Market Trends - More than half of homes in the United States have fallen in price over the last year, contributing to improved affordability [1] - Foreclosure activity is returning to normal levels after years of low volumes due to COVID-era forbearance programs, with foreclosure starts hitting 103,000 in Q3, a 23% increase year-over-year [1] - FHA-backed loans account for approximately 38% of all active foreclosures nationwide, with a 44-basis point rise in non-current rates [1] Mortgage Industry Developments - Independent mortgage banks (IMBs) are facing increased loan production expenses, which rose to 326 basis points in Q3 2025, with per-loan costs at $11,109 [4] - The Mortgage Bankers Association (MBA) is advocating for changes in the credit reporting system to reduce costs for consumers, highlighting the need for more competition in the market [5][6] - The median age of first-time homebuyers has risen to 40 years, with their share falling to 21%, indicating a significant shift in the demographics of homebuyers [7] Economic Indicators - The economic calendar includes various reports such as retail sales and producer prices, which are crucial for understanding market conditions [13] - Treasury trading is influenced more by equity market stability than incoming data, with the 10-year Treasury facing resistance near 4.00% [11] Regulatory Environment - FHFA Director Bill Pulte is under federal grand jury scrutiny as Fannie Mae and Freddie Mac propose rule changes that would require independent mortgage banks to hold more capital, potentially increasing mortgage costs [12]