Trump Administration Unveils $200 Billion MBS Purchase Plan to Lower Housing Costs

On Jan. 9, U.S. President Donald Trump announced a $200 billion plan for Fannie Mae and Freddie Mac to purchase mortgage-backed securities, aiming to lower mortgage rates and improve housing affordability, BlockBeats reported. Bill Pulte, head of the Federal Housing Finance Agency, told the Financial Times the program uses existing investment capacity, avoiding congressional approval. Analysts note the approach echoes the Federal Reserve’s post-2008 MBS strategy, even as rates have fallen 75 basis points and 30-year mortgage rates sit near 6.16%.