The David Greene Show Mortgage Monday | Fed Exploring New Tools to Lower Mortgage Rate | Episode 92
Oct 27, 2025
Christian, a mortgage industry pro at The One Brokerage, joins the conversation to explore the Fed's potential new tools for lowering mortgage rates. They discuss Jerome Powell's recent comments and the impact of quantitative tightening on interest rates. The duo breaks down how the Fed's bond-buying strategies affect mortgages and predicts shifts in real estate dynamics. They also debate the implications of lower rates on housing prices and the strategic balancing act the Fed must perform between inflation and unemployment.
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How The Fed Actually Affects Mortgages
- The Fed controls the federal funds rate which indirectly moves Treasury yields and thus mortgage rates.
- Mortgage rates react to the bond market more than direct Fed-set retail rates, so cuts don't always lower mortgages quickly.
Lower Rates Can Release Housing Supply
- Lowering rates can increase both demand and supply because homeowners trapped at low rates may list when refinancing becomes attractive.
- Supply responses can counteract price inflation from lower mortgage rates.
Abundant Capital Drove The Housing Surge
- Real estate boomed more from abundant capital and transaction volume than from low rates alone.
- Cheap money pushed capital into housing as the best inflation-beating asset, not just because mortgages were cheap.
