Have slightly lower mortgage rates stabilized the housing market?

10-year yield and mortgage rates

In my 2025 forecast, I anticipated the following ranges:

• Mortgage rates between 5.75% and 7.25%
• The 10-year yield fluctuates between 3.80% and 4.70%

We had a lot of drama again last week, with speeches by Federal Reserve Chairman Jerome Powell and other regional Fed presidents, and then President Trump starting to implement the shadow Fed president protocol. With all the Fed drama, the 10-year yield declined for the week and mortgage rates also fell.

However, housing data tends to perform better when mortgage rates move lower from 6.64% toward 6%. We are getting closer, as mortgage rates fell from 6.84% to 6.72% by the end of the week. Additionally, the 10-year yield fell to a peak of around 4.40% and then to a weekly low of around…