Letter from the President

“Is Your Crystal Ball Cloudy?”

As we look into the future, our crystal ball is never very clear. But we seem to be in more volatile economic times than usual.

We see a nervous and soft stock market; short-term rates that are dropping very rapidly (good for borrowers, not so good for investors), federal deficits are climbing. Our news media is dwelling on bad news, which lessens consumer confidence. If someone tells you, often enough, that you don’t look very good you soon start to believe it!

On the other hand our Ag economy is as strong as it has ever been. Land prices and grain prices are at record levels. Landowners will benefit from higher rents.

Meanwhile residential mortgage rates are very low again with 30-year loans as low as 5 ½ - 5- ¾ %. Buyers are cautious because of the economic news. It’s a buyer’s market in housing with very favorable rates. It is always difficult to make a purchase when things look unsettled, but it may be a great time to purchase a home.

This is a good time to see a MBT banker whether you want to discuss a business or Ag loan, mortgage loan, investments or retirement accounts. You can expect competent advice from your hometown MBT bankers.

Sincerely,
David Kingland
President and C.E.O.