Warsh under pressure as Fed considers rate hike

🌅 Good Fed Wednesday morning! Today’s newsletter is 545 words, 2 minutes.

1. Warsh under pressure as Fed considers rate hike

Federal Reserve Chair Kevin Warsh finds himself in a tricky position as the central bank commences its September meeting, as rising expectations of an interest rate hike clash with President Trump’s demands for cuts.

Warsh gave himself wiggle room for a rate hike in late August, saying the central bank had “work to do” if underlying inflation was not moving toward its 2 percent target.

But Trump, who has long kept up the drumbeat for rate cuts, appears increasingly impatient for his Fed pick to lower rates.

2. Rates hit 7.22% and purchase demand falls 19% year over year

The 30-year fixed averaged 6.97% last week but has since surged to 7.22% as of yesterday — the most abrupt six-day jump since October 2024, according to Mortgage News Daily. Total application volume fell 4.1% last week, with the Fed meeting Wednesday adding more uncertainty to an already rattled market.

• Total volume: down 4.1% week over week

• Purchase apps: down 1% week over week, down 19% year over year

• Refi apps: down 9% week over week, down 65% year over year

• 30-year fixed: 6.97% last week, 7.22% as of Tuesday

Rates are now nearly a full percentage point above where they were a year ago. With energy prices spiking and inflation running hot, the Fed is widely expected to hike rates at today's meeting — which would push mortgage rates even higher.

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3. More Nuggets

🏡 AD Mortgage launches lender-paid rate buydown option. (HousingWire)

💳 Credit card debt drives homeowners toward equity. (NMP)

🏘️ Trump nominates Matt Jones as FHA commissioner, HUD assistant secretary. (Realtor)

📊 Mortgage lending standards are so tight that homebuyers must have ‘pristine’ credit histories, study says, as sales head for 31-year low. (Fortune)

🚨 Coach’s Corner

The Book That Changed My Business

A few years ago, I read Main Street Millionaire by Codie Sanchez.

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Now Codie is releasing her new book, Own or Be Owned, along with a FREE live virtual event on September 18th.

If you're looking for ideas to generate more business while creating more freedom, I think you'll get a lot out of what Codie shares.

Use the link below to register for the free event, grab a copy of the book, or both—and receive any available launch bonuses.

4. Ameritrust sues investors, broker over $14M Baltimore mortgage fraud

Ameritrust filed suit in Maryland federal court alleging shell LLCs bought distressed Baltimore homes for $40,000 to $50,000, then flipped them to other shells for around $200,000 with no improvements.

Those entities applied for DSCR loans from Ameritrust using fraudulent appraisals that hid the prior sales. Most borrowers defaulted immediately — some without making a single payment. The defendants include mortgage broker FirstLoans and title companies REXTAR and Fidelity National Title.

Ameritrust claims $14 million in losses across roughly 90 loans and is pursuing RICO, fraud, and conspiracy claims. The case ties into a broader Baltimore DSCR fraud wave identified last year involving hundreds of similar deals across dozens of private lenders, more than half of which defaulted.

☀️ You’re all caught up. See you on Friday!

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