On January 13, 2026, President Trump instructed government-sponsored enterprises Fannie Mae and Freddie Mac to purchase $200 billion in agency mortgage-backed securities (MBS). The program’s stated goal is to reduce long-term mortgage rates by increasing demand for MBS, thereby lowering yields in the secondary market. This represents one of the largest direct MBS purchase directives in a single administration and follows similar Federal Reserve programs during past economic downturns.

Following the announcement, average 30-year mortgage rates dropped by 22 basis points, reaching their lowest level in three years. Secondary market MBS yields declined concurrently, with the benchmark 30-year coupon trading at a spread narrowing of 15 basis points versus Treasuries. Several housing analysts now project that sustained $200 billion of agency MBS purchases could drive an additional 25–50 basis point reduction in mortgage rates over the next six months, potentially boosting refinance activity and improving affordability for first-time homebuyers.