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- BofA sees 'path to a 5% mortgage rate' if the Fed pulls off these 2 things
BofA sees 'path to a 5% mortgage rate' if the Fed pulls off these 2 things
Plus: Fed lowers rates by a quarter point
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🏝️ Happy Friday! Another week finished, or is it survived? Today’s newsletter is 673 words, a 2.5-minute read. Let’s dive in…
Disclaimer: Average mortgage rates as of September 18, 2025. © MND Daily Rate Index.
1. Fed lowers rates by a quarter point
The Federal Reserve on Wednesday approved a widely anticipated rate cut and signaled that two more are on the way before the end of the year as concerns intensified over the U.S. labor market even as inflation is still in the air.
In an 11-to-1 vote signaling less dissent than Wall Street had anticipated, the Federal Open Market Committee lowered its benchmark lending rate by a quarter percentage point. The decision puts the overnight funds rate in a range between 4.00%-4.25%.
Newly installed Governor Stephen Miran was the only policymaker voting against the quarter-point move, instead advocating for a half-point cut.
Related: Mortgage rates higher (not lower) after Fed rate cut.
2. Credit Union ONE acquires Icon Mortgage
Credit Union ONE, a leading Michigan-based financial institution with $1.7 billion in assets, has acquired Icon Mortgage.
Credit Union ONE will retain all employees, including the senior leadership of Icon Mortgage, and intends to operate the company as a separate mortgage lending affiliate. The terms of the transaction will not be disclosed.
“This acquisition takes our mortgage lending operations to a new level,” said Gary Moody, CEO of Credit Union ONE. “By bringing in Icon Mortgage, we’ve added an amazingly talented team of proven mortgage professionals and the capacity to deliver a truly exceptional mortgage experience for our members.”
3. More Nuggets
💸 CrossCountry doubles down on non-QM loans with $1B funding. (HW)
💼 CHLA, CAI push for increased efficiency in condo financing. (CAI)
🏡 BofA sees 'path to a 5% mortgage rate' if the Fed pulls off these 2 things. (Fortune)
📲 Rate targets Latino homebuyers with Spanish mobile app. (Yahoo)
📝 Fannie Mae updating disclosures to pave way for VantageScore. (NMN)
🏢 Newrez parent company Rithm to acquire Paramount Group in $1.6B deal. (Rithm)
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4. Trump asks Supreme Court to uphold firing of Fed governor Cook
The Trump administration asked the Supreme Court on Thursday to immediately allow the president to fire Federal Reserve Gov. Lisa Cook while the case against her continues in an appeals court.
Thursday’s action follows a 2-1 ruling Monday by the D.C. Circuit Court of Appeals, upholding a district court order allowing Cook to stay at the Fed.
Arguments will be held Nov. 5. A decision is likely to come before the end of the Supreme Court’s term next summer.
“That the Federal Reserve Board plays a uniquely important role in the American economy only heightens the government’s and the public’s interest in ensuring that an ethically compromised member does not continue wielding its vast powers,” the suit read.
Related: Treasury secretary Bessent made contradictory mortgage pledges similar to Cook, documents show.
5. UWM first to raise its conforming limits for 2026
United Wholesale Mortgage has raised its conforming loan limit to $819,000 for one-unit conventional and VA loans, effective immediately.
The move anticipates a 1.5% increase in the Federal Housing Finance Agency’s (FHFA) baseline loan limits for 2026, which are typically announced each November.
“This proactive move allows brokers to offer larger loan amounts, enabling more borrowers to avoid moving into high balance or jumbo loans, which typically come with higher rates and stricter underwriting guidelines,” the company said in a statement.
The update pushes UWM’s maximum funding above $1 million. New ceilings include: $1,048,500 for two-unit conventional loans (increased from $1,032,650); $1,268,000 for three-unit conventional loans (increased from $1,248,150); and $1,575,000 four-unit conventional loans (increased from $1,551,250).
6. Detroit's new 40% down payment assistance program
The Michigan State Housing Development Authority has launched a pilot shared-appreciation mortgage program in Detroit with the Tobias Harris Homeownership Initiative, Guild Mortgage, and Homium.
The program provides up to 40% of a home’s purchase price in down payment assistance without adding monthly debt. Borrowers can take out a conforming first mortgage without mortgage insurance, lowering payments. The assistance is repaid, along with a portion of the home’s appreciation, when the property is sold or refinanced.
Funding comes from MSHDA and private contributions from Tobias Harris, Jon Leuer, Pistons owner Tom Gores, and others through the nonprofit Realize Impact. Officials note that home prices in Michigan have more than doubled since 2013, while incomes have grown 36%, and nearly 60% of Detroit households spend over 30% of income on rent.
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☀️ You’re all caught up. See you on Monday!
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