Trump Revives 2008 Crisis Tool: $200 Billion Mortgage Bond Buy to Tackle Housing Crisis

• President Trump directs Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds to lower rates.
• The move aims to reduce mortgage rates and monthly payments, making homeownership more affordable.
• Analysts caution the strategy, similar to Federal Reserve actions in 2008 and during the pandemic, may offer only marginal relief.
• Experts predict a modest 10-15 basis point reduction in borrowing costs, insufficient to address structural shortages.
• Critics warn that using GSEs' cash reserves could weaken their capacity during future economic downturns.

Why It Matters: Trump revives a post-2008 crisis tool to address housing affordability, but experts doubt its long-term impact.