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Fannie, Freddie Ramp Up MBS Buying as Markets Turn Volatile

Fannie, Freddie Ramp Up MBS Buying as Markets Turn Volatile

A $200B push into mortgage bonds could steady markets—but not for long.

Nina Dale
March 24, 2026

Together with

Good morning. Fannie and Freddie are back in buying mode, jumping into a volatile mortgage market with a $200B mandate. The goal: ease rising rates, but the backdrop is anything but calm.

Today’s issue is sponsored by National Flood Experts—helping investors add millions in value by reducing or eliminating flood insurance costs.

CRE Trivia 🧠

Which firm emerged as one of the largest CRE sellers to start 2026?

(Answer at the bottom of the newsletter)

Market Snapshot

S&P 500

GSPC

6,581.00

Pct Chg:
+1.15%

FTSE NAREIT

FNER

772.10

Pct Chg:
+0.63%

10Y Treasury

TNX

4.35%

Pct Chg:
-0.042

SOFR

30-DAY AVERAGE

3.66%

Pct Chg:
-0.00

*Data as of 3/23/2026 market close.

Buying Spree

Fannie, Freddie Ramp Up MBS Buying as Markets Turn Volatile

Government-backed buyers are stepping in as mortgage markets wobble under geopolitical and rate pressure.

What’s happening: Fannie Mae and Freddie Mac are ramping up purchases of mortgage-backed securities (MBS), taking advantage of a recent market selloff while attempting to stabilize mortgage rates.

By the numbers: The move follows a directive from President Trump ordering the agencies to acquire $200B in MBS to help lower borrowing costs and support housing affordability.

Market backdrop: Mortgage rates have climbed to a three-month high, driven by volatility tied to the Iran conflict, rising oil prices, and a spike in Treasury yields. While MBS spreads have widened sharply, recent buying has helped narrow them modestly.

Portfolio comeback: After shrinking dramatically post-2008—from $1.5T to $158B by 2022—Fannie and Freddie’s retained portfolios are growing again, reaching $278B as of January.

Why now: Earlier efforts to boost purchases were muted due to tight spreads and limited upside. The recent market dislocation has created a more attractive entry point, giving the agencies both a policy mandate and a financial incentive to scale up.

➥ THE TAKEAWAY

Policy vs. markets: Government-backed buying can soften rate spikes, but it’s no match for sustained macro volatility driven by inflation and geopolitics.

TOGETHER WITH NATIONAL FLOOD EXPERTS

Removing the lender flood insurance requirements for your assets in flood zones.

In real estate, one thing remains constant: if you own or develop property in a FEMA 100-year flood zone, flood insurance is required. This likely includes about 30% at least of this reader base. Are you unknowingly sitting on hundreds of thousands, maybe Millions of value in your portfolio?

Why have the NFE team review your property?

Our free review identifies solutions that will qualify any solution to help reduce or eliminate the flood insurance costs.
Flood maps change, lender requirements change - let us help you max the value of your flood required assets!

We are your flood expert partner for ground up development consulting, acquisitions, refinances, ongoing portfolio savings, pre-sale!

We've helped add over $500M in value for our clients.

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*This is a paid advertisement. Please see the full disclosure at the bottom of the newsletter.

✍️ Editor’s Picks

Elite tax tips: Most GPs send K-1s by mid-June. The best firms guarantee delivery by March 15. Get AppFolio’s CPA-backed tax strategies that impress investors and lighten your team's workload. (sponsored)
Dry powder: JLL Income Property Trust secured a $1B credit facility, positioning the fund to scale acquisitions and expand its stabilized property portfolio.
Cost pressures: Construction costs remain elevated as labor shortages and material volatility continue pressuring project feasibility and underwriting assumptions.
Fractional advantage: Need talent but not another full-time hire? OnDeck connects you with experienced CRE professionals in days, not months, so deals keep moving. (sponsored)
Debt reset: SL Green reset its $2B credit facility, extending maturities to 2031 and improving near-term liquidity flexibility.
Rate fears: Markets are pricing in a potential Fed rate hike as persistent inflation data reshapes expectations for monetary policy trajectory.
Private pivot: Rising privatization activity in M&A reflects public market discounts, prompting firms to take REITs private at perceived valuation gaps.

