President Donald Trump is trying to mess with the housing market. Trump said on Thursday he is ordering his representatives to buy $200 billion in mortgage bonds to bring down housing costs.
“Because I chose not to sell Fannie Mae and Freddie Mac in my First Term… it is now worth many times that amount — AN ABSOLUTE FORTUNE — and has $200 BILLION DOLLARS IN CASH,” Trump wrote in a post on Truth Social.
“I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS. This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable,” Trump wrote.
Federal Housing Finance Agency Director Bill Pulte said on X that Fannie Mae and Freddie Mac will execute the purchase.
READ: Mortgage rates dip over Christmas holidays (
The directive aims to drive mortgage rates down, reduce monthly payments, and ease pressure on Americans facing high borrowing costs. The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, would be involved in supervising the purchases. Traditionally, large-scale buying of mortgage-backed securities (MBS) increases demand for the bonds, pushing yields lower and helping reduce mortgage interest rates.
The combined cash and cash equivalents listed on the two firms’ balance sheets in their third quarter earnings reports to the Securities and Exchange Commission (SEC) was less than $17 billion as of Sept. 30, 2025.
By increasing demand for mortgage-backed securities (MBS), the plan aims to push down yields, which can translate into lower mortgage interest rates for consumers.
Fannie Mae and Freddie Mac, which are government-sponsored enterprises (GSEs), would carry out the purchases under the oversight of the Federal Housing Finance Agency (FHFA).
Pulte in a phone call to Reuters said the two agencies had “ample liquidity” to carry out Trump’s order, including nearly $100 billion in available funds at each entity.
READ: Home sellers lose confidence as the housing market cools (
Trump’s announcement highlights the continued focus on housing affordability as a political and economic issue in the United States. Mortgage rates and monthly payments are major concerns for many Americans, and proposals that aim to influence bond markets or mortgage-backed securities illustrate how financial tools can be used to attempt to affect broader economic outcomes.
While the mechanics of such interventions are well understood in theory, their real-world impact often depends on numerous factors beyond any single policy decision, including market sentiment, investor behavior, and broader economic conditions like inflation and interest rate trends.
Trump’s plan illustrates the ongoing debate over how government tools should be used to support homeownership, the limitations of targeted market interventions, and the balancing act between short-term relief and long-term housing stability.