Bessent: Any action on Fannie Mae, Freddie Mac will focus on ensuring mortgage rates do not rise higher

Bessent: Any action on Fannie Mae, Freddie Mac will focus on ensuring mortgage rates do not rise higher

Mortgage rates have been a hot topic of discussion among aspiring homeowners and financial professionals alike. As of June 19, 2025, the 30-year fixed-rate mortgage stands at 6.77%, a decrease from 6.86% a year ago [1]. This slight decline, though welcome, has not been substantial enough to significantly impact the housing market. Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs) that provide liquidity and stability to the mortgage market, are focusing on strategies to ensure that mortgage rates do not rise further.

In recent weeks, mortgage interest rates have been dropping incrementally. According to Freddie Mac, rates for 30-year fixed-rate mortgages have been below 7% for 23 consecutive weeks as of June 26, 2025 [1]. The average rate for 15-year fixed-rate mortgages has also decreased, now standing at 5.89% [1]. While these drops are encouraging, they have been minor, leaving potential home buyers to wonder if now is the right time to buy a house.

Fannie Mae and Freddie Mac are working to stabilize the mortgage market and prevent rates from rising further. They have been implementing measures to ensure that mortgage rates remain low and accessible to a broader range of home buyers. These measures include adjusting their lending standards and providing additional liquidity to the mortgage market.

The Federal Reserve's recent actions have also played a role in the stability of mortgage rates. The central bank has held its federal funds rate steady, predicting two rate cuts for 2025 [1]. This has helped to keep mortgage rates from rising too rapidly. However, the 10-year Treasury yield, which closely follows mortgage rates, has been increasing, currently sitting at 4.30% [1].

Despite the recent declines in mortgage rates, home prices remain high due to a crunch in the housing market. Buyers outnumber homes for sale, especially in the first-time home buyer price range [1]. This imbalance has led to a situation where home prices remain high despite the slight decrease in mortgage rates.

For prospective home buyers, the best strategy may be to buy what they can afford, whether that means a smaller house or a condo. Shopping for the best mortgage lenders with low rates and fees is also crucial. Additionally, considering lesser-discussed financial tools and adopting a curious mindset about local real estate markets can help buyers find their ideal home.

In conclusion, Fannie Mae and Freddie Mac are working to ensure that mortgage rates do not rise higher. While mortgage rates have been decreasing incrementally, home prices remain high due to a crunch in the housing market. Prospective home buyers should consider buying what they can afford and shopping for the best mortgage lenders with low rates and fees.

References:
[1] https://finance.yahoo.com/personal-finance/mortgages/article/when-will-mortgage-rates-go-down-predictions-as-30-year-interest-rates-stay-high-190610433.html