The company gave no reason for his abrupt departure, which comes two months after the CEO of its parent First American Financial, Kenneth DiGiorgio, was fired.

As the Federal Reserve considers changes to the supplemental leverage ratio, Fed Board Chair Jerome Powell said that effort is one piece of a broader deregulation package that will also address the Basel III capital rules.

AI doesn’t have an NMLS number. (Zillow has never, ever set foot in a house for that matter.) Do you own a computer? Most in lending do. Elon Musk? I guess not. A courtroom twist in Musk’s war with OpenAI has revealed a stunningly bizarre detail about the self-described Techno King: His lawyers say that he doesn’t own a computer. (We know that President Trump has a telephone, and in fact the Trump Organization’s T1 phone is likely to be made in China.) A big topic at mortgage conferences is Artificial Intelligence. But AI seems to be becoming more lifelike. For example, Sesame AI is a “cutting-edge AI voice model that delivers natural and expressive speech synthesis. Perfect for content creators, developers, and businesses looking to add lifelike voices to their applications.” Send in some photos of yourself, and watch a film of you created saying the dialog you type in.) Scary. To no one’s surprise, a Microsoft study found that relying on AI kills your critical thinking skills. (Today’s podcast can be found here and this week is sponsored by Optimal Blue. OB bridges the primary and secondary mortgage markets to deliver the industry’s only end-to-end capital markets platform, helping lenders maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. Today’s has an interview with Polunsky Beitel Green’s Marty Green on why Fannie Mae and Freddie Mac’s exit from conservatorship must be carefully structured to preserve market stability, and protect borrowers, lenders, and the broader economy.)

The average top tier 30yr fixed mortgage rate had already dipped to the lowest levels since May 1st at the start of the week.  Two additional days of modest improvement brings us to the lowest levels since April 4th as of today.   April 4th is probably a day that’s worth remembering.  If rates take out that particular floor, it would signify some more serious momentum toward lower borrowing costs.  Reason being: April 4th’s MND rate index was 6.6%–almost 0.20% lower than today’s 6.79%.   Rates jumped abruptly after April 4th as the bond market reacted to a sharply stronger jobs report. They continued higher the following week after the tariff “pause.”  Today’s improvement is really more a reflection of yesterday afternoon’s bond market strength.  As a reminder, lenders prefer to change their rates as infrequently as possible after setting them initially in the morning. If the bond market moves enough, they will issue mid day “reprices.” Many lenders did so in response to yesterday’s bond market gains, but in those scenarios, there tends to be a bit more left on the table. If the bond market holds reasonably steady overnight (as it did today), lenders can then pass along the additional improvement.

Mid Day Reversal Leaves Bonds Slightly Stronger

This morning, we noted the lightness of the selling pressure that took bonds into modestly weaker territory. It turns out it was so light that it was easy for bond buyers to get back on top un the afternoon hours. There was a bit of help from the Fed’s much-anticipated announcement of a change to banking rules that will effectively allow banks to hold more Treasuries than before.  This wasn’t a big market mover and its impacts would play out in the background over time, but it did seem to help to the tune of a bp or two today. With that, yields hit the 3pm close at their lowest  levels since May 7th, just barely edging out yesterday’s marks. 

Econ Data / Events

New Home Sales

623k vs 690k f’cast, 743k prev

Market Movement Recap

09:54 AM Flat overnight and modestly weaker just before the open.  MBS down 3 ticks (.09) and 10yr up 2.9bps at 4.321

12:51 PM Decent rally ahead of 5yr Treasury auction.  10yr up only 1.3bps at 4.305.  MBS down only 1 tick (.03).

01:43 PM No major response to 5yr auction.  10yr yields up 2bps at 4.312.  MBS down 2 ticks (.06).

03:45 PM Best levels of the day with MBS up 2 ticks (.06) and 10yr down nearly 1bp at 4.284

Bonds are taking a breath this morning after hitting the best levels in more than a month yesterday. The event calendar is much lighter than it seems at first glance.  While there’s always some chance that Powell will say something important at a congressional testimony, the chances are far lower on the 2nd of the 2 days.  Beyond that, New Home Sales data is not a big market mover. That leaves the afternoon’s 5yr Treasury auction as the main source of potential volatility and it would have to be exceptionally strong/weak in order to realize that potential. Trading levels are slightly weaker, but if it weren’t for yesterday, we’d still be at the best levels in over a month, so…

The equity-backed loan offers Rocket customers funds for down payments and closing costs on a new purchase while giving them six months to sell their existing property.

The gap between costs and wages hit an inflection point and policy may determine what happens next, according to the Harvard Joint Center for Housing Studies.

Transparency has improved for mortgages but associations still lack access and insurance is a challenge in efforts to balance access to housing with safety.

The Consumer Financial Protection Bureau cut short a five-year agreement with Bank of America Corp. over the bank’s alleged submission of false mortgage data as the significantly curtailed government agency rolls back a bevy of settlements.