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News that Opendoor CEO Carrie Wheeler is leaving the company boosted the company's stock price to its third-highest level since the run-up began at the start of July.The announcement was made before trading started on Friday morning. When the markets did open, Opendoor began the day at $3.415 per share and in early trading hit a high of $3.485 before settling back to $3.405 at 11 a.m. On Thursday, it closed at $3.04, but it opened the day at $2.29.Wheeler's departure as CEO as well as board chair is effective immediately; she will stay through the end of the year as an advisor to the board to aid in the transition, a Securities and Exchange Commission filing said.Wheeler's resignation follows a pressure campaign led by institutional investors and supported by co-founder Keith Rabois, according to articles on Inman.However, the company said Wheeler approached the board in mid-2025, at which time it began a succession planning process, retaining Spencer Stuart to assist.It comes shortly after the company cancelled a special stockholders meeting to consider a possible reverse split in order to regain compliance with Nasdaq listing standards. That became unnecessary as Opendoor has been trading above the $1 per share requirement since mid-July."We've built a stronger, more focused company, expanded our offerings, and set the stage for the future — all in one of the most challenging real estate markets in history," Wheeler said in a press release. "I believe now is the right moment for a leadership transition, and I'm confident the company is on a strong path forward."Wheeler became CEO in December 2022 after serving as chief financial officer, replacing co-founder Eric Wu in that role.In the meantime, the board promoted Shrisha Radhakrishna to president and interim principal executive officer. Since last November, Radhakrishna was its chief technology and product officer. Before then he held a similar role at LegalZoom and also worked for Intuit.Eric Feder, president of LenX, Lennar Homes' strategic investing arm, has been named lead independent director."The company is well positioned to focus on its considerable data and unique assets in today's high-tech AI world," Feder said. This includes the continued scaling of Key Connections, the rollout of Cash Plus and continuous improvement of the core cash-offer business.Wheeler will be well compensated for her advisor services, the SEC filing said."During the Advisory Term, Ms. Wheeler will be entitled to receive cash compensation of $62,500 per month upon completion of each month of services during the Advisory Term, and reimbursement of COBRA premiums," the filing said.  "In addition, Ms. Wheeler's outstanding time-based equity awards will continue to vest during the Advisory Term, subject to Ms. Wheeler providing advisor services pursuant to the Advisory Agreement through each applicable vesting date."The leadership change also follows the Aug. 12 downgrade of Opendoor's stock rating to underperform by Keefe, Bruyette & Woods analyst Ryan Tomasello.On its second quarter earnings call, Opendoor said it was undertaking a strategic pivot to a real estate agent led distribution model."While high retail interest may continue to support valuation, we downgrade the shares to underperform from market perform as we expect widening losses in 2H coupled with uncertainty from the strategy pivot to weigh on the shares, which trade near the high end of historical multiples," Tomasello said.The strategy has numerous risks which in the near term outweigh advantages, and so he is advising investors to take a wait and see approach to Opendoor's stock."In particular, we are cautious on the road to stabilized profitability that will be highly dependent on adjacent services monetization," Tomasello said. "Further, well-entrenched incumbents are increasingly making progress on a more vertically integrated housing transaction."On a GAAP basis, Opendoor lost $29 million during the second quarter. This compared with losses of $85 million in the first quarter and $92 million in the second quarter of 2024.This was helped by an increase in revenue, to $1.6 billion, a gain of 36% from the first quarter and 4% one year ago.

