La vendita allo scoperto per VanEck Mortgage REIT Income ETF dà agli investitori un'idea del grado in cui gli investitori stanno scommettendo sul declino delle azioni di VanEck Mortgage REIT Income ETF. I dati relativi alle vendite allo scoperto vengono aggiornati ogni due settimane.

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The fund normally invests at least 80% of its total assets in securities that comprise the funds benchmark index. The Mortgage REITs Index may include small-, medium- and large-capitalization companies. The fund is non-diversified.

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President-elect Donald Trump announced plans Thursday to nominate private equity CEO Bill Pulte as director of the <a href="https://www.benzinga.com/topic/housing">Federal Housing Finance Agency (FHFA)</a>. 
What To Know: If Trump&#8217;s selection is confirmed, Pulte will become the top housing regulator, overseeing mortgage giants Fannie Mae (OTCQB:<a class="ticker" href="https://www.benzinga.com/stock/FNMA#OTCQB">FNMA</a>) and Freddie Mac (OTCQB:<a class="ticker" href="https://www.benzinga.com/stock/FMCC#OTCQB">FMCC</a>), which have been in conservatorship since the 2008 financial crisis.
The FHFA is expected to play an integral role in anticipated efforts to return the mortgage giants to the private sector, according to Reuters. 
Trump reportedly took steps to try to remove Fannie Mae and Freddie Mac from government control during his first term. Removing the mortgage giants from conservatorship is expected to be a priority for Trump in his upcoming administration. 
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43035888/donald-trump-reportedly-open-to-us-crypto-reserve-as-bitcoin-reserve-chatter-gathers-steam">Donald Trump Reportedly Open To US Crypto Reserve As Bitcoin Reserve Chatter Gathers Steam</a>
Pulte is the grandson of William Pulte, founder and chairman of U.S. homebuilder PulteGroup.&nbsp;He&#8217;s also known for his philanthropy on social media platform X, where he often gives away money to people in need of financial help.
&#8220;Bill needs no formal introduction to the Great Citizens of our Country, because they have seen, and many have experienced, his philanthropy firsthand. He believes in the incredible potential of our Nation, and will help us restore the American Dream FOR ALL,&#8221; Trump said in a <a href="https://truthsocial.com/@realDonaldTrump/posts/113838912162964211">post</a> on Truth Social. 
Shares of Fannie Mae were down nearly 10% and shares of Freddie Mac were lower by more than 11% at last check, according to <a href="http://pro.benzinga.com">Benzinga Pro.</a> 
Despite Thursday&#8217;s declines, Fannie and Freddie are both up close to 300% over the past three months in anticipation of Trump&#8217;s return to the White House.
Meanwhile, the VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) and IShares Residential And Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>) were both up about 1% at the time of writing. Names like UWM Holdings Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UWMC#NYSE">UWMC</a>) and Rocket Companies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RKT#NYSE">RKT</a>) were also higher, last up 2.63% and 0.82%, respectively.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/bonds/25/01/43026749/trumps-tax-cut-plans-could-be-derailed-by-soaring-bond-yields-warns-gop-mortgage-credit-card-rates-auto-loan-are-going-to-continue-to-go-up">Trump&#8217;s Tax Cut Plans Could Be Derailed By Soaring Bond Yields, Warns GOP: &#8216;Mortgage&#8230;Credit Card Rates&#8230; Auto Loan Are Going To Continue To Go Up&#8217;</a></li>
</ul>
Photo: Courtesy of the Library Of Congress.

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UWMC

Trump Taps Private Equity Investor Bill Pulte To Lead Federal Housing Finance Agency

