Trump orders $200B Fannie-Freddie mortgage bond buy
President Donald Trump said Thursday he is directing Fannie Mae and Freddie Mac to use $200 billion in cash to purchase mortgage-backed securities in an effort to push mortgage rates down and address voter anger over housing costs ahead of the 2026 midterms. FHFA Director Bill Pulte said the two government-controlled mortgage giants "will be executing" the president’s request, and housing analysts estimate the step could trim 0.25 to 0.5 percentage points from 30‑year mortgage rates but warn it may further inflate home prices given the U.S. supply shortage.
📌 Key Facts
- Trump posted on Truth Social that he is directing the federal government to buy $200 billion in mortgage bonds using cash held by Fannie Mae and Freddie Mac.
- FHFA Director Bill Pulte confirmed on X that Fannie and Freddie "will be executing" the president’s request.
- Analysts cited in the article estimate the move could reduce 30‑year mortgage rates by roughly 0.25–0.5 percentage points from the current ~6.2% average, but could also reignite home‑price inflation amid constrained housing supply.
📊 Relevant Data
In 2023, the homeownership rate for White households was 72.4%, compared to 44.7% for Black households, 51% for Hispanic households, and approximately 60% for Asian households, highlighting significant racial disparities in access to homeownership.
Black Homeownership Rate Sees Largest Annual Increase Among Racial Groups But Still Trails White Homeownership Rate — National Association of Realtors
Historical practices such as redlining, predatory lending, and racial steering have contributed to persistent racial disparities in homeownership, with Black and Hispanic/Latino homebuyers facing higher mortgage denial rates and more expensive terms; for example, Black homebuyers pay on average 29 basis points more in interest than White homebuyers.
How do racial inequities limit homeownership opportunities? — Habitat for Humanity
Immigration has contributed to increased housing demand, accounting for up to 100% of rental price growth in some states like California and New York, and roughly two-thirds of total rental inflation nationwide between 2020 and 2024, exacerbating affordability issues amid supply constraints.
New HUD Study Exposes Impact of Biden Border Crisis on Housing Affordability — U.S. Department of Housing and Urban Development
Black homeowners experience higher housing cost burdens in 39 states, spending more than 30% of their income on housing costs, compared to lower burdens for White homeowners, which contributes to disparities in wealth accumulation through homeownership.
Black Homeownership Rate Sees Largest Annual Increase Among Racial Groups But Still Trails White Homeownership Rate — National Association of Realtors
📰 Source Timeline (1)
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