A mixed performance for home equity rates this week, holding near their lowest levels in about three years. The $30,000 home equity line of credit rose one basis point to 7.32%, according to Bankrate’s national survey of lenders. Meanwhile, the five-year $30,000 home equity loan fell two basis points to 7.87%. With home equity borrowing costs still relatively affordable, the decision to borrow against your home’s value depends on a homeowner’s individual situation, says Tom Hutchens, president of Angel O ...

Core Viewpoint - Annaly Capital Management's performance is closely linked to mortgage rates and Federal Reserve policies, with recent trends indicating lower mortgage rates which may enhance housing affordability and support growth in home purchases and refinancing activities [1][2]. Mortgage Rates and Federal Reserve Policy - Mortgage rates have decreased to 6.09% as of February 12, 2026, down from 6.11% the previous week and significantly lower than 6.87% a year ago [1]. - The Federal Reserve has maintained its benchmark federal funds target range at 3.50-3.75% and is expected to implement two 25-basis-point rate cuts later in 2026, which will reduce funding costs for mortgage REITs [3]. Financial Performance - Annaly's net interest income (NII) rose to $1.14 billion in 2025 from $247.8 million the previous year, reflecting improved earnings due to lower funding pressure [3]. - The Zacks Consensus Estimate for Annaly's 2026 sales indicates a year-over-year growth of 74%, with projected sales of $1.98 billion [16]. Portfolio Diversification - Annaly operates a diversified investment platform that includes Agency mortgage-backed securities (MBS), residential credit, and mortgage servicing rights (MSR), which aids in balancing income generation and risk management [5]. - As of December 31, 2025, Annaly's investment portfolio totaled $104.7 billion, with $92.9 billion in highly liquid Agency MBS, primarily rated 'AAA' [6]. Strategic Initiatives - The company is expanding its MSR platform through a long-term agreement with PennyMac Financial Services, enhancing its servicing capabilities and operational efficiency [7]. - Annaly has exited its commercial real estate and Middle Market Lending businesses to focus on core housing finance operations, allowing for more concentrated capital deployment [8]. Liquidity and Capital Distribution - Annaly maintains a strong liquidity position with $9.4 billion in total assets available for financing, including $6.1 billion in cash and unencumbered Agency MBS [10]. - The company has a current dividend yield of 12.14%, having increased its quarterly cash dividend by 7.7% to 70 cents per share in March 2025 [12]. Market Performance - Annaly's shares have increased by 11.8% over the past six months, outperforming the industry average of 5.7% [20]. - The stock is currently trading at a forward 12-month price-to-tangible book (P/TB) multiple of 1.12X, which is higher than the industry average of 1.05X [23].

The January jobs report came in very very strong. But the question is, is this the start of a trend or was this a one-mon aberration. So what we saw is that job growth ticked up 130,000 jobs in January, which was really, really a good month.Expectations had been far lower than that. Somewhere in the neighborhood of 55 to 60,000. This was the best single month of job growth that we've seen since 2024.Part of the reason this jobs report was sort of surprising was because 2025 was such a dismal year. And there ...

Core Insights - Home equity rates have seen slight increases, with the $30,000 home equity line of credit rising to 7.32% and the five-year home equity loan increasing to 7.92% [1][2] - Despite the recent rise, home equity rates remain near three-year lows, making them attractive for homeowners, particularly those looking to consolidate debt [2][4] - The primary drivers of home equity rates are Federal Reserve policy and long-term inflation expectations, with forecasts indicating potential interest rate cuts in the future [3][4] Current Home Equity Rates - The current average rates for home equity products are as follows: HELOC at 7.32%, five-year home equity loan at 7.92%, ten-year home equity loan at 8.09%, and fifteen-year home equity loan at 8.09% [2][5] - Historical comparisons show that HELOC rates have decreased from 8.29% one year ago, while five-year home equity loans have dropped from 8.41% [2] Comparison with Other Credit Types - Home equity rates are significantly lower than rates for unsecured credit types, with credit cards averaging 19.60% and personal loans at 12.16% [5] - The use of home as collateral for HELOCs and home equity loans results in lower interest rates compared to unsecured loans [4][5] Market Context - The Federal Reserve's current stance on interest rates is cautious, with a focus on monitoring inflation and the job market, which influences home equity rates [3][4] - The job market appears to be stabilizing, and inflation is moderating, contributing to a balanced risk environment for future rate decisions [4]

