Trump's Bold Move to Shake Up Housing Market

President Donald Trump recently made a big announcement. He wants to buy $200 billion in mortgage bonds. He believes this will make homes more affordable. Trump shared this plan on Truth Social. He said Fannie Mae and Freddie Mac have lots of money. So, he thinks now is a good time to act. But who exactly will make this purchase? That's not clear. The White House and the Federal Housing Finance Agency didn't give any details. This news came after FHFA Director Bill Pulte talked about a possible IPO for Fannie and Freddie.Trump also criticized Joe Biden's administration. He said they ignored the housing market. He claimed he fixed many problems. And now, he's focusing on housing. Trump said he didn't sell Fannie Mae and Freddie Mac when he had the chance. He thinks this was a smart move. Now, they're worth a lot more. But will buying mortgage bonds really help? The Federal Reserve has done this before. It's called quantitative easing. But the executive branch can't tell the Fed what to do. The Treasury has also bought mortgage bonds in the past. Like during the 2008 housing crisis. Will this plan work? It's hard to say. Mortgage rates usually follow long-term Treasury rates. Not mortgage bond yields. After Trump's announcement, the 10-year Treasury yield dropped a bit. But that's not a big deal.