The U.S. mortgage market hit a speed bump last week as rising interest rates pushed application activity lower, breaking a <a href="https://www.benzinga.com/news/econ-s#:~:text=Econ%20%23s%20Recent%20News&amp;text=Markets%20are%20fully%20priced%20in,impact%20monetary%20policy%20for%202025.&amp;text=US%20private%20sector%20ended%202024,Manufacturing%20sector%20still%20in%20contraction.">five-week streak of growth.</a>
According to the Mortgage Bankers Association (MBA), total mortgage applications decreased 0.7% for the week ending Dec. 13, 2024, signaling persistent challenges for buyers and homeowners navigating high-rate environments.
The average interest rate for 30-year fixed-rate mortgages on conforming loan balances — up to $766,550 — rose from 6.67% to 6.75%, snapping three consecutive weeks of marginal declines.
"Mortgage rates increased last week, leading to overall mortgage application activity decreasing for the first time in five weeks,&#8221; said Joel Kan, MBA's vice president and deputy chief economist.
&#8220;Buyers remained active in the purchase market, helped by gradually improving inventory conditions and a more positive outlook on the economy and job market,&#8221; he added.
The Mortgage Refinance Index fell 3% from the previous week, but still remained 41% higher than the same period in 2023. VA refinance applications plunged 17%, offsetting gains seen in prior weeks.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Loan Type</th>
<th>Avg. Rate (%)</th>
<th>Change (bps)</th>
<th>Points</th>
</tr>
</thead>
<tbody>
<tr>
<td>30-Year Fixed (Conforming)</td>
<td>6.75%</td>
<td>+8</td>
<td>0.66</td>
</tr>
<tr>
<td>30-Year Fixed (Jumbo)</td>
<td>6.86%</td>
<td>+7</td>
<td>0.61</td>
</tr>
<tr>
<td>30-Year Fixed (FHA)</td>
<td>6.49%</td>
<td>+2</td>
<td>0.79</td>
</tr>
<tr>
<td>15-Year Fixed</td>
<td>6.15%</td>
<td>+3</td>
<td>0.71</td>
</tr>
<tr>
<td>5/1 Adjustable-Rate Mortgage</td>
<td>6.03%</td>
<td>+22</td>
<td>0.48</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: MBA</figcaption></figure>
<h3 class="wp-block-heading">Housing Affordability: Renting vs. Owning</h3>
Mortgage rates remain near 7%, while home prices have risen in all 97 major U.S. cities. 
Bank of America examined the rent-versus-buy dilemma in 97 U.S. cities in a note to clients on Wednesday.
The result? In places like San Francisco, Los Angeles, and San Jose, mortgage payments now account for a staggering 60-70% of median family income, making renting the clear budget-friendly option, according to the investment bank. 
&#8220;Regionally, it is still cheaper to rent than purchase for 82 out of 97 major cities in the US,&#8221; analyst Jeseo Park wrote. 
New Orleans, Pittsburgh, and El Paso are among the cities where it&#8217;s cheaper to own than rent.
"The housing market is still stuck between high mortgage rates and low inventories," said Park. 
"We've seen some relief with the Federal Reserve starting to ease monetary policy, but rates are unlikely to fall dramatically in the near term. Buyers should expect only mild improvements next year," she added. 
With the mortgage spread hovering around 2-2.5 percentage points and Bank of America analysts forecasting a 10-year yield of 4.25% in 2025, mortgage rates are expected to stay around 6-6.5% next year. 
&#8220;Given that many homeowners locked in low rates during Covid, a mortgage rate above 6% would still be too high to promote significant activity,&#8221; Park stated. 
<h2 class="wp-block-heading">Market Reactions</h2>
The iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>) edged up 0.1% on Wednesday, following twelve losses in the past thirteen sessions.
The VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) climbed 0.5%, recovering from a 1.3% decline on Tuesday.
Stocks within the industry saw minimal movement as markets adopted a cautious, wait-and-see stance ahead of the upcoming Federal Reserve meeting.
Hannon Armstrong Sustainable Infrastructure Capital Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HASI#NYSE">HASI</a>) and New York Mortgage Trust, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NYMT#NYSE">NYMT</a>) were among the top gainers in the MORT ETF, rising 1.8% and 1.2%, respectively. Meanwhile, Ares Commercial Real Estate Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) was among the laggards, slipping 0.9%.
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<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42554114/all-eyes-on-december-fed-meeting-as-traders-await-interest-rate-projections">All Eyes On December Fed Meeting As Traders Await Interest Rate Projections</a></li>
</ul>
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Mortgage Applications Dip As Rates Climb: 'It Is Still Cheaper To Rent Than Purchase For 82 Out Of 97 Major Cities'

