Why aren’t mortgage rates dropping along with oil prices?
Summary
HousingWire Daily host Sarah Wheeler interviews lead analyst Logan Modashami to explain why mortgage rates haven’t dropped alongside falling oil prices. Modashami attributes this disconnect to the Federal Reserve’s hawkish stance, driven by strong labor data and core inflation rather than energy costs. The episode also highlights trending stories, including the 21st Century Road to Housing Act and new Fannie Mae condo rules.
Topics discussed
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Top five trending stories on HousingWire
Introduction: Why mortgage rates haven't dropped with oil
The 'slow dance' between 10-year yield and mortgage rates
Fed policy and hawkish stance overriding oil price drops
Historical context: Oil prices vs. mortgage rates (2011-2014)
Ad: Federal research institutions and housing data
Oil traders' perspective and Fed communication vacuum
Mortgage spreads keeping rates below 7%
Inflation lag and political rhetoric on gas prices
Need for Fed governors to clarify stance on rate hikes
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Homebuilder efficiency and the impact of uncertainty
Forecast ranges and material events like COVID or 2022
Mortgage spreads as salvation for volatility
Conclusion and HousingWire home builder rankings
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