01/30/2026
This week's rates/housing news update.
President Trump announced plans to nominate Kevin Warsh as the next Federal Reserve Chair. The news followed the Fed’s first meeting of the year earlier in the week, when officials held the benchmark Federal Funds Rate steady at 3.50% to 3.75% after three quarter-point cuts late last year. While the rate does not directly set mortgage rates, it affects borrowing costs across the broader economy.
The pause itself wasn’t a surprise, but the decision wasn’t unanimous. Governors Stephen Miran and Christopher Waller favored another 25-basis-point cut, highlighting the Fed’s ongoing balancing act – managing inflation that’s still above target while the labor market shows signs of cooling.
We also got fresh data on inflation and jobs. The Producer Price Index showed that wholesale inflation was hotter than expected in December. On the labor side, initial jobless claims remain low, while continuing claims are still elevated. Some workers are opting for gig or contract roles rather than filing for unemployment, while others are experiencing longer job searches.
Turning to housing, prices are showing renewed momentum. The Case-Shiller index reported that prices were up 1.4% from a year ago while the FHFA Index, which tracks conventional mortgages, showed even stronger gains – up 1.9% year over year. Buyer demand has picked up as mortgage rates eased, helping support home prices.
Whether you’re considering a purchase, a refinance, or just want to talk through your options, I’m always here to help. Don’t hesitate to get in touch.
