SALEM FIVE
MUTUAL INTEREST

Information to keep you moving forward.

October 2024

Digital Banking

eStatements: convenient, secure and green

Young woman outside holding mobile phone
We encourage all customers to opt for electronic statements vs. paper. Accessible anytime through online banking, there’s no more waiting for mail delivery.

With online banking’s robust security measures, it’s stronger protection for your sensitive account information. Seven years of account history are easily accessible. And, eStatements has the added benefit of being better for the environment by saving paper. When your statement is ready, you’ll receive an email letting you know it’s available.

 

Economic Insight

Economic Outlook for Fall 2024

Solid economic growth in the first part of the year, combined with decreasing inflation, led to strong returns thus far. Despite this, there is some volatility expected with a slower moving economy in the coming months. And a slower moving economy will be more sensitive to shocks and could be more susceptible to a recessionary environment. Sean Tesoro, President of Salem Five Wealth Management & Trust, gives an overview of what to expect this fall and how this affects finances and investments.


Sean Tesoro, Investment Services

Sean Tesoro, President
Salem Five Wealth Management and Trust

Contact Salem Five Financial

 

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Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Salem Five Bank and Salem Five Investment Services are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using the name Salem Five Investment Services, and may also be employees of Salem Five Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Salem
Five Bank or Salem Five Investment Services.

Securities and insurance offered through LPL or its affiliates are:

  • Not Insured by FDIC or Any Other Government Agency
  • Not Bank Guaranteed
  • Not Bank Deposits or Obligations
  • May Lose Value

Mortgage Insight

How the Economy is Affecting the Mortgage Industry

The economy, and as a result, the mortgage industry is experiencing significant changes. The Federal Reserve recently approved a half point rate cut in September, which was the first one since 2020. And, economic conditions may continue to support future rate cuts, as the data the Federal Reserve consumes to set their policy centers around their primary mission to keep inflation at a controlled pace. The target is an annual 2.0% inflation rate. Reports such as manufacturing activity, unemployment, and monthly inflation readings are important to their policy stance and they will be watching these indicators closely.

Even prior to the recent rate cut, mortgage rates had already improved, based on the projected cuts. I would anticipate a long, slow ride down for mortgage rates over the coming quarters if inflation looks to continue its cooling trend. In contrast, I believe we will continue to see real estate values increase in New England, as they have done so since 2012, because of basic supply vs. demand dynamics. With most listings receiving multiple offers from potential buyers, it highlights the continued demand that is not being met. Where lower rates will improve affordability for buyers, I expect this supply-constrained market to continue, resulting in an ongoing challenging market for buyers.

Many lenders believe the past two+ years of a much higher rate environment has begun to condition the buying population to a new normal of interest rate environment. I have heard the term “rate realization” being used to describe this. With this new perspective, it will be interesting to see what rate is now considered “low” enough to see a marked uptick in activity. Only time will tell.
As history has revealed, inflation can be stubborn. If we see economic reports that are indicative of a higher rate of inflation affecting the economy, we will likely see mortgage rates quickly and sharply trend higher as a result. I am sure the Fed Board of Governors is sensitive to this, and we would see at least a pause in their series of proposed rate cuts to stem this.

Mortgage seekers should watch the economy and rate fluctuations, but to a degree. There are products that are built for conditions such as this – and have been leveraged in prior economic environments – such as adjustable rate mortgages and some of Salem Five’s proprietary portfolio products. We at Salem Five have been helping New Englanders buy homes for generations. We’ve seen it all.


Brian Mahoney, Salem Five Mortgage

Brian Mahoney, SVP, Director of Sales
Salem Five Mortgage

Contact Salem Five Mortgage

 

Home with beautiful Fall landscaping

Retail News

Building a new Burlington branch!

New Salem Five Burlington branch
We have some exciting news for customers of our Burlington location. Over the coming months, we will be completely re-building the branch. The new location will be bright, modern and more energy efficient. It will also be roomier, providing a more comfortable space to discuss financial solutions with customers. And we will still offer a convenient drive-through for those preferring to bank on the go. 
 
As this is a major construction project, the branch located at 36 Cambridge Street will be closed. However, a temporary branch is now open at 28 Cambridge Street to serve the needs of the Burlington market while the main building is under construction. This is a mere 500 yards from the current location. These are exciting changes for the Burlington market and Salem Five.