Trump’s $200 billion bet on lower mortgage rates worked. War in Iran just changed everything.
Complete. Here is the key summaryPresident 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.
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...