President Trump announced a plan directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities, a move aimed at putting downward pressure on mortgage rates and improving affordability. The idea is to help offset the Federal Reserve’s ongoing pullback from the mortgage market and narrow the spread between mortgage rates and Treasury yields. Still, the announcement has been viewed positively by markets as a signal of increased policy support for housing. We saw 30-year mortgage rates drip to under 6% on Friday after Thursday’s announcement, the lowest rate since 2022.
