ICE Experience, AI Webinar, LOS, Inside Sales, BBYS, DSCR Products; Is a Cap on Credit Cards Possible? The National Association of Realtors (NAR) reports that the median age of first-time homebuyers has increased significantly, reaching 40 years old, compared to 29 years old in 1981. Not only that, but first-time home buyer share has fallen to a historic low of 21 percent. If you’re a lender, do you have the products in your arsenal to take advantage of these demographic shifts? In addition, do you have th ...

UWM Holdings Corporation (NYSE:UWMC) is one of the cheap stocks to buy for the next 3 years. On January 6, Goldman Sachs lowered the firm’s price target on UWM Holdings to $5 from $6 and kept a Neutral rating on the shares. The firm noted that while regional banks trailed the market by 200 to 300 basis points in 2025 due to macro and credit concerns, a 13% year-end rally provided late momentum. For 2026, Goldman Sachs anticipated a multi-year fundamental recovery driven by steady loan growth, NII momentum, ...

Core Insights - Many homebuyers make the mistake of submitting only one mortgage application, which can lead to significant financial losses [1] - High mortgage rates have persisted since the pandemic, with the average 30-year fixed-rate mortgage remaining above 6% since 2022 [2] - Home prices have dramatically increased since the pandemic, with the average home price rising from $246,326 in early 2020 to $359,241 by November 2025 [3] Mortgage Rate Trends - The average 30-year fixed mortgage rate is projected to drop to 5.9% by the end of 2026, but rates will likely remain high compared to pre-pandemic levels [2][3] - A 2023 Freddie Mac study indicates that the variability in mortgage rates offered to buyers has increased since 2010, with significant dispersion noted in 2022 [5] Home Affordability and Market Conditions - Home affordability has improved recently due to a dip in mortgage rates and better inventory, yet many Americans still face overall cost-of-living challenges [4] - The increase in rate dispersion means consumers with similar profiles may receive a wide range of mortgage rates, highlighting the importance of shopping around for the best deal [6]

Core Viewpoint - National average mortgage rates have decreased, influenced by President Trump's proposed initiatives to enhance affordable housing, with the average 30-year fixed mortgage rate at 5.91% and the 15-year fixed rate at 5.36% [1] Current Mortgage Rates - The current national average mortgage rates are as follows: - 30-year fixed: 5.91% - 20-year fixed: 5.83% - 15-year fixed: 5.36% - 5/1 ARM: 6.17% - 7/1 ARM: 6.36% - 30-year VA: 5.57% - 15-year VA: 5.21% - 5/1 VA: 5.36% [4] Mortgage Refinance Rates - Today's national average mortgage refinance rates are typically higher than purchase rates, although this is not always the case [3] Comparison of Fixed and Adjustable-Rate Mortgages - Fixed-rate mortgages lock in the interest rate for the entire loan term, while adjustable-rate mortgages (ARMs) have a fixed rate for a predetermined period before adjusting based on market conditions [9][10] - ARMs generally start with lower rates than fixed rates, but rates may increase after the initial period [11] Factors Influencing Mortgage Rates - Lenders offer lower mortgage rates to borrowers with higher down payments, excellent credit scores, and low debt-to-income ratios [12] - It is suggested that focusing on personal finances is a more effective strategy for obtaining lower rates than waiting for rates to drop [13] Choosing a Mortgage Lender - To find the best mortgage lender, it is recommended to apply for preapproval with multiple companies within a short time frame to minimize the impact on credit scores [14] - When comparing lenders, the annual percentage rate (APR) should be considered as it reflects the true annual cost of borrowing, including interest rates and fees [15] Future Mortgage Rate Expectations - The Mortgage Bankers Association (MBA) forecasts that the 30-year mortgage rate will remain near 6.4% through 2026, while Fannie Mae predicts rates above 6% for the next year, potentially dipping to 5.9% in Q4 2026 [18]

Market Reaction - Shares in mortgage lenders surged following President Trump's directive for representatives to purchase $200 billion in mortgage bonds, aimed at lowering rates for homebuyers [3][4] - Better Home & Finance increased by over 2%, Opendoor Technologies rose more than 16%, Rocket Companies jumped over 6%, UWM Holdings gained more than 8%, and PennyMac rose about 5% [1] Government Action - Trump indicated that the Federal Housing Finance Agency (FHFA) should facilitate the purchase of mortgage-backed securities (MBS) to reduce interest rates [5][12] - Analysts expect the 10-year U.S. Treasury yield to decrease to 3.5% by 2026, potentially lowering 30-year fixed mortgage rates from 6.2% to approximately 5.25% [5] Analyst Perspectives - Wolfe Research's Tobin Marcus noted that the $200 billion purchase program is smaller than anticipated, predicting a modest positive impact on the housing market [7] - Bank of America estimated that a quarter-point decline in mortgage rates could reduce monthly payments on a $400,000 loan by up to $70 [7] - Morgan Stanley and Barclays analysts see UWM and Rocket performing well if mortgage rates decrease, with PennyMac and UWM offering favorable risk-reward profiles [8][9] IPO Considerations - Analysts are questioning whether Trump's plan could disrupt potential IPOs for Freddie Mac and Fannie Mae, which are currently under federal conservatorship [10] - The path to a transaction for these government-sponsored enterprises is expected to be slow and complicated [11]

