HousingWire Daily Will the next Fed chair be pro-housing?
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Oct 31, 2025 
Logan Mohtashami, a lead analyst specializing in housing and mortgage markets, joins to discuss the implications of the next Fed chair on the housing market. He delves into how Fed policies have marginalized housing interests and explores whether a Trump-installed Fed chair could reduce mortgage rates. Logan also shares his predictions for mortgage rates in 2026 and the labor metrics influencing Fed decisions. He highlights his preferred candidate for the role and reviews seasonal purchase application trends that could impact housing demand.
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Fed Sees Housing As A Policy Lever
- The Fed prioritizes price stability and employment over housing, treating housing as a side effect of monetary policy.
- Logan Mohtashami argues the Fed uses rates as its main tool and views housing as the sector it can most directly influence.
Why The Fed Pushes Back Near 6% Rates
- The Fed pushes back when mortgage rates approach ~6% because rising housing activity is inflationary through consumption and construction.
- Mohtashami says the Fed hoards rate control as a 'silver bullet' to use only when necessary.
Chair Language Shapes Market Expectations
- A new Fed chair with a dovish stance would change language and market expectations even if immediate yields don't collapse.
- Mohtashami expects a smoother move toward neutral policy under a different chair, enabling lower mortgage rates over time.