ilmscore | Prediction Details
"the Federal Reserve Bank cut interest rates multiple times but in 2024 we also saw mortgage rates go up what does that mean well if I diagram it out for you here's what's going on you do go to the bank to borrow money for my male followers I drew a mustache which in my native language Punjabi we call a much my female followers I drew a braid which I'm my native language Punjabi we call a good you go to the bank and you want to borrow money this is called your mortgage rate this is the rate that you're paying this is the retail rate that the bank is charging you but the bank is borrowing money at a different rate the bank is borrowing money at What's called the federal funds rate so they can borrow money from other banks at the federal funds rate this is what the Federal Reserve Bank is setting so in 2024 the Federal Reserve Bank lowered the federal funds rate multiple times but over the year in 2024 your mortgage rate went up which means this margin on the cost the banks are paying to buy that money and the way at which banks are selling you that money at your mortgage rate went up so this net interest margin went up which which helped some banks make more money in 2024 take a look in early January 2025 JP Morgan Chase Bank said that they made more profit than ever before in 2024 not just that they also broke a record for how much money a bank has ever made in America in one year in the history of time maybe this net interest margin had something to do with that plus many other Banks also saw huge profits in 2024 which might have something to do partially because of this"
By Minority Mindset | January 21, 2025 | Pending
From video
The 3.5 Most Underrated Investment Opportunities To Profit In 2025 00:06:44 - 00:08:27
Interpreted Prediction
In 2024, despite the Federal Reserve lowering the federal funds rate, mortgage rates increased. This led to an expansion of net interest margins for banks, contributing to record profits for institutions like JP Morgan Chase in 2024.

Prediction Details

Topic
Net Interest Margins

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