Trump: Directed to purchase $200 billion in U.S. mortgage-backed securities
Trump stated on Thursday that he is "instructing my representatives" to purchase $200 billion in mortgage-backed securities, claiming that this move will lower interest rates and monthly payments. The two government-sponsored mortgage institutions—Freddie Mac and Fannie Mae—are currently well-capitalized
Former U.S. President Donald Trump stated on Thursday that he is "instructing my representatives" to purchase $200 billion in mortgage-backed securities, claiming that this move will lower interest rates and monthly payments.
Trump posted on Truth Social that he issued this directive because two government-sponsored mortgage agencies—Federal National Mortgage Association (Fannie Mae) and Freddie Mac—currently have ample funds.
In his post, Trump claimed that this initiative would help restore "affordability." The term "affordability" has become a key phrase in the Democratic political narrative in recent years, as they accuse Trump, the Republican president, of failing to effectively address high prices.
Trump also harshly criticized the performance of former U.S. President Joe Biden, stating that he "ignored the housing market" amid a series of policy failures. "Everything has been messed up, but as President of the United States, I have fixed them!" Trump declared. "Now, I am paying special attention to the housing market."
He wrote: "Because I chose not to sell Fannie Mae and Freddie Mac during my first term, it was a truly great decision, despite going against the advice of 'experts.' Their current value is many times what it was then, with a huge fortune of $200 billion in cash. That is why I am instructing my representatives to purchase $200 billion in mortgage-backed securities."
It is currently unclear who Trump refers to as "my representatives."
Following this news, U.S. 10-year Treasury futures rose, and mortgage-backed securities increased
