Equity markets are closely watching "home finance rates" movements, as mortgage-backed securities pricing has tightened. Traders suggest that a rate above 7% for several weeks could trigger portfolio rotation away from cyclical housing stocks into defensive consumer staples. The group has called for reforms that “support a better credit-reporting system that promotes more competition, efficiency and lower costs for consumers,” he added. Mortgage rates have been mostly falling since late July on expectations of a Fed rate cut. The average rate on a 30-year mortgage was at 6.35% last week, its lowest level in nearly a year, according to mortgage buyer Freddie Mac. Mortgage-backed ETF flows are tracking "home finance rates" shifts, signaling possible sector-wide revaluations in real estate equities. Technical charts suggest a near-term consolidation phase if rates remain elevated.
