President Trump has announced a $200 billion mortgage-backed securities (MBS) purchase program aimed at reducing mortgage rates and addressing the housing affordability crisis. This initiative, described as Trump's "personal version of quantitative easing," seeks to lower mortgage interest rates and monthly payments, thereby enhancing home-buying capacity. Trump attributed the current housing crisis to the Biden administration's policies.
Bill Pulte, Director of the Federal Housing Finance Agency, confirmed that the plan will be executed by Fannie Mae and Freddie Mac without needing congressional approval. The agencies have a combined operational capacity of approximately $200 billion for mortgage investments. This move mirrors the Federal Reserve's post-2008 financial crisis strategy of stabilizing markets through MBS purchases. Despite a 75 basis point interest rate cut by the Fed, the 30-year fixed mortgage rate remains high at 6.16%, keeping housing costs a significant political and economic issue.
Trump Unveils $200 Billion Mortgage Bond Purchase Plan to Ease Housing Crisis
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