Can Fannie Mae and Freddie Mac Really Push Mortgage Rates Below 6%

Two major banking groups say lowering mortgage rates could be as easy as flipping a policy switch. Tim Lucas and Craig Berry unpack a bold proposal that could nudge rates under 6%, how it works, and why it’s sparking debate in Washington.In this episode you’ll learn:The proposal: Fannie Mae and Freddie Mac would buy $300 billion in mortgage-backed securities when rates exceed 1.7% above 10-year Treasuries.The potential payoff: Could drop the average 30-year fixed rate from 6.19% → 5.89%, saving homeowners hundreds per month.The catch: More risk on Fannie and Freddie’s books—the same issue that led to their 2008 conservatorship.Why now: The Fed stopped buying MBS in 2022, leaving a gap in the market that’s kept rates elevated.The big question: Should the government step in to lower rates—or let the market correct itself naturally?Read the full article:https://www.mortgageresearch.com/articles/proposed-fannie-freddie-rule-change-could-push-mortgage-rates-below-6/