US EditionTrump's Mortgage Plan Brought Rates Below 6%—Here's The Proof - Federal National Mortgage (OTC:FNMA)
Trump's directive aims to lower mortgage rates by leveraging $200 billion in cash reserves of Fannie Mae and Freddie Mac to boost demand for mortgage-backed securities, analysts say.
- On Thursday, President Donald Trump posted instructing Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds to lower mortgage rates and improve affordability.
- Fannie Mae and Freddie Mac, currently in government conservatorship, buy loans and package them into mortgage-backed securities, using cash reserves to boost bond demand after increasing holdings by roughly $50 billion in late 2025.
- Market players noted an immediate bond reaction and spread tightening to 187 bps on Friday, prompting what Lance Lambert called a `BIG ONE-DAY MORTGAGE RATE DROP` as Zillow reported the 30-year fixed rate fell to 5.99%.
- Mortgage-Market impact: refinance applications were already 133% higher year-over-year, and a drop to 5.9% could lower monthly payments by $118 for buyers of a median-priced home.
- In historical context, the Federal Reserve bought $580 billion in agency MBS early in the Covid pandemic and raised holdings from $1.4 trillion to $2.3 trillion, but most homeowners with rates below 4% will see uneven gains amid stretched consumers and nearly 50% higher home prices.
13 Articles
13 Articles
Mortgage Rates Slip Below 6 Percent for First Time Since August 2022
The landscape for mortgage rates shifted dramatically after President Donald Trump said on Jan. 8 that he’s directing representatives to purchase $200 billion in mortgage-backed securities from Freddie Mac and Fannie Mae in order to drive mortgage rates lower. The average rate for 30-year fixed mortgages on Mortgage News Daily slid 22 basis points on Jan. 9 to 5.99 percent following the president’s announcement. It’s the first time it has fallen…
Mortgage Rates Hit Near Three-Year Low After Trump Order
Mortgage rates fell to their lowest level in nearly three years after President Donald Trump ordered Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities. The average 30-year fixed mortgage rate dropped 22 basis points to 5.99 percent, matching levels last seen in early 2023. Trump said the move would lower monthly payments and improve housing affordability by increasing liquidity in the mortgage market. BREAKING: Pr…
Mortgage rates drop to lowest level in nearly 3 years as Trump orders buying of $200 billion in mortgage bonds
President Donald Trump posted on social media Thursday that he is instructing mortgage giants Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds.
Housing-linked stocks rally on Trump's $200 billion mortgage bond-buy order
U.S. housing stocks surged after Trump's $200 billion mortgage bond-buy order. The move aims to lower mortgage rates and improve housing affordability, Trump stated. Experts warn increased demand could offset affordability gains; supply issues remain critical. WASHINGTON — U.S. mortgage…
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