Mortgage rates ease to two-month lows

Plus: Families now spend 38% of their income on mortgage payments—76% for low earners

February 21, 2025

🌇 Another week finished! Today's newsletter is 661 words, a 2½-minute read.

Disclaimer: Average mortgage rates as of Feb 20, 2025. © MND Daily Rate Index.

1. Mortgage rates ease to two-month lows

Mortgage rates fell Thursday, with the average lender returning to levels last seen over two months ago. The move followed comments from Treasury Secretary Scott Bessent on potential shifts in government debt issuance, which weighed on bond markets and pushed yields lower.

Mortgage rates track movements in mortgage-backed securities, which are closely tied to U.S. Treasuries. As yields declined, mortgage rates followed suit, though the drop remained modest.

Rates were already near recent lows, limiting the scope of further declines. A more substantial move lower would likely require clearer evidence of easing inflation or a downturn in economic data in the coming weeks.

2. Families now spend 38% of their income on mortgage payments—76% for low earners

Mortgage payments on a median-priced new home now consume 38% of a typical U.S. family’s income, while low-income households must spend 76%, according to the latest NAHB/Wells Fargo Cost of Housing Index (CHI).

Existing homes show a similar strain, at 37% and 74%, though affordability improved slightly in Q4 as prices declined 2%.

Least Affordable Markets

  • San Jose, CA – 87% of income

  • Honolulu, HI – 74%

  • San Diego, CA – 69%

  • San Francisco, CA – 69%

  • Naples, FL – 65%

Most Affordable Markets

  • Decatur, IL – 16% of income

  • Cumberland, MD – 17%

  • Springfield, IL – 17%

  • Elmira, NY – 19%

  • Peoria, IL – 19%

A MESSAGE FROM TRUST & WILL

Your legacy is too important to leave to chance.

Trust & Will makes estate planning simple, fast, and affordable. In just a few easy steps, create a legally valid, state-specific will, trust, or healthcare directive from the comfort of your home. Start now for just $199 and gain peace of mind knowing your legacy is protected.

3. More Nuggets

🏡 How your home can shelter you from taxes. (The Wall Street Journal)

🧑‍⚖️ Judge rules Trump can move ahead with mass government layoffs. (The Hill)

📉 Mortgage demand for new homes is down 6% in the past year. (MBA)

💸 Rocket offering renters up to $5K in closing credits. (RocketNews)

🗞️ Snapdocs becomes first eVault provider to get MISMO certification. (Yahoo)

💥 The Mortgage Nuggets Email Marketing program got me 3 referrals just last week—from Realtors I didn’t even know!

Also, tune in for what another LO said about the emails and how they’re helping his business! (Watch the video)

— Dave Krichmar CEO

4. Fair housing nonprofit sues Trump, Scott Turner, HUD over ‘DEI’ executive orders

Three civil rights nonprofits, including the National Fair Housing Alliance, have sued President Trump, HUD Secretary Scott Turner, and 12 federal agencies, alleging the administration’s DEI-related executive orders violate the First and Fifth Amendments.

The lawsuit claims eliminating federal DEI grants, including those from HUD, hinders their ability to advance civil rights. Plaintiffs also argue the administration is violating the Fair Housing Act by broadly categorizing DEI initiatives as illegal.

Trump’s DEI orders removed federal grants, contracts, and positions tied to race, gender, and sexual orientation initiatives. The impact extends to HUD, FHFA, Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.

5. Synergy One expands into Louisiana with top-producing branch

Synergy One Lending, a San Diego-based retail lender, is strengthening its footprint in the South with the addition of a high-performing Louisiana branch, as first reported by National Mortgage News.

The mortgage lender is in the process of onboarding the Louisiana-based team, which will contribute nearly $300 million in annual production, according to a company press release.

With the addition of more than three dozen employees, Synergy One’s workforce will exceed 400 loan officers, according to the Nationwide Multistate Licensing System. This marks a 50% increase in originator staff compared to the same time last year.

A MESSAGE FROM RUNDOWN AI

Learn how to make AI work for you

AI won’t take your job, but a person using AI might. That’s why 1,000,000+ professionals read The Rundown AI – the free newsletter that keeps you updated on the latest AI news and teaches you how to use it in just 5 minutes a day.

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

🚀 Wanna help our newsletter grow? Forward it to a friend or colleague.

Would you like to receive a ready-to-send weekly marketing email for your realtors and/or clients? Start your 30-day free trial here.

Was this email forwarded to you? Subscribe here.

Interested in advertising to 40k+ loan officers? Get in touch.