The current administration recently announced a plan to inject $200 million into the market by instructing Fannie Mae and Freddie Mac to use their cash reserves to purchase Mortgage-Backed Securities (MBS). Think: You want to invest in the housing market, so you lend money to someone buying their primary residence. When there is more demand for MBS, rates should go down accordingly. With America longing for lower mortgage rates and our local housing market longing for more affordable supply, what could this mean for us here in the 805? If you qualify for a $1M house, and rates drop by one percent, you should qualify for a $1.1M house now.