Group 1 - US President Donald Trump directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds to lower housing costs ahead of the midterm elections [1] - The announcement is part of Trump's strategy to restore affordability in housing, which he claims was damaged by the Biden Administration [1] - Fannie Mae and Freddie Mac have increased their holdings of mortgage bonds by over 25% in the five months leading up to October [3] Group 2 - The total outstanding agency mortgage bonds amount to roughly $9 trillion, meaning the proposed purchases would represent just over 2% of the market [4] - Increased demand for mortgage bonds has led to tighter spreads, the narrowest since 2022, with expectations that banks will also increase their purchases [5] - Allowing Fannie and Freddie to grow their retained portfolios is expected to exert downward pressure on mortgage rates, potentially reducing them by at least a quarter of a point [6]
Trump Tells Fannie, Freddie to Buy $200 Billion of Mortgage Debt
Yahoo Finance·2026-01-09 08:47