U.S. President Donald Trump said on Thursday he has instructed unnamed “representatives” to buy $200 billion worth of mortgage-backed securities, arguing the move would push down interest rates and make home ownership more affordable.
In a post on his Truth Social platform, Trump said the plan was feasible because mortgage finance giants Fannie Mae and Freddie Mac have about $200 billion in cash, and that purchasing housing bonds would help reduce monthly mortgage payments for American households.
It was not immediately clear whom Trump was referring to as his “representatives,” which institution would execute the purchases, or under what legal authority such a program would be carried out. The White House did not immediately respond to a request for clarification.
The comments add to a series of housing-related policy signals from Trump this week. On Wednesday, he said he would seek to ban “large institutional investors” from buying single-family homes in the United States, a proposal that housing economists have said would likely have limited impact on affordability at a national level.
Mortgage-backed securities are a core component of the U.S. housing finance system and are typically bought and sold by banks, investment funds and, in some cases, the Federal Reserve as part of monetary policy operations. Large-scale purchases can influence long-term interest rates, but they are normally conducted by central banks rather than by the executive branch.
Analysts said that without further details, it was difficult to assess whether Trump’s proposal would be practical, lawful or effective.
“There are a lot of unanswered questions about who would buy the bonds, with what money, and under what mandate,” said one housing policy analyst. “And even if such purchases happened, it’s not guaranteed they would translate into lower mortgage rates for consumers.”
The U.S. housing market has been under pressure from high borrowing costs, limited supply and elevated home prices, leaving many first-time buyers priced out. The average rate on a 30-year fixed mortgage remains well above the lows seen during the pandemic, despite easing slightly in recent months.
Trump has made housing affordability a recurring theme in his public remarks, linking it to broader concerns about inflation, interest rates and the cost of living. However, economists and market participants have cautioned that structural issues such as land use rules, construction costs and housing supply are likely to play a much larger role in determining affordability than financial market interventions alone.
Markets showed little immediate reaction to Trump’s comments, and it remains unclear whether any formal policy proposal will follow.
