Cowen's Corner-Mortgage Market Update: What Do Turtles & Rates Have in Common?

June 30, 2025
So much I could lead with this week. Opal rolled in more crap, and this time it was on my watch. Wilson found more than 10 turtles on our hike in the woods yesterday. Young Cowen had his first action of the summer last night, but the highlight was that more than 10 players and coaches got tossed from the game. It was more like a hockey game than a baseball game.
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That said, I wanted to share a great experience I had yesterday in case you get the opportunity to do this. I was invited to participate in a mock trial at the county courthouse recently. Twenty-four rising seniors participate in a “Law Camp” and present and defend a case in front of a real judge and jury. It was an incredible experience. The kids were fantastic, and if these young people are our rising lawyers, our legal system is in good hands.

Pack the ’Pack Kicks Off

Before I touch on rates, a quick note that our Pack the ’Pack annual campaign begins on July 1. Our BCT Cares Foundation launched this initiative in 2019 to help support food-insecure children in our core markets and communities. Last year, we raised $90,000, so we’re setting the bar higher this year at $100,000. We’re very proud of this initiative, and we appreciate the support we receive from our clients and centers of influence. Look for more information next week, but I wanted you to be aware this is coming.

The First Rule of Rate Club…

From a market perspective, let me first say, “The first rule of rate club is we don’t talk about rate club” (Brad Pitt reference from the movie Fight Club). So, at the risk of jinxing ourselves, the mortgage market had another decent week, with most programs improving by an eighth to a quarter percent.

As noted last week, the Fed chose not to cut short-term rates a little over a week ago, and discussions remained focused on inflation, tariffs, the economy, and how these all interact. This week, several Fed officials, including Chairman Powell, spoke further on these topics. Many were more “dovish” in their commentary, with the consensus being that tariffs have not yet impacted inflation. If this trend continues in the near term, we could see short-term rates come down.

As discussed before, short-term rates don’t directly impact mortgage rates, but these market-friendly comments are starting to help with long-term rates now. More to come as additional economic data is released in the coming weeks.

Final Thought

Enjoy a great week, and as always, if we can assist in any way, please don’t hesitate to call.

-Steve-

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About the Company

Founded in 1871, BCT - Bank of Charles Town, also known as The Community's Bank, is a wholly owned subsidiary of Potomac Bancshares, Inc. (OTC:PTBS). With approximately $896 million in assets as of March 31, 2025, the Company conducts operations through its main office, an additional eight branch offices, and two loan production offices.  BCT’s offices are located in Jefferson and Berkeley Counties (WV), Washington County (MD), and Loudoun and Stafford Counties (VA).   The Bank offers commercial lines and term loans, residential and commercial construction loans, commercial real estate loans, agricultural loans, and government contractor loans.  The Bank is also a Small Business Administration (SBA) Preferred Lender.  The Residential Lending division offers secondary market and portfolio mortgage loans, one-time close construction to perm loans, as well as home equity loans and lines of credit.  For over 70 years, BCT Wealth Advisors has provided caring and personalized trust services, growing into a premier financial management, investment strategies, and estate services provider.  The Bank also provides convenient online and mobile banking for individuals, businesses, and local governments plus free access to over 55,000 ATMs through the Allpoint® network plus another approximately 675 free access ATMs through another partnership.  BCT was voted WINNER in the LoudounNow 2024 Loudoun’s Favorite readers’ poll in four categories:  Bank, Mortgage Company, Banker, and Financial Planner.  BCT was voted a “Best of the Best” winner in the 2024 Martinsburg Journal-News Readers’ Choice Awards in three categories:  Bank, Loan Services, and Financial Planning. In 2023, American Banker selected BCT as a “Top 200 Community Bank,” an annual listing of the best performing banks in the United States with assets under $2 billion.  Since 2019, the Bank has been named a “Best Bank To Work For” by American Banker five times.

The Company's shares are quoted on the OTC Pink Sheet marketplace under the symbol "PTBS."  Individuals may purchase shares under the symbol “PTBS” by contacting Shane Bell, EVP and CFO, at [email protected], or through one’s personal broker.  For more information about Potomac Bancshares, Inc., and the Bank, please visit our website at www.mybct.bank.