Economic indicators

However, some aspects of the latest employment statistics from the Bureau of Labor Statistics point to gradual weakening in the economy.

While mortgage originations increased, borrowers focused their attention on big-ticket items, as credit account balances flattened overall, Vantagescore said.

Industry payrolls wavered in a tepid buying season in which total employment has been better than expected given government cuts.

Even with 4,000 public sector cuts, total employment numbers were surprisingly high, which raises questions about whether financing costs will keep falling.

The impact of tariff policy on the mortgage-backed securities market is likely to surface first in the cost of new housing construction.

Fannie Mae increased its mortgage volume and home sales predictions, but that comes from cutting its forecasts for U.S. gross domestic product growth in 2025.

The personal consumption expenditures index showed headline inflation flat at 2.5%, but the details of the report explain the Federal Reserve's reluctance to adjust interest rates.

Officials in the Trump administration have floated the idea of changing how the government measures economic growth. Economists say the shift would create new expenses for banks.

With views of current finances among the poorest Americans already near the lowest in 14 years, tariffs are set to add more pressure by making many everyday items even pricier.

The selloff in US equities accelerated Monday, with major averages tumbling to their worst day this year, as investors braced for a slowdown in the American economy.