Lenders looking to cut costs are more willing to lay off their back office staff than slash other business expenses, according to a new Fannie Mae survey.While cost-cutting wasn't firms' top business priority, more senior mortgage executives placed prospective layoffs above trimming general and administrative expenses. The findings in the Mortgage Lender Sentiment Survey, which reached industry leaders from 217 different nonbanks, depositories and credit unions in early May, showed mixed results for other lender sentiments.Overall, 37% of respondents said they're prioritizing "streamlining business processes", compared to 29% of executives focusing first on shaving expenses. Executives defined streamlining such as improving employment and income verification, or utilizing artificial intelligence.For firms weighing trimming budgets, a combined 59% of bosses said terminating back-office staff was their top, or second area to cut. That compared to a combined 35% of respondents focused on minimizing general and administrative expenses such as facilities and equipment, and 22% who pointed to loan officers. The survey didn't touch on The answers are a reversal from last spring, when companies said they'd prioritize general and administrative savings over layoffs. Lenders however are still more conservative than the past few springs, when the majority of industry leaders facing a rising rate environment told Fannie Mae they'd lean heavier into cutting from both areas.  Mortgage firms aren't fully comfortable with e-notesThe survey also revealed lender frustrations with electronic promissory note adoption, with just 22% of executives telling Fannie Mae their company was using them today. While 62% of respondents said they plan to use e-notes in the next two years, they described numerous roadblocks to utilization. A combined 46% of current e-note adopters said their first or second-largest challenge was investor or business partners not supporting the technology. While operational challenges with e-notes rated highly, lenders also cited their ineligibility for certain loans. More hurdles included investor restrictions on Remote Online Notarizations, and resistance from settlement partners. "Several of our correspondent lenders have not invested in the process to start using e-notes," wrote a leader of one unnamed mid-sized institution in the survey. The mortgage industry as of April 1 had 2,513,663 unique e-notes registered on the Mortgage Electronic Registration Systems eRegistry, according to Fannie Mae. Independent mortgage banks are more likely to use them than credit unions and depositories. Those familiar with the technology cited benefits including faster funding and reduced errors. "Because eNotes have a cleaner paper trail with less backend risk, perhaps the (government-sponsored enterprises) offer some sort of pricing advantage," wrote another source from an unnamed large institution.Lenders temper their housing forecastsThe majority of mortgage leaders in May conceded the difficulty in affording a mortgage, and are resetting their home price growth expectations. The share of executives surveyed who expect home prices to stay the same in the next 12 months grew at the highest level since 2021, according to Fannie Mae.  A leading 45% of consumers meanwhile in the GSE's Housing Market Survey still expected prices to rise. Prices are cooling nationwide, and the approximately 1.36 homes for sale in June was the most since 2019, a Zillow report found. Numerous housing reports have also cited declining prices in major metropolitans including cities popular during the low-rate era earlier this decade. Lenders were also split on their economic outlook, with a near-equal share suggesting the nation was on the right, or wrong track. Sixty-four percent of consumers meanwhile told Fannie Mae in May they were concerned about the future.Shaky inflation and job data earlier this month drove mortgage rates to a 10-month low, and spurred a surge in refinance activity. And while economists anticipate the Federal Reserve to cut short-term rates next month, a growing number believe a rate drop won't come until December.

Mortgage lenders managed to increase origination volumes earlier in 2025 in a still-sluggish housing market at the same time home equity loans grew at their fastest pace in three years, according to Transunion. Originations climbed up 5.1% on an annual basis in this year's first quarter to just approximately 980,000 loans, according to the latest credit industry insights report from Transunion. Numbers rose from 900,000 over the same three months both in 2024 and 2023 but were well off the 2.2 million reported in first quarter 2022 at the end of the most recent refinance boom.  While higher interest rates have put a damper on the lending environment over the last three years, the short-term outlook holds promise if the central bank and home sellers do their part to spur borrower interest, according to Satyan Merchant, senior vice president, automotive and mortgage business leader at TransUnion."Some forecasts anticipate a potential rate cut in the second half of 2025, which would likely lead to a decline in mortgage rates. If paired with housing inventory returning to pre-pandemic levels, this could stimulate increased mortgage origination activity," he said in a press release. Over the past several months, brief dips in mortgage rates have led to multiple boomlets of mortgage interest when borrowers rushed in to take advantage of the temporary reprieve, particularly for refinances. Lenders got another inkling of refi demand in early August as originations jumped 23% last week in response to tumbling rates, according to the Mortgage Bankers Association. Purchase transactions, though, still made up over four-fifths, or 81.3% of first-quarter originations, with refinances responsible for only 18.7%, Transunion found Among refinances, rate-and-term transactions surged 43% year over year to finish at 63,200 loans. Numbers grew for the sixth consecutive quarter. First-quarter cash-out refinances also jumped approximately 19% from a year earlier to 120,200 from 100,900. Borrowers take a look at home equityWith home values at record levels and interest rates still limiting refi demand, more homeowners looked at tapping into their accrued equity during the quarter. Amounts currently available to homeowners currently run between $17.5 trillion and as high as Transunion's $21.5 trillion estimate.   Over the first quarter, originations of home equity lines of credit, HEloans as well as cash-out refinances, increased 12% year over year to 648,800 from 572,700, by Transunion's calculations. The quarter saw the largest rate of growth since 2022, according to the report. HELOCs accounted for a 40.4% share of originations, loans for 41% with cash-outs garnering the remaining 18.5%."Generation X and baby boomers accounted for the majority of home equity originations, highlighting strong demand among established homeowners with significant equity to leverage," the report said.Meanwhile, the balance of home equity originations surged 26% year over year to $66.9 billion from $53.1 billion, with 58.3% of the total coming from cash-out refis.

