January 1, Trump Plan Aims To Slash Mortgage Costs Fast

Wyatt’s Take

• Trump wants Fannie and Freddie to buy $200 billion in mortgage bonds
• Move expected to cut mortgage rates and lower bills
• Plan targets home affordability for working families

President Trump announced his push for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds. He says this will lower mortgage rates and make home ownership easier for Americans struggling to afford payments.

“I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS. This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable. It is one of my many steps in restoring Affordability, something that the Biden Administration absolutely destroyed. We are bringing back the AMERICAN DREAM that was destroyed by the last Administration. MAKE AMERICA GREAT AGAIN!”

He explained that holding onto Fannie and Freddie during his first term let the companies build up $200 billion. Trump blamed the Biden administration for neglecting the housing market and pointed to several crises that hurt affordability for families.

“Biden ignored the Housing Market, and instead was immersed with High Crime, Open Borders, runaway INFLATION, the Afghanistan Disaster, and a Military that he left in Chaos and Confusion. Everything was broken, but I, as President of the United States, have already fixed it!”

Fannie Mae and Freddie Mac, two government-backed firms, were rescued during the 2008 crash. Mortgage-backed securities climbed along with lenders connected to these bonds.

Experts say Trump’s plan should directly help lower mortgage rates, with David Dworkin of the National Housing Conference noting, “If the Trump administration allows Fannie and Freddie to grow their retained portfolios, there’s no question it will have downward pressure on mortgage rates – probably at least a quarter of a point, maybe more.”

Citigroup expects that if Fannie and Freddie boost their holdings by $250 billion, mortgage bond premiums and rates will likely fall by about 0.25%.

Bill Pulte from the Federal Housing Finance Agency said, “We have the capability, we have the cash to do it, and we are going to go about executing it very smartly and in a very big way.” He called the measure a “one-two punch” since the administration also wants to ban big investors from buying single-family homes.

Trump says more details are coming at the World Economic Forum in Davos this January.

Find out more in the full story below.

Wyatt Matters

Affordable homes are the backbone of secure family life in Middle America. Lower mortgage rates put keys in the hands of hardworking folks, helping make the American Dream possible again.

Full report here