The Consumer Financial Protection Bureau sent a letter to the Government Accountability Office last week criticizing a probe into the bureau’s funding request for 2025, insisting that acting CFPB Director Russell Vought has “sole discretion” to determine funding and staffing levels.

Mortgage rates are driven by movement in the bond market and bonds take cues from economic data, among other things. The monthly jobs report is routinely the most closely watched economic report as far as bonds are concerned and Friday’s caused a significant amount of bond buying (which, in turn, pushes rates down). Friday’s reaction was so big that the average mortgage lender didn’t fully adjust their rate offerings to match the market movement. This is typical of very large swings in bonds. It also meant that we merely needed today’s bond market levels to hold steady in order for rates to continue lower and that’s exactly what happened. In fact, bonds ultimately improved just a hair, but even before that, mortgage lenders were out with their lowest rates since early October. [thirtyyearmortgagerates]

Calmly Closing at Best Levels Since April

As far as post-NFP Mondays go, this was a calm one.  Bonds never strayed too far from ‘unchanged’ and managed to close at just slightly stronger levels. For MBS, this marked the best closing levels since early April, and we’re very close to the best levels since October (a fact reflected in lender rate sheets being the lowest since October). Treasury yields aren’t doing quite as well versus April’s lows (a fact that reflects the lingering impacts of tariffs and fiscal policy on Treasury-specific demand). Actionable econ data was absent, but will return on Tuesday morning with almost all the focus being on ISM Services.

Market Movement Recap

10:39 AM Flat overnight. Early gains at 8:20am. Giving gains back now.  10yr up 0.3bps at 4.225.  MBS up 1 tick (.03).

12:12 PM recovering a bit. MBS up 3 ticks (.09) and 10yr down 1.9bps at 4.202

03:39 PM Very flat all afternoon.  MBS up 3 ticks (.09) and 10yr down 2bps at 4.201

The new week is less interesting than the previous week in terms of scheduled events with the only top tier data being Tuesday’s ISM Non Manufacturing PMI. In addition, the Treasury auction cycle may be a bit more interesting than normal in light of the recent rally and last week’s quarterly refunding details (not because the details were surprising, but because they eliminated uncertainty). After a big post-NFP rally, the following Monday is always a bit of a barometer as to the market’s level of comfort in the newfound range. In that sense, we’re learning one–possibly two things this morning. On a positive note, the ground holding in bonds tells us there are no major regrets.  On a cautious note, the absence of additional gains means we need to keep an eye on the 4.20 technical level (July 1st lows) for potential resistance.

How can we be on the waning days of summer already? Didn’t the school year just end? Here in Central Michigan at the Michigan Mortgage Lenders conference, and next week at the California MBA’s Western Secondary (with over 600 registered), an important topic is our Federal Reserve being in the crosshairs of the current president. One Federal Reserve District President resigned on Friday, rumored to be because of pressure. Is Jerome Powell right to ignore the clamoring? In the latest Thought Leadership piece, it is suggested that, “The irony is that in refusing to be the central banker everyone wants, Powell may be fulfilling the role the economy actually needs.” There is good news, however, in the abusive trigger lead front: H.R. 2808, the “Homeowners Privacy Protection Act,” is set to go before Trump. But it may not be the cure-all originators are hoping for. There are criteria (see below) so your legal team should read it before you stop advising clients to enroll in the “Do not call” list. (Today’s podcast can be found here and Sponsored by Total Expert, the purpose-built customer engagement platform trusted by hundreds of modern financial institutions. Total Expert turns customer data into actionable insights that help lenders engage and guide consumers through complex financial decisions. Hear an interview with Longbridge Financial’s Chris Mayer on HELOCs for seniors and how the mortgage industry can better serve aging homeowners.) Products, Services, and Software for Lenders and Brokers

The Senate bill would make forbearance available to homeowners directly impacted by extreme-weather events, including 2025 California wildfire victims.

The 35% levy on Canadian goods does not include any carve outs for lumber or building supplies, with their costs already rising, Cotality’s Selma Hepp said.

The decision to rejoin the CEO and chairman roles comes roughly two months after regulators removed an asset cap that had stunted the San Francisco-based company’s growth for seven years.

Employment came in below estimates, which some economists expect could move the bond market in ways that affect loan costs even before the Fed meets next.

Companies that lack artificial intelligence governance may spend hundreds of thousands of dollars more in responding to cyberattacks, IBM found.