Hedge fund billionaire Bill Ackman is fueling more speculation about President Trump's suggested Fannie Mae-Freddie Mac merger this fall, but experts debate the near-term benefits. The Pershing Square Capital Management CEO linked the concept to President Trump's Truth Social post depicting a public offering for a single entity, citing the potential for a government-sponsored enterprise combo to improve mortgage-backed securities dealings and lower financing costs.According to reports, the government plans to sell 5 to 15% of the GSE shares at a valuation of $500 million, potentially raising $30 billion. "A merger would enable them to achieve huge synergies both in their operations and in the trading price and spreads of their MBS, savings which could be passed along to consumers in the form of reduced mortgage rates," Ackman posted to X last weekend.Not all pundits agree with Ackman, the legacy investor in pre-conservatorship GSE shares, but there is some consensus his idea is worth evaluating in reform efforts.A Pershing Square representative said Ackman would likely have no comment beyond his X post.A path to GSE reform with potential efficienciesCombining the two enterprises would have the additional benefit of reducing the costs and risks of their government oversight, Ackman wrote. But his is by no means the only theory regarding Trump's post. Others think it could point to a public offering for U.S. Financial Technology, the pre-existing joint venture the GSEs formed to produce improved uniform trading in their securities.Bill Pulte, who heads the GSEs' regulator and conservator, recently returned to the idea of opening up the JV's operations so mortgage players could use Fannie Mae and Freddie Mac's securities tool. Clifford Rossi, academic director of the Smith Enterprise Risk Consortium at the University of Maryland and author of a recent report mulling a GSE merger, said he has long viewed the formation of that JV in 2019 as showing that Fannie and Freddie could be combined."In my opinion, that was the very beginning of an alignment that could eventually result in giving the opportunity to merge both of them," said Rossi, who also is professor-of-the-practice and executive-in-residence at the university's Robert H. Smith School of Business.Pulte also generated merger speculation when he said in June that Fannie and Freddie will work more closely together. He also appointed himself chairman of both enterprises' boards around the time Freddie Mac's permanent CEO stepped down.Those moves led to more conjecture about a merger structure. Rossi said it's important to first consider whether the benefits of a combination are compelling enough to engage in one. A key concern related to a GSE public offering is their current capitalization levels. The academic said a merger could strengthen them.Ed Groshans, senior policy and research analyst at Compass Point, was more skeptical. The benefits of accounting adjustments due to a "merger of equals" would "at best, marginally improve the capital deficit," he wrote in a flash note. "I guess they could do a merger of equals and exchange shares," he said in an interview. "I don't know how that's positive for the shareholders because basically, they wind up with a monopoly, pretty much, and they still have a massive regulatory capital deficit."Rossi, who worked at the GSEs pre-conservatorship and at banks during the crisis that forced the Treasury to backstop them, is focused on a different reason for a merger. A combination could prevent the "race to the bottom" between the entities fueled by their loose underwriting to capture business. He acknowledged the GSEs' underwriting reforms in past years, and Pulte's recent calls for industry competition that contradict a merger push. But Rossi's concerns that the GSEs would return to old habits outweigh that.Would the merger raise or lower mortgage rates?The merger proposal raises antitrust concerns. "A lot of people say, 'oh, you know, you can't do that, because that's anti competitive, and competition will spur growth and innovation and so all these wonderful things," said Rossi. "I don't buy that. You're talking about a duopoly, a regulated duopoly at that."The industry veteran also pointed to Ginnie Mae as a successful example of a single government entity in a section of the secondary market. A combination public offering could rattle confidence in the guarantee the GSEs provide, potentially raising rates in the short-term. The Trump administration has pledged to keep their original implicit guarantee and not to raise rates."