Interest rates on mortgages are elevated, suppressing demand. Short periods of declines in interest rates have prompted surges in loan applications. The question remains: When will interest rates do down?

Mortgage bankers are hoping for a strong May and June to tide them over.

Economists at the MBA don’t think interest rates on mortgages will decline much this year. Economists at Fannie Mae project a sizeable drop.

FOMC holds federal funds rate steady; MBA expects rate cut later this year; House committee votes to slash CFPB’s budget.

Hearing scheduled for May 16 to analyze massive layoffs at CFPB; Fannie economists slightly lower forecast for mortgage rates; Horizon Bank sells warehouse unit for a profit.

Residential lending increased by 10.9% compared with the first quarter of 2024. Interest rates on mortgages jumped this month, hampering production early in the second quarter. (Includes two data tables.)

Demand from borrowers increases when mortgage rates fall below 6.5%, according to Owen Lee, CEO of Success Mortgage Partners. Due to policies from the Trump administration, it’s unclear whether rates will decline to that level in the near term.

The spring homebuying season might not be as strong as initially expected. Interest rates are challenging and employment trends are faltering, reducing demand for purchase mortgages.

Market indicators suggest the Federal Reserve could cut rates three times this year while the MBA anticipates only one rate cut. A REIT that invests in agency MBS and servicing is shunning MSR for the moment.

A Fannie Mae index that measures housing sentiment declined on an annual basis in February, marking the first annual decline in housing sentiment since 2023.