How to Actually Bring Mortgage Rates Down—Without Bullying the Fed

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Everyone wants lower mortgage rates—but strong-arming the Federal Reserve or squeezing banks isn’t the answer. In this episode, Chris lays out practical, free-market solutions that could actually bring mortgage rates down without political pressure or economic distortions.
Drawing on how commercial loans and bond markets really work, Chris explains why features like prepayment risk drive mortgage rates higher in the U.S. Unlike many business loans or callable bonds, American mortgages allow borrowers to prepay at any time—forcing lenders to charge more to compensate for that risk.
So what’s the fix? Options like non-prepayable mortgages with penalties, Fannie and Freddie offering alternative loan structures, and even portable or assumable mortgages that allow buyers to take over existing low-rate loans. These changes could shave meaningful basis points off rates while improving market efficiency.
Instead of grandstanding and pressure campaigns, there are intelligent, market-based reforms sitting right in front of us. If policymakers are serious about affordability, this is where the conversation should start.