[Ackman] says that this new entity will reduce mortgage rates. He's in the minority and is describing the end result," wrote Jonathan Miller, president and CEO of real estate and consulting firm Miller Samuel, in a blog. Miller said rates could eventually go down, but speculated Ackman referred to a long-term forecast. Trump's Truth Social image envisioned a November public offering.Rossi said the merger could cut rates both ways: they could fall in line with Ackman's efficiency argument, or rise on the guarantee change, as studies have suggested. Labor and cost is another hurdle. While Fannie Mae and Freddie Mac have similar business lines and systems, there are differences. Their existing JV has faced criticism related to its costs.Other hurdles and possible structures for a public offeringPulte has a lot of leeway as the de facto GSE boss but would want to put merger plans through legal vetting, Rossi indiciated. "The last thing we want to do is to say we're going to go down this path, only to find that only Congress would have the right to change those charters in a way that would allow a merger," he said, noting he would defer to legal experts.Lawmakers may also intervene, according to Groshans. "In our assessment, Congress would have to pass legislation to create the Great American Mortgage Corporation (GAMC)," he said in his note, referring to Trump and Pulte's suggested merger name. "A newco established by the executive branch would not be legally durable in our view. Congress established Fannie and Freddie."While some look to Pulte's chairmanship of both GSEs and the departure of one CEO as pointing to a Fannie acquisition of Freddie, Rossi — who has worked for both enterprises — said it doesn't necessarily portend that."Perhaps the natural acquirer would be Fannie, but in trying to be as objective as I can, there are things that would give Freddie an edge. Fannie generally has been much more business oriented, and Freddie has been more 'hold the line' on risk management," he said.Groshans said a structure involving one GSE buying another has a lot of complications. "As for an acquisition, what does a company that is critically undercapitalized pay for another company that is critically undercapitalized? In these situations, the FDIC usually pays nothing and just takes over a failed bank," he said in his research note.The Federal Housing Finance Agency could use its authority as receiver, not as conservator, to transfer the GSE charters to GAMC without Congress, according to Groshan. However this would be subjective restrictions negative for shareholders and likely for the government.During the Great Financial Crisis that led to conservatorship, some M&A activity involved a "good bank/bad bank" division. But given the GSEs have largely cleaned up their books since then and have shown profitability, Rossi thinks use of that structure is currently unlikely."The only thing that I think you would have as a so-called bad GSE would be the legacy subprime that's still in runoff," said Rossi, who worked with banks during and post GFC. "They could ring fence it or something, but that's such a small portion of the business these days."As far as the idea the GSEs might spin off their existing joint venture, Groshans told National Mortgage News, "That operates like a public utility. If it becomes a for profit company that would have to generate economics, and that could lead to a higher mortgage price."However it is structured, the proposed public offering is unlikely to cause a near-term solution for two key interrelated challenges the GSEs face: their regulatory capital defect and the Treasury's conservatorship ownership stake, he said."Let me be clear, because there are a lot of people out there with a lot of views: $30 billion doesn't solve these problems, not unless we're going to change the capital requirements," Groshans said, noting that such a rule change would be a lengthy process.Investors may not want to read too much into the recent jump in the GSEs' stock prices following President Trump's sparse post."And as things stand today with the GSEs being in conservatorship and having massive regulatory capital deficits, barring some larger change in the structure of the GSEs, I wish Treasury Secretary Scott Bessent good luck on raising $30 billion," Groshans said.Groshans said there are still good odds that an eventual recap and release of the GSEs could materialize and benefit investors, but it's still unclear how it would work."We have a pathway where the GSEs can be recapped and released from conservatorship, and we address the regulatory capital deficit and the Treasury ownership position," he said. "When you bring a new entity to the forefront called the Great American Mortgage Corporation, not Fannie or Freddie, what does that mean?"

