Overview
- FHFA Director Bill Pulte said Fannie Mae and Freddie Mac "will be executing" the president’s request, though the mechanics, timing and authorizations were not fully detailed.
- Mortgage‑backed securities and home‑lender stocks rallied, and the 10‑year Treasury yield ticked lower following the announcement.
- Economists estimate purchases of this size could lower 30‑year mortgage rates by roughly 0.25 to 0.5 percentage points, offering limited relief without addressing supply constraints.
- The plan relies on expanding GSE retained portfolios, which recently totaled about $234–247 billion, within PSPA and FHFA limits that allow roughly $200 billion more.
- Critics warn the move could push home prices higher and increase GSE exposure, and they note the independent Federal Reserve cannot be directed to buy MBS as the White House advances a broader affordability agenda including curbs on institutional homebuyers.