Mortgage rates jump following Fed cut

Plus: Evolve Bank & Trust CEO arrested

October 31, 2025

😅 Some news: It's Friday. Today’s newsletter is 746 words, a 2.5-minute read.

Disclaimer: Average mortgage rates as of October 30, 2025. © MND Daily Rate Index.

1. Fannie Mae lays off 62 employees

Fannie Mae has laid off 62 employees across its diversity, equity and inclusion, information technology, and chief operating officer divisions, according to FHFA Director Bill Pulte.

The cuts, announced by Pulte on X, are part of a broader effort to eliminate “noncore” roles as the government-sponsored enterprise tightens focus on its mortgage and housing mission.

“We, like any business, must eliminate positions that are not core,” Pulte said, noting that any of Fannie’s 7,000-plus employees outside mortgages and new home sales could face scrutiny.

2. Mortgage rates jump following Fed cut

While the Federal Reserve cut its benchmark interest rate this week, mortgage rates responded by doing just the opposite.

The average rate on the 30-year fixed mortgage has jumped 20 basis points since Chairman Jerome Powell announced the cut on Wednesday and held a news conference, according to Mortgage News Daily.

This happened the last time the Fed lowered its rate as well, and the reason is pretty simple: the bond market had already priced in a cut, but it didn’t like the commentary from Powell.

“The market’s enthusiasm for 3 Fed rate cuts in 2025 had grown a bit too large for the Fed’s liking,” said Matthew Graham, chief operating officer at Mortgage News Daily, in a client note. “The market was nearly 100% certain of another cut in December. The Fed was not as certain, and Powell made it a point to say so yesterday. The result is a mild re-set in yields back to levels that are more consistent with a December cut being a solid possibility, but not a full lock.”

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3. More nuggets

💼 Venmo to roll out rent, mortgage, retail payment feature. (FoxBusiness)

📈 Fannie Mae ups ante with $3.9B in net income. (FannieMae)

⚖️ FBI searched California real estate firm linked to bad bank loans. (Reuters)

⏸️ Judge blocks CFPB open banking rule enforcement. (BankingDive)

🏦 Chris Planto returns to Rate as VP of mortgage lending. (HousingWire)

💰 He won the $2 Billion powerball. Now he's buying lots burned in the L.A. fires. (WSJ)

🚨 Coach’s Corner

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4. Pending home sales flat in September

The number of contract signings stayed flat month over month, as the NAR Pending Home Sales Index stalled at a reading of 74.8 in September.

“Contract signings matched the second-strongest pace of the year. However, signings have yet to fully reach the level needed for a healthy market despite mortgage rates reaching a one-year low,” Lawrence Yun, NAR’s chief economist, said in a statement. “A record-high stock market and growing housing wealth in September were not enough to offset a likely softening job market.”

In addition to remaining flat month over month, pending home sales were down 0.9% YoY. Despite these results, roughly 20% of NAR members surveyed expect to see an uptick in buyer traffic or seller traffic in the next three months.

5. Sweeney alleges UWM blocked $300K AIME payout

Former Association of Independent Mortgage Experts CEO Katie Sweeney alleges United Wholesale Mortgage interfered with her $300,000 payout from the trade group, threatening to withhold funding if AIME fulfilled the agreement.

In her lawsuit, Sweeney claims UWM pressured AIME to act in the lender’s interests and avoid promoting competitors. “Sweeney believes that DeCiantis and UWM have threatened to withhold UWM funds from AIME or take other retributive action if AIME does not follow UWM’s directive,” her filing states.

Sweeney says she was promised $240,000 in bonuses and $240,000 in severance but that AIME stopped payments after UWM allegedly intervened. AIME accuses her of self-dealing, which she denies.

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

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