Funds parked at a major Federal Reserve facility dropped to the lowest level in more than four years, putting in focus the amount of cash banks have sitting at the US central bank, a measure of liquidity conditions.Some 14 participants on Thursday put a combined $28.8 billion at the Fed's overnight reverse repurchase agreement facility, known as the RRP, which is used by banks, government-sponsored enterprises and money-market mutual funds to earn interest on cash lent to the central bank. It's the lowest since April 2021, according to New York Fed data. The number of bidders was also the smallest since that period. READ MORE: Economists now leaning towards September Fed cutUsage of the Fed's overnight reverse repurchase agreement facility, long considered a measure of excess liquidity in funding markets, has been dropping as the Treasury Department issues more short-dated debt to finance the growing deficit, luring cash away from a key backstop source of funding. Once the so-called RRP is nearly empty, cash will start draining from bank reserve balances. These reserves are critical in providing a cushion for markets and determining levels necessary to keep them running smoothly. They can also dictate how far the Fed can go in shrinking its balance sheet.Balances have dropped from $214 billion on the last day of July as the Treasury continues issuing billions of dollars of T-bills in order to replenish its cash balance following last month's increase of the debt ceiling. Citigroup strategists Jason Williams and Alejandra Vazquez Plata estimate use could approach zero by the end of August. They define empty as the "zero to $20 billion-ish" range. While money-market funds, which comprise the biggest RRP users, may opt to keep some cash at the central bank for liquidity purposes, the dwindling balances leave almost no cushion for banks. "With RRP balances close to zero, there's no additional buffer to watch, so reserves are the going to be closely watched," said Gennadiy Goldberg, head of US interest rate strategy at TD Securities. "The big question, however, is how low reserves are likely to fall before the Fed fully discontinues balance sheet runoff."The Fed has been unwinding its holdings of debt since June 2022. In April policymakers slowed the pace of the runoff by reducing the cap on the amount of Treasuries allowed to mature each month without being reinvested to $5 billion from $25 billion. The cap on mortgage-backed securities was left unchanged at $35 billion. Reserves were little changed at $3.3 trillion, according to the latest Fed data, suggesting balances are still in abundant territory. Barclays strategist Samuel Earl said in a note to clients Thursday he expects aggregate balances to fall below $3 trillion by mid-September and below $2.9 trillion by the end of that month, excluding changes in the RRP. Fed Governor Christopher Waller, who is reportedly on the shortlist of candidates being considered by President Donald Trump to be the next Fed chair, said last month the US central bank should be able to lower the level of bank reserves to around $2.7 trillion without putting strain on bank reserves. 

