Correspondent Products, STRATMOR on Borrower Psychology; Lender Tools; DSCR Appraisal Issues in Baltimore “What happened with the DSCR appraisal issue in Baltimore earlier this year?” Good question. Baltimore is not alone: This week we have investors either pricing themselves out of, or ceasing loans from, the Philly market for certain non-owner loans.) The whole Baltimore thing seems to have quieted down, and up until recently the last news coming in October although this week along came, “Baltimore is st ...

Core Points - The Federal Reserve announced a quarter percentage point cut to its benchmark interest rate on September 17, marking the beginning of a potential series of reductions aimed at making borrowing more accessible for consumers [1][4] - Fed Chair Jerome Powell described the cut as a "risk-management cut" in response to growing downside risks to employment, acknowledging the challenges posed by inflation remaining above the Fed's 2% target [2][3] - The Fed's updated statement reflects concerns over a weakening labor market, with job gains slowing and no longer being described as "solid" [3] Interest Rate Projections - The Fed's dot plot indicates a median projection of two more rate cuts by the end of the year, although opinions among officials vary widely [4][5] - Seven participants foresee no additional cuts this year, while others project one or two more cuts, with some suggesting aggressive cuts in the coming months [5] Consumer Impact - Economists suggest that the immediate impact of the quarter percentage point cut on borrowing will be negligible, but more noticeable benefits may emerge as the Fed continues to lower rates [8][9] - Auto loans are expected to become more affordable due to the Fed's rate cut, but the actual rates will also depend on longer-term bond yields and individual credit scores [10][11] - Mortgage rates are influenced more by the 10-year Treasury note than by the Fed's fund rate, and significant rate changes would be needed for a substantial impact on the housing sector [12][13][14] Credit Card and Savings Rates - Credit card rates are anticipated to drop slightly, but the overall effect on borrowers will be minimal due to already high average rates [15][16] - Savers will likely see lower returns on savings accounts and certificates of deposit as the Fed reduces interest rates [17]