Economy

The group, led by Senate Banking Chairman Sen. Sherrod Brown, said nonperforming loans sold to single family housing rental businesses or private equity firms results in the displacement of homeowners.

Repo markets and the bank deposit business, in particular, would be upended if the U.S. were to default on its debt, experts say.

But several recent news developments are creating the perception that the risk of a recession is on the wane and that could end the downward pressure on rates.

The U.S. economy expanded at a healthy pace in the fourth quarter, though an extended salvo of Federal Reserve interest-rate hikes is seen jeopardizing growth prospects this year.

Foreclosure prevention actions overall fell for the sixth time in seven months in October, according to the FHFA.

The Federal Reserve's focus on what's happening in the labor market makes an economic downturn likely, but many watching the markets expect a policy easing in the second half of the year and growth following that.

Federal Reserve Bank of New York President John Williams said officials have not completed their aggressive tightening campaign to reduce stubborn price pressures.

Generally positive news about the U.S. economy helped push rates lower, but worries about Congressional infighting over the debt ceiling could reverse the trend, Freddie Mac and Zillow said.

But lower mortgage rates and better traffic have made homebuilders a bit more optimistic, the Mortgage Bankers Association said.

Gen Zers and millennials want to "test drive" potential long-term living arrangements and neighborhoods, Javelin Strategy and Research found in a recent survey.