Trump Orders $200 Billion Mortgage Bond Purchase To Lower Housing Costs

I Stand For Freedom ^ | 01/10/2026 | Noah Stanton

[SeekAndFind]

There’s a cruel irony in working harder than your parents did and still being unable to afford what they had. For a generation of Americans who played by the rules—saved diligently, built credit, waited for the right time—the right time never seemed to come. The house with the yard and the room for grandkids to visit? It drifted further away with every passing year.

The numbers tell a grim story. Home prices have surged 105% over the last decade, transforming what was once a milestone into a fantasy for millions of families. Young couples delay starting families. Retirees watch their fixed incomes devoured by rising costs. The American Dream, that promise etched into our national identity, started to feel like a bait-and-switch.

And through it all, the Biden administration offered little more than shrugs. While families struggled to scrape together down payments, Washington busied itself with climate mandates and sending billions overseas. The housing market? Apparently not as important as saving the planet or funding someone else’s problems. For four years, hardworking Americans waited for relief that never arrived.

Then came Thursday’s announcement from President Trump.

In a move that caught many by surprise, the president announced he is directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds—a massive intervention designed to drive down mortgage rates and make homeownership accessible again.

From President Trump’s Truth Social post:

“I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS. This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable. It is one of my many steps in restoring Affordability, something that the Biden Administration absolutely destroyed.”

Federal Housing Finance Agency Director Bill Pulte confirmed the plan, explaining that as mortgage bond prices rise, interest rates should fall. “It’s a very, very big opportunity for the housing market and for all Americans aspiring to get that American dream,” Pulte said. Analysts estimate the purchases could shave roughly a quarter percentage point off 30-year mortgage rates.

And here’s what I find refreshing: this isn’t happening in isolation. Just one day earlier, Trump announced plans to ban large institutional investors from gobbling up single-family homes. I don’t know about you, but I’m tired of watching Wall Street outbid young families for starter homes. People live in homes, not corporations—a simple truth that apparently needed a president willing to say it out loud.

Will $200 billion solve everything overnight? Of course not. And yes, the so-called experts are already lining up to explain why it won’t work. Funny how they never had solutions of their own, isn’t it? Look, decades of bad policy won’t vanish with one announcement. But here’s the thing: after years of being told to lower their expectations, Americans finally have a president who’s actually doing something instead of just talking about it.

That front door to the American Dream? It just cracked open a little wider.

Sources: Daily Wire, POLITICO, Reuters

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TOPICS:
KEYWORDS: affordability; bonds; housing; mortgage; realestate; realty

[Governor Dinwiddie]

There is plenty of housing in the rural South and in the Rust Belt. It's just that these snowflakes don't want to live there. It is older housing stock, but perfectly livable. No one is entitled to a suburban McMansion. Housing that was OK for our grandparents and great grandparents is still suitable for modern snowflakes.

[mitchjackson1972]

You boomers are literally the problem here. You keep screaming “There is plenty of housing out in the middle of nowhere!”

But the only way people will live there is if jobs can be done remotely.

But then you scream “How dare you want to work from home! You need to work at an actual office every day so HR black lady can find an excuse to fire you!”

[wintertime]

I grew up in inner-city Philly. Our “row-home” was 12 feet wide and 36 feet long. Huge families with 6 or more kids occupied these homes and thrived.

My cousins, who lived on the next block, lived in a house that was 13 feet wide. Yes, really!

[Socon-Econ]

Cheap money won’t lower housing costs. It’ll just increase demand for, and thereby bid up the price of, the existing housing stock. What will lower the cost of housing is more housing stock relative to population, lower utility costs, and lower property taxes.

[TexasFreeper2009]

exactly.

The American dream of homeownership is only dead in liberal cities with sky high home prices.

In the other 95% of the US, prices are very affordable

[bigbob]

That’s true. And those of use who live “in the middle of nowhere” don’t want the whiny-assed punks who blame all the worlds troubles on Boomers living anywhere near.

[Governor Dinwiddie]

Believe it or not, there are jobs in the Rural South and in the Rust Belt.
People have happy lives. Less stress. You can be 40 years old with a house
that is 100% paid off. That gives you a lot of options.

[daler]

Judge Boasberg weigh in on this yet?

[mitchjackson1972]

forgive me if I find that hard to believe

recently I was thinking of traveling to montana, i have no intentions of moving there but i decided to look into what its like living there since it seems like such a beautiful state, you would think that state would be cheap to live in but I found out that montana is both expensive to live in and has very few jobs at the same time

[mitchjackson1972]

I don’t think boomers who did nothing about the flood of illegal aliens infesting this country for decades need to worry about the young generations they screwed over moving next to them

[The Duke]

"There is plenty of housing in the rural South and in the Rust Belt."

I have relocated 4+ years ago from the city to the rural South, and can testify to that. We've got some decent, spacious older homes here that have sold for $120k-$140k.

I However, some people probably need to be closer to their work, and I also don't fault folks who don't want to drive 30 minutes to the nearest decent restaurant.

One thing I will say, however, about these rural Southern towns, is that I greatly prefer the medical care I receive here over any care I ever got in a large city. It's also nice to live somewhere that's not going to revert to cannibalism if the world keeps on its current course.

[Governor Dinwiddie]

I agree with you. Montana is expensive. Wyoming is expensive. Mainly because the government owns all the land. BUT NEITHER IS THE RURAL SOUTH.

[Wuli]

Priming the pump on inflated housing markets will do little to lower prices or net costs. And what will $200 billion do when it represents only about 16% of the mortgage market? Not much.

[Wuli]

The $200 billion should be restricted to “affordable” housing, which means local housing markets where the average house price is not more than the national median. Housing markets with average housing prices greater than the national median are too inflated and need a good dose of price deflation. Otherwise, that $200 billion will wind up just propping up average house prices that are already inflated; doing nothing for “national affordability”.

[ArcadeQuarters]

How much would prices drop if no one was buying houses to rent to illegals?

[Theoria]

'There is plenty of housing in the rural South and in the Rust Belt. It's just that these snowflakes don't want to live there. '

Encouraging more people to move destroy the south and other rural areas shouldn't be promoted. Migration always destroys. The south has been culturally wiped out by migration for years.

[Governor Dinwiddie]

If someone can't afford Atlanta, move to Valdosta.

[Brian Griffin]

There are ways to build low-cost, high-quality houses.

Windows could be standardized to say sizes to fit concrete block wall houses and built by automated equipment.

Walls could be cast in place with closed cell foam + metal spacers for the forms.

The exteriors of the forms could be brick-like in appearance.

The walls could be coated in a brick color coating of the type used for the sidewalk in front of my local Publix. The eventual homeowners could paint on fake mortar lines.

Two-by-two strips could be spaced 16” o.c. and screwed into the metal spacers for the forms. There are 14.5” insulation panels made.

Trusses could be lifted upward by electronically coordinated jacks instead of using an expensive crane rental.

[Retain Mike]

I can’t remember when whatever material prosperity I have achieved did not involve circumventing or being ignored by government.

I like my definition of Americans as sovereign individuals finding their identity in exercising pre-existing intangible liberties within bounds of voluntary self-restraint and accompanied by the hazards and uncertainties of personal freedoms. The notion that true humanity requires material possessions I think lacks merit.

Whatever the Constitution defined as an American Dream did not involve government providing largess to ensure college funds, retirement accounts, savings, affordable health care, home ownership, lifetime employment, corporate wealth, political careers, and union benefits. I think we have been had.