HousingWire Daily How is the Fed drama affecting mortgage rates?
18 snips
Aug 27, 2025 
Logan Mohtashami, a renowned Lead Analyst known for his deep insights into the housing market, joins the discussion. He explores how political turbulence, like the attempted dismissal of a Fed Governor, impacts mortgage rates. The conversation reveals how these events affect public perception and market stability. Logan also discusses the shifting dynamics between adjustable-rate mortgages and fixed loans, shedding light on consumer behavior amidst fluctuating rates. Tune in for a captivating dive into today's housing market challenges!
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Market Saw The Move As A Test Balloon
- Markets barely moved after Trump's attempted firing of Fed governor Lisa Cook because she is viewed as slightly dovish.
- Traders saw this as a test balloon rather than a direct threat to policy, so bond and mortgage moves were muted.
Removing Cook Won't Flip Policy Easily
- Replacing Lisa Cook isn't seen as removing a hawkish vote, so the market didn't interpret it as a big policy shift.
- Traders expect the Fed will still have enough independent voices to block a blanket shift toward lower rates.
Trump Uses Fed Pressure As A Policy Tool
- Logan says Trump's tactics aim to nudge energy, mortgage rates, and the dollar toward outcomes that help his policy goals.
- The bond market reacted little because this action was anticipated and not a surprise shock like 'Godzilla tariffs.'