Trump’s mortgage bond plan shows limited impact as market risks cloud housing outlook
The Economic Times·2026-01-23 05:33
The administration’s plan, which targets up to $200 billion in purchases of mortgage-backed securities, appears unlikely to significantly reduce mortgage rates or improve affordability. Economists cited by Reuters broadly agree that the U.S. housing market’s core challenge is insufficient supply rather than a lack of demand or financing, limiting the effectiveness of bond-buying measures.Some analysts see the program as having only a modest influence on borrowing costs. While mortgage bond yields have narr ...