>> Mortgage rates slipped to the lowest level of 2025. This week, many Americans, though, still feel priced out of home ownership. Joining us now, housing analyst Ivy Zelman.Zelman Executive Vice President. I've been doing this a long time, Ivy. How long at your own company.I remember you were you were toiling with some of the big Wall Street firms for a while and then set out on your own. Right. What year was that.>> Well, good morning, Joe. Thanks for having me. We started in October of oh seven. >> Of ze ...

Mortgage Market Trends - US mortgage rates declined for the fourth consecutive week [1] - Mortgage rates reached the lowest level since October [1]

Meanwhile, mortgage rates are on the move. Diana Ol has the details there. Diana.>> Well, John, rates continue to fall. The average on the 30-year fix dropped a little more today to 6.53%. That's the lowest since October.It had been holding in a very narrow range over the past several months, but appears to be pushing lower for now. Anyway, that is driving refinance demand. Those applications jumped 23% last week compared with the previous week.According to the Mortgage Bankers Association, that's the stron ...

US mortgage rates dropped last week by the most since February, enticing homeowners to step up refinancing https://t.co/6Oo6OOih5X ...

From @WSJopinion: The Federal Open Market Committee is worried about inflation, but the economy faces two more-pressing problems: weak hiring and high mortgage rates, writes Marc Sumerlin https://t.co/PV0VlbwsU0 ...

Bond Market Overview - Investors should always consider bonds for income, capital preservation, and diversification, regardless of the interest rate environment [5][6][7] - The yield curve, typically referring to Treasury bonds, reflects inflation and growth expectations, and its shape signals future economic conditions [8][9] - An inverted yield curve, where long-term rates are lower than short-term rates, often anticipates Federal Reserve rate cuts due to declining inflation or a weakening labor market [13][14] Investment Strategies & Considerations - Reinvestment risk arises when short-term investments mature and proceeds must be reinvested at lower rates, potentially decreasing income [15][16][17] - Mortgage rates are based on expectations for the next 10-30 years, not solely on current Federal Reserve actions [20] - Investment-grade corporate bonds (rated BBB or above) offer low to moderate risk with average yields around 45%-5%, making them attractive compared to 2010-2022 levels [25][26][28] - High-yield or junk bonds (rated BB or below) are riskier due to higher debt and volatile cash flows, and the current compensation for this risk is relatively low [26][27] Federal Reserve & Monetary Policy - The 1951 Fed Treasury Accord established Federal Reserve independence, separating monetary policy from government spending [2][3][38][39][40] - Fed independence is crucial to avoid using monetary policy for short-term political gains, which could lead to higher inflation, long-term interest rates, and a weaker dollar [41][43] - Quantitative easing (QE), where the Fed buys long-term securities, and yield curve control, where the Fed targets longer-term rates, could undermine Fed independence if used to lower government interest expenses rather than address emergencies [47][48][49][50] Mortgage Rate Strategies - Adjustable-rate mortgages (ARMs) may be favored in a Fed rate-cutting environment, as they are more closely tied to short-term interest rates [55][57] - Potential homebuyers should temper expectations, as mortgage rates may not fall as much as the Fed funds rate, and a return to 3%-4% mortgage rates is unlikely [59][60][61]

30-year mortgage rates fell mid-week to their lowest level since April. Here’s how much you could save on a monthly payment—and why it could be a good time to buy. https://t.co/NkeC1jr1P6 ...

Housing Market Stalemate - Unaffordability and uncertainty have combined to slow down US home sales [6] - The market is in a stalemate, and the report explores what could get people moving again [1][6] New Construction's Role - New construction is playing a much bigger role due to the scarcity of existing homes for sale [1] - Many people are turning to new construction [1] - Single-family homes tend to be the most expensive new construction option [2] - New construction of dense housing, like missing middle housing, can make entry more viable for first-time buyers [3] Solutions and Challenges - Some cities and states are loosening zoning restrictions to encourage construction of missing middle housing [3] - The Senate Banking Committee advanced legislation to spur more housing development and make it easier to access loans [4] - High interest rates make it expensive to build new housing [5] - Lower mortgage rates could help development [5]

Interest Rates and Housing Affordability - Lowering interest rates by the Federal Reserve (Fed) does not inherently make housing more affordable; in some cases, it can make it less affordable [2][3] - Mortgage rates are more dependent on the long end of the yield curve (e.g., 10-year and 30-year yields) and typically trade 1.5% to 2% higher due to associated risks [6] - The Fed is projected to lower interest rates in September, but this may change based on labor market reports and inflation readings [7] - If the Fed cuts rates preemptively to avoid a recession, it can reignite "animal spirits," causing markets to rise and the bond market to reprice inflation risk, potentially increasing mortgage rates [12][13][14] - Cutting rates prematurely may worsen the real estate market [34] Asset Prices and Housing Market Improvement - Lower asset prices are needed to achieve a durable improvement in housing affordability [22][23][25] - Lower asset prices lead to a lower long end of the yield curve, which in turn leads to lower mortgage rates [39] - The market may take 6 to 12 months to accept the reality that lower asset prices are necessary to improve the real estate market [23] Market Dynamics and Future Outlook - The housing market is currently seeing a drop in new privately-owned housing units under construction due to unaffordability [20][21] - The author anticipates that after a second round of rate cuts, potentially starting in September, the long end of the yield curve will likely increase, leading to higher mortgage rates [29][30] - It may take a couple of years for the market to accept that lower asset prices are needed to improve the real estate market [33]

Mortgage rates in the US fell for the third week in a row, hitting the lowest level since April https://t.co/DYdX6ZQtwv ...