New York, January 11, 2026, 06:56 EST — Market closed
- Shares of UWM Holdings surged 13.8% on Friday, rallying alongside other U.S. mortgage lenders
- The rally came after the White House pushed for $200 billion in mortgage-bond purchases to help lower rates
- Traders are now focused on whether mortgage-rate spreads will tighten, and if that shift holds through Monday
Shares of UWM Holdings Corp (UWMC) jumped almost 14% on Friday following President Donald Trump’s order for a $200 billion buy of mortgage-backed securities. The announcement sent mortgage lenders sharply higher.
U.S. markets are closed for the weekend, so Monday’s open will be the real test: will the housing-driven rally hold, or will it fade as the initial headlines lose steam?
UWM faces straightforward pressure. High borrowing costs have limited mortgage originations, and the company’s earnings fluctuate with both loan volume and the margins earned from selling mortgages in the secondary market.
Mortgage-backed securities, or MBS, consist of pools of home loans sold to investors. Their yields influence the rates borrowers face. Analysts noted that significant official purchases might tighten the spread between mortgage yields and Treasury yields — a technical gap that often keeps mortgage rates high.
Trump said the purchase aims to reduce mortgage rates and monthly payments. Federal Housing Finance Agency Director Bill Pulte confirmed that Fannie Mae and Freddie Mac would carry out the plan. TD Cowen analysts described the move as “not a surprise,” while Brian Jacobsen from Annex Wealth Management noted, “Every little bit will help push mortgage yields lower,” though he cautioned it might boost demand in an already tight supply environment. (Reuters)
UWM shares closed Friday at $5.36, rising 65 cents from the previous session. The stock fluctuated between $4.95 and $5.47, with volume jumping to roughly 49.6 million shares, per Yahoo Finance.
The jump coincided with rallies in other housing-related stocks. loanDepot soared up to 24%, and Rocket Companies climbed roughly 6.6% during the session. Homebuilders and consumer credit agencies also saw their shares tick up, Reuters reported.
UWM, headquartered in Pontiac, Michigan, is the publicly traded parent company of United Wholesale Mortgage. It operates primarily through the wholesale channel, partnering with independent mortgage brokers instead of retail branches.
The company is aiming to diversify its earnings beyond just new loans. Back in December, it struck an all-stock deal to acquire Two Harbors Investment Corp, valuing the transaction at $1.3 billion. The move is intended to grow its mortgage-servicing portfolio and boost recurring revenue. (Uwm)
But things can quickly backfire. Bond purchases won’t necessarily bring down mortgage rates if Treasury yields climb. Plus, a policy-driven drop in rates might boost competition, tightening lenders’ profit margins even as loan volumes tick up.
A key company-specific date is looming. According to a filing, UWM’s public warrants, which trade under the ticker “UWMC.WS,” will expire on Jan. 21, 2026. The NYSE has announced plans to delist these warrants, though the common stock listing won’t be impacted. (SEC)
