Vital Statistics:
Stocks are lower this morning as oil continues to rise on Middle East tensions. Bonds and MBS are down.
Initial Jobless Claims came in at 225k last week, indicating the job market remains in decent shape.
Companies announced 72,821 job cuts in September, according to the Challenger, Gray and Christmas Job Cut Report. This is a 53% increase compared to a year ago. For the first 9 months of the year, companies announced 609,242 job cuts, which was up about 1% compared to last year.
“We’re at an inflection point now, where the labor market could stall or tighten. It will take a few months for the drop in interest rates to impact employer costs, as well as consumer savings accounts. Consumer spending is projected to increase, which may lead to more demand for workers in consumer-facing sectors.
“Layoff announcements have risen over last year, and job openings are flat. Seasonal employers seem optimistic about the holiday shopping season. That said, many of those who found themselves laid off this year from high-wage, high-skill roles, will not likely fill seasonal positions,” said Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc.
Is your company’s financial toolbox ready to embrace production growth in a reduced-rate environment?
The moment the mortgage industry has been waiting for is here: Last month, the Federal Reserve cut the benchmark federal funds rate by half a percentage point and left the door open to future large cuts. When the logjam of accumulated mortgage appetite breaks free, IMBs need to be ready.
“IMBs have flexibility in how they manage their cash, and those choices can have a significant impact on their success,” says Chris Martin, Director of Treasury Management Sales with Western Alliance Bank’s Specialized Mortgage Services Group. “Having a tailored set of treasury management solutions and automations can help you maintain back-office operational efficiencies so you can focus on loan originations, which drive your business.”
When it comes to staying competitive, your bank is key to your success, and not just any bank will do. You’ll want a bank that listens to your needs, understands how you want to grow, and has the tools to help you achieve those goals. That’s why Western Alliance Bank is the chosen partner for many successful mortgage bankers. It has a proven 15-year legacy of strong customer relationships and white-glove service, with bankers who’ve focused on the mortgage banking sector for years. Customers can select traditional warehouse lending, correspondent lending solutions, deposit accounts and cash management technologies to help achieve their business goals, backed by modern, purpose-built infrastructure and advanced data and analytics capabilities.
To learn more, explore this article from Western Alliance Bank.It offers a comprehensive overview of the types of products and services that can help you maximize your success in the evolving mortgage industry landscape. Or reach out to the Western Alliance team to discuss how they can enhance your business’s growth and efficiency. Western Alliance Bank, Member FDIC.
Richmond Fed President Tom Barkin said that the half point cut last month was a signal that Fed policy was out of sync with the economy: “Why did the FOMC reduce rates so significantly if we are not seeing a troubled economy or weak labor market? I see our September decision as a recalibration to a somewhat less restrictive stance. After over a year at a 5.3 percent fed funds rate, headline inflation had come down closer to target while unemployment was near its natural rate. The number that now seemed out of sync was the fed funds rate, which no longer needed to be as restrictive given the progress that’s been made. Going forward, the median member of the FOMC forecasted another 50 basis points in cuts this year, assuming the data come in as expected. This dial back in restraint just takes a little bit of the edge off.”
Barkin was not ready to declare victory on the inflation fight however.
