In a significant move to bolster the housing market, the US Treasury has unveiled a new program aimed at purchasing mortgage-backed securities. Spearheaded by Secretary Scott Bessent, this initiative is designed to stabilize mortgage rates and enhance affordability for homebuyers. According to the conclusions drawn in the analytical report, such measures are expected to have a positive impact on the overall economy.
Treasury's Acquisition of Mortgage-Backed Securities
The Treasury's program will involve the acquisition of $200 billion in mortgage-backed securities (MBS). This strategic purchase is intended to counterbalance the Federal Reserve's ongoing reduction of $15 billion in bond holdings each month. By sustaining demand for MBS, the Treasury aims to alleviate the pressures of the Fed's quantitative tightening measures.
Impact on Homebuyers and Housing Market
This initiative comes at a critical time as rising mortgage rates have posed challenges for potential homebuyers. By intervening in the MBS market, the Treasury hopes to create a more favorable environment for housing, ultimately leading to improved affordability and access to homeownership for many Americans.
The US government is currently grappling with record-high interest payments on its debt, which reached $1.47 trillion in the third quarter of 2025. This financial strain contrasts sharply with the recent Treasury initiative aimed at stabilizing the housing market. For more details, see record interest payments.
