10-year Treasury yield hits 5% for the first time since 2007

☕️ Good morning. It's Monday. On to the news. Today's newsletter is 569 words, 2 minutes.

1. 10-year Treasury yield hits 5% for the first time since 2007

The 10-year Treasury yield crossed 5% for the first time in 16 years, propelled by expectations the Federal Reserve will maintain elevated interest rates and that the government will further boost bond sales to cover widening deficits.

The yield increased by nine basis points, reaching 5.01%, which is the highest it's been since 2007. Last week, Fed Chair Jerome Powell noted that if the recent rise in long-term Treasury yields continues, there may be less need for additional rate hikes. However, he also stated that if a strong economy leads to higher inflation risks, they are willing to consider more rate hikes.

2. DOJ reaches $107M in redlining settlements

The DOJ announced last week that its Combating Redlining Initiative has secured over $107 million in relief for communities of color nationwide that have experienced lending discrimination by banks or other mortgage lending businesses.

As a part of the $107 million, the Department also announced a $9 million agreement with Ameris Bank to resolve allegations that Ameris engaged in a pattern or practice of redlining predominately Black and Hispanic neighborhoods in Jacksonville, Florida.

Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in or seeking to live in, communities of color because of the race, color, or national origin of the residents in those communities.

3. More nuggets

✍️ The CFPB has unveiled the open banking proposal. The rule makes it easier for consumers to share deposit account and credit card data with fintechs, the CFPB said. The bureau said future rulemaking may also include mortgage and student loan data. (CFPB)

⚖️ A class action lawsuit has been certified by a Maryland federal court against Home Point for alleged RESPA violations. The suit claims Home Point acquired a company in 2015 that was already involved in a kickback arrangement with a title company, but these practices continued a few years after the company was purchased. (Justia)

💰 Billionaires are driving South Florida home prices to new records. The average sale price of a home in Palm Beach topped $20 million in the third quarter, making it far and away the most expensive market in the country. (CNBC)

4. ADUs can now be sold separately in California

California Governor Gavin Newsom has signed into law Assembly Bill 1033. It allows ADUs (accessory dwelling units) to be sold separately from the homes they are associated with, in effect creating two- or three-unit condominiums.

The bill’s sponsor, Phil Ting (D-San Francisco), says the law opens the door to affordable homeownership by allowing these tiny homes, cottages, or casitas to be sold as condominiums. In a press release, he said this continues the momentum of California's “backyard revolution” for affordable housing.

5. Charted: The 10 markets with the biggest price decreases

Among the 100 largest housing markets, below are the top 10 markets with the biggest price increases and the 10 markets with the biggest price decreases, between September 2022 and September 2023.

☀️ See you on Wednesday!

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