HousingWire Daily Logan Mohtashami: How Trump’s Treasury could lower mortgage rates
6 snips
Feb 7, 2025 
Logan Mohtashami, a lead analyst renowned for his expertise in mortgage rates, joins Editor in Chief Sarah Wheeler to dissect the Treasury's role in potentially lowering mortgage rates. They discuss how stable bond yields could boost home buying and analyze the interplay between the bond market and Federal Reserve policies. Mohtashami also explores the impact of demographic shifts, especially millennials and Gen Z, on homeownership rates, along with the imminent implications of the upcoming jobs report on the labor market and economic trends.
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Lowering Mortgage Rates
- To lower mortgage rates, the Treasury should focus on lowering the 10-year yield, not just the Fed funds rate.
- A lower 10-year yield, ranging from 3.80 to 4.25, could lead to more manageable 6% mortgage rates.
Bond Traders' Influence
- Bond traders' shorting of the 10-year yield influences mortgage rates.
- The administration aims to convince traders to stop shorting, potentially with presentations from figures like Jamie Dimon and Elon Musk.
Staying Informed
- Track daily market developments, including tariff headlines and bond yields.
- Consider the impact of oil prices and energy prices on the overall economic picture.