Trump says he wants government to buy $200 billion in mortgage bonds in a push to bring down mortgage rates
CBS News••business
Key Points:
- President Trump announced a directive for the federal government to purchase $200 billion in mortgage bonds through Fannie Mae and Freddie Mac, aiming to lower mortgage rates and improve home affordability ahead of the November midterm elections.
- The move leverages the $200 billion cash reserves of the two government-backed mortgage giants, with the goal of reducing monthly mortgage payments and making home ownership more accessible, though it may temporarily inflate home prices due to supply constraints.
- Analysts and economists caution that while the bond purchases could lower mortgage rates by 0.25 to 0.5 percentage points, the underlying issue of limited housing supply remains unaddressed, potentially limiting long-term affordability improvements.
- The plan carries risks for Fannie Mae and Freddie Mac
