HousingWire Daily Logan Mohtashami on why mortgage rates are dropping
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Feb 26, 2025 
Logan Mohtashami, a lead analyst known for his deep insights into mortgage trends and economic impacts, discusses the recent drop in the 10-year yield and its effects on mortgage rates. He explores how economic softness is influencing these rates, linking insights from the US economic surprise index to future predictions. Mohtashami emphasizes how labor markets and builder confidence affect the housing sector, while providing an analysis of how Fed policies play a crucial role in shaping housing demand.
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10-Year Yield Volatility
- The 10-year yield and mortgage rates have shifted dramatically, prompting discussion.
- This volatility is typical, following yearly patterns observed in recent years.
Factors Affecting 10-Year Yield
- Economic data misestimates and market stress contribute to the drop in the 10-year yield.
- Forecasting focuses on the 10-year yield due to its influence and improved spreads.
Government Strategies and 10-Year Yield
- Layoffs and reduced government spending aim to lower the 10-year yield.
- This approach contrasts with previous administrations’ focus on stock market performance.