At A Glance

• President Trump announced on January 8 that Fannie Mae and Freddie Mac may purchase up to $200B in mortgage-backed securities (MBS) to support housing affordability.
• Mortgage-backed securities rallied following the announcement, contributing to improved mortgage-rate indications.
• The national average 30-year fixed mortgage rate declined from 6.138% late last week to 5.999% on Monday, January 13 — the lowest daily reading since September 2022.
• The durability of these improvements will depend on program details, broader market conditions, and economic trends.

Mortgage rates improved last week as markets reacted to an announcement from President Trump that Fannie Mae and Freddie Mac may purchase up to $200 billion in mortgage-backed securities (MBS)—one of the tools available to support affordability.¹ The specifics of the program, including timing and pace, have not yet been released, but markets responded to the signal.

Mortgage-backed securities strengthened following the announcement, contributing to a noticeable improvement in mortgage-rate indications. The national average 30-year fixed mortgage rate moved from 6.138% late last week to 5.999% as of Monday—the lowest daily reading since September 2022.²

“We saw tightening in MBS spreads, and several rate surveys reflected that movement,” said Brett Hively, Senior Vice President and Mortgage Capital Markets and Financial Strategist at Ameris Bank. “Markets respond quickly to expectations, even before operational details are finalized.”

Some volatility persisted as traders processed the announcement, and markets saw renewed movement to start the week as broader economic headlines and shifts in Treasury yields pushed rates higher on Monday. These fluctuations highlight how multiple macro factors—beyond housing-specific policy announcements—can influence day-to-day rate movement, and why recent improvements may continue to adjust as new information emerges.

Why the Announcement Matters

This development represents a clear policy signal aimed at improving housing affordability. While the Federal Reserve sets monetary policy independently, the administration can influence mortgage-market dynamics through GSE activity, which plays a central role in purchasing loans and issuing mortgage-backed securities.

Mortgage-backed securities play a key role in how mortgage rates are set, so increased demand for MBS can help push yields lower, which often supports lower mortgage rates over time.

Increasing GSE purchases can boost demand for MBS, support market liquidity, narrow the spread between mortgage rates and Treasury yields, and help ease rate pressure over time.

The scale of the U.S. residential MBS market helps frame expectations.

“The mortgage-backed securities market is very large relative to a single-announcement purchase program,” Hively noted. "Incentives are helping keep new construction in play, which is important for easing supply constraints."

What This Means for the Housing Market

Rates ended last week at their most favorable levels in years, supported by the MBS rally and stable Treasury yields amid moderating inflation data. Near-term fluctuations are likely as markets absorb broader economic headlines and await more clarity on the potential GSE purchase program.

For homebuyers and agents, the announcement underscores renewed policy attention on improving access to homeownership. Any longer-term impact will depend on economic conditions, Federal Reserve policy, and the structure of the finalized program, but additional GSE demand could help support affordability as the year progresses.


Sources:
¹ https://www.reuters.com/world/us/trump-orders-his-representatives-buy-200-billion-dollars-mortgage-bonds-2026-01-08/
² https://www2.optimalblue.com/obmmi 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.