Trump Directs $200 Billion Mortgage-Backed Securities Purchase Through Fannie and Freddie
President TRUMP has ordered Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities, a move aimed at aggressively lowering mortgage rates. The unprecedented directive bypasses the Federal Reserve's traditional role in monetary policy, marking the first time a sitting president has directly orchestrated such large-scale asset purchases through government-sponsored enterprises.
Market reaction was immediate. Mortgage bond spreads tightened by 18 basis points following the announcement, while homebuilder stocks rallied. Analysts estimate the intervention could reduce mortgage rates by approximately 25 basis points. "We're utilizing Fannie and Freddie in ways no other administration has," said FHFA Director Bill Pulte, framing the action as a business-oriented approach to housing finance.
