Mortgage rates move higher after the Fed rate cut

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1. Mortgage rates move higher after the Fed rate cut, causing loan demand to drop

The Federal Reserve cut its benchmark interest rate last week, and just as happened the last two times, mortgage rates rose. That caused demand for home loans and refinances to drop.

Total mortgage application volume fell 3.8% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

Applications to refinance a home loan fell 4% for the week and were 86% higher than the same week one year ago. Applications for a mortgage to purchase a home fell 3% for the week and were 13% higher year-over-year.

2. The U.S. added just 64,000 jobs in November — a sign the labor market is slowing

The U.S. added 64,000 jobs in November as the unemployment rate rose to 4.6 percent, according to data released yesterday by the Labor Department.

Economists had forecast a gain of 40,000 jobs and a 4.4 percent unemployment rate, according to consensus estimates.

Though private sector job growth and labor force participation both rose faster than expected, a steep drop in federal employment driven by the Trump administration’s layoffs and buyouts dropped the overall level of job growth.

3. More Nuggets

💼 Fannie Mae and Freddie Mac are quietly stockpiling mortgages. (inman)

🏠 Zillow stock crushed after Google tests real estate listings. (GeekWire)

🆕 FHA increases HECM limit to $1.25M in 2026. (HUD)

📊 A spike in monthly payments keeping homeowners from moving. (Realtor)

📰 Mortgage trade groups back CFPB plan to revise ECOA. (HousingWire)

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4. Informed IQ raises $63M to combat loan fraud

AI-powered verification firm Informed IQ has secured a $63 million growth investment led by Invictus Growth Partners to scale its fraud prevention platform.

The company currently automates loan processing for 70% of the top 10 U.S. auto lenders, facilitating over $350 billion in originations to date. This fresh capital will fuel a strategic expansion into the mortgage, consumer lending, and government benefit sectors.

5. Freddie Mac appoints Kenny Smith as new CEO

Federal Home Loan Mortgage, also known as Freddie Mac named Kenny M. Smith as its next chief executive. He is expected to start the role today and would also serve as a board member, the government-backed mortgage provider said Tuesday.

• Smith spent 27 years at Deloitte Consulting in numerous positions, including as vice chair, U.S. financial services industry leader. During his time at Deloitte, he managed advising for Wells Fargo.

His appointment comes after former Chief Executive Diana Reid departed in March following an order from the Federal Housing Finance Agency. She had started the role in September 2024 under the Biden administration, but left after William Pulte took the helm of the FHFA.

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

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