Daily trades in agency MBS aren’t at bragging levels, but there is one positive: Spreads are narrowing.

With the Fed widely expected to reduce the federal funds rate next week, demand for agency MBS is rising. Banks are also projected to add to their holdings, though their buying might be somewhat delayed.

The Trump administration wants to take Fannie Mae and Freddie Mac public, but it’s not clear whether the two would go public as one merged entity or as two separate companies.

The sharp decline in GSE Supers issuance was the result of the Federal Reserve wrapping up the conversion of its Fannie/Freddie MBS into aggregated form in the first quarter. (Includes two data tables.)

Analysts at Stifel believe agency MBS currently offer better value than investments in corporate bonds.

KBRA downgrades jumbo MBS issued by JPMorgan Chase in 2015; Community Bank sells MBS holdings at a loss; Morningstar details private-rating share.

Key mortgage industry stakeholders say an IPO of GSE stock would have trouble attracting investors if FHFA remains their conservator or they are released without an explicit guarantee.

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.