On January 13, 2026, President Trump instructed Fannie Mae and Freddie Mac to acquire up to $200 billion of agency mortgage-backed securities (MBS) over an unspecified timeframe. The directive marks the largest coordinated agency MBS purchase program since the post-crisis Federal Reserve buying, and is aimed squarely at suppressing mortgage borrowing costs. Agency issuers have confirmed they will ramp up daily purchases to meet the target, with initial trading desk reports indicating daily acquisitions of $1.2 billion in 30-year MBS and $800 million in 15-year MBS within the first week of implementation.

Following the announcement, average 30-year mortgage rates dropped by 22 basis points to a three-year low of 3.78%, according to industry surveys. Market analysts forecast that the full $200 billion purchase could drive an additional 25 to 50 basis point reduction in benchmark mortgage yields over the next quarter. Secondary market liquidity has improved substantially, with trading volumes in agency pools rising by 35% year-over-year and bid-ask spreads tightening by 5 basis points on average across Fannie Mae and Freddie Mac coupons.

Agency mortgage real estate investment trusts (mREITs) are emerging as potential beneficiaries of the enhanced MBS support. With funding costs for repo and secured financing declining by 15 basis points since the president’s announcement, mREITs focusing on Fannie Mae and Freddie Mac collateral are reporting net interest margins expanding by up to 40 basis points. Industry watchers note that smaller, more nimble mREITs may outperform larger peers that hold diversified commercial mortgage portfolios, as agency MBS carry remains robust at 125 basis points above benchmark swaps.