A recent surge in mortgage rates is weighing heavily on homebuyers, causing a sharp and sustained drop in mortgage <a href="https://www.benzinga.com/money/mortgages">applications across the U.S. </a>
This downturn marks the fourth consecutive weekly decline, signaling growing pressure from elevated borrowing costs.
<h3 class="wp-block-heading">Mortgage Applications Plummet for Fourth Straight Week</h3>
For the week ending Oct. 18, mortgage applications in the U.S. tumbled by 6.7%, extending a 17% plunge from the previous week, according to data shared Wednesday by the Mortgage Bankers Association.
This represents the fourth straight week of contraction in mortgage demand, as the recent uptick in interest rates to two-month highs has increasingly discouraged potential buyers from entering the housing market.
Notably, applications to refinance existing home loans, which tend to be more sensitive to short-term interest rate changes, dropped 8.5% for the week, extending a prior 26% plunge. Applications for new home purchases also declined by 5%, reflecting a broader weakness in housing market activity.
The drop in activity coincides with a significant rise in key interest rates, driven by robust economic data and market expectations of a less accommodative stance by the Federal Reserve for the rest of 2024.
<h3 class="wp-block-heading">Mortgage Rates Remain Elevated</h3>
The average interest rate for a 30-year fixed-rate mortgage with conforming loan balances (up to $766,550) remained stable at 6.52%, close to its two-month high.
For larger loans (jumbo mortgages, which cover amounts above $766,550), the rate edged down slightly to 6.73%, a marginal drop of 3 basis points from the previous week.
Last week, Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association, highlighted, &#8220;Demand is holding up to an extent for prospective first-time buyers. The recent uptick in rates has put a damper on applications.&#8221;
Mortgage rates have surged in tandem with rising long-term Treasury yields, which had been steadily climbing before leveling off last week.
The rising trend in Treasury yields resumed this week, further clouding the outlook for mortgage demand. 
Yields on 30-year Treasury bonds have jumped by over 10 basis points to 4.5% as of Wednesday. Given that Treasury yields serve as a key benchmark for mortgage rates, any further increases could intensify pressure on already weakened mortgage demand.
<h3 class="wp-block-heading">Impact On Mortgage-Related Stocks</h3>
The cooling of the housing market is also evident in the declining performance of mortgage-related stocks.
Both the iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>) and the VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) have seen significant declines, falling for two consecutive days this week. 
Since their highs in September, both ETFs have shed about 8-9% in value, underscoring the negative impact of declining demand in the market performance of mortgage real estate investment trusts (REITs).
The popular iShares 20+ Year Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NYSE">TLT</a>), which tracks long-term Treasury bonds, has dropped 2% for the week and is down 9.5% from its late September levels. 
Looking ahead, market participants remain focused on the Federal Reserve&#8217;s next move. 
The CME FedWatch tool, which tracks market-implied expectations for Federal Reserve policy, shows an 87% chance that the central bank will cut interest rates by 25 basis points at its next meeting on Nov. 7.
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REIT

Bonds

Treasuries

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iShares Trust Barclays 20+ Year Treasury Bond Fund

Mortgage Applications Fall For Fourth Straight Week As High Rates Squeeze Homebuyers

A sharp reversal in mortgage rates has taken U.S. homebuyers by surprise, leading to the largest drop in weekly <a href="https://www.benzinga.com/money/mortgages">mortgage applications since mid-August. </a>
The sudden uptick in rates adds pressure to an already challenging housing market, where affordability and supply are becoming increasingly elusive for prospective buyers.
<h3 class="wp-block-heading">Mortgage Rates Climb To Highest Levels Since August</h3>
The average interest rate for a 30-year fixed-rate mortgage on conforming loans (under $766,550) jumped 22 basis points to 6.36% in the week ending Oct. 4, according to the latest Mortgage Bankers Association (MBA) report.
This marks the highest level since August and represents the largest weekly jump in 30-year rates since April 2024.
For context, just a week earlier, the average rate stood at 6.14%, a level that mirrored the lows seen back in September 2022. This sudden surge in borrowing costs has cooled demand as mortgage rates climbed in tandem with Treasury yields.
In the same week, rates for jumbo loans (those exceeding $766,550) also rose, hitting 6.64%, a 14-basis-point increase from the previous week.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="585" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/09081807/image-62-1024x585.png" alt="" class="wp-image-587532" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/09081807/image-62-1024x585.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/09081807/image-62-300x171.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/09081807/image-62-768x439.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/09081807/image-62-1536x878.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/09081807/image-62.png 1890w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Mortgage Applications Drop Across The Board</h3>
As a result of the spike in mortgage rates, the demand for home loans sharply declined. 
Overall mortgage applications dropped 5.1% in the first week of October, extending the previous week&#8217;s 1.3% decline. This back-to-back pullback trimmed a significant portion of the nearly 30% increase in mortgage demand seen in September.
Applications for home refinancing, which are more sensitive to short-term rate changes, plummeted by 9% from the previous week.
<h3 class="wp-block-heading">Jobs Report Sparks Rethink On Interest Rates</h3>
The primary driver of the recent rate spike was the unexpectedly robust September jobs report, which exceeded market expectations and pushed Treasury yields higher.
Last month, the U.S. economy added 254,000 nonfarm payrolls, well above the forecasted 140,000. Furthermore, the unemployment rate dipped to 4.1%, while wages grew faster than anticipated, signaling a labor market that remains hotter than expected.
"Across every dimension, the September employment report showed a job market that was stronger than expected," said Mike Fratantoni, chief economist at the MBA. 
He added that while the data could support a &#8220;soft landing&#8221; for the economy, it also raises concerns about inflation&#8217;s persistence. The strong labor market suggests the Federal Reserve may not need to cut rates as quickly as many had hoped.
<h3 class="wp-block-heading">Market Reactions: Treasury Yields Spike, Mortgage-Linked Stocks Fall</h3>
Following the strong jobs data, traders revised their expectations for Federal Reserve policy. 
Before the report, many had anticipated a potential back-to-back 50-basis-point rate cut in November. However, the latest labor developments have completely wiped out those expectations.
Investors are currently assigning an 87% chance of a 25-basis-point cut, while the remaining odds are for a no-rate cut scenario, as per the CME FedWatch tool.
The 30-year Treasury yield, which often serves as a barometer for mortgage rates, jumped by 15 basis points last week to 4.30%. Meanwhile, the 10-year yield also breached the 4% threshold, something investors hardly expected just weeks after a sizable Fed rate cut.
Mortgage-linked stocks took a hit, pressured by rising bond yields. The VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) dropped nearly 5% last week and is down an additional 0.8% this week. Meanwhile, the iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>) slid almost 3% last week and has fallen another 1% so far this week.
<h3 class="wp-block-heading">Mortgage Rates Outlook: What's Next?</h3>
Looking ahead, the MBA forecasts that longer-term rates, including mortgage rates, will stay within a relatively narrow range over the next year. 
Though this recent spike has brought rates to the higher end of that range, the MBA predicts mortgage rates will remain close to 6% for much of the next 12 months.
However, any future surprises in inflation or economic data could disrupt this outlook. If Treasury yields continue to rise, mortgage rates may follow suit, further straining affordability for homebuyers and applying more downward pressure on housing demand.
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Mortgage Rates Make Dramatic U-Turn, Freezing Homebuyers: Applications Fall 5% As Markets Rethink Fed Policy

