Bessent says housing will ‘unfreeze’ in weeks

Good morning, and welcome to another week. Today’s newsletter is 629 words, a 2.5-minute read. Let’s dive in…

1. CFPB drops TransUnion lawsuit

The CFPB on Friday dropped an enforcement action against the consumer credit bureau TransUnion, adding to the embattled agency's mass dismissal of cases against financial companies accused of cheating consumers.

However, Russell Vought, the agency's acting director, decided to continue a 2022 case against the fintech lender MoneyLion, according to a court filing. CFPB officials accuse MoneyLion of charging military service members illegally high interest rates and trapping borrowers in high-price memberships.

The CFPB had brought the TransUnion case in 2022, accusing the company and longtime executive John Danaher of violating a 2017 order against deceptive marketing practices.

2. Mortgage payments rise in January

In January, homebuyers faced worsened affordability as the median monthly mortgage payment rose to $2,205, a 3.7% jump from December’s $2,127.

Affordability declines were seen across most states. States like Idaho, Nevada, and Arizona had the highest increases in affordability strain, while Louisiana, Connecticut, and Alaska had the lowest.

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3. More Nuggets

🧊 Bessent says housing will ‘unfreeze’ in weeks, sees 2% inflation. (Bloomberg)

🤝 CoStar Group completes acquisition of Matterport. (Press Release)

📰 Musk's DOGE layoffs and Trump reforms create strife for mortgages. (NMN)

📉 Are homes values about to fall? It depends on the location. (WSJ)

4. Bill Pulte lays out vision for FHFA under Trump

Bill Pulte, nominated to lead the FHFA, outlined his vision during his Senate confirmation hearing.

He stressed that the conservatorships of Fannie Mae and Freddie Mac should not be indefinite, and any exit must be carefully planned to avoid destabilizing the housing market or increasing mortgage rates.

Pulte also voiced strong support for affordable housing, pledging to review the Housing Trust Fund’s efficiency and ensure funds are effectively used to increase low-income home construction.

He also emphasized the need to boost housing supply to reduce prices, with a particular focus on expanding the role of manufactured homes in the market.

5. Refinance activity up again in Q4

Refinancing activity increased 6.4% in Q4 2024, reaching 642,000 loans, despite rising interest rates. This marked the third consecutive quarterly rise in refinancing, bringing it to its highest level since mid-2022, though still well below the 2021 peak.

The increase in refinances was driven by homeowners locking in favorable terms before rates rose further. Refinancing accounted for a significant portion of overall mortgage activity, reflecting ongoing interest despite a broader market slowdown.

Refinancing was up in 73.8% of metro areas, with notable increases in Hilton Head, SC (+56.4%), Wilmington, NC (+48.9%), and San Jose, CA (+43.8%).

☀️ You’re all caught up. See you on Wednesday!

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