Mortgage rates fall for the 4th straight week

Good morning! Welcome to Mortgage Nuggets, the newsletter that brings you the best and latest mortgage news every Monday, Wednesday, and Friday morning.

1. Mortgage rates fall for the 4th straight week

Mortgage rates fell again this week due to expectations that the U.S. economy is slowing down. Freddie Mac's Primary Mortgage Market Survey showed the 30-year fixed-rate mortgage at 6.28% as of April 4.

Recent economic data indicates a potential loss of momentum in certain sectors, such as the industrial sector. Factory orders decreased for the second consecutive month in February.

Job openings also fell more than expected to 9.9 million. Additionally, new hires dropped to 6.1 million in February from 6.3 million in January, indicating a potential cooling of the job market.

Amidst concerns about economic growth, the demand for bonds has risen, resulting in lower yields. Consequently, the 10-year treasury yield dipped into the low 3.3% range this week, with mortgage rates following suit.

Despite the drop in mortgage rates, affordability remains a challenge for homebuyers. The monthly payment for a typical home is currently 26% higher than it was last year.

“Mortgage rates continue to trend down entering the traditional spring homebuying season,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Unfortunately, those in the market to buy are facing a number of challenges, not the least of which is the low inventory of homes for sale, especially for aspiring first-time homebuyers.”

2. FDIC to liquidate securities from failed Banks

The Federal Deposit Insurance Corporation (FDIC) plans to sell a portfolio of $114 billion in mortgage-backed securities (MBS) it retained after taking control of the failed regional banks Signature Bank and Silicon Valley Bank.

The portfolio sale, conducted by BlackRock Financial Market Advisory, “will aim to minimize the potential for any adverse impact on market functioning by taking into account daily liquidity and trading conditions,” the FDIC said.

Both banks suffered a liquidity crisis amid a deposit run. They carried short-term deposit risk against a longer-term investment portfolio. Ultimately, the banks were unable to sell their assets to cover customer withdrawals.

The FDIC's sale of the MBS portfolios may reduce MBS prices, and other banks facing liquidity issues could potentially follow suit.

3. More Nuggets

✍️ San Francisco's Board of Supervisors has introduced two measures to encourage the conversion of vacant office buildings into housing, in response to the city's record high office vacancies of 29.5%. (Axios)

🍫 ION: Chocolate is king for Easter, and America’s favorite candy is Reese’s Peanut Butter Eggs, according to data from Instacart.

⚖️ loanDepot Inc. announced late Tuesday a settlement in its proxy fight with Chairman Anthony Hsieh, agreeing to end the fight while also expanding the board of directors by immediately adding Hsieh’s nominee. (loanDepot)

🏘️ Black Knight's Optimal Blue has added a "product comparison" feature to its Loansifter pricing and eligibility engine, which provides a side-by-side comparison of various mortgage options for brokers to offer clients with their own brand elements. (NewsWire)

4. Fannie Mae, Freddie Mac expand plans for equitable housing

Fannie Mae and Freddie Mac have announced updates to their equitable housing finance plans to increase accessible and affordable housing for underserved communities.

Fannie Mae will expand pilot programs, launch new initiatives, and apply new research to improve its consumer housing journey roadmap.

Freddie Mac will expand special purpose credit programs (SPCPs), increase the availability of accessory dwelling units and manufactured homes, and launch a correspondent lending program to assist smaller financial institutions with access to Freddie Mac’s multifamily financing.

Freddie Mac's DPA One, a down payment assistance digital platform, will also be made widely available this year.

5. Charted: The Texas triangle

The Texas Triangle, between Houston, Dallas, and San Antonio, contains 75% of Texans. Tomas Pueyo explains.

Also, do I see three high-speed rail lines that will never happen?

☀️ Have a great weekend; see you on Monday!

🎥 1 fun thing: A road rage incident between two strangers — a failing contractor and an unfulfilled entrepreneur — sparks a feud that brings out their darkest impulses. (Netflix)

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