For both purchase mortgages and refis, GSE activity with private MI posted stronger performance than FHA in the fourth quarter of 2025. For the full year, trends differed, at least with purchase mortgages. (Includes three data tables.)
Rather than detailing new policies to address housing affordability, President Trump highlighted two recent announcements. He also warned that he could “crush” the housing market.
The Supreme Court heard oral arguments this week in the case involving whether President Trump can fire Federal Reserve Governor Lisa Cook. Many of the justices appeared to oppose Trump’s effort.
President Trump’s directive to lower interest rates helped spur a tightening in mortgage spreads, but economists are skeptical of the long-term impact of the move involving GSE purchases of MBS.
The executive order seeks to limit institutional investors from purchasing single-family homes, but some market participants believe it would do little to boost housing affordability nationally.
Department of Housing and Urban Development Secretary Scott Turner was evasive as members of the House Financial Services Committee asked him to elaborate on his plans and achievements.
President Trump’s announcement that the GSEs will buy $200 billion of agency MBS prompted mortgage spreads to tighten by about 20 basis points and some lenders to offer mortgages below 6.00%.
Treasury Secretary Scott Bessent confirmed industry speculation that President Trump directed the GSEs to purchase $200 billion in MBS to offset Federal Reserve policy.
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