HousingWire Daily Logan Mohtashami: Is the Treasury about to help mortgage rates?
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May 26, 2025 
Logan Mohtashami, Lead Analyst, shares his expertise on the housing market and mortgage rates. He discusses the recent surge in new home sales and how Treasury Secretary Bessent's remarks could positively influence the bond market. The conversation navigates the challenges of builder confidence versus actual sales, while also examining the impact of mortgage rates and inventory issues. Mohtashami dives into how data-driven technologies are reshaping appraisals and the broader economic factors affecting mortgage rates amid volatility.
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Complex New Home Sales Dynamics
- New home sales show a complex pattern without a clear breakout, fluctuating based on mortgage rates.
- Big builders can manage product despite sub 6% rate environment, but overall growth is constrained by higher rates and inventory.
Building Permits Have Peaked
- Single-family building permits have peaked for the next 5 years unless mortgage rates drop.
- Builders are managing a near all-time high backlog and prefer completing rather than increasing permits now.
Treasury To Boost Bond Market Liquidity
- Treasury plans to relax SLR rules in summer allowing banks to hold more Treasuries.
- This aims to increase liquidity in bond markets, potentially lowering mortgage rates by attracting more buyers.