Trump orders ‘my representatives’ to buy $200 billion in mortgage bonds in effort to lower housing costs | CNN Business
President Trump announced on January 8, 2026, that he ordered “my representatives” to purchase $200 billion in mortgage bonds to lower housing costs and mortgage rates. Trump claimed Fannie Mae and Freddie Mac, government-owned mortgage entities he did not sell during his first term, are now worth “an absolute fortune” and possess sufficient cash reserves to fund the directive.
Historically, the Federal Reserve has been the primary purchaser of mortgage-backed securities, with large-scale purchases during the pandemic contributing to historically low mortgage rates. When entities purchase mortgage bonds, interest rates on mortgages typically decline, though the mechanism is indirect—the Fed does not directly control mortgage loan rates, and other factors influence pricing. Trump’s framing of the action as executive authority ignores that such major financial operations typically require congressional approval.
Bill Pulte, director of the Federal Housing Finance Agency overseeing Fannie Mae and Freddie Mac operations, stated his agency would implement the initiative, writing “We are on it, Mr. President!” immediately after Trump’s announcement. Trump provided no details regarding the identity of his representatives, implementation timeline, or execution methodology, creating uncertainty about feasibility and legal authority for the purchase directive.
The housing market faces structural challenges independent of Trump’s mortgage bond purchases. America has a shortage of approximately 4 million homes according to Goldman Sachs Research, and current inventory and sales remain near their lowest levels since the 2010 financial crisis, indicating supply constraints rather than interest rate problems as the primary affordability driver.
Trump has previously considered privatizing Fannie Mae and Freddie Mac through initial public offerings during both his first term and recently, with reports indicating Trump uses government entities and appropriations to fund priorities while claiming alternative funding sources. His use of possessive language—”my representatives,” “my military,” “my generals”—demonstrates his treatment of government institutions as personal assets rather than independent entities accountable to law and constitutional process.