Trump Pushes for Real Estate Market Recovery: Massive $200 Billion Mortgage Bond Purchase

United States President Donald Trump has announced an unprecedented move to tackle the housing affordability crisis in the country.

In a post published on Truth Social, Trump has directed his representatives to proceed with the purchase of mortgage bonds worth $200 billion, with the stated goal of lowering mortgage rates and reducing monthly mortgage payments.

This initiative aims to make homes more accessible for millions of Americans, in a context where high housing prices and interest rates have kept many potential buyers on the sidelines of the market.

Increasing Pressures on Politicians and Real Estate Market

In recent years, the U.S. real estate market has experienced a phase of subdued demand and slow loan growth. Policymakers have been under increasing pressure to find effective solutions that could reduce borrowing costs and revive housing activity. Trump’s initiative represents a concrete response to these challenges, aiming to stimulate the sector through a massive intervention in the mortgage bond market.

Immediate Reactions of Financial Markets

Trump’s announcement had an immediate impact on mortgage financiers in pre-market operations on Friday. Some of the main players in the sector experienced significant gains: loanDepot saw its shares rise by 17% before the market opened, while Rocket Companies gained 6%. UWM Holdings and Opendoor Technologies also benefited from the announcement, with increases of 7% and nearly 10%, respectively. These figures highlight how political decisions can swiftly influence investor expectations and the value of companies involved in the real estate sector.

The Role of Fannie Mae and Freddie Mac

To further solidify the plan, the director of the United States Federal Housing Finance Agency, Bill Pulte, confirmed on X that Fannie Mae and Freddie Mac will execute the purchase of mortgage bonds. These two giants of real estate financing have been under government control since 2008, when they were bailed out with public funds during the financial crisis. In return, the Treasury Department obtained preferred shares that, over the years, have secured billions of dollars in dividends.

Trump emphasized the importance of his decision not to sell Fannie Mae and Freddie Mac in his first quarter of presidency, stating that their value has now increased significantly. This decision is part of a broader strategy to strengthen the real estate sector through the direct involvement of major federal agencies.

A Real Estate Market Under the Lens

Investors are closely monitoring every political move and interest rate change that could impact mortgage volume and profits, especially after the prolonged slowdown that has affected the U.S. real estate market. Trump’s intervention represents an attempt to reverse this trend, offering new opportunities for both homebuyers and industry operators.

Other Measures for Housing: Halt on Wall Street Acquisitions

This is not the only initiative undertaken by the Trump administration to promote housing accessibility. Earlier this week, the president announced plans to ban Wall Street firms from purchasing single-family homes. This measure aims to alleviate pressure on housing prices by limiting the presence of large institutional investors who often buy properties in bulk, removing them from the private market and contributing to price increases.

A Look into the Future of the Real Estate Sector

Trump’s recent moves mark a significant shift in U.S. housing policy. The massive purchase of mortgage bonds and the potential ban on Wall Street firms investing in residential properties represent two pillars of a strategy aimed at making the real estate market more accessible and stimulating a recovery after years of stagnation.

It remains to be seen what the concrete impact of these measures will be in the long term, but the immediate positive reaction of the markets suggests that industry players see these initiatives as a sign of renewed confidence and potential growth.

Conclusions: A New Chapter for Housing in the United States

Trump’s direct intervention in the mortgage bond market, along with other announced measures, could represent a turning point for millions of Americans grappling with rising home prices and interest rates. The stated goal is clear: to make housing accessible for everyone, revitalize the real estate sector, and support the country’s economic growth. Investors and operators remain focused on the administration’s next moves, while the market waits to see if these policies will truly change the face of housing in the United States.