Trump instructs ‘representatives’ to buy $200 billion in mortgage bonds, aiming to lower rates

    https://www.cnbc.com/2026/01/08/trump-mortgage-bonds-rates-fannie-freddie.html

    President Donald Trump said he is “instructing my Representatives” to buy $200 billion in mortgage bonds.

    President Donald Trump on Thursday said he is “instructing my Representatives” to buy $200 billion in mortgage bonds, claiming that doing so will drive rates and monthly payments down.

    Trump, in a Truth Social post, said he was issuing that directive because the value of Fannie Mae and Freddie Mac, the two government-sponsored mortgage-issuing entities, are flush with cash.

    It was unclear who Trump is referring to as his representatives. The White House did not immediately respond to CNBC’s request for clarity.

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    Posted by TACO_Orange_3098

    25 Comments

    1. For perspective: the treasury reduced their holding of treasury bonds and mortgage backed securities by $200B in the last 11 months and the average 30 year fixed mortgage rate went from 6.89% to 6.16%. Granted there were other factors during that period.

    2. It will technically drive rates down but all that does is raise housing prices. (Because now as a seller I know you can afford to borrow more so it’s rational for me to raise my price)

      The only real fix for housing is supply side which honestly given how much this administration likes to flex the federal muscle they could use that here to relax zoning restrictions across the country.

    3. azure_apoptosis on

      That’s not how that works. Also, that would run directly counter to making Fannie Mae and Freddie Mac public like he initially stated. Both stupid ideas.

    4. OrneryZombie1983 on

      He added $500 billion to the defense budget yesterday. Where is he getting all of this money? He already spent the tariff money on promised rebates, farm bailouts, and tax cuts.

    5. Longjumping_College on

      > [mortgage-backed security (MBS) is a type of asset-backed security (an “instrument”) which is secured by a mortgage or collection of mortgages. The mortgages are aggregated and sold to a group of individuals (a government agency or investment bank) that securitizes, or packages, the loans together into a security that investors can buy. Bonds securitizing mortgages are usually treated as a separate class, termed residential; another class is commercial, depending on whether the underlying asset is mortgages owned by borrowers or assets for commercial purposes ranging from office space to multi-dwelling buildings.](https://en.wikipedia.org/wiki/Mortgage-backed_security)

      So he’s telling his guys to buy more stocks that they then use to buy your house and rent it back to your kids.

    6. His “representative” is the Honduran president he just pardoned for selling 400 tons of cocaine here in the U.S.

      That dude’s got bank

    7. TheAwesomeMan123 on

      The dementia voices in his head are on their way to the bank right now to buy them all.

    8. Overall-Avocado-7673 on

      That’s great. If he’s trying to do something about it, it should be applauded. Now how can we get the home prices back to 2019? Interest rates are only part of the problem.

    9. hnglmkrnglbrry on

      “Won’t someone rid me of this meddlesome priest?”

      Billionaire sycophants are gonna rush to buy so they can curry favor. This isn’t even crony capitalism anymore. This a garage sale.

    10. Ohh this is him trying to lower rates so that he can rack up the national credit card huh? Bc obviously (until JPow leaves) the Fed isn’t going to buy bonds.

    11. Haven’t Investment property owners that he’s banning been wanting to dump their properties for quite some time to take profit? but no one wants to buy them at these insane prices and thus the housing bubble.?

      Well from this move folks, **you** just became their exit liquidity.

    12. Adventurous_Worker_6 on

      according to trump(in case he is not compleatly crazy) actions i think usa is in serious economic trouble

      tariffs = increase taxation, restore local manufacturing

      dodge = decrease state spending

      venezuela = restore refineries operation

      ….

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