Mainebiz

V O L . X X V I I I N O. X X V I I I N OV E M B E R 2 8 , 2 0 2 2 18 B A N K I N G / F I N A N C E / I N S U R A N C E F O C U S at said, during the pandemic years, we never saw that cycle. It was just go-go- go. All of 2021 was steady until November, when we started to see a decline. MB: Was that decline due to rising interest rates? KN: A couple of things were happen- ing. e residential inventory was get- ting tighter, in Maine and nationally. And people were also saying, 'Well, maybe I won't refinance' because of the rate increase. So our refinancing loans were going down. Maine still had good purchase volume, but people were paying cash instead of borrowing. at wasn't because of high interest rates; it was because of heavy competi- tion — people had a lot of excess cash and they were buying their homes that way. In the last few months, rates have started to steadily climb. Second-home buyers were the first to see the interest rate climb, because Freddie Mac and Fannie Mae were focusing on people buying primary residences. MB: What does that mean for po- tential borrowers overall? KN: Because of low inventory and higher rates, it is more difficult for first-time » C O N T I N U E D F RO M P R E V I O U S PA G E Maine's credit unions are here for you. mainecreditunions.org Our focus is your success. Maine credit unions know local businesses are the backbone of Maine's economy. That's why our focus is on you and our communities' success At a Maine credit union, enjoy: • Checking & savings accounts • Better loan rates & lower fees • Digital banking & remote deposit • Personalized financial relationships. Open an account at a credit union today. P H O T O / C O U R T E S Y O F M A C H I A S S AV I N G S B A N K Kim Nason, senior vice president of retail banking at Machias Savings Bank, says that when mortgage volume is cut in half, fee income is cut in half as well.

• Cover