Core Insights - Rocket Companies Inc (NYSE:RKT) shares increased by 6.1% to $22.53 following President Trump's announcement of a $200 billion plan to purchase mortgage bonds aimed at enhancing affordability in the housing market [1] Stock Performance - The stock has shown a 129.7% year-over-year increase and reached a four-year high of $22.85 [2] - RKT bounced off support at the 40-day moving average in mid-December and has ended in the green five times in the last six trading sessions, indicating a positive trend [2] Options Market Activity - Options traders are exhibiting heightened optimism, as evidenced by RKT's 10-day call/put volume ratio of 22.35, which is higher than 97% of readings from the past year [3] - The Schaeffer's Volatility Index (SVI) for RKT is at 55%, indicating that near-term option traders are anticipating relatively low volatility [3] - A total of 80,000 calls and 13,000 puts have been traded, which is three times the average intraday volume, with the most popular contract being the weekly 1/9 22-strike call [4]

Core Insights - The current high interest rates have made home buying challenging for many Americans, but recent declines in mortgage rates offer potential affordability for buyers who have been waiting [1][2] Group 1: Mortgage Rate Trends - Mortgage rates have recently reached their lowest levels in over a year, with a 30-year fixed-rate mortgage close to 6%, which is significantly higher than rates from a few years ago [2] Group 2: Improving Mortgage Eligibility - Strengthening credit scores is essential for securing better mortgage rates, with a score of at least 700 recommended for favorable terms [3] - Obtaining a free credit report can help identify errors and improve credit standing, which can lead to significant savings over the life of a loan [4] - Reducing the debt-to-income (DTI) ratio is crucial, as lenders typically prefer a maximum DTI of 36% of total monthly income [5][6] - Increasing the down payment can lower lender risk and potentially secure a lower mortgage rate, with 20% down being ideal to avoid private mortgage insurance (PMI) [7]

Core Viewpoint - Firm Capital Mortgage Investment Corporation has declared a special year-end dividend of $0.084 per common share, in addition to the regular December 2025 dividend, totaling $0.162 per common share, payable on January 15, 2026 [1][2]. Dividend Information - The total dividends paid to common shareholders in 2025, including the December and special year-end dividends, amounted to $1.02 per common share, reflecting a slight increase from the previous year [3]. - Monthly cash dividends of $0.078 per common share have been declared, with payment dates set for January 30, February 27, and March 31, 2026 [4]. Company Overview - Firm Capital Mortgage Investment Corporation is an investor in mortgages through Firm Capital Corporation, a non-bank lender providing various financing options, including residential and commercial real estate financing [5]. - The Corporation's investment objective is to preserve shareholders' equity while providing a stable stream of monthly dividends from investments in niche markets underserved by large lending institutions [5].

Core Viewpoint - Rocket Companies Inc's stock surged in after-hours trading following former President Donald Trump's announcement of a plan to lower U.S. mortgage rates, which is expected to positively impact the company's business model tied to mortgage volumes [1]. Group 1: Trump's Mortgage Plan - Trump proposed a $200 billion purchase of mortgage bonds, leveraging the cash held by Fannie Mae and Freddie Mac, to lower mortgage rates and make homeownership more affordable [2]. - The initiative aims to restore housing affordability and is part of a broader strategy to enhance the housing market [2]. Group 2: Impact on Rocket Companies - Rocket's business is closely linked to mortgage volumes; lower rates typically lead to increased refinancing and loan qualifications, boosting application and origination activities [3]. - The anticipated bond purchases could lead to lower mortgage-bond yields and rates, potentially increasing loan demand and fee income for Rocket after a period of weakness due to high rates [4]. - The stock's momentum is reflected in its high score of 94.04 in Benzinga Edge rankings, indicating strong price performance [4].

Mortgage Rates Overview - The average interest rate for a 30-year home loan in the U.S. is currently 6.16%, slightly up from 6.15% last week, but still near the lowest level in 2025 [1][9] - One year ago, the 30-year mortgage rate was significantly higher at 6.93%, indicating a downward trend in rates over time [9] - The 15-year mortgage rate has also increased slightly to 5.46%, compared to 5.44% last week, and was 6.14% a year ago [9] Factors Influencing Mortgage Rates - Mortgage rates are influenced by various factors, including decisions made by the Federal Reserve, inflation, and bond market activities [2][9] - The Federal Reserve does not set mortgage rates directly, but its actions, such as cutting short-term rates, can lead to lower inflation and slower growth, which in turn affects mortgage rates [2][10] - Increased bond buying can lower long-term Treasury yields, subsequently reducing mortgage rates [10] Home Sales Trends - The average 30-year mortgage rate ended the previous year nearly one percentage point lower than at the start of 2025, which has positively impacted homebuyers' purchasing power [4][10] - Home sales of existing U.S. homes saw month-to-month increases in September, October, and November, although November sales were lower than the previous year for the first time since May [4][10] - The market is projected to finish the year lower than 2024 levels, with December existing home sales data to be released soon [5][10] Housing Affordability - The median U.S. monthly housing payment has decreased to $2,365, which is 4.7% lower than a year ago [5][6][10] - Despite lower mortgage rates, high home prices and stagnant wage growth continue to hinder many potential buyers, particularly first-time homebuyers who lack down payment funds [6][10] - Economic concerns and job market uncertainties are causing many individuals to delay home purchases [10]