President Trump announced he is directing his “representatives” to buy $200 billion in mortgage bonds as a strategy for driving down mortgage rates.
In a posting on Truth Social, Trump blamed former President Biden for ignoring the housing market and credited himself for not selling Fannie Mae and Freddie Mac during his first term, adding the government-sponsored enterprises now have $200 billion that he will use for his mortgage bond purchasing.
“Because of this, I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS,” he wrote. “This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable. It is one of my many steps in restoring Affordability, something that the Biden Administration absolutely destroyed. We are bringing back the AMERICAN DREAM that was destroyed by the last Administration. MAKE AMERICA GREAT AGAIN!”
Trump did not offer details on when or how the mortgage bond purchases would take place, nor did he identify who would be making this transaction. This is the second surprise announcement on housing made by Trump this week, following his declaration that he would seek to ban institutional investors from acquiring single-family housing.
Just another grift. Trump takes our tax payer money to control who gets mortgages, and those will be mostly people who donate to him or his cohorts. The corruption is going to kill the economy and drive the economic divide wider.
Do the math. Based on an average mortgage of $400,000 and 5,000,000 homes sold per year, this 200 billion would impact about 1% of the homes sold. I seriously doubt that there would be ANY impact on mortgage rates.
Excellent news! I just had a client close on a home at 5.75%. I hope this will bring rates down into the low 5s – mid 4s (or lower! a girl can dream) so then those with 3% interest will be willing to part with their current loan in order to use the equity they most likely have to move again. This will help all the family classes!
Yup. It’s certainly worth a shot, which should let real American buyer’s see light at the end of the tunnel.
He’s not about to do anything that won’t fill his own pockets first.
You’re right Greg, he needs the money. WFI