Bank industry advocates, housing groups and CRA veterans say the rule is overly complexity and burdensome, but even they agree pre-approving CRA-eligible activities was a good idea.

Contract signings on new single-family homes ticked down to a 652,000 annualized rate, with the strongest demand in the West, according to a government report issued Monday.

A Redfin survey found that no matter what age demographic, owners are in a better situation to make their payments compared to renters.

As the CFPB reconsiders LO comp rules, tech remains key to retention and performance, according to the Head of Customer Experience & Operations at Floify.

Digital mortgage tools are changing the way lenders operate. These five industry-driven trends are shaping speed, compliance, and borrower expectations in 2025.

Fairly Quiet Monday Considering Last Week’s Noise

In last week’s defense, it really wasn’t that noisy, but Friday’s Jackson Hole speech and subsequent bond rally made it seem like big things were happening. In actuality, bonds were simply getting back in line with the prevailing range that was carved out after the last jobs report and we’ll probably be waiting for the next jobs report before that range is meaningfully challenged.  Between now and then, what do you do if you’re the bond market?  Answer: have days like today with minimal movement and highs/lows that were easily contained by Friday’s range (what traders refer to as “an inside day”). 

Econ Data / Events

New Home Sales 

652k vs 630k f’cast, 656k prev

Market Movement Recap

10:12 AM moderately weaker overnight and little-changed so far.  MBS down an eighth and 10yr up 2.9bps at 4.29

01:10 PM mid day gains.  MBS unchanged and 10yr up less than 1bp at 4.269

03:57 PM Heading out at just slightly weaker levels. MBS down 2 ticks (.06) and 10yr yield up 2bps at 4.28

After last week’s Jackson Hole speech from Fed Chair Powell, rates fell to their lowest levels since October 3rd, 2024, narrowly surpassing the recent long-term low seen on August 13th. Powell tacitly suggested a stronger possibility of a September Fed rate cut due to growing concerns about the labor market. Now today, the market corrected mildly back in the other direction.  The average lender’s conventional 30yr fixed rates moved back up ever-so-slightly (roughly 0.02%), but remain essentially in line with 10-month lows.  It always bears repeating that mortgage rates have much more in common with Fed rate EXPECTATIONS in the marketplace than with the Fed Funds Rate itself. Specifically, if expectations for rate cuts are increasing, mortgage rates tend to fall at the same time. The catch is that by the time the Fed ultimately holds its scheduled meeting and cuts rates, the market has long since priced that likelihood into prevailing levels. Thus, the actual Fed rate cut does little or nothing else to influence rates and the next wave of momentum takes cues from subsequent economic reports and developments.  Bottom line: the Fed Funds Rate is a battleship in a river whereas mortgage rates are far more nimble.

Last week may have ended on a high note with bonds rallying on Powell’s Jackson Hole speech, but perception was better than reality at the time. The reality was/is that Friday’s rally merely reinforced the trading range that has been ongoing since the August 1st jobs report. At the present pace and considering the econ calendar in the week ahead, we could be waiting for next jobs report before seeing a meaningful challenge to that range (roughly 4.20-4.35 in 10yr yields). This week’s key event is Friday’s PCE inflation. Even if it doesn’t tend to move markets as much as other reports, it’s important confirmation.  It’s also worth more to the Fed when it comes to making a September rate cut decision. 

Bank of Glen Burnie, which is seeking to recover from a stretch when its assets declined, hopes that its deal for a residential lender can help boost loan production.

The President said in response to a press question about Federal Reserve Gov. Lisa Cook that he would fire her “if she doesn’t resign” over allegations of claiming primary residence at two properties she owns, though the legality of such a move is unclear.