Trade groups push plan to let GSEs buy MBS to ease mortgage rates

Housing Groups Call for Federal Intervention to Close Mortgage Rate Gap - The MortgagePoint

Community lenders propose targeted Treasury and FHFA action to reduce the spread and restore affordability to strained mortgage markets.

New Proposal for Fannie and Freddie to Buy MBS Could Lower Mortgage Rates 30 BPS or More

A new proposal is floating around that could push mortgage rates even lower than they already are. In case you haven’t noticed, the 30-year fixed is back in the low 6s and even knocking on the door to the 5s. While that’s actually pretty good and below the long-run average of 7.75% historically, housing affordability… Read More »New Proposal for Fannie and Freddie to Buy MBS Could Lower Mortgage Rates 30 BPS or More The post New Proposal for Fan…

Trade groups push plan to let GSEs buy MBS to ease mortgage rates

Trade groups representing community banks and home lenders are urging the Trump administration to allow Fannie Mae and Freddie Mac to purchase mortgage-backed securities (MBS) to help bring down mortgage rates.  The idea relies on amending the Preferred Stock Purchase Agreements (PSPA) to enable the GSEs to purchase up to $300 billion of their own MBS and Ginnie Mae MBS when the spread between the 30-year mortgage rate and the 10-year Treasury e…