December 17th, 2025 8:44 AM by Richard Sardella MLO.100007700/NMLS 233568
Weekly MBA mortgage applications last week declined 3.8%, reversing from a 4.8% jump in the previous period. Applications for mortgages to purchase a home declined 2.8% while those to refinance a home loan plunged 3.6%.
Another Fed official yesterday commenting there will be no rate cuts in 2026. Atlanta Fed President Raphael Bostic saying the Fed will likely not be able to lower rates next year, as the tax bill passed last summer is likely to put upward pressure on inflation, adding the economy was no longer in danger of a sharp rise in the unemployment rate that might spur a recession. Bostic is not a voter on the FOMC this year, he is retiring in February.
More from the Fed; Fed governor Christopher Waller, one of the candidates to replace Powell wants more rate cuts. He isn’t concerned about inflation saying he believes inflation will begin to decline in the next three or four months. Waller said he is worried about the short-term outlook for the labor market, although he added that he expects job growth to strengthen next year.
At 1 pm Treasury will auction $13B of 20 year bonds.
Should be a quiet day with key reports tomorrow and Friday.
PRICES @ 10:00 AM
10 year note: 4.16% +1 bp
5 year note: 3.71% +1 bp
2 year note: 3.50% unch
30 year bond: 4.83% +1 bp
30 year FNMA 5.5: @9:30 am 101.16 unch (+12 bp from 9:30 am yesterday)
30 year FNMA 6.0: @9:30 am 102.50 -1 bp (+6 bp from 9:30 am Friday)
30 year GNMA 5.5: @9:30 am 100.84 -3 bp (+6 bp from 9:30 am yesterday)
Dollar/Yen: 155.55 +0.82 yen
Dollar/Euro: $1.1740 -$0.0009
Dollar Index: 98.48 +0.33
Gold: $4,366.80 +$34.50
Bitcoin: 87,594 unch
Crude Oil: $56.02 +$0.75
DJIA: 48,351 +237
NASDAQ: 23,087 -25
S&P 500: 6801 unch
Richard Sardella has been actively managing and providing services in the mortgage industry for over 30 years. Richard serves on the board of directors as President of Colorado Home Mortgages Inc.
All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.
MLO of record MLO.100007700 / NMLS#233568 / CHM NMLS#127716.