The real estate market is looking up, at least according to property investors. But even amidst the sunny outlook, many of them still worry about tariffs, high insurance and a possible recession.Optimism among real estate investors improved, according to the most recent Investor Sentiment Index. The index rose to 102, up from 88 in the spring. This is an improvement after two quarters of declines, though it's still below the high of 124 last fall.The index, which is put out every quarter by real estate lender RCN Capital and consulting firm CJ Patrick Company, measures how real estate investors feel about the market. The survey includes questions on topics such as the state of the market, their investment plans, and how they expect the market to perform in the future.According to the survey, 48% of real estate investors believe that today's market is better than it was a year ago, up from 31% last quarter. Meanwhile, only 25% of investors thought the market had gotten worse, a drop from 34% in the spring. Just under half of respondents were optimistic about the next six months while 20% expected the market to get worse."It's interesting that investor sentiment seems to be moving in lockstep with consumer sentiment: both hit multi-year lows in April, but have been trending up since," said Jeffrey Tesch, CEO of RCN Capital, in a statement. House flippers were more upbeat than rental property investors about both the present and the future, with more than 53% of them saying that the market had improved in the last year as opposed to only 33% of those who look to hold on to the real estate. Fix-and-flippers were also more likely than rental property owners to have a rosy outlook about the next six months (52% versus 40%).The report pointed out that many landlords are bearing the expense of rising property valuations – like more expensive insurance and steeper property taxes – without getting any of the upsides that those values bring."Rental asking prices are effectively flat year-over-year, while home prices continue to rise slightly, and finance costs remain stubbornly high," the report said.What are investors worried about?Those surveyed, buyers who do not intend to live in the properties, pointed to a number of major challenges, including the high costs of financing, rising home prices and competition from larger institutional investors. Insurance costs were also a major concern, with nearly three-quarters of respondents saying that it had become a factor in whether they decide to buy a property. Rising insurance premiums are plaguing homeowners of all stripes. One study found that the average premium has risen more than 9% from last year.Many investors cited broader macroeconomic fears, as well, including worries about a recession and how rising deportations might affect their business. Tariffs are also weighing on investors' minds. Forty-five percent said import duties have increased construction costs, and 30% reported bringing in less income because of tariff-related price increases.Tariff fears have percolated within the construction and housing industries for months. The National Association of Home Builders warned back in February that they could add more than $10,000 to the cost of a new home, and more recently, experts have warned that tariffs imposed on Canadian goods by President Donald Trump at the start of the month could drastically raise the cost of homebuilding materials like lumber and steel. Mortgage rates, which have mostly hovered between 6.70% and 6.90% since May for conforming owner-occupied loans, are also causing problems. More than a quarter of surveytakers reported a decline in demand for owner-occupied housing, a particular concern for home flippers who want to quickly turnover the property and move on. Here, investors were less optimistic about the future – more than 72% said they expect rates to stay 6.5% for this year, suggesting most aren't expecting relief for their buyers anytime soon.How are investors adapting?Despite the broad optimism, some investors are taking a cautious approach, with 40% saying they planned to pull back on investing over the next year, and a full quarter of investors declaring they likely won't buy any new properties at all.As prices soften in markets across the country, many owners are also adjusting the expectations for the properties they do have. About one-quarter said they've had to cut the sale price or rental rate for their property, and another 25% expect they may have to do so by the end of the year. This was especially true for fix-and-flip investors in Florida and California, two states that have seen some of the biggest price drops this year.

New mortgage delinquencies showed overall improvement in loan performance, but in what could be a more concerning trend, later-stage distress and foreclosures trended upward in the second quarter.The overall delinquency rate decreased to a seasonally adjusted 3.93% during the quarter, reflecting pullbacks from both three months and one year earlier from 4.04% and 3.97%, respectively, according to the Mortgage Bankers Association. The historical average stands at 5.21%. "Conventional loan performance continues to perform exceptionally well, with delinquencies hovering near record lows," said Marina Walsh, MBA vice president of industry analysis in a press release.  