Article Summary
Warsh framed the policy shift around improving labor, heavy AI-related bond issuance, and the Middle East conflict, not a weakening economy. With retail sales firm and Q3 GDP tracking 5.1%, mortgage demand indicators are softening as rates remain above 7%. AI Summary
Today, Fed Chair Kevin Warsh gave one of the best Fed press events I have ever seen, and much of what he said sets the course for the economy and housing for the next few years. Unlike some predictions I saw that said the Fed rate hike would drive bond yields lower, yields rose even as stocks fell while Warsh was talking.
Yesterday, I wrote this article about the Fed rate hike cycle and what history tells us about how it will affect mortgage rates, noting why this cycle is different than previous ones. On tomorrow’s episode of the HousingWire Daily podcast with Editor in Chief Sarah Wheeler, we go in-depth about this Fed meeting and in particular, Warsh’s Q&A session with reporters. But I also wanted to give you my quick takes.

