Trump Orders $200 Billion Mortgage Bond Buy to Slash Rates, Boost Affordability

• President Trump directed the federal government to buy $200 billion in mortgage bonds via Fannie Mae and Freddie Mac to lower mortgage rates.
• The move aims to reduce monthly payments and make homeownership more affordable, addressing voter concerns ahead of midterm elections.
• Experts like Daryl Fairweather of Redfin suggest the purchase is a "Band-Aid" solution, potentially lowering rates by only 0.25-0.5 percentage points.
• Critics argue it won't solve the chronic housing shortage and risks depleting reserves meant to buffer against economic downturns.
• Mortgage rates average around 6.2%, with 30-year rates not below 6% since September 2022, despite a slight decrease from last year.

Why It Matters: Trump orders $200B mortgage bond purchase to cut rates, but experts question its long-term impact.