Today’s Capital Markets Wrap (3PM ET) will cover how mortgage rates may be impacted by the lack of a traditional flight to quality despite rising international unrest, alongside proposed limits on institutional SFR purchases, rate sheet changes, recent presidential commentary on GSE bond buying, and… the proposed credit card interest cap. “Rob, yesterday’s Commentary had a piece on President Trump’s proposal to cap credit card interest rates at 10 percent. Will it impact lenders?” One quick thought is, “If mortgagees are relying on borrowers refinancing their 25 percent credit card debt using home equity, but a person can obtain a 10 percent credit card online and quickly with no ‘hoops’ to jump through, some percentage will do that and not refinance their home using a mortgagee.” Another thought is, “Why stop at setting credit card interest rates? Could the president decide he’s going to set mortgage rate ranges, independent of credit risk, LTV, or default statistics?” Americans now carry a record $1.21 trillion in credit card debt. A new “White Paper reveals how persistent financial pressures are pushing households to rely more heavily on credit cards for everyday expenses, with the average user carrying a $5,595 balance: “Managing High-Interest Debt: How Cash-Out Refinances Can Help Homeowners Find Relief.” (Today’s podcast can be found here and this week’s are sponsored by Figure. Take advantage of Figure’s technology and products like its fixed HELOC, DSCR loan, piggyback loan, and direct debt paydown, helping you serve more of your existing network and expand into new markets. Hear an interview with Clever’s Jaime Seale on the widespread financial barriers and affordability concerns of younger generations, and why Millennials, in particular, are willing to stretch budgets significantly despite planning to purchase homes below current median prices.)