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Trump Directs $200 Billion in Mortgage Bond Purchases by Fannie Mae and Freddie Mac

lite News Desk 2 min read

At a glance

  • President Trump ordered $200 billion in mortgage-backed securities purchases
  • Fannie Mae and Freddie Mac will use available cash for the transactions
  • The move is part of broader housing reforms proposed by the administration

President Donald Trump announced a directive for his representatives to buy $200 billion in mortgage-backed securities using funds from Fannie Mae and Freddie Mac. The measure forms part of a wider set of housing policy proposals from the administration.

The directive was made public on January 8, 2026, through a social media statement by President Trump. He stated that Fannie Mae and Freddie Mac have sufficient cash reserves to support the planned bond purchases.

Fannie Mae and Freddie Mac currently hold about $247 billion in mortgage-backed securities, which is below their combined regulatory limit of $450 billion. The planned purchases would use a portion of their available capacity under this cap.

Both Fannie Mae and Freddie Mac have remained under federal conservatorship since the financial crisis of 2008. Their roles in the housing finance system continue to be shaped by federal oversight and policy decisions.

What the numbers show

  • $200 billion in mortgage-backed securities to be purchased as directed
  • Current holdings of Fannie Mae and Freddie Mac total around $247 billion
  • The combined cap for these holdings is set at $450 billion

According to estimates from experts, the bond purchases could result in a reduction of 30-year mortgage rates by approximately 0.25 to 0.5 percentage points. These estimates reflect ongoing analysis of the potential impact on mortgage markets.

The administration’s broader housing reform agenda also includes proposals to restrict large investors from acquiring single-family homes. This policy initiative is intended to address various aspects of the housing market.

Fannie Mae and Freddie Mac’s involvement in the mortgage-backed securities market is governed by federal policy and regulatory limits. Their activities continue to be monitored as part of the government’s approach to housing finance.

The announced directive and related policy proposals represent ongoing federal engagement with housing market regulation. The measures are part of a series of actions aimed at shaping the future structure of the U.S. housing finance system.

* This article is based on publicly available information at the time of writing.

Sources and further reading

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