U.S. Treasury Launches $200 Billion MBS Program to Stabilize Mortgage Rates
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 12 2026- New Purchase Program: U.S. Treasury Secretary Scott Bessent announced a monthly purchase of approximately $15 billion in mortgage-backed securities (MBS) to offset the Federal Reserve's balance sheet reduction, with a total plan to purchase $200 billion in MBS, aiming to stabilize mortgage rates and improve housing affordability.
- Market Impact: This initiative seeks to match the Fed's monthly $15 billion bond sales, thereby maintaining demand for these securities, which will lower mortgage rates and enhance housing market affordability, alleviating pressures from quantitative tightening.
- Historical Context: In 2008, the U.S. Treasury's MBS purchase program yielded a $25 billion profit for taxpayers, demonstrating the effectiveness of large-scale MBS interventions during financial crises and providing historical context for the current initiative.
- Global Implications: While the primary focus is on the housing market, this strategy may indirectly influence global financial conditions, impacting liquidity and risk sentiment, particularly with potential spillover effects on riskier assets like Bitcoin.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
