01/10/2026
You might have seen president Trump has instructed Fannie Mae and Freddie Mac to buy mortgage backed securities. What most people don’t realize is it does not mean the government is printing money or sending out stimulus.
Here’s what’s really happening:
Fannie and Freddie borrow money from large investors like banks, pensions, and insurance companies. Those investors are willing to lend because Fannie and Freddie are effectively backed by the U.S. government, so it’s safe. That borrowed money is then used to buy mortgages.
This matters because when demand for mortgages goes up, mortgage rates tend to come down.
This is not QE.
With QE, the Federal Reserve creates new money and injects it into the entire economy. This is different
