Trump pushes $200B mortgage-bond buy to lower housing costs
President Trump says his representatives will buy about $200 billion in mortgage bonds to push down mortgage rates and make home buying more affordable, funded from liquidity on Fannie Mae and Freddie Mac’s balance sheets rather than Fed/Treasury money. FHFA Director Bill Pulte said the two agencies can execute the purchases, noting liquidity exists even though their reported cash on Q3 filings was under $17 billion, with higher liquidity implied by assets like securities repurchases. The plan’s potential impact is likely modest compared with the Fed’s QE, possibly cutting rates by roughly 10–15 basis points, and timeline details were not disclosed. Trump also signaled more housing initiatives for Davos and has floated limiting institutional single-family home purchases.
