In the early years of Fannie/Freddie conservatorship, investors were seeking an explicit guarantee of GSE MBS as part of any reform effort. More recently, they have shown an acceptance for maintaining an implicit guarantee.

One way to get mortgage rates to decline and stay that way is to entice more institutional investors to buy agency MBS. The Federal Reserve is no longer increasing its holdings, but how much room is there at Fannie and Freddie? Answer: more than you might think.

The securitization rate for residential mortgages came down after reaching an elevated level in the first quarter of 2025. The rate declined for both GSE-eligible mortgages and non-agency loans during the second quarter. (Includes data table.)

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.