Trump announces $200 billion purchase of mortgage-backed securities to lower mortgage rates

PANews reported on January 9 that U.S. President Trump stated he would instruct relevant representatives to purchase a total of $200 billion in mortgage-backed securities (MBS), to be jointly executed by Fannie Mae and Freddie Mac, with the goal of lowering mortgage rates and reducing monthly payments. Bill Pulte, Director of the Federal Housing Finance Agency, said that this measure does not require Congressional approval. According to existing agreements between the two agencies and the U.S. Treasury, each can add up to approximately $100 billion in new MBS quotas. Currently, the average 30-year fixed mortgage rate is about 6.16%, and the Federal Reserve cut rates by a total of 75 basis points last year.