Economy

Rising interest rates could force some community banks to fall below a critical capital threshold that the Federal Housing Finance Agency uses to determine eligibility for Home Loan bank advances.

And rising rates caused the government-sponsored enterprise to cut its forecast for this year.

Dozens of community bankers and housing experts offered their opinions on the Federal Home Loan Bank System, the first review in nearly 100 years. But the insurers, nonbanks and megabanks that use the system the most were largely absent from the debate.

Fannie Mae's sentiment index is at its lowest point since October 2011, as more consumers think prices will go down than those that expect them to rise.

But that was not enough to offset the fourth consecutive monthly decline in total nonbank industry jobs, according to the Bureau of Labor Statistics.

The number of sellers discounting their original listing grew by over 83% year over year, according to HouseCanary.

The decline ended a six-week streak of increases, but given the latest moves in the 10-year Treasury yield, rates are likely to soon rise again.

The new chief executive comes to the government-sponsored enterprise from national nonprofit Enterprise Community Partners and previously held management roles at JPMorgan Chase.

The Federal Housing Finance Agency got an earful from housing experts at a listening session intended to aid a comprehensive review of the financing system.

The 30-year fixed rate is now at levels last seen in the summer of 2007, according to data from Freddie Mac.