🏘️ MULTIFAMILY

Rent rebound: Multifamily rent growth turned positive in February 2026, signaling renewed pricing power after a period of softness across major U.S. markets.
Fee crackdown: States are tightening regulations on rental fees as housing costs rise, limiting landlords’ ability to pass through ancillary charges.
Janus debut: Janus Living, backed by Healthpeak, launched its IPO, aiming to capitalize on growing investor demand for senior housing assets.
Timber trouble: Milwaukee’s once-hyped tallest mass timber tower faces possible foreclosure after construction stalled amid funding gaps, lawsuits, and rising costs.

🏭 Industrial

Data demand: Starwood is expanding into Virginia data centers, targeting high-demand digital infrastructure markets tied to cloud and AI growth.
Prologis buy: Prologis acquired a Phoenix-area warehouse for $104M, reinforcing investor appetite for logistics assets in high-growth Sun Belt markets.
Small-bay bet: Forza entered Sacramento’s small-bay industrial sector with a dual acquisition, targeting fragmented, high-demand infill assets.
Activisit exit: Activist investor Jonathan Litt withdrew his bid for board seats at First Industrial, ending a governance challenge at the REIT.

🏬 RETAIL

Retail titan: David Simon, longtime leader of Simon Property Group, died at 64 after building the company into a dominant retail REIT.
Lease shift: Net lease deals are increasingly incorporating escalation clauses, replacing flat rents to hedge against inflation and rising operating costs.
Discount drift: Higher-income consumers are increasingly shopping at dollar stores, reflecting shifting spending patterns amid persistent inflation pressures.

🏢 OFFICE

Tampa hub: A tobacco company is planning a $50M investment in a new Tampa hub, adding to corporate demand for industrial and office space.
Extend & pretend: Office landlords are increasingly extending loan maturities through CMBS modifications to avoid refinancing in a high-rate environment.
Office refi: SL Green secured CMBS financing for One Madison, bringing in Hines and a Korean pension partner to stabilize the asset.
Loan takeover: Bank OZK took control of Lincoln Yards’ only completed office asset, highlighting lender remedies amid stalled megadevelopments.

🏨 HOSPITALITY

Prime bet: Nearly 200-year-old Delmonico’s is opening a second Manhattan location as steakhouse demand surges despite rising beef costs.
Miami reposition: A Miami Beach hotel at 1680 Collins Avenue is being repositioned, reflecting continued capital targeting hospitality value-add plays.
Mountain build: A $550M hotel-residence development broke ground in Steamboat Springs, signaling sustained investment in resort and lifestyle destinations.

A MESSAGE FROM CREXI

Hospitality Buyers Are Showing Up

Crexi’s hospitality auction momentum continues into March and April following last month’s $40M+ portfolio sale.

Investor demand for hotel opportunities remains strong, with active listings attracting serious buyers and driving competitive bidding across the platform.

For buyers, now is the time to review upcoming auctions, complete due diligence, and get positioned to bid as new hospitality listings roll out.

Featured Listing
The Plaza Hotel — Reno, NV
Register to bid now on Crexi Auction.

*This is a paid advertisement. Please see the full disclosure at the bottom of the newsletter.

📈 CHART OF THE DAY

Population growth slowed in every region, led by the South and weakest in the Northeast.

CRE Trivia (Answer)🧠

Blackstone led early 2026 dispositions, offloading major assets as it rotates into higher-growth sectors.

Fannie, Freddie Ramp Up MBS Buying as Markets Turn Volatile

A $200B push into mortgage bonds could steady markets—but not for long.