Trump Uses Fannie and Freddie for $200B Mortgage-Bond Purchases as 30-Year Rates Fall to 6.06%
The White House is directing Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds as part of a broader effort by President Trump to use federal entities to enact housing policy without new legislation, a move that has prompted concern on Capitol Hill about stretching statutory authority. At the same time, Freddie Mac reports the average 30-year fixed rate has fallen to 6.06% — the lowest in more than three years — boosting purchase and refinance activity even as Attom data show affordability remains strained with record median prices and home-price gains far outpacing wages.
📌 Key Facts
- The White House directed Fannie Mae and Freddie Mac to buy about $200 billion of mortgage bonds, using the government-sponsored enterprises to execute housing and credit policy without seeking new legislation as part of a broader strategy to bypass Congress.
- Lawmakers and Hill officials have expressed concern that the directive tests or stretches the statutory authority of the GSEs and reflects an aggressive use of executive power over federal entities.
- Freddie Mac reports the average 30-year fixed conventional mortgage rate fell to 6.06% — the lowest in more than three years and down from 7.04% a year ago; the last lower reading was 6.02% on Sept. 15, 2022.
- The average 15-year fixed mortgage rate declined to 5.38% from 5.46% the prior week and 6.27% a year earlier.
- Attom data show median-priced homes are less affordable than historical norms in 99% of 594 U.S. counties, with the national median home price around a record $365,000.
- Typical home prices rose 54% over five years while typical wages increased 29%, quantifying a substantial deterioration in housing affordability.
- Nationwide purchase mortgage applications and refinancing activity have picked up in response to the recent decline in mortgage rates.
📊 Relevant Data
In the fourth quarter of 2023, the homeownership rate was 73.8% for non-Hispanic White Americans, 63% for Asian Americans, 49.1% for Hispanic Americans, and 44.1% for Black Americans.
Homeownership Rates by Race and Ethnicity — Eye On Housing
In 2024, the mortgage denial rate for Black applicants was 19.00%, compared to 11.27% for all applicants, with credit history cited as a primary reason for denials.
Black Buyers More Likely to Be Denied Mortgage — LendingTree
Immigration may increase overall housing demand by around 500,000 units per year in the US.
The unprecedented migrant crisis worsens our housing shortage — Center for Immigration Studies
Large institutional investors, defined as those owning at least 100 single-family homes, own about 1% of the total U.S. single-family housing stock.
Trump is taking steps to 'ban large institutional investors from buying single-family homes' — ResiClub
In the third quarter of 2025, investors accounted for 34% of homes sold, up from 25.5% in the third quarter of 2024.
Investor Share Of Home Purchases Hits Five-Year High In Q3 — National Mortgage Professional
📊 Analysis & Commentary (1)
"An opinion piece arguing that homeownership still matters and warning that the Trump administration’s demand‑side housing proposals (Fannie/Freddie bond buys, long mortgages, investor bans) risk raising prices and helping incumbent owners unless paired with serious supply‑side reforms and targeted supports for first‑time buyers."
📰 Source Timeline (3)
Follow how coverage of this story developed over time
- Freddie Mac now reports the average 30-year fixed conventional mortgage rate at 6.06%, the lowest level in more than three years and down from 7.04% a year ago.
- The last time the average 30-year rate was lower was Sept. 15, 2022, when it stood at 6.02%.
- The average 15-year fixed mortgage rate fell to 5.38% from 5.46% last week and 6.27% a year earlier.
- Attom data show median-priced homes are less affordable than historical norms in 99% of 594 U.S. counties analyzed, with a national median home price around a record $365,000.
- Attom also finds typical home prices are up 54% over five years while typical wages rose 29%, quantifying the deterioration in affordability.
- Nationwide purchase mortgage applications and refinancing activity have picked up in response to the recent rate decline.
- Axios explicitly frames the $200B Fannie/Freddie bond‑buy directive as part of a broader Trump strategy to bypass Congress and govern through aggressive use of executive power over federal entities.
- The article details how the White House sees Fannie Mae and Freddie Mac as tools for executing housing and credit policy without seeking new legislation, tying this move to other recent executive actions.
- Axios adds reporting on internal Hill reaction and concern that Trump is testing or stretching the limits of statutory authority for the GSEs and other agencies to achieve policy goals Congress has not approved.