Mortgage professionals are navigating a market shaped by elevated rates, geopolitical uncertainty, and renewed attention on housing policy. In the latest episode of Optimal Insights, Jim Glennon, James Cahill, and Alex Hebner unpack the current mortgage rate backdrop and key economic catalysts before turning to a wide-ranging policy discussion with special guest Jeremey Shiers, Executive Vice President and President of Mortgage at West Gate Bank.
The conversation focuses on what executive orders can realistically change, how long regulatory updates may take, and why durability, not speed, matters when it comes to mortgage and housing reform.
Here’s what you need to know this week.
The team opened with a review of the mortgage and macro environment heading into a busy week for markets and policymakers.
Mortgage rates remain elevated, with OBMMI discussed as sitting “roughly six and a quarter percent,” while the 10-year Treasury was near 4.33.
A packed calendar includes a Fed meeting, PCE inflation, GDP, and upcoming employment data, with energy prices continuing to influence inflation expectations.
Despite higher rates, the team noted that purchase activity appears to be holding up, reflecting what was described as a “new normal” for the mortgage market.
Key Market Insights and Trends
Rates may stay higher for longer
Alex Hebner noted that inflation pressures remain largely supply-driven, particularly due to energy, limiting how much monetary policy alone can address current conditions.
Inflation data still matters for mortgage sentiment
The team discussed PCE as the Fed’s preferred inflation metric, with expectations still running above the Fed’s stated mandate.
Housing dynamics continue to evolve locally
Supply conditions, rent trends, and borrower behavior vary significantly by market, reinforcing that mortgage outcomes are increasingly regional rather than national.
Executive Orders, Regulation, and Housing Policy
What the executive orders are designed to do
Jeremey Shiers explained that recent executive orders aim to make the homebuying and homebuilding process easier by allowing regulatory agencies to reopen and modify rules sooner than they otherwise could.
As he put it:
“Anything that could potentially touch housing or housing finances is kind of lumped into this.”
While that breadth creates opportunity, it also introduces challenges. Agencies must prioritize which rules can realistically be changed, then finalized, within a limited timeframe.
Timelines and durability matter
A key takeaway from the discussion was that executive orders do not create immediate change. Regulatory updates must still move through proposal, comment, and finalization stages, all while being structured to withstand congressional review and legal challenges.
Shiers offered a realistic timeline:
“You’re not gonna see any meaningful changes probably for the rest of ’26, but as you get into ’27 and into ’28, you’ll start seeing things come together at pace.”
That focus on durability reflects lessons learned from prior rulemakings that were ultimately rolled back before taking effect.
What this could mean for lenders and borrowers
The conversation highlighted several areas where regulatory modernization could reduce borrower costs and operational friction, including HMDA enforcement, TRID tolerance cures, ability-to-repay rules, and loan officer compensation flexibility.
Shiers summarized the cumulative impact of regulation succinctly:
“Some of these regulations are death by a thousand paper cuts.”
The group emphasized that compliance costs don’t disappear – they are ultimately passed on to families trying to buy homes.
The Road to Housing Act and the institutional investor debate
The episode also explored the Road to Housing Act, noting that House and Senate versions will need to be reconciled. While much of the legislation is viewed as bipartisan and focused on modernization, the institutional investor ban remains a central point of debate.
Shiers cautioned against oversimplifying the issue:
“While you may like the idea around banning institutional investors to stop values from skyrocketing… you run the risk of pulling away a piece of market support from the industry should values start to decline.”
He pointed to the post-2008 period, when institutional capital helped stabilize housing markets before homes transitioned back to owner occupancy. That history raises questions about the long-term consequences if that support is removed entirely.
Practical Actions You Can Take This Week
Monitor Fed messaging and inflation data for near-term mortgage rate sentiment.
Watch housing policy developments alongside macro headlines, since many of these changes could shape mortgage operations for years.
Consider how regulatory modernization, if implemented, may affect borrower costs, refinance options, and operational efficiency.
Stay engaged locally, as housing supply and affordability challenges remain highly regional.
This episode of Optimal Insights highlights the contrast between fast-moving markets and slow-moving policy. Executive orders, regulatory reform, and legislation like the Road to Housing Act may not deliver immediate relief, but they could meaningfully influence mortgage lending, affordability, and housing supply over the next several years.
For a deeper dive into the discussion, listen to the full episode of Optimal Insights. Available on all major podcast platforms: https://optimal-insights.captivate.fm/listen
The views and opinions expressed in this program are those of the speakers and do not necessarily reflect the views or positions of Optimal Blue, LLC.
