HousingWire Daily
Logan Mohtashami: How Trump’s Treasury could lower mortgage rates
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.
27:58
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Quick takeaways
- Lowering mortgage rates to around 6% through stable 10-year yields could significantly boost home buying activity and market recovery.
- The health of the labor market is crucial, as rising unemployment can negatively impact housing demand and homeownership rates among young buyers.
Deep dives
The Impact of Mortgage Rates on Homeownership
A primary focus is the need for lower mortgage rates to support homeownership rates in the current economic climate. The discussion highlights that higher 10-year yields lead to elevated mortgage rates, making home buying more difficult for many potential homeowners. To alleviate this, it is suggested that achieving a stable 10-year yield, ideally ranging between 3.80% and 4.25%, could bring mortgage rates down to around 6%. If rates were to approach or dip below 6%, it could ignite a significant boost in home buying activity and stimulate a stalled housing market.
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