News & Insights
As consumer expectations evolve and digital-first experiences become the norm, credit unions must adapt to remain competitive.One of the most impactful innovations reshaping the lending space is the use of faster payments, particularly through the FedNow® Service, to enable instant loan funding.
Recent data show a mixed picture in the mortgage and MBS markets. Overall delinquency rates edged down slightly in Q2 to 3.93%, though they remain above post-pandemic lows.
From the earliest days of non-cash payments, a time lag has been part of the process. Physical payments, like checks, took days to clear. Electronic payments sped up the process, but did not eliminate the time lag. Today, the advent of true instant payment is rewriting the foundation of how payments operate, introducing a host of benefits to consumers, businesses and financial institutions alike.
The monthly Market Overview & Data Report is a comprehensive summary of September's key economic and market metrics that are fundamental to credit union financial management. The report not only summarizes key economic and market data, but also explains how these metrics are relevant to credit unions. It further includes industry peer performance data and assessment, relative value evaluation, and an upcoming economic calendar. It is also an excellent report to include in credit union board and ALCO packets.
Mortgage rates have shown little directional momentum in recent months, and the outlook suggests more of the same. The latest industry research forecasts point to the 30-year fixed mortgage rate staying in the high-6% range through year-end 2025, with only modest room for improvement.
The Dow and S&P 500 both hit new all-time highs on Thursday to potentially round out another month of equity gains. At the same time, the yield curve seems less optimistic about future prospects for the economy, widening to 63 basis points; creating the steepest curve since April.
Catalyst is proud to announce that its Loan Participation Program has officially surpassed $4 billion in total activity, marking a significant milestone in its commitment to empowering credit unions nationwide.
Markets were expecting a hawkish tone from Fed Chair Jerome Powell prior to his speech at the Jackson Hole Symposium. Futures were pricing in a 90% probability for a cut as recently as Monday, falling to about 71% this morning. Then Powell gave markets want they wanted to hear.
What are Credit Union Leaders Saying About Strategic Summit | End of Gvernment Checks and Its Impast on Instant Payments | Q3 Insights & Outlooks now available on-demand | Watch the Navigating FedNow - Federal Reserve Perspectives & Catalyst Solutions webinar | Evaluating the Profitability of Loan Participation Sales
Loan participations (LPs) have become a strategic tool for credit unions, offering flexibility in managing liquidity, funding loan growth and optimizing balance sheets. While LPs serve multiple purposes, profitability remains the ultimate benchmark.