While a Dec. 10 Federal Reserve rate cut is now seen as a lock, MBS investors who fund most home loans aren't as bullish that the central bank will cut rates aggressively in 2026
Windermere economist Jeff Tucker breaks down the impact of government debt and the 'One Big Beautiful Bill Act' on the real estate market
Fed easing was already priced into mortgage rates, but there's room for more relief if investors who fund most home loans get less skittish about prepayment risk and quantitative tightening
Investors who fund most mortgages have already priced in several rate cuts, so further declines could depend on what next week's 'dot plot' says about expectations for the pace of future cuts
PCE price index shows inflation continued to cool in July, but at a gentle enough pace that Fed policymakers are now seen as likely to only bring rates down by a hair in September
Drop in unemployment claims on the heels of hawkish Fed warnings sends 10-year Treasury yields soaring to a 15-year high, with mortgage rates likely to follow
Mortgage investors have been demanding higher yields because of fears of prepayment risk if the loans they're funding now are refinanced when rates fall
Federal Reserve Chairman Jerome Powell says pace of rate hikes could slow but may ultimately need to go higher than policymakers had forecast at their September meeting
Several Fed policymakers have hinted that they'd be open to a smaller increase in short-term rates in December if there are signs that inflation is starting to ease
Rates for borrowers with credit scores below 680 making down payments of less than 20 percent climbed past 7% on Monday, according to Optimal Blue
Investors who fund mortgages are demanding unusually high premiums in comparison to government bonds, out of fears the loans they make now could quickly be refinanced if rates drop