HousingWire Daily Logan Mohtashami on how many Fed rate cuts to expect in 2025
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Jan 31, 2025 
Logan Mohtashami, a lead analyst with expertise in mortgage rates and housing trends, delves into the future of the housing market. He discusses anticipated Fed rate cuts in 2025, driven by factors like disinflation in rents and labor market conditions. The conversation highlights how mortgage insurance changes affect affordability and home sales. Mohtashami also analyzes the interplay between pending home sales and rising rates, offering a hopeful perspective on market stabilization and the impact of inventory growth.
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2025 Rate Cut Predictions
- Two rate cuts are likely in 2025 if current conditions hold, according to Logan Mohtashami.
- The Fed believes in rent disinflation and is focusing on labor market data.
Impact of Rate Cuts on Mortgages
- Fed rate cuts alone may not significantly lower mortgage rates.
- Stopping quantitative tightening and more aggressive cuts would be needed for greater impact.
MIP Changes and Affordability
- Changing the mortgage insurance premium (MIP) could improve affordability for some borrowers.
- Logan questions the overall impact due to FHA loan program limitations.