January 8, 2026 – Washington D.C. — The U.S. government has announced a new directive instructing Fannie Mae and Freddie Mac to purchase up to $200 billion in mortgage-backed securities (MBS), part of a broader effort to address elevated mortgage rates and ongoing housing affordability challenges.
The initiative is intended to strengthen demand in the secondary mortgage market, which can support improved liquidity and pricing stability for mortgage-backed securities. While mortgage rates are influenced by a range of economic factors, increased MBS demand may help ease borrowing conditions over time and support more manageable monthly payments for homebuyers.
Market Context
Housing affordability has remained under pressure as higher interest rates and elevated home prices continue to impact buyer purchasing power. Federal policymakers have increasingly focused on measures designed to improve market stability and expand access to financing without directly setting mortgage rates.
What This Means for the Mortgage Market
- Increased MBS activity: Fannie Mae and Freddie Mac are expected to expand their purchases of mortgage-backed securities under the directive.
- Affordability support: By reinforcing demand in the MBS market, the initiative aims to help create conditions that may support lower mortgage costs for consumers.
- Broader housing focus: The action reflects continued federal attention on affordability and access in a market facing both pricing and supply constraints.
Additional details regarding the timing and implementation of the program are expected as agencies provide further guidance.
