Upate (0710ET):

Shares of LoanDepot, Rocket Companies, and Opendoor Technologies surged in premarket trading after President Trump signaled plans to push Freddie Mac and Fannie Mae to purchase $200 billion in mortgage-backed securities, a move aimed at driving down mortgage rates and improving affordability ahead of the midterm election cycle.

If the QE-style program is implemented, it would represent a direct government intervention to lower lending costs, providing near-term relief to a housing market effectively paralyzed by years of high prices and elevated borrowing costs, producing some of the worst affordability conditions in a generation.

The prospect of lower rates could act as a positive tailwind for mortgage originators, realtors, and adjacent real estate services that have endured several years of depressed transaction volumes, with some realtors forced to return to their previous bartending jobs.