Trump orders $200 billion mortgage bond buy to lower rates

President Donald Trump said Thursday afternoon that the federal government will buy $200 billion in mortgage bonds to bring down interest rates and monthly payments.

In recent days, the U.S. president has floated a number of ideas to bring down housing costs. He said in a social media post Thursday that Fannie Mae and Freddie Mac, government-created entities designed to help the U.S. housing market, are worth “a fortune” and have about $200 billion in cash.

“Because of this, I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS,” Trump wrote in the Truth Social post. “This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable.”

Housing has grown increasingly expensive in recent decades.

Shannon McGahn, the National Association of Realtors’ executive vice president and chief advocacy officer, said the move could help bring down mortgage rates.

“President Trump’s plan to purchase $200 billion in mortgage-backed ...