Two Fed officials say key to fixing US housing more about supply than financing

Core Viewpoint - Federal Reserve officials express skepticism regarding the effectiveness of the Trump administration's plan to lower housing costs through the purchase of mortgage-backed bonds, emphasizing that housing affordability is more significantly impacted by the supply of homes available for purchase rather than just financing costs [1][5]. Group 1: Federal Reserve Officials' Perspectives - Atlanta Fed President Raphael Bostic highlights that housing affordability challenges extend beyond financing, pointing to persistent supply and demand issues in major markets [2][3]. - Bostic, with a background as a housing economist, stresses the importance of addressing multiple factors to ensure families can purchase homes [3]. - Richmond Fed President Thomas Barkin supports the notion that improving housing affordability requires addressing supply-side issues, suggesting that while bond purchases could impact mortgage rates, they may not significantly enhance affordability [3][4]. Group 2: Trump Administration's Housing Plan - President Donald Trump's announcement includes a plan to utilize funds from government-sponsored housing lenders to buy $200 billion in mortgage bonds, aimed at reducing elevated borrowing costs for homes [5]. - The Federal Housing Finance Agency Director Bill Pulte confirms that the buying initiative has commenced with $3 billion in purchases, although the timeline for the full scope of purchases remains unspecified [6].