“The biggest conversation that we’ve really been having lately is the ‘Jerome Powell on the hot seat’ conversation,” Shelton told Mortgage Professional America. “I’m so impressed with how savvy our home buyers have become, because they’re asking all the right questions. One of the most important upcoming things in finance and lending is this pending transition at the Federal Reserve.”
The Trump administration has been pressuring Powell and the Federal Reserve to cut rates. While Trump has dismissed the idea of firing Powell in the past, many still wonder if the Fed chair will complete his term, which ends in May 2026.
Stronger lending environment
Shelton believes that when there is a change at the Fed, rates will be cut, and the mortgage market could heat up.
“Powell is expected to step down in May 2026, and the replacement is most likely going to mark a significant shift in this direction,” Shelton said. “All signs for us point to Scott Bessent or someone similar. Someone who favors lowering interest rates to support our middle-class housing market.
“Honestly, this shift could bring a significant rate relief, renew our housing demand, and make it a stronger lending environment, which is great news for both buyers and real estate professionals.”