Freddie Mac

Mortgage rates tumbled to lows not seen since November 2016 as benchmark 10-year Treasury yields continue to decline due to investors' uncertainty over trade and the economy, according to Freddie Mac.

Increased consumer debt and the threat of an economic downturn increase the default risk for government-sponsored enterprise mortgages during the first quarter, according to Milliman.

A gradual approach would help the market absorb loans affected by the government-sponsored enterprises' expiring qualified mortgage exemption, a Redwood Trust executive told analysts during a recent earnings call.

Many in the industry say releasing GSE-backed loans from stringent underwriting rules has helped the housing market recover, but a new level of regulatory burden could reverse those gains.

Fannie Mae's current tack could help it weather some of the new challenges confronting the government-sponsored enterprises, including the planned expiration of its qualified mortgage rule exemption and rate-driven earnings volatility.

The Federal Housing Administration is aiming to limit the share of borrowers who have been withdrawing money from the value of their homes.

Mortgage rates were unchanged from last week, but going forward, they are likely to decline following investors' reaction to the Federal Open Market Committee's July 31 short-term rate cut announcement.

Freddie Mac continues to churn out steady financial returns, with the growth in first-time home buyers and credit risk transfers providing the GSE stable footing when a recession comes, according to new CEO David Brickman.

Any growth in housing starts and home sales in the second half of 2019 will be muted by continuing inventory constraints and rising home prices, according to Freddie Mac.

Some believe the administration will delay action on Fannie Mae and Freddie Mac to avoid any political fallout. Others say the window for reform is closing.