Real Estate Market Trends: How Trump’s Plan Could Lower Mortgage Rates in Fargo-Moorhead

By Christopher Leigh | September 06, 2025, 09:15 AM CDT

The Trump administration’s potential moves to privatize Fannie Mae and Freddie Mac could reshape mortgage rates, offering new opportunities for Fargo-Moorhead homeowners and buyers. Despite limited impact from Federal Reserve rate expectations, a strategic policy shift might bypass traditional Treasury market dynamics. This Real Estate Market Trends post, brought to you by Vision Realty, explores how this could affect North Dakota and Minnesota’s housing market in 2025.

The Potential Impact on Mortgage Rates

Long-term Treasury yields have resisted Federal Reserve rate cut expectations due to inflation concerns and the administration’s stance on monetary policy. However, a report from Citrini Research, led by James van Geelen, suggests a workaround through privatizing Fannie Mae and Freddie Mac. The Federal Housing Finance Agency could lift post-financial crisis caps on these government-sponsored enterprises (GSEs) buying mortgage-backed securities (MBS), potentially unlocking $1 trillion in demand.

This move, dubbed “quasi-QE” by Citrini, could lower mortgage rates by narrowing the spread between the 30-year fixed rate (currently above 2% over the 10-year Treasury yield of 4.086%) and boost GSE equity returns. “By narrowing mortgage spreads directly, they bypass the Treasury market entirely,” the report states, with the housing emergency declaration providing political backing [1].

Current Market Context

The 10-year Treasury yield has dropped 38 basis points this year, while the 2-year yield fell 64 basis points (3.491%), yet mortgage rates remain elevated. In Fargo-Moorhead, where the market balances urban and rural dynamics, this could stimulate housing credit without central bank intervention.

Implications for Fargo-Moorhead

In Fargo-Moorhead, where median home prices hover around $384,100 (per recent trends), lower rates could ease affordability challenges. Privatization might increase MBS demand, reducing borrowing costs for buyers and offering sellers higher equity returns if GSE stocks (FNMA up 3.30%, FMCC up 2.80% this year) rise further. However, success hinges on regulatory approval and market confidence, areas Vision Realty is monitoring closely.

Investors eyeing mortgage originators like Rocket Cos. (RKT, +4.73%) could benefit, while local homeowners might see increased flexibility to refinance or sell, especially with Midwest inventory 40% below 2019 levels.

How to Navigate This Opportunity

Ready to explore Fargo-Moorhead’s market? Follow these steps:

• Monitor Rates: Stay updated on policy changes with Vision Realty.

• Assess Equity: Evaluate your home’s value for refinancing or selling.

• Explore Financing: Consider mortgage options as rates potentially drop.

• Plan Strategically: Time your move with expert advice.

• Partner with Us: Leverage Vision Realty’s market insights.

Frequently Asked Questions (FAQs)

Q: How could privatization lower mortgage rates?
A: Lifting GSE caps could unlock $1 trillion in MBS demand, narrowing rate spreads [1].

Q: Will this affect Fargo-Moorhead homes?
A: Yes, lower rates could improve affordability for the $384,100 median-priced homes [1].

Q: What are the risks?
A: Regulatory hurdles and market skepticism could delay or derail the plan [1].

Q: Should I sell or refinance now?
A: Assess your equity; Vision Realty can guide timing as rates shift [1].

Q: How can Vision Realty help?
A: We provide market analysis and financing strategies [1].

Conclusion

The Trump administration’s potential privatization of Fannie Mae and Freddie Mac could lower mortgage rates in Fargo-Moorhead, bypassing traditional Treasury influences and boosting housing credit. This could benefit buyers with improved affordability and sellers with enhanced equity, especially in a tight Midwest market. Partner with Vision Realty to navigate this evolving landscape and seize opportunities in North Dakota and Minnesota in 2025.

Contact Vision Realty in Fargo-Moorhead
Christopher Leigh, Broker, GRI, RSPS, ePRO, REALTOR®
Phone: +1(701) 715-4747
Email: chris@visionrealty.us
Address: 509 Front St, Hawley, MN 56549
Website: visionrealty.us
(Vision Realty provides expert real estate services for buyers, sellers, and investors across Fargo-Moorhead, adhering to all federal, North Dakota, and Minnesota fair housing laws.)

References

1. MarketWatch, “How the Trump administration could lower mortgage rates and bypass the Treasury market entirely,” September 2025.

Disclaimer

Vision Realty adheres to all federal, North Dakota, and Minnesota fair housing laws, ensuring equal opportunity for all clients. Market data is accurate as of September 2025 but may change. Contact Christopher Leigh for the latest insights. This blog is for informational purposes and may be refined based on feedback.