Mortgage rates aren’t expected to move down much even if the Fed cuts interest rates next month; GSE economists slash projections for home price appreciation; ICE integrates origination and servicing platforms to originate home equity loans; majority of homeowners feeling financially stressed.
President Trump said he plans to maintain an implicit guarantee for the GSEs if they’re removed from conservatorship. Prominent agency MBS investors expressed relief about the administration’s stance on GSE reform even though they don’t expect near-term action.
Many of the top five servicers had declines in either owned servicing or primary servicing during the second quarter of 2025. Much of the market share lost by the largest firms stayed within the top 25. (Includes three data tables.)
The Mortgage Bankers Association and other groups supported the wide-ranging bill which is aimed at housing affordability. MBA, though, raised some concerns about appraisal reforms included in the package.
The Federal Reserve and Treasury Department are on a path to reducing capital requirements for banks, large and small. The motivation includes the shift seen in mortgage lending toward nonbanks following the 2008 crisis.
The MBA projects that the average interest rate for a 30-year fixed-rate mortgage will decline from 6.8% in the second quarter of 2025 to 6.6% in the second quarter of 2026.
“As we take the next steps to quickly and responsibly implement a VA partial claim program, we expect servicers to continue to offer Veterans a full array of loss mitigation options,” VA’s loan guaranty service said.
“There is still plenty of uncertainty surrounding the economy and job market, which is weighing on prospective homebuyers’ decisions,” said Joel Kan, a vice president and deputy chief economist at the MBA.