Economy

The Fannie Mae Home Purchase Sentiment's February drop is looking like a precursor for what might be a difficult 2025 Spring homebuying season.

Federal Reserve Gov. Christopher Waller said the Founding Fathers supported independent money management and undoing it now would be a mistake.

For the four weeks ended March 2, pending sales were down 6.4% annually as prices continued to rise, pushing borrower monthly payments near their all-time high.

Other trackers like Zillow and Lender Price on Thursday morning have the 30-year fixed moving higher, following a jump in the benchmark 10-year Treasury yield.

A March 2025 survey by the National Association for Business Economics shows growing inflation concerns — and a diminishing chance of rate cuts — in 2025, but also optimism about avoiding a recession.

Treasury Secretary Scott Bessent expects the U.S. housing market to quickly pick up steam after recent indicators came in below forecasts.

Tariff and layoff worries are leading some to reconsider pending deals, but a surplus of existing homes now has other buyers backing out as well, Redfin said.

Treasury Secretary Scott Bessent wants to focus on bringing down long-term interest rates, not the overnight ones set by the Federal Reserve.

The Federal Reserve's preferred inflation index showed little progress toward its target of 2%, increasing the likelihood of a prolonged rate pause.

The 30-year conforming fixed-rate mortgage is at its lowest point since the end of December, as Treasury yields are 29 basis points lower since Feb. 19.

The potential impacts of import tariffs cloud the outlook, though, and could lead mortgage rates to surge and fall throughout the coming year.

While Freddie Mac's weekly survey showed 30-year rates falling, other indicators paint a mixed picture for mortgage lenders and borrowers.

Foreclosure filings increased 7% in January from December, which could be a housing market starting to experience trouble, or a post-holiday return to normal.

Federal Reserve Chair Jerome Powell said insurance companies and banks are already pulling out of disaster-prone areas, which could pose problems.

Most participants in a monthly Wolters Kluwer survey no longer think the next short-term rate reduction will be in March.

While mortgage employment is lower year-over-year, the mixed bag of data makes it more likely that borrowing rates will remain higher for longer.

"Anything that is done around a safe and sound release is going to hinge on the effect of long-term mortgage rates," Bessent said. 

The 30-year fixed rate mortgage continues to slip away from the 7% mark, Freddie Mac said, but experts still expect them to stay higher for longer.

With the Federal Reserve eyeing changes to its annual examination of large bank resilience, this year's test could be the last of its kind.

Completed foreclosure auctions should be 8% lower this year, but if home value and unemployment expectations change, all bets are off, Auction.com said.