01/09/2026
🚨 If you saw in the news yesterday - President Trump announced ‘his representatives’ to buy $200 billion in mortgage bonds in effort to lower housing costs through an attempt to drive down interest rates and monthly payments.
🤔 If this sounds familiar, it should, we saw it a few years ago in 2020 when the FED bought hundred of billions of mortgage backed securities to stabilize markets during the Covid-19 pandemic.
✏️ Generally, when the Fed or another entity purchases more mortgage-backed securities, namely mortgage bonds, it lowers the interest rates charged on mortgages. But that’s not always the case, as the Fed does not directly control the rates on those loans.
📌For instance, the Fed lowered its benchmark interest rate multiple times in the last few years, which traditionally would also help lower mortgage rates. However, mortgage rates have remained elevated in part because Americans who got low mortgage rates during the pandemic haven’t been moving.
⏰ Trump did not specify who the representatives are, or when or how the purchases would happen. It’s also unclear whether Trump can authorize this without congressional backing. But Bill Pulte, director of the Federal Housing Finance Agency which oversees operations of Fannie Mae and Freddie Mac, said his agency would be taking on the initiative. “We are on it, Mr. President!”