Loans investing with inflation data moderating

With inflation data moderating, the outlook for loans investing remains favorable. Market strategists predict continued inflows into loan-focused funds, boosting performance of bank and finance-sector stocks through late Nearly one in three federal borrowers in repayment—29%—are more than 90 days past due, according to data analyzed by TransUnion. Among those who have missed payments, almost half cited affordability as the main reason, while one-third admitted to prioritizing other bills instead. FHA, VA, and USDA loans may be slowed or paused due to furloughed staff. Closings could be postponed or canceled, especially for buyers using these programs. Even conventional loans might face verification delays. Corporate earnings guidance in the financial sector points to stronger loan origination in H2 2024, which could lift revenues for major lenders. Investors eyeing bank stocks see loans investing as a catalyst for improved net interest margins.