Swalwell alleges Pulte obtained and used the lawmaker’s personal mortgage records in violation of US privacy laws and constitutional protections for political expression.

The New York Stock Exchange disclosed the news on Monday of the sudden passing of its head of International Capital Markets.

The administration has previously said the finalists are Fed Governors Christopher Waller and Michelle Bowman, former Governor Kevin Warsh, National Economic Council Director Kevin Hassett and BlackRock Inc. executive Rick Rieder.

The Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. issued a final rule Tuesday that softens leverage demands for the biggest and most systemically risky banks and lowers the community bank leverage ratio to 8%.

An expanded data set based on the third quarter annual price changes is what U.S. Federal Housing uses to calculate next year’s conforming loan limits.

Mortgage rates moved nicely lower on Tuesday with the average lender very close to the 2025 lows seen in late October. These levels are effectively right in line with the lowest since late 2022. If today’s drop seems abrupt, that’s because it is. In fact, it’s a bigger drop than the underlying bond market justifies. There’s a reason for this and we covered it in detail back in September: Why Rates Seem to Drop More Quickly as They Approach Certain Thresholds. Rather than credit any of the recent underlying events, the improvement in rates/bonds has more to do with idiosyncratic trading conditions that are often seen on major holiday weeks. That said, some of today’s data and events contributed. These include another week reading in weekly employment numbers from ADP as well as a reaction to rumors that rate-friendly Kevin Hassett will be the next Fed Chair. [thirtyyearmortgagerates]

Best Closing Levels in Nearly a Month

Bonds improved only moderately on Tuesday in a move that’s just as easily chalked up to random holiday-week volatility as any of the day’s data/events.  If we’re determined to give credit to particulars, we can cite things like the 13.5k decline in weekly ADP payrolls, or the market’s favorable reaction to rumors that Kevin Hassett is the front-runner to be the next Fed Chair (Hasset is assumed to be extremely dovish). Most notably, bonds took no damage from another day of upward momentum in stock prices. Yields closed out with 10s right at 4.0%–the best end of day marks since the day before the October 29th Fed announcement (6th lowest close in more than a year).

Econ Data / Events

ADP Employment Change Weekly

-13.5K vs — f’cast, -2.5K prev

Core Producer Prices MM (Sep)

0.1% vs 0.2% f’cast, -0.1% prev

PPI YoY (Sep)

2.7% vs 2.7% f’cast, 2.6% prev

Producer Prices (Sep)

0.3% vs 0.3% f’cast, -0.1% prev

Retail Sales (Sep)

0.2% vs 0.4% f’cast, 0.6% prev

Retail Sales Control Group MoM (Sep)

-0.1% vs 0.3% f’cast, 0.7% prev

FHFA m/m home price change

0.0 

Consumer Confidence 

88.7 vs 93.4 f’cast, 94.6 prev

Pending Home Sales

76.3 vs 74.8 prev

Market Movement Recap

08:35 AM Lots of data but no reaction.  MBS up 2 ticks (.06) and 10yr down 0.7bps at 4.02

10:04 AM holding best levels after more data. MBS up 3 ticks (.09) and 10yr down 2.3bps at 4.005

12:22 PM Rates rallying on Hassett Fed Chair rumors. MBS up 6 ticks (.19) and 10yr down 3.5bps at 3.993

04:24 PM Heading out with MBS still up 6 ticks (.19) and 10yr down 2.6bps at 4.001

Both the FHFA and the S&P/Cotality Case-Shiller home-price indices released new data this week. The message remains consistent: home prices are still higher than a year ago, but the pace of appreciation continues to slow. FHFA’s national index shows prices up 1.7% year-over-year and flat 0.0% month-over-month in September after August was revised to 0.0%. The stagnation in monthly movement reflects a clear deceleration taking hold across most regions. The Case-Shiller 20-City Composite posted a 1.4% annual gain in September, down from 1.6% in the previous month. On a seasonally adjusted basis, the 20-City Composite rose 0.1% month-over-month , consistent with the broader cooling trend as elevated mortgage rates continue to weigh on demand and affordability. Both indices point to similar conditions: slower appreciation, weaker monthly momentum, and home-price growth now trailing inflation. This shift further tightens affordability and underscores a market that has transitioned into a slower, more restrained phase of the cycle. Conforming Loan Limit Update (2026) The FHFA announced that the 2026 baseline conforming loan limit for one-unit properties is $832,750 , an increase of $26,250 from 2025. High-cost areas will see a limit of $1,249,125 , or 150% of the national baseline. These updates reflect slower—but still positive—home-price appreciation over the past year and will shape eligibility and pricing for conforming mortgages.

ADP’s weekly employment report showed another contraction at -13.5k, but unlike last week, no one seems to care. We also got the delayed release of Retail Sales with a notably weak -0.1 vs 0.3 control group, and backlogged PPI that was just a hair cooler than expected. There too, zero bond market reaction. Thanksgiving week trading vibes are in full effect.  Fortunately, the trading that immediately preceded the data was moderately stronger, leaving MBS to start the day up nearly an eighth of a point and 10yr yields down nearly 2bps at 4.011.

Before the day is done, we’ll get the home price update that includes new conforming loan limits, several other reports, and a 5yr Treasury auction.  

Want better affordability? Lower house prices certainly helps, and this article states that more than half of homes in the United States have fallen in price in the last year. Forget interest rates: Certainly, there are fewer willing buyers when they know ahead of time that they may face increasing insurance, tax, or condo fees. (Lenders are doing what they can to control costs, and a recent STRATMOR piece is titled, “Rates Drop, Pipelines Pop: Don’t Let Fulfillment Flop.”) The strain is being seen and felt. CNBC reports that foreclosures rose in October signaling some type of distress. (Or delinquency and foreclosure numbers were really low to begin with, right?) As broker veteran Brian B. writes from Florida, “This is one reason for the popularity of DSCRs. Companies looking to buy real estate can buy the DSCR mortgages, and then the foreclosures are quicker because they are non-owner properties.” The foreclosure moratorium coming off is a likely source. Foreclosure activity is returning to normal ranges after years of artificially low volumes (Covid-era forbearance programs, etc.), according to ICE’s First Look report. However, FHA-backed loans are driving roughly half of foreclosure starts. FHA loans saw a 44-bps rise in non-current rates, while other loan types improved. Foreclosure starts hit 103,000 in Q3, up 23 percent over the same period YoY. FHA loans now account for 38 percent of all active foreclosures nationwide. Overall foreclosure volume remains historically low, with Q3 foreclosure sales at ~half of 2019 levels. (Today’s podcast can be found here and this week’s are sponsored by The Big Point of Sale, which delivers a fast, flexible, and low-cost mortgage POS that gets lenders up and running in hours (not months) while empowering loan officers and consumers to collaborate seamlessly from any device. Hear an interview with The Big Point of Sale’s Matthew VanFossen on the evolution of technology in the mortgage industry and how all parties privy to a mortgage transaction can be included on the same workflows.)