Knowledge Brokers Podcast Barry Habib on Housing Affordability, The Fed’s Next Move, and Gen Z Housing Doomers | KBP 137
Oct 10, 2025
Barry Habib, a board member at Fannie Mae and CEO of MBS Highway, shares his insights on housing affordability and market trends. He discusses why home prices are unlikely to crash and predicts mortgage rates may dip below 6% in the next six months. Habib critiques the media's negative narratives about housing and explains how demographic changes will sustain long-term demand. Additionally, he stresses the importance of innovative mortgage products while cautioning against past excesses, aiming to improve access for future homeowners.
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How Barry Joined The Fannie Mae Board
- Barry describes how he was contacted and appointed to the Fannie Mae board after advising Treasury and other leaders.
- He says he brought ideas to reduce capital allocation imbalances and pricing adjustments to benefit homeowners.
GSEs Drive Market Stability
- Fannie Mae and Freddie Mac dominate roughly 80% of the mortgage market and stabilize rates via an implicit guarantee.
- Without that guarantee mortgage costs would be significantly higher and homeownership less affordable.
Use Short ARMs To Improve Affordability
- Consider adjustable-rate mortgages like 7-year ARMs to improve affordability compared with 30-year fixed rates.
- Use savings to prepay principal or refinance later to lock lower long-term rates when available.