Trump's $200B Mortgage Bond Buys Fail to Curb Housing Costs - Fannie, Freddie Activity Limited

U.S. President Donald Trump’s initiative to purchase $200 billion in mortgage-backed securities has had minimal impact on housing affordability, with experts citing persistent supply constraints and rising geopolitical risks as key headwinds. Despite the program’s launch, 30-year mortgage rates remain near 6.1%, slightly above their recent low of 6.06% following the intervention. The purchases aim to offset the Federal Reserve’s ongoing runoff of pandemic-era mortgage bonds, which totals about $15 billion monthly. Treasury Secretary Scott Bessent said the effort would “roughly match” that pace. However, economists argue the Fed’s gradual reduction has not significantly raised borrowing costs, undermining the need for intervention. Atlanta Fed President Raphael Bostic and Minneapolis Fed President Neel Kashkari both emphasized housing supply as the primary obstacle. Meanwhile, long-term Treasury yields have risen due to global bond selloffs and U.S. trade tensions, including threats over Greenland, pressuring mortgage rates higher. Data from Freddie Mac and the Mortgage Bankers Association show modest rate declines and increased refinancing activity, but no sustained relief. The Federal Housing Finance Agency has not disclosed details on the scale or timing of the buys.