New York, Jan 10, 2026, 20:50 EST — The market has closed.
Meritage Homes Corp (NYSE: MTH) surged 10.4% on Friday, closing at $75.45. The rate-sensitive homebuilder made a notable move heading into the weekend.
The stock surged alongside other housing-related names following U.S. President Donald Trump’s directive to buy $200 billion in mortgage bonds—a move investors see as an effort to lower mortgage rates. Jefferies noted that rates probably need to drop from around 6.2% to the mid- to high-5% range to attract more buyers. 1
Federal Housing Finance Agency Director Bill Pulte confirmed that Fannie Mae and Freddie Mac will carry out the purchases but did not specify when or provide further details. Chen Zhao, Redfin’s head of economics research, said the $200 billion move would have a “fairly small impact,” potentially lowering borrowing costs by around 10 to 15 basis points—a basis point equals one hundredth of a percentage point. 2
Big builders jumped sharply. Lennar climbed 8.9%, D.R. Horton added 7.8%, and the iShares U.S. Home Construction ETF rose 6.2% in the latest session, highlighting the sector’s close correlation with interest rates and policy news.
New housing figures, delayed by the government shutdown, showed a split picture. Single-family housing starts jumped 5.4% in October, yet permits edged down 0.5%. This suggests builders are holding back amid softening demand and rising inventory. 3
A separate report on consumer sentiment revealed scant easing on affordability. The University of Michigan’s index inched up to 54.0 in early January from 52.9 in December, yet inflation concerns lingered alongside signs of a weakening labor market. 4
Scottsdale, Arizona-based Meritage builds entry-level and first move-up homes in states like Texas, Florida, Georgia, and the Carolinas. The company plans to release its fourth-quarter 2025 earnings after market close on Jan. 28. A conference call will follow at 10:00 a.m. ET on Jan. 29. 5
Not everyone buys that Washington can smoothly recalibrate mortgage markets. TD Cowen’s Jaret Seiberg said Trump’s remarks “does not sound like” a president eager to take Fannie and Freddie public anytime soon. JonesTrading’s Mike O’Rourke warned that if these government-backed firms turn into a “funding arm” for policy goals, re-privatization might be a distant prospect. 6
Meritage and its peers face a risk if the policy shock loses impact after traders dig into the mechanics and math. Should mortgage rates stay stubbornly high — or if cheaper loans boost demand without loosening supply bottlenecks — home prices and incentives might shift unfavorably, tightening margins and putting the brakes on the rally.
Another key milestone arrives fast: the U.S. Consumer Price Index for December is due Tuesday, Jan. 13 at 8:30 a.m. ET. This number has the power to jolt Treasury yields and ripple through mortgage rates. As data flow settles post-shutdown, builders sensitive to rates, such as Meritage, will probably react sharply to each headline leading up to the release. 7
