New York, Jan 11, 2026, 19:07 EST — The market is closed.
- UWMC surged almost 14% on Friday, pushing UWM Holdings back onto rate-watch radars
- Mortgage bond-buying headlines clash with a packed U.S. data agenda this week
- Tuesday’s CPI report will be the next major checkpoint for the mortgage-rate trade
Shares of UWM Holdings (UWMC.N) jumped 13.7% to close at $5.36 on Friday, powered by a late-week rally that caught attention ahead of Monday’s open. Trading volume hit roughly 49.6 million shares.
This move is crucial since UWM’s business hinges on mortgage volume. When rates drop, refinancing activity and buyer interest typically pick up. But rising rates squeeze both, pushing lenders into tougher competition for a shrinking pool of loans.
The timing coincides with Washington’s push to lower rates independently of the Federal Reserve. U.S. Treasury Secretary Scott Bessent told Reuters the mortgage-backed securities buying aims to offset the Fed’s monthly runoff: “What is happening is the Fed has about $15 billion of roll-off every month,” he said. The administration has directed the housing regulator to purchase $200 billion in mortgage bonds through Fannie Mae and Freddie Mac, starting with an initial $3 billion, Reuters reported. (Reuters)
Mortgage-backed securities are bonds secured by pools of home loans. Traders watch the “spread” closely — the difference between mortgage rates and benchmark Treasury yields — since a narrower spread can push mortgage rates down even if Treasury yields remain unchanged.
Not everyone is convinced bond buying will solve the issue. Atlanta Fed President Raphael Bostic and Richmond Fed President Thomas Barkin both highlighted housing supply as the main bottleneck, with Barkin saying, “the answer is on the supply side.” UBS analysts put the potential impact of the $200 billion plan at a mortgage rate cut of about 10 to 25 basis points — a basis point being one-hundredth of a percentage point — assuming it tightens spreads. (Reuters)
UWM wasn’t the only one making moves. Rocket Companies (RKT.N), also sensitive to interest rates, ended Friday at $23.29, climbing 9.6% as investors doubled down on the same play.
UWM holders will be watching Monday to see if the policy move sparks lasting buying in mortgage bonds — and if that leads to a sharp enough drop in quoted mortgage rates to boost loan demand.
A second question lingers: if rates do fall, will activity pick up, or will sky-high home prices and tight supply keep the market sluggish?
There’s also the risk that the trade gets ahead of itself. “Every little bit will help push mortgage yields lower, but this might be self-defeating in terms of housing affordability,” Brian Jacobsen, chief economic strategist at Annex Wealth Management, told Reuters. He cautioned that lower borrowing costs could actually boost demand. (Reuters)
The next key data drops quickly. The Consumer Price Index hits Tuesday, Jan. 13 at 8:30 a.m. ET. Producer prices and existing home sales follow on Jan. 14, with retail sales set for Jan. 15, per the New York Fed’s calendar. (Federal Reserve Bank of New York)
If inflation surprises to the upside, Treasury yields could spike, pushing mortgage rates higher and undercutting policy efforts. On the other hand, if inflation softens, rate-sensitive lenders such as UWM might see renewed buying when trading picks back up.
