Core Insights - A government shutdown has occurred due to partisan budget negotiations, impacting bond investor activity and potentially lowering mortgage rates while challenging the housing market [1] - The 10-year yield, which correlates with common mortgage types, decreased to 4.1% from 4.15%, influenced by a slow private payroll report [2] - Experts warn that prolonged shutdowns could raise concerns about U.S. debt credit quality, leading to higher bond yields and mortgage rates [3] Government Sponsored Enterprises (GSEs) - Fannie Mae and Freddie Mac have implemented workarounds for borrower data verifications, allowing for flexibility in the mortgage process during the shutdown [3][4] - These GSEs are also permitting servicers to extend forbearance to borrowers affected by the shutdown [4] Federal Housing Administration (FHA) - The FHA's Office of Single Family Housing announced limited operational capacity for some mortgage insurance programs during the shutdown [5] - The FHA's operational decisions are guided by legal frameworks established by the U.S. Constitution and other statutory provisions [6] Flood Insurance and Lending - The American Land Title Association highlighted the lack of authorization for federal flood insurance, which affects millions of Americans and jeopardizes home sales [6] - Regulatory agencies have re-released guidance allowing lenders to continue making loans subject to federal flood insurance statutes, even when the National Flood Insurance Program is unavailable [6][7] - Lenders are advised to evaluate safety and soundness and manage legal risks during the shutdown period [7]

Meanwhile, I want to get over to Diana Ol. She's got the weekly mortgage applications report. Good morning to you. >> Good morning, Andrea.Yeah, the refi boom we saw just a few weeks ago just went bust thanks to higher mortgage rates. The average rate on the 30-year fix for conforming loans increased last week to 6.46% from 6.34%. That's for loans with 20% down according to the Mortgage Bankers Association.Now, as a result, applications to refinance a home loan dropped 21% last week from the previous week. ...

US mortgage rates rose for the first time in five weeks, thwarting a budding recovery in housing demand and abruptly halting a recent flurry of home refinancing https://t.co/AIfjhAQOCc ...

Mortgage Rates Overview - Current 30-year mortgage rate is 6.36%, down 11 basis points, while the 15-year fixed interest rate rose three basis points to 5.69% [1][14] - Refinance rates are generally higher than purchase rates, with the current 30-year refinance rate at 6.56% [2][14] Mortgage Rate Comparisons - 30-year fixed mortgage rates are currently at 6.36%, while 15-year fixed rates are at 5.69% [4] - For a $400,000 mortgage, the monthly payment for a 30-year term at 6.36% is approximately $1,993, resulting in $397,568 in interest over the term. In contrast, a 15-year mortgage at 5.69% has a monthly payment of about $3,309, with total interest of $195,585 [7] Adjustable vs. Fixed-Rate Mortgages - Fixed-rate mortgages lock in the interest rate from the start, while adjustable-rate mortgages (ARMs) have a fixed rate for an initial period before adjusting based on market conditions [9][10] - ARMs may start with lower rates than fixed-rate mortgages, but they carry the risk of increasing rates after the initial period [11] Federal Reserve Influence - The Federal Reserve has made several rate cuts in 2024, with expectations of more cuts before the end of the year, which may influence mortgage rates [12][13] - Economists do not anticipate significant drops in mortgage rates before the end of 2025, despite potential rate cuts from the Fed [15]

Pending home sales in August rose 4% from July and were 3.8% higher year-over-year. That is a strong beat. The street was looking for flat.This count is based on signed contracts. So, it's a forward-looking indicator of closed sales in September and October. Now, mortgage rates in August when people were out signing these deals were slightly lower than they were in July, but not as low as they are right now.Last week, we saw a huge jump in sales of newly built homes, which are also measured by signed contra ...

Pending sales of US existing homes rose in August to the highest level in five months, as falling mortgage rates gave a much-needed lift to the sluggish housing market https://t.co/IuzE7UKIiU ...

Core Insights - Mortgage rates have increased since the Federal Reserve meeting on September 17, with the average 30-year fixed mortgage rate now at 6.47%, up by 34 basis points since September 16 [1][16][18] - Economists predict that the mid-6% range for mortgage rates could be the new normal for the foreseeable future, with no significant drops expected before the end of the year [2][18] Current Mortgage Rates - The current average mortgage rates are as follows: - 30-year fixed: 6.47% - 20-year fixed: 6.10% - 15-year fixed: 5.66% - 5/1 ARM: 6.66% - 7/1 ARM: 6.88% - 30-year VA: 5.89% - 15-year VA: 5.59% - 5/1 VA: 5.32% [3][16] Refinance Rates - Today's average refinance rates are: - 30-year fixed: 6.55% - 20-year fixed: 6.25% - 15-year fixed: 5.83% - 5/1 ARM: 6.91% - 7/1 ARM: 7.54% - 30-year VA: 6.16% - 15-year VA: 6.05% - 5/1 VA: 5.82% [4] Monthly Payment Examples - For a $300,000 mortgage at a 30-year term with a 6.47% rate, the monthly payment would be approximately $1,890, totaling $380,504 in interest over the loan's life [7] - For the same mortgage amount at a 15-year term with a 5.66% rate, the monthly payment would increase to $2,477, with total interest paid being $145,823 [9] Adjustable-Rate Mortgages (ARMs) - ARMs typically start with lower rates than fixed-rate mortgages but can increase after the initial fixed period [10][11] - The 5/1 ARM, for example, has a fixed rate for the first five years before adjusting annually [10] Strategies for Lower Rates - Lenders offer lower rates to borrowers with higher down payments, excellent credit scores, and low debt-to-income ratios [13] - Options to lower rates include paying for discount points at closing or considering temporary interest rate buydowns [14][15]

Core Insights - Soaring home prices and elevated mortgage rates are significant issues in America, with the recent Federal Reserve rate cut not leading to expected decreases in mortgage rates [1][2] - Long-term borrowing costs are influenced more by concerns about inflation and federal deficits than by Federal Reserve policy [2][3] - The average rate on a 30-year fixed mortgage has increased from below 3% to over 6%, with historical context indicating that higher rates have been common in the past [3] Housing Market Dynamics - The typical U.S. household would need an annual income of approximately $118,530 to afford a median-priced home of $402,500, which is over 50% higher than the current median household income of about $77,700 [4] - Given the current economic conditions, buying smaller homes may become a necessity for many households [4][5]

Core Insights - The Federal Reserve's recent rate cut has not led to a decrease in mortgage rates, contrary to expectations [1][2] - Mortgage rates are influenced more by long-term bond yields, particularly the 10-Year Treasury Note, rather than short-term Fed rate changes [3][4] Economic Factors - Current inflation rates are rising, with the Consumer Price Index (CPI) reaching 2.9% in August 2025, which is above the Fed's target of 2% [5] - Increased inflation leads lenders to demand higher yields due to the perceived risk of future bond devaluation [6] - The U.S. Treasury is issuing record levels of debt to address federal funding gaps, contributing to an oversupply of bonds and driving yields higher [6]

RT Joe Consorti ⚡️ (@JoeConsorti)Housing affordability is at record lows. To get back to 2019 affordability, we would need:– A 38% drop in home prices– A 60% increase in household income– A 415-bps drop in mortgage ratesHow did the housing market get this bad?[Presented by @JoinHorizon_] https://t.co/aRgHqJury7 ...