3 Bank Stocks to Buy in July
Yahoo Finance ·
Nobody -- and I mean nobody -- likes high interest rates. The average rate for a 30-year fixed mortgage is 6.55%, which is a huge difference from just five years ago, when rates were under 3%. And they don't appear to be headed down anytime soon. But for investors, you can find a silver lining in bank stocks . That's because, while interest rates cause some pain for consumers, they can provide extra profits to banks and other lending institutions. Banks make a portion of their money from the spread between what they pay depositors and what they earn by lending that money to consumers and businesses. When interest rates are up, as they are now, banks can charge more for mortgages, credit cards, vehicle loans, and commercial loans. That potentially means more net income for the bank and greater profits when banks report quarterly earnings. Three interesting bank stocks to consider in July's high-interest rate environment are Bank of America ( BAC +1.32% ) , PNC Financial Services ( PNC +1.14% ) , and SoFi Technologies ( SOFI +0.33% ) .
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A high interest rate trend continues, with the 30-year fixed mortgage rate recording 6.55%. While this high-rate environment is a burden for consumers, it presents an opportunity for lenders such as banks to generate additional revenue through widened net interest margins. Investors should pay attention to bank stocks whose net income will increase due to rising mortgage, credit card, and commercial loan rates.
상승 영향
- Banks — In a high interest rate environment where 30-year fixed mortgage rates reach 6.55%, net interest margins are widening, which is expected to increase net income for financial stocks such as BAC, PNC, and SOFI.
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