Derek McGowan (pictured top left), branch manager at McGowan Mortgages, is one of the top loan officers in the nation. He told Mortgage Professional America that he believes more rate relief could be on the way after Powell is replaced.
“My big thing that I’ve been circling on the calendar is in May, when Jerome Powell very well might be out,” McGowan said. “The current administration has very opposing views of how the Fed is being run. With rate cuts, they want that much more aggressive. I’m optimistic that, even though Fed rates are not mortgage rates, come May, we could see some good relief from that.
“If whoever they put in is on board, I think there could be some good relief in there. That means people who are buying houses should get prepared in advance, because if that does happen, things move really quickly.”
The Federal Reserve announced another 25-basis-point cut to the federal funds rate on Wednesday, as a softening jobs market continues to concern the central bank.https://t.co/QnkimPfwm5
— Mortgage Professional America Magazine (@MPAMagazineUS) October 29, 2025
Tom Davis (pictured top right), chief sales officer of Deephaven Mortgage, is also optimistic that there could be further rate cuts over the next couple of years.
“You look at the Fed’s meeting notes going all the way out to 2027, and there are potential additional other cuts,” Davis told Mortgage Professional America. “So you could see the Fed cut rates over the next two years by 75 to 150 basis points. I don’t know how much that really moves mortgage rates, but there’s a possibility rates could come down below six.”