Mortgage Rates Top 7%; Fed Hedge Bets Rise | Practice Deals

No qualifying small-to-medium practice sale or acquisition appeared in this week’s healthcare feeds. The candidate stories cover AI funding rounds, regulatory policy, workforce surveys, and large health-system activity — none of which meets the specific named-deal criteria for this section. Watch for deal flow to resume in next week’s edition.

Several major macro forces are converging this week, from surging mortgage costs to shifting Fed expectations and a breakdown in the US earnings upgrade cycle.

Mortgage rates breach 7%. US mortgage rates climbed above 7% for the first time in more than two years. The move adds further pressure to a housing market already struggling with elevated prices and sluggish sales. Higher borrowing costs are now weighing on both buyers and sellers, deepening an affordability crisis that shows little sign of easing.

Traders hedge against a shallower Fed cycle. Options markets show traders actively loading up on hedges against the possibility that the Federal Reserve raises rates by less than currently priced. Meanwhile, equity analysts have turned net negative on the US earnings outlook for the first time in months. That breaks the longest run of earnings upgrades in five years. Concerns about inflation and higher interest rates are driving the reversal.

OECD warns on bond yields and public finances. The OECD sounded an alarm over surging government bond yields globally. The Paris-based forecaster says rising debt interest bills are increasing pressure on public finances across major economies. Separately, the OECD said the Bank of England does not need to raise interest rates, arguing the UK is starting from a different position than other countries on monetary policy.

Stocks and the dollar in focus. US stock futures slipped in recent sessions as crude oil ended its longest losing streak of the year. The dollar hit its highest level since July. Traders remain cautious as they wait for further developments in efforts to end the US-Iran conflict, which continues to disrupt energy supply chains — including cooking gas supply from the Persian Gulf to major importers such as India.

Trump-Xi meeting shapes geopolitical mood. Chinese President Xi Jinping is set to arrive in Washington for a high-stakes meeting with President Trump. Markets are watching closely. Investors see the meeting as a potential signal on whether the US-China trade détente will hold or fracture, with significant implications for global supply chains and risk sentiment.

Private equity in limbo. The Financial Times reports that private equity’s growth model — built on a clear bargain with investors — is under strain. Exit markets remain challenging and the fundraising environment is difficult. That dynamic is playing out in individual deals too: Lone Star Funds is weighing options for Italian coffee machine maker Evoca, including a potential handover to creditors, underscoring the stress facing leveraged buyouts in a high-rate environment.