Credit-risk transfer activities at Fannie Mae and Freddie Mac wobbled in the second quarter after a modest increase in the first three months of 2025. Issuance fell for STACRs but not for CAS notes. (Includes data table.)

Mortgage rates and MBS spreads may depend on how the White House structures the proposed IPO for the GSEs and how markets react to a potential merger of the two mortgage giants.

Issuers are looking to create spec pools of FHA loans to help reduce default risk.

Average daily MBS trading declined in July. The latest reading is still better than full-year measurements of the past few years.

A shot of lower mortgage rates would help a sagging agency MBS market as July saw declines in both purchase-mortgage and refinance activity. ARMs are having a moment. (Includes two data tables.)

When acquisitions at the GSEs are slow, their mortgage and liquidity portfolios play a larger role in earnings. (Includes data table.)

President Trump said he plans to maintain an implicit guarantee for the GSEs if they’re removed from conservatorship. Prominent agency MBS investors expressed relief about the administration’s stance on GSE reform even though they don’t expect near-term action.

Investors saw the value of their agency MBS holdings drop in early April due to volatility tied to trade policies. Many markets recovered from the volatility by the end of June, but the agency MBS market lagged.

While issuance of specified pools with high GSE mission-density scores declined in the second quarter, there was a significant increase in pools with FICO scores below 700. (Includes data table.)

Federal Reserve Governor Christopher Waller said the central bank’s balance sheet hasn’t grown as much as people think, but that MBS sales might be needed to balance the duration of assets and liabilities.