Trump Orders Fannie and Freddie to Buy $200 Billion in Mortgage Bonds
The New York Times••business
Key Points:
- President Trump directed Fannie Mae and Freddie Mac to purchase up to $200 billion in mortgage-backed bonds to help make home buying more affordable for Americans.
- The announcement led to a notable market reaction, with the spread between mortgage bond interest rates and Treasuries narrowing by 0.1 percentage points.
- Analysts remain cautious about the long-term impact on consumer mortgage rates, citing multiple influencing factors such as Federal Reserve policies.
- This move is part of the White House's broader effort to address housing affordability concerns ahead of the midterm elections, including a proposal to restrict Wall Street firms from buying single-family homes for rentals.
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