Jobs Friday came and went without much reaction in bond yields because the labor market isn't breaking, nor is it getting stronger. Mortgage rates dropped into the 5s for a short time on Friday as a result of Trump's earlier announcement directing the GSEs to buy $200 billion in mortgage backed securities. The 10-year yield didn't move much after the report.
Combined holdings at Fannie Mae and Freddie Mac grew at a 77% annualized pace over the six months ending in November 2025, rising by more than $68 billion to approximately $247 billion. There remains room for further expansion. Under the Preferred Stock Purchase Agreement (PSPA), each GSE's retained portfolio is capped at $250 billion, with an additional $225 billion limit imposed by the Federal Housing Finance Agency (FHFA) under a prior director.
He stressed that the U.S. mortgage-backed securities market relies on long-term, fixed-rate loans with highly predictable performance, something portability threatens to destabilize. Portable mortgages, in addition to other issues, would totally destroy the pricing models current used by MBS's in their investor presentations, Cantrell said. The portable mortgage is also predicated on widespread lender adoption and the lender being willing to trade one asset for another.
"Because of the strong dividend income REITs provide, they are an important investment both for retirement savers and for retirees who require a continuing income stream to meet their living expenses. REITs' dividends are substantial because they are required to distribute at least 90% of their taxable income to their shareholders annually. Their dividends are fueled by the stable stream of contractual rents paid by the tenants of their properties," says REIT.com.
