Government purchases of mortgage-backed securities can lower rates but may push up home prices due to increased competition. Find out what it means for your real estate plans.

You’ve likely seen headlines about the federal government buying mortgage-backed securities and wondered what it means for your mortgage. So, I’m here to break it down in a simple way and explain why those headlines don’t always tell the full story when it comes to buying or selling a home in Phoenix.

Recently, there’s been talk about the federal government buying more mortgage-backed securities. If this happens, two things happen.

It can put downward pressure on mortgage interest rates, which often gets a lot of attention since lower rates usually make borrowing easier. At the same time, lower rates can draw more buyers into the market, which can increase competition and sometimes push home prices higher.

That means, even if your monthly payment drops with a lower rate, the actual price of the home can still increase. When prices rise faster than rates fall, overall affordability may not improve. Lower rates help, but they don’t solve everything on their own.

This is why timing, strategy, and local market knowledge matter more than what you see in the national news. What benefits one buyer might create challenges for another, and sellers are affected differently at each step along the way.

If you’re trying to understand how potential rate changes could impact your buying power or your home’s value, feel free to give me a call at 480-267-9368 or send an email to Office@GoodCompanyRE.com. Getting clear, local guidance can help you stay ahead of the curve.