The Trump administration has recently taken action—preparing to invest $200 billion in mortgage-backed securities (MBS). This money will be managed jointly by Fannie Mae and Freddie Mac, with a very straightforward goal: to lower mortgage rates so that homebuyers can pay less each month.

Bill Pulte, Director of the Federal Housing Finance Agency, revealed a key piece of information: there’s no need to consult Congress about this, as an agreement has long been in place between the two agencies and the Treasury Department. Under the current framework, Fannie Mae and Freddie Mac can each increase their MBS holdings by up to approximately $100 billion.

Looking at the current market, the average interest rate for 30-year fixed mortgages is stuck at around 6.16%. Although the Federal Reserve has cut interest rates by a total of 75 basis points last year, the downward room for mortgage rates seems somewhat limited. This government move is essentially another push in the market, directly increasing MBS supply to reduce borrowing costs.

This reflects a support strategy for the real estate market and also influences liquidity expectations across the entire financial system. For those paying attention to macroeconomics, it’s worth watching how this plan will be implemented moving forward.