HousingWire Daily Logan Mohtashami on how mass federal firings could affect mortgage rates
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Feb 21, 2025 
Logan Mohtashami, a lead analyst known for his insights on federal policy and mortgage rates, joins host Sarah Wheeler to discuss the potential impact of mass federal firings on the housing market. They delve into how these layoffs could lead to reduced mortgage rates and disrupt the labor supply in the sector. The conversation further explores the challenges the Federal Reserve faces in balancing inflation and unemployment, and how recent shifts in federal agencies may influence housing trends and affordability.
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Impact of Federal Firings on Housing
- Mass federal firings can impact the housing market by slowing down processes and creating a learning curve.
- Reduced workforce leads to longer processing times for paperwork and information requests from agencies like HUD.
Layoffs Beyond D.C.
- Sarah Wheeler shares that family and friends in various locations face layoffs due to federal funding cuts.
- This illustrates the widespread impact of the policy, extending beyond direct government employees.
Economic Impact of Withdrawing Money
- Withdrawing money from the economy, often through methods like raising taxes, can decrease demand.
- The second and third-order effects of this withdrawal, such as job losses tied to government contracts, can be significant.