Most traders have never noticed the weird market anomaly that happens at 9:35 AM every morning.
They’re too busy with lagging indicators trying to predict the next move… when the market makers have already set the tone for the trading day.
It’s this weird anomaly that points us to the market maker’s key levels above and below.
And by playing the move within that range…
Regular folks like you have been able to reach for $100 or more (on a $1K stake) over 600 times in the last 2 years.
We’ve seen this straightforward approach play out whether the market broke out… broke down… or stayed choppy.
Granted, I can’t make trading guarantees here.
But I’ve opened up the data behind those trades, as well as how you can get in on the very next morning opportunity.
You’ll find the full details right here.
See you in the market.
Chris Pulver
7.5% Mortgages in 2027 Will Cost Buyers More Per Month
The number that matters most to the housing market right now is not 7.4%. It is 7.5%, and it stretches across every quarter of 2027.
In its October 2026 housing forecast, Fannie Mae’s Economic and Strategic Research Group projected that the average rate on a 30-year fixed mortgage would reach 7.4% in the fourth quarter of 2026 and average 7.5% in 2027. The latest projections represent a substantial upward revision from September, when Fannie Mae expected mortgage rates to average 6.8% in the final quarter of 2026 and 6.7% throughout 2027. The change amounts to an increase of 0.6 percentage points in the fourth-quarter 2026 forecast and 0.8 percentage points for 2027.
The trigger was September’s CPI report. According to the Bureau of Labor Statistics, the U.S. Consumer Price Index increased 0.6% in September 2026, bringing annual inflation to 3.7%, up from 3.4% in August. Gasoline prices rose 9.1% during September, accounting for more than half of the monthly increase. Bond markets reacted immediately. Fannie now projects that 10-year yields will end 2026 around 5.3%, compared to 4.8% projected in September, and yields are forecast to stay near 5.3% through the end of 2027.
The 10-year yield is doing much of the Fed’s work for it. Long-end Treasury yields climbing toward 5% without a Fed hike signal a bond market that has stopped trusting the inflation narrative.
What This Means for Buyers and Refinancers
The affordability math is unforgiving. A roughly 1.42 percentage point increase in the 30-year mortgage rate since late February translates to roughly an additional $376 per month for a borrower financing a $400,000 home loan at today’s rates. Extending that environment through all of 2027 means anyone waiting for relief before purchasing will keep waiting.
For homeowners who locked in rates below 4% or 5% in 2020 and 2021, refinancing is essentially off the table. Fannie Mae has now priced that reality in explicitly. Refinance activity takes the brunt of the revision: Fannie Mae now expects 2027 refinance originations of about $430 billion, roughly half of the prior $802 billion estimate, while purchase originations are forecast to total $1.4 trillion in 2027, essentially flat with this year. The refi window is closed, at least through next year.
The refi collapse is not new — it has been building for months. Pending home sales and existing-home transaction volumes were already signaling a frozen mortgage market before rates crossed 7%.
The Investment Case for Homebuilder Stocks
Two housing data releases land this week that will test whether the market has fully absorbed Fannie Mae’s revised outlook. The NAHB builder sentiment index comes Monday, followed by September housing starts and permits Tuesday at 8:30 a.m. The NAHB Housing Market Index fell to 32 in September from 35 in August. A further decline Monday would signal builders are pulling back before the data even arrives.
Lennar is down in 2026 and over the past 12 months. D.R. Horton and PulteGroup have held up better but are not immune. In its fiscal 2026 third-quarter earnings report, D.R. Horton reported a 20% cancellation rate, up from 17% one year ago. Builders are responding with mortgage rate buydowns and price incentives to move inventory, which compresses margins. The median new-home sales price dropped from a year ago to $393,700, reflecting builder incentives and a shift toward lower price points.
The SPDR S&P Homebuilders ETF (XHB), a broader way to access the theme, has posted a negative total return over the past year, including dividends. Its top holdings span homebuilders, building products, and home improvement retailers, so it carries a diversified form of housing exposure rather than pure builder risk.
Where the Long-Term Opportunity Sits
The structural case for homebuilders has not changed. Industry analysts broadly put the structural housing demand gap at around five million units. Rates at 7.5% do not eliminate that gap; they defer it. When rates eventually do ease, the pent-up demand that has been accumulating since 2022 represents a powerful tailwind for builders that survive the current environment with their balance sheets intact.
Lennar carries a large cash position and a low debt-to-capital ratio, giving it the balance sheet to outlast the rate environment and capitalize when it shifts. D.R. Horton operates in 36 states with scale that allows it to offer more aggressive financing incentives than smaller competitors. PHM screens well on operational efficiency. These are businesses to monitor, not abandon, during the wait.
The Wealth Builder Takeaway
A 7.5% mortgage rate forecast is not a reason to abandon housing-related investments. It is a reason to be selective about timing, position sizing, and which names to own. Builders with strong balance sheets and the ability to absorb margin pressure are better positioned than those relying on volume growth that 7.5% rates simply will not support. Watch Monday’s NAHB reading and Tuesday’s starts data closely. If both disappoint, the market will have its first post-forecast-revision confirmation that the housing slowdown is deepening, and that is when patient investors begin building positions, not exiting them.
