Candyd Mendoza of MPA reports that President Trump has nominated Jonathan McKernan to lead the Consumer Financial Protection Bureau (CFPB) amid ongoing efforts to dismantle the agency. While McKernan, a former FDIC board member and experienced regulator, has bipartisan credentials, his appointment follows weeks of turmoil under acting director Russell Vought, who has halted agency operations, slashed budgets, and fired enforcement staff.

James Kleimann of HousingWire reports that despite President Trump’s talk about “deleting” the CFPB, his nomination of veteran financial regulator McKernan to lead the agency suggests a different direction. McKernan is expected to be confirmed soon with experience at the Treasury Department, the Federal Housing Finance Agency (FHFA), and key Senate committees. While acting director Russ Vought recently halted most CFPB activities, and Republican leaders have pushed for defunding the agency, McKernan’s track record indicates he may be more focused on reforming rather than dismantling it. 

The Mortgage Bankers Association (MBA) issued a statement on the nomination of McKernan: 

“His deep experience as a regulator, in private practice, and on Capitol Hill – coupled with his background working on housing policy – make him a strong choice to lead the CFPB’s new direction under the Trump administration. MBA looks forward to working with him and his staff to ensure that the agency operates within its statute to protect consumers in a manner that is transparent, fair, and supports competitive markets for financial products, including mortgages.”

Daniel de Visé or USA TODAY reports that a District Judge has ordered the Trump administration to pause layoffs and funding cuts at the CFPB, temporarily halting efforts to dismantle the agency. In the Friday ruling, Judge Amy Berman Jackson stated that Trump officials agreed not to terminate CFPB employees, delete agency data, or deplete its funds, except as permitted by federal law.

Moving to the Department of Housing and Urban Development (HUD), Chris Clow of HousingWire reports that the White House plans to cut up to 50% of its workforce, excluding the Federal Housing Administration (FHA). The targeted reductions focus on offices responsible for civil rights enforcement, housing market data collection, and post-disaster recovery efforts. Critics, including former HUD Secretary Shaun Donovan, warn that these cuts could destabilize the housing system and exacerbate affordability issues amid high inflation and low inventory. 

Multifamily

Rebecca Picciotto of the Wall Street Journal (WSJ) reports that the rental market is shifting back in favor of landlords as new apartment construction slows and more people remain renters due to high mortgage rates. With supply from the recent building boom nearly depleted, rents are expected to rise nationwide by the end of the year, potentially fueling inflation and influencing Federal Reserve policy. Trump’s proposed tariffs on Canada and Mexico, along with stricter immigration policies, could further drive up construction costs and slow new housing development, exacerbating affordability challenges.

Source: WSJ (February 2025)

According to the National Association of Homebuilders (NAHB), confidence in the new multifamily housing market showed mixed results in Q4, rising seven points to 48 but remaining below the neutral threshold of 50, indicating ongoing developer caution. Meanwhile, the Multifamily Occupancy Index (MOI) increased to 81, reflecting strong rental demand. While occupancy rates remain high, developers face supply-chain challenges and elevated interest rates, limiting broader market growth.

Kristen Smithberg of Globe St reports that once a key indicator of apartment rent increases, job growth has lost its predictive power. The correlation between employment gains and rent growth has weakened over the past five years, largely due to remote work allowing high-earning employees to live independently of job markets. Additionally, recent job growth has been concentrated in lower-paying sectors like education and hospitality, which have less impact on rental demand.

Anca Gagiuc of Multi-Housing News reports that the multifamily market recovered in January, with advertised asking rents increasing by $3 to $1,746, breaking a six-month streak of declines. However, due to strong supply growth, national occupancy rates fell to 94.5%, the lowest since 2014. While rents rose in Northeast and Midwest metros, Sun Belt markets like Austin and Raleigh saw continued declines. Investors remain cautious as high interest rates and policy uncertainty impact transactions, though steady employment and tight home sales keep rental demand strong.

Michael Rudy of YieldPro reports that multifamily mortgage originations surged 69% year-over-year in Q4 2024, following a steady quarterly increase. While early 2024 lagged behind 2023 levels, Q4 saw a 22% rise from Q3, aligning with pre-pandemic seasonal patterns. Broader commercial mortgage originations rose 84% year-over-year, with significant gains in office (105%), retail (48%), industrial (94%), and hotel (124%) sectors.

Source: YieldPro (February 2025)

Increased supply

Lily Katz of Redfin reports that housing supply reached its highest level since early 2020 in January, but demand hit a new low as mortgage rates climbed to an eight-month high. Active listings rose 12.9% year-over-year, while pending home sales dropped 6.3%, marking the weakest January on record outside the pandemic. Sellers list homes as mortgage rate lock-in effects fade, but buyers remain hesitant due to rising costs, economic uncertainty, and high cancellation rates. 

Source: Redfin (February 2025)

Redfin Senior Economist Elijah de la Campa comments: “On a national scale, we’re seeing an increase in people selling homes and decrease in people buying homes, bringing supply and demand closer to equilibrium. But the national snapshot masks a lot of regional variation…For example, pending sales are rising from a year ago in expensive coastal markets like San Jose and Seattle, and posting double-digit declines in pandemic boomtowns like Miami and Austin. In Newark, active listings are near an all-time low, but in San Antonio, they’re near a record high.”

Indeed, Skylar Olsen of Zillow reports that nearly 23% of home listings saw price cuts in January, a record high for this time of year, as sellers adjust to weaker buyer demand. While home equity remains strong, persistent mortgage rates—hitting 7.04%—have slowed sales, with pending transactions down 3.6% year-over-year. Despite this, new listings rose 11.5%, signaling that more homeowners are moving on despite rate concerns. Buyers now have more negotiating power than in recent years, especially in cities like Phoenix, Tampa, and Orlando, where price cuts are most common.

Eric Lynch of NAHB reports that demand for residential mortgages remained weak in Q4 2024, according to the Federal Reserve’s January 2025 Senior Loan Officer Opinion Survey (SLOOS). Lending standards were largely unchanged across most mortgage categories, though five of seven saw slight easing—the highest number since rate hikes began in 2022. Meanwhile, subprime and non-QM jumbo loans tightened further.

Source: NAHB (February 2025)