Trump announces a $200 billion mortgage bond purchase plan

The U.S. President Trump announced that he will launch a $200 billion mortgage-backed securities (MBS) purchase program to lower mortgage rates and alleviate the housing affordability crisis. This move is seen by the market as Trump directly pushing his "personal version of quantitative easing (QE)" beyond intervening in the Federal Reserve's rate-cutting process.

Trump stated on Truth Social that he has "instructed relevant representatives to purchase $200 billion worth of mortgage bonds" to reduce mortgage rates and monthly payment costs, enhance home-buying ability, and blame the current housing crisis on the Biden administration.

Bill Pulte, director of the Federal Housing Finance Agency, confirmed to the Financial Times that the plan will be executed by Fannie Mae and Freddie Mac, and it does not require congressional approval. Under existing agreements, the two agencies still have a combined operational space of about $200 billion in mortgage loan investments.

Analysts pointed out that this initiative is highly similar in form to the Federal Reserve's policy of purchasing MBS to stabilize the market after the 2008 financial crisis. Despite the Federal Reserve having cut rates by a cumulative 75 basis points, the current 30-year fixed mortgage rate in the U.S. remains as high as 6.16%, with housing cost pressures continuing to be a political and economic focus. Against the backdrop of high inflation and rising living costs, Trump's move is seen as an attempt to directly intervene in the housing and financial markets through executive power to boost voter confidence.