New York, Jan 10, 2026, 19:26 ET — Market closed
- Shares of UWM Holdings jumped 13.8% on Friday following a sudden policy shift related to mortgage bonds.
- Investors are trying to gauge how fast the plan will impact mortgage rates and loan demand.
- Up next: execution details and Tuesday’s U.S. inflation numbers.
UWM Holdings Corporation (UWMC) shares climbed 13.8% on Friday, closing at $5.36—their best day in months. Traders targeted rate-sensitive housing stocks ahead of the weekend. Volume surged, with roughly 49.6 million shares changing hands. (Yahoo Finance)
This spike is crucial since mortgage lenders rely heavily on volume. When borrowing costs drop, refinancing and purchase activity often surge quickly, driving fee income upward.
That’s the missing link. Although rates have dropped from last year’s peaks, housing turnover remains sluggish. Originators are scrambling for market share, sometimes slashing loan prices just to keep deals flowing.
Friday’s market move was sparked by politics. President Donald Trump announced a $200 billion order for mortgage-backed securities—bonds tied to home loans. According to Reuters, Bill Pulte, head of the Federal Housing Finance Agency, said Fannie Mae and Freddie Mac will handle the purchases. The Philadelphia Housing index jumped 4.8% that day. Brian Jacobsen, chief economist at Annex Wealth Management, noted, “every little bit will help push mortgage yields lower,” but cautioned the plan might backfire on affordability if it boosts demand without increasing supply. (Reuters)
Not everyone is betting on a steep fall in borrowing costs. Chen Zhao, Redfin’s head of economics research, described the program’s impact as “fairly small,” suggesting it could shave just 10 to 15 basis points (0.10 to 0.15 percentage point) off rates, Reuters reported. (Reuters)
In the bond space, spreads and pass-through have become the center of debate. Eric Hagen, managing director and mortgage and specialty finance analyst at BTIG, noted that mortgage-backed security spreads tightened by about 20 basis points last Friday, prompting lenders to likely adjust prices. “The big question is, are mortgage originators going to price for that change,” he told Mortgage Professional America. (Mortgage Professional)
Mortgage rates hover close to last year’s lows. Freddie Mac’s Primary Mortgage Market Survey showed the average 30-year fixed rate at 6.16% on Jan. 8, just a notch above the previous week’s 6.15%. (Freddie Mac)
UWM is also navigating its own developments. In December, it struck a $1.3 billion all-stock deal to acquire Two Harbors Investment, with the transaction set to close in Q2 2026, subject to regulatory approvals. This acquisition would almost double UWM’s mortgage servicing rights portfolio, according to Reuters. (Reuters)
That Friday surge, however, might not hold. Without clear details on the bond-buying strategy, or if investors doubt it will really lower mortgage rates, UWMC could easily slip back. And a stronger inflation report would likely drive Treasury yields up, which usually means mortgage rates rise too.
As trading picks up again Monday, investors will be scanning for follow-through and fresh clues on the timing, scale, and structure of mortgage-bond buying. They’ll also be tracking if brokers and lenders drop quoted rates fast enough to lure borrowers back into the market.
The next key event hits Tuesday morning: December CPI from the Labor Department drops at 8:30 a.m. ET. Producer prices and retail sales follow on Wednesday. Any unexpected moves could jolt Treasury yields — which remain the main factor influencing mortgage stocks such as UWMC. (Bureau of Labor Statistics)
