In early January, President Trump said Fannie Mae and Freddie Mac should buy $200 billion in mortgage-backed bonds to help lower home-loan rates. CNBC noted that the average 30-year fixed rate sank briefly on the news and was near 6.15% later that month, down from more than 7% a year earlier.
The Fed’s January minutes later confirmed the market reaction: MBS yields fell relative to Treasuries after the announcement. Policymakers also observed that the move was unlikely to produce a refinance wave, because most outstanding mortgages still carried rates well below the new market rate.
What it meant for clients
A cheaper MBS spread helps new purchase money more than it helps people who already locked a 3% or 4% loan. If you were buying, January was a better window than 2025. If you were hoping to refinance an existing loan, the math still had to clear closing costs — a headline dip was not enough.
Sources: CNBC (Jan. 2026); Federal Reserve FOMC minutes (Jan. 28 meeting).