American homeowners and prospective buyers had been biding their time, waiting for a decisive move from the Federal Reserve to <a href="https://www.benzinga.com/money/mortgages">reignite the mortgage market. </a>
That moment came on Sept. 18, when the Fed&#8217;s large and unexpected 50-basis-point rate cut—bringing the target range to 4.75%-5%—opened the floodgates for mortgage refinancing and home purchases.
According to the Mortgage Bankers Association (MBA), applications jumped 11% in the week ending Sept. 20, building on the previous week's 14.2% surge and pushing activity to its highest level since June 2022.
The spike in demand has closely followed the broader trend in benchmark mortgage rates. The average rate on a 30-year fixed — often the go-to option for American homebuyers — fell to a <a href="https://www.benzinga.com/topic/interest-rates">two-year low of 6.13%.</a>
<h3 class="wp-block-heading">Refinancing Boom: Time To Seize Mortgage Moment</h3>
The surge of activity was particularly elevated in refinancing, which had been dormant amid years of high borrowing costs. 
Refinancing applications soared by 20% last week, as homeowners moved quickly to lock in lower rates and cut their monthly mortgage payments. 
The refinance application index has rallied to levels last seen in late March 2022. Lower mortgage rates can directly translate into lower monthly payments for millions of Americans, making refinancing an appealing option. For example, a homeowner with a $300,000 loan at a 7% rate could save around $300 per month if they refinance into a 6% loan. 
Historically, periods of falling interest rates have coincided with stronger home-buying activity, and this time appears to be no different.
"Mortgage rates likely had this cut — and this expected rate path — priced in, and lower mortgage rates, now close to 6%, have resulted in much more refinance and some additional purchase activity in recent weeks," said Mike Fratantoni, MBA&#8217;s senior vice president and chief economist.
&#8220;If mortgage rates remain near these levels, it will support a stronger-than-typical fall housing market, and next spring could see a real rebound in activity," he added. 
The Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>), which tracks the broader real estate sector, was flat in premarket trading following the news. Similarly, the iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>), which has more direct exposure to the housing market, held steady. 
Meanwhile, the VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) saw a slight uptick of 0.5%. 
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Analyst Color

Mortgage Demand Soars As Fed Interest Rate Cut Fuels Housing Market Revival: 'Next Spring Could See A Real Rebound'

