Interest rates

Core PCE held steady as service costs rose, but the overall report maintains the central bank's flexibility ahead of next week's Federal Open Market Committee meeting.

The danger for the central bankers is that "they go too fast or too slow and that risk is higher now than it was six months ago," BofA Chief Executive Brian Moynihan said.

September's news roundup for the mortgage industry includes the impact of the Federal Reserve's rate cut on mortgage appetites, lenders continuing to launch and settle lawsuits and more.

Marc Rowan said he doesn't see a reason for the Federal Reserve to keep cutting interest rates to stimulate the U.S. economy.

Mortgage applications were up and rates were down in the wake of the Federal Reserve's interest rate cut, but experts wonder will that be enough to counteract higher housing prices.

The regional bank has already seen a large reduction in "criticized" loans, and it expects that trend to pick up as lower borrowing costs alleviate the pain in the commercial real estate sector.

After hikes pinched profits across the industry, a move in the opposite direction could be the start of a more promising trend. But bankers caution that the immediate effects of a September rate cut figure to be small.

In August's roundup of top mortgage news: The Consumer Financial Protection Bureau sides with plaintiffs against Mr. Cooper in alleged "junk fee" lawsuit, updates to 203(k) and more.

While lower rates have piqued borrower interest, most are waiting for some key events to pass before buying or refinancing, originators said.

Lower interest rates could bolster loan demand, credit quality and securities portfolios. But they could also curb lending profitability faster than they ease deposit costs, crimping net interest margins and eating into near-term profits.