AI infrastructure operators face a duration mismatch crisis: specialized compute companies have secured 5-year debt facilities while underlying customer contracts average 3 years, creating a refinancing risk window between 2028-2030. Silicon manufacturing commitments nearly doubled to 95.2 billion dollars in Q4 FY2026, while downstream operators like CoreWeave and Nebius carry floating-rate debt at SOFR plus 4.50-5.50 percent backed by depreciating hardware collateral, amplifying vulnerability to spot compute price compression.
Mortgage demand for adjustable-rate mortgages (ARMs) rose to 8.5% of applications as interest rates climbed, with 30-year fixed rates reaching 6.85%. Higher rates caused overall mortgage demand to decline 2.7%, particularly refinancing applications, though purchase applications remained relatively flat.