Mortgage rates continue to <a href="https://www.benzinga.com/news/24/09/40921345/mortgage-rates-drop-to-2-year-low-refinancing-hits-fastest-pace-since-2022-rocket-lendingtree-among">fall toward 6%</a> as the housing market absorbs the Federal Reserve&#8217;s 0.5% rate cut on Wednesday, raising demand for refinancing and buying, stated Freddie Mac.
The average rate for a 30-year fixed mortgage fell to 6.09% on Thursday, down from 6.2% a week ago and 7.19% a year earlier, according to Freddie Mac&#8217;s Primary Market Mortgage Survey.
The rate for a 15-year fixed mortgage declined to 5.15%, down from 5.27% a week ago and 6.54% a year earlier.
"Mortgage rates continued declining towards the six percent mark, reviving purchase and refinance demand for many consumers," said Sam Khater, Freddie Mac's chief economist.
Read Also:<a href="https://www.benzinga.com/top-stories/24/09/40923657/single-family-housing-starts-are-up-as-mortgage-rates-decline-fed-eyes-lower-rates"> Single-Family Housing Starts Are Up As Mortgage Rates Decline, Fed Eyes Lower Rates</a>
"While mortgage rates do not directly follow moves by the Federal Reserve, this first cut in over four years will have an impact on the housing market. Declining mortgage rates over the last several weeks indicate this cut was mostly baked in, but we expect rates to fall further, sparking more housing activity."
Exchange-traded funds that hold mortgage stocks are sensitive to mortgage rates because they primarily invest in mortgage-backed securities (MBS) or mortgage-related assets, which are directly impacted by changes in interest rates.
<ul>
<li>IShares Mortgage Real Estate ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/REM#BATS">REM</a>) rose 0.82%</li>
<li>VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) went up 0.74%</li>
<li>IShares MBS ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MBB#NASDAQ">MBB</a>) ticked up 0.06%</li>
</ul>
IShares Mortgage Real Estate ETF holds 15.2% of the REIT, Annaly Capital Management, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NLY#NYSE">NLY</a>), while VanEck Mortgage REIT Income ETF holds 11.1%.
Read Now:
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<li><a href="https://www.benzinga.com/markets/24/09/40817001/mortgage-rates-fall-to-lowest-level-since-february-2023">Mortgage Rates Fall To Lowest Level Since February 2023</a></li>
</ul>
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Mortgage Rates Near 6%, Demand Increases For Refinancing, Purchases

Mortgage rates declined to <a href="https://www.benzinga.com/real-estate/24/08/40666981/the-time-has-come-to-adjust-cheaper-mortgage-rates-could-be-just-weeks-away-but-it-all-hinges-on-thi">their lowest point </a>in more than 18 months last week, encouraging homebuyers to refinance the amount they have left on their home loans.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.29 percent from 6.43 percent, marking the sixth straight week in declining rates, according to the Mortgage Bankers Association (MBA).
The average interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) decreased to 6.56% from 6.73%.
Read Also: <a href="https://www.benzinga.com/top-stories/24/07/39621351/mortgage-applications-fall-as-rates-climb-back-above-7">Mortgage Applications Fall As Rates Climb Back Above 7%</a>
The average rate for 15-year fixed-rate mortgages decreased to 5.71% from 5.98%.
The refinance share of mortgage activity increased to 46.7 percent of total applications from 46.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.4 percent of total applications.
&#8220;Mortgage rates declined for the sixth consecutive week, with the 30-year fixed rate decreasing to 6.29 percent, the lowest rate since February 2023,&#8221; said Joel Kan, MBA's vice president and deputy chief economist. 
"With rates almost a full percentage point lower than a year ago, refinance applications continue to run much higher than last year's pace.&#8221;
Mortgage applications increased 1.4 percent from one week earlier, according to the MBA&#8217;s Weekly Applications Survey for the week ending Sept. 6, 2024.
"Purchase applications increased over the week and are edging closer to last year's levels,&#8221; Kan said.
&#8220;Despite the drop in rates, affordability challenges and other factors such as limited inventory might still be hindering purchase decisions."
Price Action: Lenders trended downward into Wednesday&#8217;s late-morning trading.
<ul>
<li>Invesco Mortgage Capital&nbsp;Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVR#NYSE">IVR</a>) slipped 1.14% to $8.67</li>
<li>Rocket Companies&nbsp;Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RKT#NYSE">RKT</a>) declined 1.78% to $18.52</li>
<li>Lendingtree&nbsp;(TREE) fell 1.74% to $50.74</li>
</ul>
Exchange-traded funds that hold these stocks saw gains and losses on Wednesday.
<ul>
<li>Kingsbarn Dividend Opportunity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DVDN#NYSE">DVDN</a>) went up 0.14%</li>
<li>Global X SuperDividend REIT ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SRET#NASDAQ">SRET</a>) declined 1.31%</li>
<li>VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) fell 1.45%</li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/08/40485557/30-year-mortgage-rates-hit-15-month-low-but-applications-pull-back-after-recent-spikes-real-esta">30-Year Mortgage Rates Hit 15-Month Low, But Applications Pull Back After Recent Spikes: Real Estate Stocks React Wednesday</a></li>
</ul>
Image: Shutterstock

