Fannie and Freddie $200B MBS Purchase Could Boost Housing Market -- Market Talk
Dow Jones01-09
0827 ET - President Trump's initiative to have Fannie Mae and Freddie Mac to buy $200 billion of mortgage-backed securities could drive a 10 to 25 basis point reduction in mortgage rates, potentially bringing the current 30-year headline mortgage rate down to roughly 6%, according to UBS. "While still elevated relative to the average outstanding mortgage rate of 4.4% and the 3.25% levels as recently as Jan 2022, this decline may provide a boost to both new construction demand and existing home turnover," the analysts say. (nicholas.miller@wsj.com)
(END) Dow Jones Newswires
January 09, 2026 08:27 ET (13:27 GMT)
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