Broker partnerships could be key to banks capitalizing on rising mortgage demand

The news: At its September meeting, the Federal Reserve cut interest rates by 0.5 percentage points—its first cut in four years—which may jumpstart demand for certain banking products like mortgages and other consumer loans. Financial institutions (FIs) that want to capitalize on pent-up demand should have a plan in place for broker partnerships. 

What’s the timeline for growing demand? Mutual insurance company Trustage Chief Economist Steve Rick told The Washington Post the rate cut won't immediately impact the housing market. 

• The period of high demand and low housing supply that consumers have endured has helped to distort prices. Fed Chair Jerome Powell said in his press conference that the lagging supply is a “long-term problem outside of the Fed’s control.”