Markets

DVDN

SRET

TREE

Mortgage Rates Fall To Lowest Level Since February 2023

Mortgage rates fell to their lowest levels in over a year this week, spurred by rising market expectations of interest rate cuts by the Federal Reserve, bringing some much-needed <a href="https://www.benzinga.com/topic/real-estate-investing">relief to U.S. homebuyers.</a>
As of Aug. 7, the average 30-year fixed mortgage rate dropped by 26 basis points from the previous week, settling at 6.47%. This is the lowest rate since late May 2023, according to Freddie Mac data released on Thursday.
Similarly, the average 15-year fixed mortgage rate fell by 36 basis points from the previous week to 5.63%, the lowest level since April 2023.
&#8220;The decline in mortgage rates does increase prospective homebuyers' purchasing power and should begin to pique their interest in making a move,&#8221; Freddie Mac highlighted.
Additionally, this decrease in rates is already benefiting existing homeowners. The refinancing share of mortgage applications has climbed to nearly 42%, the highest since March 2022.
Read Also: <a href="https://www.benzinga.com/money/how-to-invest-in-real-estate">How To Invest in Real Estate In 2024</a>
<h3 class="wp-block-heading">Goldman Sachs Sees Home Prices Rising: Fed Rate Cuts Likely to Fuel Appreciation</h3>
&#8220;Bad news is (likely) good news for home price appreciation,&#8221; wrote Goldman Sachs analyst Vinay Viswanathan in a note Thursday, highlighting the investment bank&#8217;s optimistic outlook for the housing market.
Goldman Sachs has upwardly revised its forecasts for home price appreciation (HPA) in 2024 and 2025. The bank now expects full-year 2024 HPA to reach 4.5% and 2025 HPA to come in at 4.4%. These projections are notably higher than their previous forecasts of 4.2% and 3.2%, respectively.
The bullish outlook is underpinned by Goldman Sachs economists&#8217; prediction that the Federal Reserve will implement three rate cuts this year, each by 25 basis points. 
These anticipated cuts are expected to bring the 30-year conforming mortgage rate down to 6.5% by the end of 2024 and 6.1% by the end of 2025. These figures are slightly lower than the bank&#8217;s previous forecasts of 6.6% and 6.3%, respectively.
<h3 class="wp-block-heading">Mortgage-Linked Stocks Rally</h3>
The positive sentiment surrounding the recovery of the property market extended to mortgage-linked stocks. 
The iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>), which tracks stocks exposed to the residential property market, rose 0.6% on Thursday. 
Other sector funds, such as the VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) and the iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>), saw gains of 0.9% and 0.8%, respectively.
Individual stocks in the mortgage business showed robust performance, with Rocket Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RKT#NYSE">RKT</a>) and UWM Holdings Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UWMC#NYSE">UWMC</a>) up by 3.3% and 4.5%, respectively.
Shares of companies involved in home construction also experienced a boost. The SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) climbed 1.6%.
Read now: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/08/40259139/tech-stocks-rally-after-5-day-slump-as-recession-panic-eases-nasdaq-100-movers-to-watch-thursday">Tech Stocks Rally After 5-Day Slump As Recession Panic Eases: Nasdaq 100 Movers To Watch Thursday</a></li>
</ul>
Photo: Shutterstock

Equities

Mid Cap

Small Cap

Mortgage Rates Fall To Lowest Level In Over A Year, Ease Pressure On Homebuyers: 'Good News For Home Price Appreciation'

