

    Focuses on the implication of economic recovery for the increase in interest rates in the U.S. Statement of Alan Greenspan, chairman of the Federal Reserve Board; Impact of the overall increase in productivity on the inflation; Existence of some risks to economic expansion.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics