Mortgage rates

With the growth in the use of government products, further increases in late payment rates over the coming year are likely, ICE Mortgage Technology said.

The 30-year fixed rate mortgage fell back under 7% this week, the Freddie Mac survey found. But Treasury yields started rising again in recent days.

Higher mortgage rates will persist through 2026, affecting sales and refinancings. Those expectations led Fannie Mae to cut its volume outlook for the next two years.

A gauge of the outlook for home purchases over the next six months dropped 6 points to 60, the first decline since June, according to the NAHB and Wells Fargo.

The 30-year fixed rate mortgage topped 7% for the first time since last May, although late in the week, the 10-year Treasury peaked before reversing course.

For those unsettled by the relentless rise in government bond yields in the US and across much of the world lately, the message from markets is getting clearer by the day: Get used to it.

Mortgage lenders increased their offerings of adjustable-rate and cash-out refinance loans in December as rates rose, the Mortgage Bankers Association said.

The 30-year fixed rate mortgage continues to close on the 7% mark. With political uncertainty and the U.S. economy remaining strong, it could keep going up.

In the US, the 10-year Treasury yield rose as high as 4.73% Wednesday, pushing it toward the 5% peak hit in October 2023, before pulling back down.

Keefe, Bruyette & Woods expects a better year for originations than either Fannie Mae or the Mortgage Bankers Association, although volume will remain below the norm.