Charles
Goodwin,
vice
president
of
sales
at
San
Francisco-based
private
lender


Kiavi,
told
HousingWire
that
he
does
not
expect
the


Federal
Reserve
to
provide
underlying
relief
for
mortgage
rates
when
it
meets
next
week.

Interest
rate
traders
strongly
agree
with
that
sentiment
as
93%
believe
that
the
federal
funds
rate
will
remain
at
a
range
of
4.25%
to
4.5%,
according
to
the


CME
Group’s
FedWatch
tool.

“The
bond
market
is
balancing
inflation
and
economic
volatility
at
the
same
time,
and
as
tariff
uncertainty
continues
to
ripple
through
the
international
community,
[the
Fed]
may
wait
and
see
how
everything
shakes
out
before
moving
rates
in
either
direction,”
Goodwin
said.

Trump
vs.
Powell

President
Donald
Trump
has
been
on
the
warpath
again
recently
in
urging
the
central
bank
to
cut
interest
rates.
He
stepped
up

attacks
on
social
media
against
Fed
Chair

Jerome
Powell,
calling
him
a
“major
loser”
and
saying
that
“Powell’s
termination
cannot
come
fast
enough.”

Trump
appointed
Powell
to
lead
the
Fed
during
his
first
term
in
the


White
House,
but
the
pair
have
frequently
clashed
–
usually
due
to
interest
rate
policies
—
over
the
years.
Powell’s
term
as
Fed
chair
does
not
end
until
May
2026,
and
speculation
that

Powell
could
be
preemptively
fired
is
likely
contributing
to
recent
rate
increases
as
investors
worry
that
the
Fed
could
lose
its
independent
status.

A
pending


Supreme
Court
case,

Trump
v.
Wilcox,
could
have
major
implications
on
Powell’s
future.
If
the
justices
rule
in
favor
of
the
president
in
his
decision
to
fire
two
independent
federal
regulators,
it
would
reshape
longstanding
legal
precedent
and
potentially
give
Trump
the
green
light
to
remove
Powell.

Kevin
Warsh,
a
former
Fed
governor
and
a

candidate
to
lead
the
central
bank
during
Trump’s
first
term,
has
been
rumored
to
be
Powell’s
successor.
But
even
if
Powell
were
to
be
replaced
before
his
term
ends,
the
president
would
still
have
to
contend
with
the
other
members
of
the
Federal
Open
Market
Committee
who
have
been
steadfast
on
interest
rate
policies
since
the
COVID-19
pandemic.
For
his
part,
Trump
has
recently

backed
down
by
saying
he
has
“no
intention
of
firing
him.”

Where
are
home
sales
headed?

The
spring
home
purchase
season
is
in
full
swing
and
while
sales
haven’t
been
robust,
they
have
generally
exceeded
last
year’s
low
levels.

This
week’s

Altos

data
report
shows
that
weekly
pending
home
sales
dipped
on
a
year-over-year
basis
for
the
first
time
in
six
weeks,
but
that
was
an
expected
decrease
due
to
the
Easter
holiday
weekend.
Altos
President
Mike
Simonsen
said
he
anticipates
the
weekly
pending
sales
figure
to
rise
again
next
week
to
78,000,
which
would
put
it
back
above
last
year’s
pace.

“The
takeaway
for
the
weekly
pending
home
sales
is
that
the
holiday
dip
is
temporary,
and
we
currently
expect
home
sales
in
May
to
resume
being
higher
than
last
year.
Last
year’s
sales
were
very
low.
If
we
come
in
below
that,
it’d
be
a
very
bearish
market
indicator.”

Despite
consistently

low
sentiment
from
prospective
home
buyers
and
sellers,
Goodwin
said
that
now
is
a
good
time
to
enter
the
market.
This
dovetails
with

new
data
from
the


Mortgage
Bankers
Association
showing
that
the
median
monthly
mortgage
payment
from
an
applicant
in
March
was
down
1.2%
from
a
year
earlier.
That’s
partially
tied
to
mortgage
rates,
which
were
roughly
50
basis
points
higher
at
this
time
in
2024.

“If
buyers
wait
for
lower
rates,
it
could
backfire
if
mortgage
rates
or
home
prices
rise,”
Goodwin
said.
“Additionally,
waiting
to
buy
when
rates
go
down
could
mean
increased
competition
for
available
housing
stock,
leading
to
bidding
wars
and
increased
costs
for
buyers.”

Goodwin
offered
four
tips
for
mortgage
originators
and
their
clients
to
keep
in
mind
in
the
current
market
environment.

• 
  Get
  preapproved
  early.
  Locking
  in
  a
  budget
  and
  a
  rate
  range
  allows
  buyers
  to
  be
  able
  to
  act
  quickly
  when
  the
  right
  opportunity
  comes
  up.
• 
  Consider
  rate-lock
  options.
  Many
  lenders
  offer
  rate-lock
  programs
  with
  float-down
  features
  if
  rates
  fall
  before
  closing,
  which
  could
  help
  in
  navigating
  this
  type
  of
  uncertain
  rate
  environment.
• 
  Factor
  in
  long-term
  affordability.
  While
  rates
  are
  important,
  when
  it
  comes
  to
  purchasing
  a
  home,
  buyers
  need
  to
  consider
  the
  big
  picture.
  The
  decision
  to
  buy
  property
  should
  include
  an
  analysis
  of
  monthly
  payments,
  
  local
  taxes
  and
  personal
  income
  stability.
• 
  Look
  into
  adjustable-rate
  mortgages
  or
  interest-only
  loans.
  For
  buyers
  who
  may
  be
  looking
  to
  sell
  or
  even
  refinance
  in
  a
  few
  years,
  
  adjustable-rate
  mortgages
  can
  be
  an
  option
  that
  often
  lowers
  the
  initial
  payment
  amount.