HousingWire Daily Josh Romney and Logan Mohtashami on economic factors driving housing
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Feb 14, 2025 
In this engaging discussion, Josh Romney, President and CEO of the Romney Group, and Logan Mohtashami, Lead Analyst, delve into the pressing economic factors shaping the housing market. They explore the impacts of current federal spending and interest rates on housing dynamics. The conversation also addresses the challenges in real estate lending, multifamily housing supply, and tighter credit conditions. With insightful analyses, they examine the implications for mortgage markets and the overall economic landscape, highlighting the critical need for stable investment strategies.
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Mortgage Rate Influences
- Mortgage rates are influenced by Federal Reserve policy and economic factors.
- Lowering government spending alone may not significantly impact rates unless the Fed cuts rates further.
Balancing Economic Growth and Housing
- A strong economy benefits most sectors, but high rates can hurt housing affordability and construction.
- Policymakers face a challenge in balancing economic growth with the need for lower rates to support housing.
Multifamily Construction Decline
- Multifamily construction is declining due to high rates, reduced bank lending, and low cap rates.
- This limited new construction, coupled with eventual demand increases, may lead to future rent increases.