economy

January 9, 2026

Trump says he wants government to buy $200 billion in mortgage bonds in a push to bring down mortgage rates

President Trump said on social media Thursday that he is directing the federal government to buy $200 billion in mortgage bonds, a move he argued would help reduce mortgage rates at a time when Americans are worried about home prices.

Trump says he wants government to buy $200 billion in mortgage bonds in a push to bring down mortgage rates

TL;DR

  • President Trump is directing the federal government to buy $200 billion in mortgage bonds.
  • The goal is to reduce mortgage rates and make homeownership more affordable.
  • Fannie Mae and Freddie Mac will use their cash reserves for the bond purchases.
  • This move is seen as a response to voter concerns about affordability before the midterm elections.
  • Analysts suggest the purchases may temporarily lower rates but could also reignite home price inflation due to limited supply.
  • The affordability crisis is linked to home prices rising faster than incomes and a shortage of construction.
  • Mortgage rates have been elevated since late 2022, impacting affordability.
  • The plan could pose risks to Fannie Mae and Freddie Mac by depleting their cash reserves.

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