Potential signals of financial issues plaguing some borrowers, though, appeared in later-stage distress. "While overall mortgage delinquencies are relatively flat compared to last year, the composition has changed," Walsh added. "Earlier-stage delinquencies declined while serious delinquencies — those loans 90 or more days delinquent or in foreclosure — increased. This was the case in the second quarter of 2025 across the three major product types," she addedThe share of loans either 90 days or more past due or in foreclosure jumped up 14 basis points year over year to a non-adjusted 1.57%, with Federal Housing Administration-backed loans driving much of the increase due to a 63 basis point rise to 3.8%, according to the survey. Meanwhile, loans backed by the Department of Veterans Affairs also saw a hefty 24 basis point jump to 2.31%. While more muted, latter-stage conventional delinquencies and foreclosures grew by 3 basis points annually to 1.07%. The latest numbers, though, represented a pullback of 6 basis points from the first quarter, which likely saw elevated foreclosure numbers after the expiration of a moratorium affecting VA-backed loans in late 2024. Ninety-plus day late shares receded on a quarterly basis for all loan types.The growth in foreclosures and end-stage delinquencies corresponds to rising signs of economic weakness reported recently, including in the most recent government jobs report, MBA said. Meanwhile, rising delinquencies in other forms of consumer debt, such as student loans, credit cards and auto lending, could serve as potential precursors to rising mortgage distress. By contrast to the late-stage numbers, the 30-day delinquency rate improved to 2.1% from 2.26% one year earlier. On a quarter-to-quarter basis, the 30-day share eased 4 basis points from 2.14%. Mortgages 60-days or more past due came in at a share of 0.72%, down from first quarter's 0.73%, but up 2 basis points from 0.7% year over year.  How mortgages are performing overall by loan typeFor conventional loans, the overall seasonally adjusted delinquency rate decreased to 2.6% from the first quarter's 2.7% and 2.64% a year ago. While conventional loan borrowers have showed resilience, their performance "contrasts with the rise in government delinquencies over the past few years," Walsh noted. Still, both FHA and VA delinquencies fell on a quarterly and yearly basis. The FHA delinquency rate stood at 10.57% at the end of the second quarter, while for VA borrowers, it was 4.32%. Foreclosures, which are not included in the overall delinquency rate, edged down a single basis point from the prior quarter to an 0.48% share. The percentage, though, increased from second-quarter 2024's rate of 0.43%.MBA's latest foreclosure numbers come after other data providers, including Attom and ICE Mortgage Technology, reported a similar rise in recent months.  

Mortgage rates this week fell to their lowest level since October, supported by one better than expected inflation report as well as ongoing concerns regarding employment data.But an unexpected finding in the Bureau of Labor Statistics July Producer Price Index report could put a hold on a potential September Federal Open Market Committee short-term rate cut.The 30-year fixed rate mortgage averaged 6.58% as of Aug. 14, the Freddie Mac Primary Mortgage Market Survey noted. This was down from last week when it averaged 6.63%. But for the same week a year ago, the 30-year FRM averaged 6.49%.The last time the 30-year FRM was under 6.6% was the week of Oct. 24. Meanwhile, the 15-year FRM dropped by 4 basis points to 5.71%, from 5.75% a week earlier. This is 5 basis points higher than a year ago, when it averaged 5.66%.The PPI rose 0.9% versus June and 3.3% annually. In the aftermath, the 10-year Treasury, which dropped 5 basis points following Wednesday's Consumer Price Index report, rose by 3 basis points to 4.27% as of 11 a.m.Because the PPI came in hotter than forecast, some are concerned that the FOMC may once again delay any policy easing, Samir Dedhia, CEO of One Real Mortgage, said in a statement."Some market participants are still expecting a potential rate cut in September, but others believe that a more cautious approach may prevail given the latest wholesale inflation surge," Dedhia continued. "This uncertainty is keeping bond markets on edge, which in turn continues to impact mortgage pricing."What other rate trackers are showingLender Price data posted on the National Mortgage News website had the 30-year fixed at 6.57%. This is compared with 6.59% the week prior, when it fell by 24 basis points week-over-week.Zillow's rate tracker put the 30-year FRM at 6.52% on Thursday morning, a gain of 1 basis point from Wednesday but down from an average of 6.68% the prior week.The Aug. 1 employment triggered a continuing slide in mortgage rates, said Zillow Home Loans Senior Economist Kara Ng. The significant revisions to the data heightened investors' expectations that the FOMC would need to cut short-term rates in September to support economic growth.The CPI report "largely aligned" with what observers expected, but "the data revealed signs that tariffs appear to be leaking into prices — a factor that could limit the Fed's flexibility for rate cuts in coming months — markets have, for now, prioritized concerns about the weakening labor market," Ng said in a Wednesday evening commentary. "As a result, mortgage rates continue to face downward pressure."Is a refi boomlet going on right now?On Wednesday, the Mortgage Bankers Association's Weekly Application Survey found the 30-year FRM fell to 6.67%, which it noted drove the strongest week since April for refinance volume."Regardless of what happens day to day, mortgage rates are lower than they were just a couple of weeks ago," said Holden Lewis, home and mortgage expert at Nerdwallet. "Homeowners who got high-rate mortgages in autumn 2023 might benefit from rate-and-term refinancing."Dedhia agreed, adding it also opens the door for debt consolidation refis or situations where borrowers tap their home equity."Timing is key, and staying proactive in this window of lower rates may help borrowers make meaningful financial gains before the next policy shift or market turn."

