HousingWire Daily Logan Mohtashami: Powell’s remarks bode well for lower mortgage rates
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Jul 16, 2024 
Lead Analyst Logan Mohtashami discusses Powell's positive remarks on potential rate cuts, housing priorities under a second Trump administration, and the challenges of addressing housing supply to boost demand. The show explores the impact of government intervention in housing supply, the debate over GSEs and conservatorship, and the significance of keeping the GSEs in conservatorship during economic downturns.
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Fed's Focus on Labor Data
- The Federal Reserve, under Jerome Powell, is primarily concerned about labor market data, even more so than inflation.
- They acknowledge progress on inflation but emphasize the need to address labor market challenges.
Powell's Admission and Mohtashami's Understanding
- Powell admitted to misjudging the transitory nature of inflation after COVID-19.
- Mohtashami understands this due to the complexities of the pandemic and the then-high unemployment rate.
Positive Outlook for Real Estate
- Real estate and mortgage professionals should interpret Powell's comments as positive.
- A rate cut is now more likely in the short term.