Mortgage rates are on a steady decline as investors have cemented expectations for upcoming reductions in the federal funds rate, yet mortgage demand continues to <a href="https://www.benzinga.com/topic/real-estate-investing">depict challenges among homebuyers. </a>
The Mortgage Bankers Association has reported Wednesday that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) dropped by 5 basis points to 6.62% for the week ending July 19, 2024. 
This marks the lowest borrowing cost for home purchases since early February 2024.
Despite the decline in mortgage rates, long-term Treasury yields remained stable last week. The 30-year Treasury yield has held steady between 4.20% and 4.25% over the past week.
Market expectations for a 25 basis point rate cut in September hover at 100%, remaining unchanged from the previous week, according to the CME FedWatch Tool. 
<h3 class="wp-block-heading">Bumpy demand for mortgages</h3>
Despite the decline in mortgage rates, mortgage demand has shown some setbacks. While the <a href="https://www.benzinga.com/real-estate/reit/24/07/39816656/fed-rate-cut-expectations-drop-mortgage-rates-to-4-month-lows-surge-in-new-applications-refinanc">previous week&#8217;s drop in mortgage rates </a>spurred a sharp rise in new mortgage and refinancing applications, these trends were more subdued last week.
Mortgage applications fell by 2.2% week-over-week, while the refinance index edged up by 0.3% to 614.9, hitting the highest level since mid-August 2022.
On Tuesday, the National Association of Realtors reported a significant 5.4% decline in existing home sales for June. This drop is likely due to rising buyer apprehensions as median home prices reach new all-time highs. 
Jeffrey Roach, chief economist for LPL Financial, commented on the situation, stating, &#8220;The low supply of homes and high interest rates have depressed affordability to near-term lows. Because of the tight supply of homes available for sale, median prices continue to rise. We should not expect this dynamic to improve until mortgage rates drop and supply increases.&#8221;
<h3 class="wp-block-heading">Market Reactions</h3>
The Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) was flat during the premarket trading session on Wednesday, following a 1% rise on Tuesday.
The SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) fell 0.5% at the time of this writing, while the VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) rose 0.5%. 
The worst performers in the premarket among real estate stocks were: 
<ul>
<li>Gladstone Land Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LAND#NASDAQ">LAND</a>) down 3.96%.</li>
<li>Compass, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COMP#NYSE">COMP</a>) down 3.96%.</li>
<li>Service Properties Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SVC#NASDAQ">SVC</a>) down 3.47%.</li>
<li>Opendoor Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPEN#NASDAQ">OPEN</a>) down 2.71%.</li>
<li>Office Properties Income Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPI#NASDAQ">OPI</a>) down 1.48%. </li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/24/07/39920377/us-home-sales-see-sharpest-monthly-decline-in-1-5-years-as-record-high-prices-keep-buyers-on-the-sid">US Home Sales See Sharpest Monthly Decline In 1.5 Years As Record High Prices Keep Buyers On The Sideline</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Large Cap

COMP

LAND

OPEN

XLRE

Mortgage Rates Hit Lowest Point Since February As Investors Anticipate Fed Rate Cuts

Residential house prices continued their upward trend, reaching new all-time highs in April 2024, yet the pace of growth has slowed, potentially suggesting<a href="https://www.benzinga.com/topic/housing-market"> early signs of normalization.</a>
The resilience of house prices was broad-based across the country, with all 20 of the largest U.S. metropolitan areas showing positive monthly increases. San Diego led the annual gains with double-digit growth.
<h3 class="wp-block-heading">April&#8217;s House Price Index: Key Highlights</h3>
<ul>
<li>U.S. house prices rose 0.2% month-over-month in April, up from a revised flat reading in March, according to the Federal Housing Finance Agency (FHFA) seasonally adjusted monthly House Price Index. This increase fell short of economist expectations of a 0.3% growth, as reported by Econoday.</li>
<li>House prices rose 6.3% from April 2023 to April 2024, slowing from the 6.7% year-over-year growth recorded in March 2024.</li>
<li>For the nine census divisions, seasonally adjusted monthly price changes from March 2024 to April 2024 ranged from -0.2% in the West South Central and Middle Atlantic divisions to +1.4% in the East South Central division. The 12-month changes were all positive, ranging from +3.0% in the West South Central division to +8.5% in the New England and Middle Atlantic divisions.</li>
</ul>
<h3 class="wp-block-heading">April&#8217;s S&amp;P CoreLogic Case-Shiller Index: Key Highlights</h3>
<ul>
<li>The 20-city S&amp;P CoreLogic Case-Shiller U.S. National Home Price Index reported a 7.2% seasonally unadjusted annual gain for April, down from a 7.4% annual gain in the previous month. This marks the first year-over-year deceleration in U.S. residential real estate prices, though it exceeded forecasts of 7% growth.</li>
<li>On a month-over-month basis, the 20-city index rose by 1.4%, slightly decelerating from March&#8217;s 1.6% increase.</li>
<li>San Diego continued to report the highest annual gain among the 20 cities in April, with a 10.3% increase, followed by New York and Chicago, with increases of 9.4% and 8.7%, respectively. Portland recorded the smallest year-over-year growth, with a 1.7% annual increase in April.</li>
</ul>
<h3 class="wp-block-heading">Economist Takes</h3>
"For the second consecutive month, we've seen our National Index jump at least 1% over its previous all-time high," Brian D. Luke, head of commodities, real &amp; digital assets at S&amp;P Dow Jones indices, said. 
Luke stated that 2024 was closely mirroring the strong start observed in the previous year. He mentioned that March and April had posted the largest rise, before a slowdown occurred in the summer and fall.
&#8220;Heading into summer, the market is at an all-time high, once again testing its resilience against the historically more active time of the year,&#8221; he added.
Luke also highlighted that 13 markets were currently at all-time highs, with San Diego leading once again, topping annual returns for the last six months.
A more cautious outlook came from Dr. Anju Vajja, deputy director for FHFA's Division of Research and Statistics, who noted that despite the rise in April, the appreciation rate slowed amid a slight rise in both mortgage rates and housing inventory. 
&#8220;The housing market in general began to show some signs of normalization,&#8221; she added.
<h3 class="wp-block-heading">Market Reactions</h3>
The housing data released Tuesday failed to trigger a positive reaction on real estate stocks, as hawkish Fed remarks pushed Treasury yields slightly higher. 
The&nbsp;Real Estate&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) was 0.9% lower at 09:05 a.m. in New York, eyeing its worst session in nearly a month. 
Both the Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) and the iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>) similarly fell 0.8%. 
The VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) showed more contained losses, down 0.3%. 
SBA Communications Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NASDAQ">SBAC</a>) and Weyerhaeuser Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WY#NYSE">WY</a>) were the laggards within the XLRE ETF, both down 1.7%. 
The 30-year Treasury yield, a key benchmark for mortgage rates, rose by 2 basis points to 4.38%, sending the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) down by 0.2%. 
Read now:<a href="https://www.benzinga.com/topic/real-estate-investing"> Popular Real Estate Investment Offerings – Start Generating Passive Income Through Real Estate</a>
Image generated using artificial intelligence via Midjourney.

