Trump Announces $200 Billion Purchase of Mortgage Bonds to Lower Home Loan Rates

Odaily News U.S. President Trump stated that he will direct relevant representatives to purchase a total of $200 billion in mortgage-backed securities (MBS), to be executed jointly by Fannie Mae and Freddie Mac, with the goal of lowering mortgage interest rates and reducing monthly payments. Bill Pulte, Director of the Federal Housing Finance Agency, indicated that this measure does not require congressional approval. According to existing agreements between the two agencies and the U.S. Treasury Department, each can add approximately $100 billion in new MBS capacity. The current average rate for a 30-year fixed mortgage is about 6.16%, and the Federal Reserve cut interest rates by a cumulative 75 basis points last year.