Read on Investopedia: Trump Unveils New Strategy to Slash Mortgage Rates. What It Could Mean for Homebuyers.

Investopedia, January 9, 2026

  • Trump directed Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds; the 30-year mortgage rate fell to near 6%, its lowest since early 2023, per Mortgage News Daily.
  • LPL Financial put the mortgage-backed securities market at about $11 trillion, so the purchase is significant but unlikely to move the market alone.
  • Fannie and Freddie had already raised their MBS holdings by more than 25% since June, to almost $234 billion by October.
  • Compass chief economist Mike Simonsen questioned how sustainable the buying is. Realtor.com’s Joel Berner called the impact likely “modest and short-lived,” noting the Fed’s own MBS purchases totaled $2 trillion.
  • A separate proposal to privatize Fannie and Freddie could push rates higher by removing the government’s implicit backing.
Investopedia: Trump Unveils New Strategy to Slash Mortgage Rates. What It Could Mean for Homebuyers.
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