Trump orders $200 billion mortgage bond buy to lower rates

By Brett Rowland
The Center Square

President Donald Trump said Thursday afternoon that the federal government will buy $200 billion in mortgage bonds to bring down interest rates and monthly payments.

In recent days, the U.S. president has floated a number of ideas to bring down housing costs. He said in a social media post Thursday that Fannie Mae and Freddie Mac, government-created entities designed to help the U.S. housing market, are worth “a fortune” and have about $200 billion in cash.

“Because of this, I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS,” Trump wrote in the Truth Social post. “This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable.”

Housing has grown increasingly expensive in recent decades.

Shannon McGahn, the National Association of Realtors’ executive vice president and chief advocacy officer, said the move could help bring down mortgage rates.

“President Trump’s plan to purchase $200 billion in mortgage-backed securities (MBS) will help address the high spread between mortgage rates and Treasury yields and help bring costs down for American families,” she said. “Today’s announcement reflects the kind of market-stabilizing policy we’ve championed. We stand ready to work with the Administration to ensure it delivers real relief for homebuyers and the broader housing market.”

The median age for a first-time home buyer recently hit 40, a record high, according to a November 2025 report from the National Association of Realtors.

The median buyer age increased to a peak of 59 years in 2025, up from 56 the previous year. The median age of first-time buyers increased to 40 this year from 38 the previous year, while the typical age of repeat buyers also rose to 62 from 61.

First-time homebuyers decreased to 21% of the market share, down from 24% last year. That marks the lowest share since NAR began collecting the data in 1981. Before the Great Recession, the historical norm was 40%. The report noted the division in the housing market.

The Treasury Department has bought mortgage bonds in the past, including during the housing crisis of 2008 and 2009.