🕒 Created

Kevin Warsh Predicts Stable Housing Market in 2026 Despite Elevated Mortgage Rates

Fed Chair Kevin Warsh noted that the housing market in 2026 has remained relatively stable despite mortgage rates staying below the 7% threshold. While rates above 6.64% typically slow housing demand, the market has shown resilience, with new listings remaining steady and inventory growth picking up as expected. Warsh highlighted that mortgage spreads have been instrumental in keeping rates from breaking over 7%, unless external factors like the Iran conflict or a new trade war with Canada intensify. He noted that while pending sales and purchase applications have shown some softness due to the elevated rates, the year-over-year comparisons are influenced by the fact that rates were falling last year. Looking ahead, Warsh indicated that a solid jobs report is necessary for the Fed hawks to approve further rate hikes in September. He suggested that the housing story for 2026 is currently stable, with price cuts and inventory levels remaining consistent with healthy market dynamics.

Sources