Macro Notification

Broad U.S. Equity ETFs

Specialty ETFs

SBAC

Home Prices Reach New Record Highs, Yet 'Signs Of Normalization' Emerge

Mortgage applications in the U.S. saw an increase of 1.9% for the week ending May 17, continuing an upward trend following a 0.5% rise the previous week. This marks the third consecutive week of growth in mortgage demand, according to data released Wednesday from the <a href="https://www.benzinga.com/money/best-mortgage-lenders">Mortgage Bankers Association (MBA).</a>
The rise in applications aligns with a decrease in average mortgage rates, which reached a seven-week low due to expectations of lower inflation reducing long-dated Treasury yields.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased by 7 basis points to 7.01% during the week ending May 17, MBA data indicated. This decline, the third in a row, brought mortgage rates to their lowest level in over a month.
The yield on a 30-year Treasury bond, a critical indicator for mortgage rates, dropped by 8 basis points to 4.55% last week, following an inflation report for <a href="https://www.benzinga.com/general/macro-notification/24/05/38880563/disinflation-hopes-reshape-treasury-yields-major-trend-5-bond-etfs-poised-to-rally-on-">April that met expectations. </a>
Refinancing applications, which are highly sensitive to changes in interest rates, surged by 7%, building on a 5% increase the previous week. This significant rise in refinancing applications compensated for a 1% decline in mortgage applications for home purchases, reflecting ongoing challenges such as limited housing supply and intense market competition.
Chart: 30-Year Mortgage Rates Slow In Tandem With 30-Year Treasury Yields
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-1024x495.png" alt="" class="wp-image-349965" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Mortgage-Linked Stocks On The Rise</h3>
The uptick in mortgage activity and the ease in mortgage rates have positively impacted stocks of mortgage-sensitive real estate firms in recent weeks. 
The iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>) is currently experiencing a five-week winning streak, its longest since January 2023.
Among the top-performing mortgage Real Estate Investment Trusts (REITs) over the past month are TPG RE Finance Trust, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRTX#NYSE">TRTX</a>), Redwood Trust, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>), Invesco Mortgage Capital Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVR#NYSE">IVR</a>), and Arbor Realty Trust, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABR#NYSE">ABR</a>), with gains ranging from 12% to 16%.
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38950144/amc-bonds-hold-gains-after-meme-stock-selloff-is-it-a-better-bet-than-buying-shares">AMC Bonds Hold Gains After Meme Stock Selloff: Is It A Better Bet Than Buying Shares?</a>
Image generated using artificial intelligence via Midjourney.

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