Fannie Mae recently updated its servicing guidelines to include new instructions for handling temporary interest-rate buydowns, which have become more popular as a way to attract borrowers. The new guidelines provide clarity for servicers on how to manage these loans.The new rules, which Fannie has asked servicers to adopt immediately, become mandatory Nov. 1. They cover how to apply funds in various workout situations, and clarify borrower notification requirements for related interest-rate changes.Fannie's guidance comes amid broader secondary market attention to buydowns that temporarily lower rates that also has been the catalyst for new directives at Ginnie Mae and Freddie Mac.The government-sponsored enterprise, which buys a large percentage of mortgages in the United States, made clear in its guidance that it expects servicers to routinely give borrowers some advanced warning when their buydown is about to end and their rate will go up."For mortgage loans subject to a temporary interest rate buydown plan, servicers must send notification to the borrower detailing a pending interest rate increase 90 days prior to the payment change," Fannie Mae said in a bulletin issued Wednesday.The enterprise also gave the following instructions related to how or whether servicers should apply funds in various situations, with all directives subject to whether the buydown agreement allows it.Flex modifications: The servicer should "apply interest-rate buydown funds to reduce the arrearages" and use Fannie's updated loan-modification agreement form to reflect that this has been done.Late payments: Servicers "must not apply interest rate buydown funds to reduce the delinquency amount in connection with a reinstatement, repayment plan, or payment deferral" unless the buydown agreement specifically calls for it.Mortgage release: The servicer must "ensure that the borrower waives reimbursement of any interest rate buydown funds" related to one.Broader changes in the servicing update include one that provides more flexibility for payment reminders by "extending the time to send such notices from the 17th day of delinquency to the 20th day of the month," subject to some pre-existing exceptions. This can be done immediately and becomes a formal rule on Dec. 1.

Two Texas-based mortgage giants are hoping to attract more investors in their own backyard, announcing dual listings on the New York Stock Exchange Texas.Plano-based Finance of America and Dallas-based Hilltop Holdings, the parent of Plainscapital Bank and Primelending, are founding members of the new fully-electronic exchange headquartered in Dallas. The NYSE, owned by Intercontinental Exchange, announced earlier this year it was relocating its Chicago operation to Texas, citing a thriving economy and population growth in the Lone Star State."We believe this dual listing will broaden investor access and awareness of our mission — to educate more Americans on the value of home equity-based retirement solutions," said Graham Fleming, FOA CEO, in a press release Thursday.Mega homebuilder D.R. Horton is also dual-listing on the NYSE Texas. Companies can dual list, with the same symbol, at no cost, according to the NYSE. The exchange debuts ahead of a Texas Stock Exchange also set to open in Dallas next year.How Finance of America and Hilltop have performed this yearThe companies are coming off of profitable second quarters, although their outlooks for the rest of the year differed. The reverse mortgage lender FOA reported funded volume rising quarterly and annually, while its profits didn't sway. It also announced its repurchase of an eight-figure equity stake in the company by Wall Street giant Blackstone. FOA also completed its first $1 billion securitization for its proprietary Homesafe second lien product. Primelending also recorded gains in originations and income on a quarterly and annual basis, generating $2.43 billion in loan volume to close the second quarter. A gain-on-sale margin of 228 basis points also matched its highest mark in the prior nine quarters. Leadership however warned of a gloomier forecast, with Hilltop President and CEO Jeremy Ford last month citing a competitive market combined with high home prices and elevated interest rates. The mortgage industry meanwhile enjoyed a brief reprieve last week, as application volume shot up on the lowest interest rates since February.FOA's stock was trading at $27.93 a share midmorning Thursday down 3%, while Hilltop's stock inched up to $32.78.