UWM's Ishbia says a Fed rate cut would be the right move

United Wholesale Mortgage (UWM) chief executive officer Mat Ishbia says an interest rate cut by the Federal Reserve would be the "right thing for America" given current inflation and employment conditions as speculation continues to mount about the central bank's looming decision. 

According to Ishbia, while Fed chair Jerome Powell has emphasized the central bank’s independence, there is strong consensus for a 25-basis-point cut at the September 17 policy meeting, with the possibility of further reductions later in the year. This outlook is in line with a Reuters report, which said US rate futures are pricing in a 92% chance of such a cut, citing CME Group’s FedWatch tool. 

Despite the potential boost for borrowers, broader markets remain uneasy. Reuters reported that Wall Street opened September lower after a US appeals court ruled most of Trump’s sweeping tariffs illegal. The decision rattled investors, said Oliver Pursche, senior vice president at Wealthspire Advisors, who noted concerns about strained trade relationships and lost tariff revenue. 

The Dow, S&P 500 and Nasdaq all posted declines, while the real estate sector fell 1.7% as US 30-year Treasury yields climbed. 

The Fed, which has left rates unchanged throughout the year to date, has come under increasing pressure from the Trump administration to move rates lower. Fed chair Jerome Powell gave his strongest suggestion yet that the central bank could cut rates in September during a speech at its annual retreat in Jackson Hole.

Surging refinance business 

Beyond rate expectations, Ishbia pointed to a sharp rise in mortgage refinancing. He reported a 66% increase in refinance activity in the first half of 2025 compared with the same period a year earlier. Homeowners, he said, are tapping into equity through both cash-out and rate-and-term refinances—a trend likely to accelerate if borrowing costs decline. 

Shifting regulatory landscape 

Ishbia also addressed developments involving the Consumer Financial Protection Bureau (CFPB). He noted that a federal appeals court lifted an injunction in a case that could ultimately result in the agency being downsized or dissolved. 

While this may suggest lighter regulatory pressure, Ishbia advised the mortgage industry to continue prioritizing ethical practices and consumer protection, stressing that rules could change quickly under a new administration. 

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