Administration Urges Fannie and Freddie to Invest $200 Billion in Mortgage Bonds

January 9, 2026 - 08:25

In a bold move aimed at reducing housing prices, the administration has called on Fannie Mae and Freddie Mac to increase their holdings of mortgage bonds by $200 billion. This strategy is seen as a response to the ongoing challenges in the housing market, where affordability remains a pressing issue for many Americans.

By expanding their portfolios, these government-sponsored enterprises hope to stimulate the housing market and provide much-needed liquidity. However, this approach also raises concerns among economists and financial analysts, who remember the pivotal role that Fannie and Freddie played in the 2008-09 financial crisis. Critics argue that increasing their exposure to mortgage bonds could lead to similar vulnerabilities in the future.

Supporters of the initiative believe that by bolstering the housing market, the administration can help stabilize home prices and make homeownership more accessible. As the debate continues, stakeholders are closely monitoring the potential implications of this significant financial maneuver.