The Federal Reserve hiked the federal funds rate by 25 bps this week. The move was already baked into mortgage rates, which aren’t expected to climb much higher even if the Fed hikes rates twice more in the next 12 months.
As originations remain subdued, warehouse lenders are focusing on market share. Chase, the top warehouse lender, reduced its footprint in the second quarter and some newer players are filling the void. (Includes data table.)
The yield on the 10-year has increased from 4.8% at the beginning of the Trump administration to above 5.0% this week, even with recent efforts by the Treasury aimed at lowering the yield, such as bond buybacks.
Earlier in his career, Jones was a staffer in the Senate and he was an associate vice president of government housing finance at the Mortgage Bankers Association from early 2023 through early 2025.
Total first-lien mortgage holdings among banks and thrifts increased by 0.7% from the end of March to the end of June. During the first quarter, the depositories slightly reduced their mortgage holdings. (Includes data table.)
Many expanded-credit MBS are performing better than Fitch Ratings’ initial expectations. The rating service also completed a review of ratings on jumbo MBS, resulting in more limited upgrade activity.
CrossCountry, Rocket boost conforming loans limits by 1.5%; UWM offers pricing incentive for jumbos; Castlelake and Redwood partner on first mortgage-backed security; CV3 on track for record originations.