Fannie Mae’s Mortgage Holdings Balloon as Trump Tries To Hold Interest Rates Down

Fannie Mae has more than doubled its mortgage portfolio in the past 12 months as the Trump administration tries to tamp down stubbornly high mortgage rates.

The government-sponsored enterprise increased its retained portfolio by $18.3 billion in March, capping off a quarter in which it grew by $36 billion. Fannie, whose portfolio now stands at $168.7 billion, is on a buying spree aimed at stabilizing the struggling housing market.

Earlier this year, President Donald Trump directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities. And Trump has teased what could be a $30 billion initial public offering for the two entities, which have been under conservatorship since the Great Recession.

The buying spree could help bolster an IPO that values the two GSEs at $500 billion. But Washington appears divided on whether such a move is a good idea.

In Fannie's earnings call last month, Acting CEO Peter Akwaboah noted increased purchases of mortgage-backed securities in an effort to support the secondary mortgage market.

"We remain focused on providing uninterrupted liquidity in all economic cycles to support stability and affordability to the U.S. housing market," he said.

Picking up the pace

Fannie Mae increased the pace of its activities quickly in 2026. In the first quarter, it undertook $84.4 billion in purchases, $41.7 billion in dispositions, and $6.5 billion in liquidations. That's enlarged its portfolio to $168.7 billion at the end of March, up from $132.5 billion in December.

And it more than doubles the $80.3 billion retained mortgage portfolio balance it held in March last year.

On the earnings call, Fannie Mae CFO Chryssa Halley also acknowledged that the retained mortgage portfolio growth drives risk. But the boost in the retained mortgage portfolio, as well as a $7 billion reduction in its corporate liquidity portfolio, reflects "a shift in our portfolio mix towards higher-yielding investments."

"We benefited from the durability and quality of our $4.1 trillion Guarantee Book, a leaner cost structure that supported higher earnings, and a strong and growing net worth position," Halley said. "Together, these strengths position us well to navigate market challenges, deliver solid results, and continue supporting the U.S. housing market."

Why Fannie is expanding its holdings

As Realtor.com economist Joel Berner explains, Fannie Mae is trying to lower mortgage rates for homebuyers, a longstanding promise of Trump.

"When more mortgages are kept on Freddie and Fannie's books away from investors, their value goes up and subsequently a newly issued mortgage can be created with a lower rate," Berner said. "What we're seeing is Fannie and Freddie acting upon the president's orders to buy up more MBS in an effort to make homebuying more affordable for American citizens."

But the move is only one piece of the housing puzzle. Berner notes the fundamental affordability issue in the housing market remains that there aren't enough homes to meet demand.

Even if rates alone could fix the market, there's also the issue of the war with Iran and related inflationary pressures, which have sent mortgage rates higher since February.

And the buying spree still ups the risk for Fannie Mae, which usually makes its move from the guarantee fees it charges investors.

If people don't pay those mortgages, Fannie would be more directly exposed to losses, a situation that sent the mortgage giant to the brink in the 2007 subprime mortgage crisis. The conservatorship is one of several guardrails that have been put in place since then.