Episode Summary:
In this conversation, Craig Fuhr and Jack BeVier discuss the implications of Trump’s proposed $200 billion infusion into the mortgage market, exploring its potential effects on interest rates, home buyer behavior, and the overall housing market dynamics. They analyze historical parallels, market predictions, and the evolving landscape of Non-QM mortgages, emphasizing the importance of strategic pricing and quick closing in real estate transactions.
Episode Overview
Jack BeVier and Craig Fuhr open the episode discussing what was expected to be a quiet spring housing market. Mortgage rates remained high, and buyer sentiment was cautious. Then, a surprise policy announcement disrupted that outlook—a $200 billion mortgage-backed securities injection.
This move, introduced to push rates down, marks a rare and bold step in housing policy.
How the Mortgage-Backed Securities Injection Works
The mortgage-backed securities injection allows agencies like Fannie and Freddie to overpay for mortgage assets. As a result, rates may fall 25–50 basis points for roughly 60 to 90 days. Accordingly, this is not a long-term rate environment shift, but a short-lived intervention.
Once the $200 billion is spent, rates are expected to return to prior levels.
Short-Term Opportunity for Sellers and Flippers
This temporary drop is likely to pull forward buyer demand. Jack and Craig compare it to the 2010 Obama-era $15,000 tax credit. Back then, listings moved quickly – even in a slow overall market.
If history repeats itself, inventory priced correctly in Q1 could attract outsized attention.
Above all, sellers should list during this window—not after.
The Danger of Missing the Timing
If you’re still holding a property when the subsidy expires, you may lose pricing power. Buyers will hesitate once rates jump again. Then, homes could sit longer, and price reductions may follow.
Jack advises pricing confidently but adjusting weekly if needed. Don’t hold out too long and risk missing the wave.
Capital Flow into DSCR and Non-QM Markets
Another key point: this injection may push private capital away from agency loans. As agencies dominate those purchases, institutional buyers may shift toward non-QM and DSCR loans instead.
However, Craig and Jack agree that underwriting guidelines won’t loosen. Rather, pricing will improve for “middle of the box” loans: strong DSCRs, solid FICO, and predictable deals.
Execution Speed Will Matter More Than Ever
According to Craig, the lender who can deliver both competitive pricing and 10-day closings will dominate. Investors want reliability and speed, not just low rates.
In other words, this isn’t the time for edge-case loans; it’s the time for clean, fast, confident execution.
Final Thoughts
All in all, the $200 billion mortgage-backed securities injection creates a narrow, temporary opportunity for real estate investors. Whether listing a property or locking in a DSCR loan, speed and timing are everything.
Bevier and Fuhr make it clear: act early, move strategically, and don’t assume this window will stay open for long.