Core Viewpoint - Mortgage rates have increased following the Federal Open Market Committee's decision to maintain rates, with expectations for future rate changes remaining stable [1][8]. Mortgage Rate Trends - The 30-year fixed-rate mortgage rose to 6.11% as of February 5, which is 78 basis points lower than the same week last year [2]. - The 15-year fixed-rate mortgage increased to 5.5%, up from 5.49% the previous week, while the average for this week in 2024 was 6.05% [2]. - A significant rise in rates was noted by other trackers, with the 30-year FRM reported at 6.34%, which is 35 basis points higher than the previous week [7]. Economic Indicators - The 10-year Treasury yield, a benchmark for mortgage pricing, was stable around 4.27% during the first three trading days of February, slightly lower at 4.214% later in the week [4][5]. - Job creation was reported at 22,000 for the previous month, significantly below expectations, which may influence future Fed rate cuts [12][13]. Market Sentiment - Homebuyer sentiment indicates that 94% of potential buyers would alter their plans if mortgage rates do not drop below 6% this year, with two-thirds expecting rates under that threshold [8][9]. - The bond market sentiment is considered a critical factor influencing mortgage rates, potentially more so than Fed announcements [10]. Housing Market Dynamics - The combination of improved affordability and home availability is seen as a positive sign for the upcoming spring sales season [4]. - Homeowners are adjusting to slower demand and lower sale prices compared to the pandemic period, with buyers becoming more selective [12].

Core Insights - Home equity borrowing costs have decreased significantly, with the $30,000 home equity line of credit dropping to 7.31%, a reduction of 13 basis points, and the five-year home equity loan decreasing to 7.90%, down two basis points [1][2]. Group 1: Current Rates - The current average rates for home equity products are as follows: HELOC at 7.31%, five-year home equity loan at 7.90%, ten-year home equity loan at 8.08%, and fifteen-year home equity loan at 8.07% [2][4]. - Compared to four weeks ago, HELOC rates have decreased from 8.22% to 7.31%, and the five-year home equity loan has slightly decreased from 7.97% to 7.90% [2][4]. Group 2: Influencing Factors - Home equity rates are primarily influenced by Federal Reserve policy and long-term inflation expectations, with the Fed maintaining interest rates at its January meeting while monitoring inflation and the job market [3][4]. - Forecasts suggest that the Fed may implement three quarter-point cuts in 2026, indicating a potential easing of monetary policy [3]. Group 3: Comparison with Other Credit Types - Home equity products are generally less expensive than unsecured credit options, with HELOCs at 7.31% and home equity loans at 7.90%, compared to credit cards at 19.61% and personal loans at 12.27% [5]. - The rates for home equity loans are more favorable due to the collateralization of the home, which reduces the risk for lenders [4][5]. Group 4: Borrower Considerations - Borrowers are advised to consider their financial situation and goals when deciding between a HELOC and a home equity loan, and to consult with a loan officer for tailored advice [2][6]. - Key questions for borrowers include the amount of money needed, the frequency of withdrawals, and comfort with potential interest rate fluctuations [6].

Market Overview - Bitcoin fell below $73,000 on February 4, 2026, marking a significant decline from its all-time high of over $125,500 in October 2025, representing a roughly 40% drop in four months [2][7] - Large holders sold more than 50,000 BTC in the past two weeks, contributing to persistent selling pressure despite retail investors attempting to buy the dip [2] Mining Sector Impact - Bitcoin mining companies experienced severe losses, with stocks like Marathon Digital Holdings trading around $8.09 and Riot Platforms at approximately $13.52, both reflecting drops of over 10% in a single session [3] - Mining profitability has reached a 14-month low due to declining Bitcoin prices and increased network difficulty, leading to a decrease in the hashrate on the Bitcoin network [4][7] Broader Crypto Market Effects - Other companies exposed to cryptocurrency, such as Strategy (formerly MicroStrategy), also faced challenges, with MSTR stock hitting a 52-week low and unrealized gains on its Bitcoin treasury falling below 10% [5] - The decline in Bitcoin prices coincided with a broader selloff in tech stocks, particularly affecting software companies, which has historically correlated with Bitcoin's performance [6] Future Outlook - The ongoing pressure on Bitcoin prices and mining profits suggests that the mining sector will continue to face challenges until there is an adjustment in network difficulty or stabilization of prices above profitable levels for operators [7]

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