Trump Instructs To Buy $200B In Mortgage Bonds In Attempt To Drive Down Mortgage Rates

• Trump also said that Fannie Mae and Freddie Mac have $200 billion in cash.
• U.S. President Donald Trump in a social media post on Wednesday had said that he will look to ban large institutional investors from buying single-family homes. 
   

Donald Trump in a social media post on Thursday said that it is instructing its representatives to buy $200 billion in mortgage bonds. 

Trump said the move will help in driving mortgage rates down and make the cost of owning a home more affordable, a day after he said he will look to ban large institutional investors from buying single-family homes.

Trump also said that Fannie Mae and Freddie Mac have $200 billion in cash. 

Trump on Wednesday had said that “For a very long time, buying and owning a home was considered the pinnacle of the American Dream,” adding that increasing inflation has made it out of reach for many people, especially younger Americans.

Housing Crises 

The U.S. is facing housing crises as elevated home prices and macro uncertainties have made it really difficult for its citizens to buy a home. 

The sluggish housing market is expected to remain weak through 2026 as high mortgage rates stifle demand with only a modest rebound expected in 2027, according to a Reuters survey of property experts. 

Trumps’ Threat To Institutional Investors

U.S. President Donald Trump in a social media post on Wednesday had said that he will look to ban large institutional investors from buying single-family homes. 

Trump said he is immediately taking steps to ban large institutional investors from buying more single-family homes and will be calling on Congress to codify it.

U.S. equities closed mixed on Thursday. The SPDR S&P 500 ETF (SPY) edged higher by 0.16%, while the SPDR Dow Jones Industrial Average ETF (DIA) was up 0.15%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) also rose 0.15% during after-market hours. Retail sentiment around QQQ on Stocktwits remained in ‘extremely bullish’ territory over the past day.  

How Did Stocktwits Users React

Retail sentiment around OPEN trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume. 

Shares of Opendoor rallied more than 11% in after-market trading. The stock has surged more than 300% over the past year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.
 

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