Trump Directs Fannie and Freddie to Buy $200B in Mortgage Bonds
President Donald Trump late Thursday said he is directing the purchase of $200 billion in mortgage-backed securities, framing the move as a direct effort to push down mortgage rates and ease housing affordability pressures ahead of the November midterm elections. In a post on Truth Social, Trump argued the purchases would “drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable.”
The president said his decision not to sell Fannie Mae and Freddie Mac during his first term enabled the government-sponsored enterprises to build roughly $200 billion in cash, creating the capacity for a rapid deployment into mortgage bonds now. “I’m making this announcement because of that,” Trump wrote.
Federal Housing Finance Agency Director Bill Pulte confirmed shortly afterward that the administration intends for Fannie Mae and Freddie Mac to execute the purchases. Pulte said the bond buying “can be executed very quickly,” adding that the agencies have both the cash and operational capacity to move “very smartly and in a very big way.”
Markets reacted swiftly. Mortgage-backed securities rallied relative to Treasuries following the announcement, signaling investor expectations that heavier official-sector demand could compress spreads and translate into lower primary mortgage rates. The move also validated growing speculation that the housing-finance giants were already positioning to influence borrowing costs.
Recent data show that Fannie Mae and Freddie Mac expanded their retained portfolios—the portion of mortgages and MBS they hold rather than sell—by more than 25% in the five months through October. The buildup had fueled debate over whether the agencies were attempting to lower rates, support housing activity, and bolster earnings ahead of a potential future public offering.
The announcement adds another layer to an increasingly interventionist housing stance from the White House. It comes just one day after Trump said he would seek to ban institutional investors from purchasing single-family homes, a proposal aimed at curbing competition for buyers and addressing voter frustration over affordability.