Trump: Ordered the purchase of $200 billion in U.S. mortgage bonds

U.S. President Donald Trump said on Thursday that he is "instructing my representatives" to purchase $200 billion in mortgage-backed securities, claiming that this move will lower interest rates and monthly payments.

Trump posted on Truth Social that he is issuing this directive because the two government-backed mortgage agencies—Fannie Mae and Freddie Mac—are currently very well funded.

In his post, Trump claimed that this action would help restore "affordability." The term "affordability" has become a key word in recent years in Democratic political discourse, with Democrats accusing Trump, the Republican president, of failing to effectively address the problem of high prices.

Trump also fiercely criticized former U.S. President Biden's performance in office, saying he "ignored the housing market" amid a series of policy failures. "Everything was messed up, but as President, I fixed it!" Trump declared. "Now, I am paying special attention to the housing market."

He wrote: "Because I chose not to sell Fannie Mae and Freddie Mac during my first term, which was a truly great decision, even though it went against the advice of the 'experts.' Their value is now many times what it was, holding a massive fortune, a full $200 billion in cash. Therefore, I am instructing my representatives to purchase $200 billion in mortgage-backed securities."

It is currently unclear who exactly Trump means by "my representatives."

After this news broke, U.S. 10-year Treasury futures rose, and mortgage-backed securities climbed.

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