# The Warsh Effect on Mortgages Page: https://stenobird.com/podcast/thoughts-on-the-market-980853/the-warsh-effect-on-mortgages Text version: https://stenobird.com/podcast/thoughts-on-the-market-980853/the-warsh-effect-on-mortgages.md Podcast: [Thoughts on the Market](https://stenobird.com/podcast/thoughts-on-the-market-980853) Published: 2026-06-26T21:30:00+00:00 Episode link: https://pdst.fm/e/pscrb.fm/rss/p/rss.art19.com/episodes/4def42dd-97ff-42c0-8eb0-fda61696807b.mp3?rss_browser=BAhJIg90cmFuc2NyaWJyBjoGRVQ%3D--952c5701c84ad333c69d5faa668f8177091704f0 Audio file: https://pdst.fm/e/pscrb.fm/rss/p/rss.art19.com/episodes/4def42dd-97ff-42c0-8eb0-fda61696807b.mp3?rss_browser=BAhJIg90cmFuc2NyaWJyBjoGRVQ%3D--952c5701c84ad333c69d5faa668f8177091704f0 Processing state: not_requested JSON: https://stenobird.com/v1/public/podcasts/thoughts-on-the-market-980853/episodes/the-warsh-effect-on-mortgages Duration seconds: 362 ## Resource Although markets may recalibrate to a different policy playbook under the new Fed chair Kevin Warsh, housing could remain in a holding pattern. Our co-heads of Securitized Products Research Jay Bacow and James Egan explain why. Read more insights from Morgan Stanley. ----- Transcript ----- Jay Bacow: Welcome to Thoughts on the Market. I'm Jay Bacow, co-head of Securitized Products Research at Morgan Stanley.  James Egan: And I'm Jim Egan, the other co-head of Securitized Products Research at Morgan Stanley.  Jay Bacow: Today, the glow has maybe worn off the championship of the Knicks, so we can talk about the impact of Warsh on the mortgage and housing market.  It's Friday, June 26th at 10am in New York.  James Egan: If we have to stop talking about the Knicks, we can stop talking about the Knicks. But Jay, I think one of the things, if we take a little bit of a step back in mortgage markets, in housing markets, in fixed income markets more broadly – from the beginning of the year to now, we've gone from the market pricing in 2.5 cuts from the Fed by the end of 2026, to the market pricing in roughly 1.5 hikes. 100 basis point difference in market expectations over the course of the past five and a half months.  Now, that's happened at different times, with different levels of velocity and severity. But one of the key talking points we have now is – we have a new Fed chair. We had the first FOMC meeting and his press conference after that last Wednesday.  What do you think that means for mortgage markets, for volatility? How are you thinking about this?  Jay Bacow: look, Jim, it's a great question, and we've got asked that by a number of different investors. Chair Warsh has been pretty clear that he thinks people should do more of what… ## Actions - request_transcript: `POST https://stenobird.com/v1/public/podcasts/thoughts-on-the-market-980853/episodes/the-warsh-effect-on-mortgages/transcription-requests` — Idempotently request low-priority transcript generation for this episode. - read_markdown: `GET https://stenobird.com/podcast/thoughts-on-the-market-980853/the-warsh-effect-on-mortgages.md` — Read the agent-friendly Markdown representation of this episode resource. A page view does not enqueue transcription. Agents should invoke `request_transcript` explicitly when they need this episode processed. ## Transcript Full transcripts are not published on public pages unless there is a clear rights basis.