Core Viewpoint - The U.S. President Donald Trump has ordered representatives to purchase $200 billion in mortgage bonds to lower interest rates and monthly home payments, leveraging the increased value of Fannie Mae and Freddie Mac, which are government-owned mortgage companies [1][2]. Group 1: Mortgage Bonds Purchase - The objective of purchasing $200 billion in mortgage bonds is to reduce housing costs for Americans, aiming to drive mortgage rates and monthly payments down [3][12]. - Trump claims that the value of Fannie Mae and Freddie Mac has significantly increased because he did not sell them during his first term, now stating they have $200 billion in cash available for this initiative [2][10]. Group 2: Market Context - Historically, the Federal Reserve has been the largest buyer of mortgage-backed securities, which has previously led to lower mortgage rates, particularly during the COVID-19 pandemic when substantial purchases were made [3][11]. - Despite recent interest rate cuts by the Federal Reserve, mortgage rates have remained high due to a lack of housing inventory, as many homeowners with low rates are not selling their homes [4][5]. Group 3: Housing Supply Issues - The U.S. is currently facing a shortage of approximately 4 million homes, which is necessary to address the housing supply problem and make homes more affordable [7]. - Home inventory and sales have remained near their lowest levels since the financial crisis of 2010, except for a brief period in spring 2020 [7]. Group 4: Future Plans and Uncertainties - Trump has been considering an IPO for Fannie Mae and Freddie Mac for several years, indicating potential future changes in their structure [7][8]. - It remains unclear whether Trump can authorize the purchase of mortgage bonds without Congressional support, and the specifics of how the $200 billion will be utilized have not been disclosed [9][8].