Fannie Mae added $38 billion of mortgage bonds this year as Pulte promised more buying

FHFA Director Bill Pulte posted on Sept. 18 that Fannie Mae and Freddie Mac were “beginning to buy even more, large quantities, as we speak” ^[1]. The two companies are working under a January order from President Trump to buy up to $200 billion of mortgage-backed securities ^[1].

Fannie Mae’s third-quarter 10-Q shows $108.8 billion of agency securities in its retained portfolio on Sept. 30, compared with $70.4 billion at the end of 2025 ^[2]. We calculate that as a $38.4 billion increase in nine months.

Fannie Mae has done most of the buying

Freddie Mac’s agency securities line reached $55.6 billion in February and has stayed within about $1.5 billion of that level since, ending September at $57.0 billion ^[3][4]. Freddie bought $25.1 billion of loans and securities in September across all its activity, but its total investment portfolio shrank by about $3 billion that month ^[3].

Combined MBS holdings at the two companies peaked at $167.63 billion at the end of April and declined to $155.39 billion by the end of July, according to Scotsman Guide’s tally of their monthly reports ^[1]. We calculate that the two held about $165.8 billion of agency securities at the end of September, using Fannie’s 10-Q and Freddie’s monthly report ^[2][3].

Community lenders asked Pulte and Bessent to push Freddie Mac

The Community Home Lenders of America wrote to Pulte and Bessent that the purchases “are making a real difference” for rates, and asked Freddie to step up and both companies to buy Ginnie Mae bonds ^[6]. The group put the spread between mortgage rates and Treasurys at 219 basis points, up from about 200 earlier this year ^[6].

Each company can hold up to $225 billion of mortgage assets under its agreement with Treasury ^[2][6].

Mortgage rates are a point higher than a year ago

The 30-year fixed rate averaged 7.24% in Freddie Mac’s Oct. 29 survey, compared with 6.17% a year earlier ^[7]. After the January order, the weekly average fell to 5.98%, the lowest since 2022 ^[5]. The 10-year Treasury yield closed at 5.11% on Sept. 23, its highest close since July 2007 ^[6].

How to use this

For homebuyers and refinancers

1. Ask your lender to quote the rate and the 10-year Treasury yield on the same day, so you can see the spread you are paying. The lenders’ group put the typical spread at 219 basis points ^[6].
2. Price out what a narrower spread would save before you decide whether to lock or wait. We calculate that on a $400,000 loan at 7.24% ^[7], an 11 basis point drop, the middle of the lenders’ estimate ^[6], lowers the monthly payment by about $30.
3. Ask for a float-down clause in writing if you lock now. Pulte has said more buying is under way ^[1], and a clause lets you take a lower rate if spreads tighten before closing.

For builders and home sellers

1. Compare a rate buydown with a price cut using today’s 7.24% rate ^[7], since a spread change from GSE buying could move rates by only a tenth of a point on the lenders’ estimate ^[6].
2. Underwrite sales at current rates instead of the 5.98% low from earlier this year ^[5].

For investors and lenders

1. Track Freddie Mac’s agency securities line each month. It has stayed between $54.7 billion and $57.0 billion since February ^[3][4], so a move above that range would be the first sign Freddie has joined the buying.
2. Watch Fannie Mae’s remaining room under the cap, which we put at about $42 billion ^[2]. If Fannie keeps adding at this year’s pace of about $4.3 billion a month, we calculate it could reach the cap in roughly 10 months.