Mortgage rates tick higher, reaching 6.1%

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1. Mortgage rates tick higher, reaching 6.1%

Mortgage rates rose for a second week as demand from buyers remains sluggish. The average for 30-year, fixed loans was 6.1%, up from 6.09% last week, according to Freddie Mac.

Mortgage rates that have fallen in the past few months are helping to ease the affordability crisis, but demand so far remains sluggish. Some would-be buyers are holding out for even lower rates, while others may be discouraged by the weakening job market.

“Mortgage rates will remain elevated in 2026,” Ershang Liang said. “But stronger job growth and continued wage gains should help juice housing demand and increase housing affordability, even with modest price growth.”

2. Federal Reserve keeps interest rates steady

The US Federal Reserve has voted to hold interest rates as its chair, Jerome Powell, defended the importance of central bank independence.

"It's just an institutional arrangement that has served the people well - to not have direct elected official control over the setting of monetary policy," he said.

• The Fed will keep its key lending rate between 3.5% to 3.75%, stating that economic activity in the US "has been expanding at a solid pace".

It’s the first time since July that the central bank has chosen to pause its rate-cutting cycle, having lowered rates three times last year as it monitored the economic effects of President Donald Trump’s aggressive policies.

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3. More Nuggets

📊 Study shows real estate brokerages are more profitable — and fewer are losing money. (HousingWire)

🏡 DPA programs now offering more options. (NMP)

🏦 From $40 billion to $225 billion: Inside the Trump housing plan to radically change the mortgage bond buying plan. (Fortune)

🤝 Bayview to pay $26 million to settle data breach claims. (NMN)

4. IMBs originate 84% of residential mortgages in 2025

Independent mortgage banks originated 84.1% of U.S. single-family mortgages in 2025, cementing their position as the dominant force in home lending, according to the Community Home Lenders of America.

• IMBs accounted for about 90% of FHA loans, nearly 95% of VA originations, and 94.6% of Ginnie Mae issuance, effectively replacing banks in government-backed lending.

The shift reflects a structural change in mortgage finance, with IMBs now handling the vast majority of loans made to first-time and lower-down-payment borrowers through federal programs.

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5. Trump nominates Kevin Warsh as next Fed chair

President Donald Trump has nominated Kevin Warsh to be the next Federal Reserve chair, according to an announcement Friday on Truth Social.

The nomination caps months of speculation as to who would succeed Jerome Powell as Fed chair. Warsh, who served as a Fed governor from 2006 to 2011, was a candidate to lead the central bank when the chairmanship last opened in 2017, but Trump chose Powell instead.

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

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