Mortgage Rates Could Be About to Fall—Here’s Why
Summary
Fannie Mae and Freddie Mac have increased their mortgage-backed securities holdings by 31% from May to October, reaching $233.6 billion. Experts suggest this move may help lower mortgage rates and prepare the companies for a potential public stock offering, which President Donald Trump supports. The increase in holdings might also aim to address high borrowing costs that have persisted this year.Key Facts
- Fannie Mae and Freddie Mac have raised their mortgage holdings to $233.6 billion.
- This increase is the highest in the past four years.
- President Donald Trump supports possibly taking these companies public.
- High borrowing costs remain a challenge in the U.S. housing market.
- Mortgage rates are still high, with a 30-year fixed rate at 6.22% as of December 11.
- The increase in holdings could make mortgage-backed securities more valuable.
- Fannie Mae and Freddie Mac play a key role in buying U.S. residential mortgages.
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