After rising well-above 7%, US mortgage rates are trending lower along with bond yields. Freddie Mac's latest data puts rates at 6.33% from 6.49% and that's likely continued to fall alongside yields this week.

The public is exceedingly bearish on US housing but the chart of the homebuilders XHB ETF shows signs of a bottom.


If rates can fall below 6% (there's some spread compression likely coming) then housing activity could be an upside risk to US GDP in 2023.