Mortgages

Mortgage rates should decline very gradually next year as the Federal Reserve will keep to its implied path of short-term rate reductions, Freddie Mac said.

The watchdog accuses Rocket Homes and The Mitchell Group brokerage of initiating a plan to generate origination business for Rocket Mortgage.

Over the past two weeks, the 10-year Treasury yield, priced on market expectations, increased over 40 basis points and that is finally being seen in the Freddie Mac survey.

Nonagency issuances are expected to increase 85% for this year over 2023, and rise another 36% in 2025, the second best since the financial crisis.

Mortgage originators should expect more of those interest rate dips that took place in September, but when they happen is the unknown factor, economists said.

The proposal is one of several that aims to address difficulties managing early buyouts from mortgage-backed securities pools.

The second-lien loans face low recovery post-default, especially if home prices drop.

But the Federal Housing Administration program was the only mortgage loan type to gain market share month-to-month as measured by rate lock percentage.

The company's closure comes in a year when it touted successful capital investments but also faced growing legal scrutiny.

The share of underwater mortgages also grew for the first time in almost two years during the third quarter, Corelogic found.