---
title: "Trump’s $200 billion bet on lower mortgage rates worked. War in Iran just changed everything."
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/293490825.md"
description: "President Trump's $200 billion initiative to lower mortgage rates via Fannie Mae and Freddie Mac initially succeeded, pushing rates below 6% by March 2026. However, the resumption of war in Iran caused oil prices and inflation expectations to surge, driving 10-year Treasury yields and mortgage rates back up to over 6.5%. This geopolitical shift reversed earlier gains, dampening consumer sentiment and home sales, with analysts warning that prolonged conflict could keep borrowing costs elevated."
datetime: "2026-07-22T14:55:49.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/293490825.md)
  - [en](https://longbridge.com/en/news/293490825.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/293490825.md)
---

# Trump’s $200 billion bet on lower mortgage rates worked. War in Iran just changed everything.

Quick ReadTrump's $200 billion GSE order drove mortgage rates below 6% by March 2026, but resumed U.S.-Iran fighting erased those gains by July.WTI crude surged nearly 10% in one day, pushing gas above $4 and driving Treasury yields higher, lifting mortgage rates to a wartime high of 6.75%.Economists warn that draining the $200 billion GSE cash res...

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