HousingWire Daily Logan Mohtashami on a potential shadow Fed president
5 snips
May 2, 2025 
Logan Mohtashami, a leading analyst known for his keen insights on housing trends, joins the discussion with Editor in Chief Sarah Wheeler. They explore the intriguing idea of a 'shadow Fed president' who could influence mortgage rates. The conversation dives into how economic factors, like consumer confidence and rising interest rates, shape current housing demand. They also examine the resilience of the housing market amid challenges and discuss appraisals and monetary policy, providing listeners with a comprehensive understanding of today's real estate climate.
AI Snips
Chapters
Transcript
Episode notes
Shadow Fed President Could Lower Rates
- President Trump wants lower interest rates to gain flexibility in handling trade wars and economic challenges.
- A "shadow Fed president" could signal aggressive rate cuts before the current Fed chair's term ends, influencing markets in advance.
Shadow Fed President as Tactical Strategy
- If labor data worsens and the Fed does not cut rates, a shadow Fed president may aggressively advocate for rate cuts to influence policy.
- The shadow Fed president could create early market guidance to prepare for rate cuts ahead of worsening economic data.
Housing Demand Persists Despite High Rates
- Despite elevated mortgage rates above 6.6%, housing demand shows resilience with consecutive positive year-over-year purchase application data.
- Positive market data contrasts with expectations, indicating consumers are still buying homes amid higher borrowing costs.