Nearly 20% of homeowners had a mortgage rate of at least 6% in the second quarter of this year, signaling Americans are warming up to higher rates, Redfin said.

Class action lawsuits accuse the lender and servicer of negligence over the incident which compromised the sensitive data of tens of thousands of customers.

Waiting on Details as Bonds Reinforce The Range

It was a forgettable trading day, but at least slightly stronger for the bond market. The only notable volume and volatility surrounded the 9:30am NYSE open. Apart from that, yields were basically flat at slightly stronger levels starting around 4am ET.  Today’s only meaningful order of business was to wait and see if anything came of a meeting between Trump and congressional leaders regarding the increasingly probably government shutdown. Initial reports from that meeting were not very promising at the close, but there was no market reaction.

Market Movement Recap

09:05 AM Moderately stronger overnight, but giving up some gains.  MBS up 1 tick (.03) and 10yr down 1.4bps at 4.159

12:39 PM Best levels of the day.  MBS up 3 ticks (.09) and 10yr down 3.6bps at 4.137

03:04 PM Still near stronger levels at 3pm close.  MBS up 3 ticks (.09) and 10yr down 2.7bps at 4.146

It was an uneventful day for the bond market (and, thus, interest rates) as investors wait for clarity on this week’s potential government shutdown. It’s not the shutdown itself that would notable. Rather, it would be the absence of this Friday’s jobs report (published by the Federal government) as it would deprive the rate market of its brightest guiding light. In the bigger picture, after last month’s jobs report helped usher rates to the lowest levels in nearly a year, other economic reports gradually pushed back in the other direction. With the labor market showing some signs of potential weakness, each new jobs report will be critical in determining if there will be additional runs toward new long-term lows. Even a stop-gap/short-term funding bill would be sufficient. The deadline for a decision is 12:01am ET on Wednesday morning. 

Here in Colorado, banking, credit unions, and independent mortgage banks are a solid part of the economic fabric. LOs here and everywhere are scrambling to add value and educate their borrowers and referral partners ahead of a potential federal shut down tomorrow night. For those who want to know how Colorado, or any state, is doing this year origination-wise, the CFPB rides to the rescue with current nationwide and state-level stats. Fannie Mae’s Economic and Strategic Research (ESR) Group projects Single-family mortgage origination activity at $1.85 trillion in 2025 and $2.32 trillion in 2026, with the refinance share to rise from 26 percent in 2025 to 35 percent in 2026 on the lower mortgage rate outlook; New and existing home sales to total 4.72 million in 2025 and 5.16 million in 2026. Loan originators also care about trends in rentals, and on a more granular level, a story from the apartment building side of things from San Francisco reports that a huge owner of apartments is in default. If true, that’s not good. (Today’s podcast can be found here and this week’s are sponsored by Spring EQ, one of the nation’s leading non-bank home equity lenders, giving partners more ways to serve customers. Known for speed, service, and innovation, Spring EQ makes tapping into home equity easier. Hear an interview with NEO Home Loans Ryan Grant on a growing shift in the mortgage industry as originators seek platforms that offer true operational control, pricing transparency, and long-term business support, delivering on promises the traditional broker model often fails to keep.)

Under normal circumstance, we look forward to the first Friday of any given month as the day that the jobs report takes a swing at sending the strongest signal for rates of any monthly economic report. This Friday will be no different IF we actually get the jobs report. If, on the other hand, a government shutdown is announced on Wednesday, the jobs report will be delayed and markets will be forced to wait at least several days before a delayed release. There’s a notion floating around that the market will simply shift its pent up jobs report reaction to the ADP data that comes out on Wednesday, but in our experience, ADP would still be traded like ADP.  In other words, it would have to come in much higher or lower in order to garner a big reaction. As the week begins, bonds are moderately stronger and traders are focused on an afternoon meeting between Trump and congressional leaders. Hopes are not high for averting a shutdown, but  in any event, the odds will become more clear as newswires circulate circulate.

The Fed should consider actively selling its mortgage-backed securities holdings, according to the Federal Reserve’s vice chair for supervision.

Nordholm took over as CEO in 2018 and the secondary market buyer of agricultural loans has named another executive who will serve as his successor.

Jerry Halbrook, who also held key roles at a number of mortgage lenders like Pennymac and Nexstar, has been named president and COO of Covered Insurance.

The Trump administration’s exploration of a public offering tied to the government-sponsored enterprises spurred debate at a Bipartisan Policy Center event.