What’s New in Housing This Week
This week’s real estate and mortgage headlines highlight a major leadership shift: Barry Habib, one of the most trusted figures in mortgage forecasting, has joined the Fannie Mae board of directors. Meanwhile, Zillow has downgraded its home price forecast across more than 400 markets, pointing to a broader national slowdown. And political tension between President Trump and Fed Chair Jerome Powell adds uncertainty to the future of interest rates. Here’s what mortgage professionals and Realtors should take away from the latest market movements.
Barry Habib Named to Fannie Mae Board of Directors
Read the full story → Scotsman Guide
Mortgage strategist Barry Habib has been appointed to the Fannie Mae board of directors, effective July 21, 2025, according to an SEC filing. Habib, founder of MBS Highway, is well known for his award-winning market forecasting and for being a long-time advocate for loan originators and industry clarity.
His appointment comes as mortgage liquidity, affordability, and credit access remain central challenges. Habib has been a public critic of Federal Reserve MBS policy and has emphasized the unintended consequences of long-term intervention. His perspective could influence how Fannie Mae navigates future product risk, GSE reform, and the evolving balance between public mission and market stability.
With Habib now inside the policy circle, loan officers and Realtors have a unique opportunity to leverage his insights with added authority. His presence on the board could impact upcoming Fannie Mae guidance, especially around housing finance access, pricing, and innovation.
Loan Officer Insight:
- Reference Habib’s appointment in your messaging to increase client trust and industry credibility.
- Use his board position to explain secondary market factors in simple, client-friendly terms.
Realtor Insight:
- Cite Habib’s insights when discussing market trends or pricing hesitations with buyers and sellers.
- His leadership lends weight to timing conversations and trust-building with hesitant clients.
Zillow Revises Home Price Forecast—26% of Listings Cut Prices
Read the full story → Fast Company
Zillow has adjusted its national forecast downward, now expecting U.S. home prices to decline by 0.7% from May 2025 to May 2026. This marks a significant revision from earlier expectations and reflects a slower market with less upward pressure on prices.
Nearly 26% of listings received price cuts in May—more than in any previous May on record. National year-over-year appreciation has slowed to just 0.4%. While some metros like Knoxville, TN, and Kingston, NY, are forecasted to gain modest value, a majority of markets are entering a flat or softening phase.
The updated forecast presents an opportunity for buyers to re-enter the market with stronger leverage, while sellers must now price competitively to stand out. For agents and lenders alike, it’s a moment to realign expectations and focus on education and adaptability.
Loan Officer Insight:
- Use price softening trends to reengage pre-approved buyers who paused due to affordability concerns.
- Emphasize payment-focused planning tools and explain how price stability supports long-term ownership.
Realtor Insight:
- Prep sellers for a more competitive landscape and longer time on market.
- Use the Zillow report to support strategic pricing and motivate quicker listing decisions.
Trump vs. Powell: Fed Chair Faces Political Fire as Rates Hold Steady
Read the full story → CNN
President Trump is intensifying public attacks on Federal Reserve Chair Jerome Powell, criticizing both interest rate policy and the $2.5 billion renovation of the Fed’s headquarters. While legal precedent protects Powell from removal without cause, the political pressure is ramping up as inflation lingers and markets wait for potential rate cuts.
Powell has stated he intends to complete his term, which ends in May 2026. Despite the political backdrop, Fed officials remain cautious about easing too soon. Inflation and global uncertainty, including tariffs and Treasury sell-offs, continue to influence decision-making.
This unfolding conflict may delay hoped-for rate cuts or shift bond market sentiment, impacting mortgage rates in the second half of the year. Clients may hear noise about political infighting, but professionals must stay focused on fundamentals and clear communication.
Loan Officer Insight:
- Monitor messaging for potential shifts in rate policy sentiment—but avoid speculation.
- Use political headlines to reinforce the value of pre-approval, rate locks, and scenario planning.
Realtor Insight:
- Help clients cut through political noise by focusing on today’s numbers and local opportunities.
- Be ready with clear answers when rate concerns come up during showings or buyer consults.
Loan Officer’s Perspective
- Barry Habib’s board appointment provides new clarity—reference his insights in client updates.
- Zillow’s forecast is a strong conversation starter—help clients pivot strategy, not panic.
- Rate volatility from political conflict underscores the need for lock-and-shop options.
- This is the time to reengage paused buyers with updated pricing and affordability conversations.
Realtor’s Perspective
- Use Zillow’s forecast to help clients understand the shift toward price realism.
- Habib’s influence adds confidence—mention his board role in newsletters or listing consults.
- Anticipate buyer questions about interest rates—align with a trusted LO to offer answers.
- Position yourself as the steady voice in a noisy market.