President Donald Trump said Thursday that he is instructing "representatives" to buy $200 billion in mortgage bonds, arguing the move would lower interest rates and monthly housing payments. In a Truth Social post, Trump said the directive was possible because Fannie Mae and Freddie Mac have "$200 billion in cash." He added the bond purchases would help "make the cost of owning a home more affordable."
The two government sponsored enterprises buy loans from mortgage lenders to ensure liquidity in the market and repackage those into investment products. They also set the standards for creditworthiness and ability to repay for mortgage loans. While they offer several construction products, those support lenders and homebuyers, not builders. HousingWire Lead Analyst Logan Mohtashami has written extensively on what could trigger more homebuilding and weighed in on Trump's statement.