President Donald Trump announced Thursday he has instructed his “representatives” to purchase $200 billion in mortgage bonds. In a social media post, Trump stated the objective is to lower interest rates and monthly payments for homeowners.
The announcement was made on January 8, 2026, via a post on Truth Social. In his statement, Trump said the directive was possible because government-sponsored enterprises Fannie Mae and Freddie Mac possess substantial cash reserves.
“Because I chose not to sell Fannie Mae and Freddie Mac in my First Term… it is now worth many times that amount — AN ABSOLUTE FORTUNE — and has $200 BILLION DOLLARS IN CASH,” the president wrote. “Because of this, I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS.”
The post did not specify which individuals or government entities were the “representatives” tasked with the purchase. It also did not clarify whether Fannie Mae and Freddie Mac, the U.S. Treasury Department, or another agency would be responsible for executing the transaction. As of Thursday evening, the White House and the Federal Housing Finance Agency (FHFA), which regulates Fannie Mae and Freddie Mac, had not issued a public response to requests for clarification.
In his post, Trump also criticized the economic policies of the preceding administration under Joe Biden, stating it had “ignored the Housing Market.”
The Federal Reserve, which operates as an independent central bank, has previously purchased mortgage bonds as part of its monetary policy known as quantitative easing, which is designed to influence long-term interest rates. The executive branch does not have the authority to direct the Federal Reserve’s monetary policy decisions.
Historically, the U.S. Treasury Department has purchased mortgage-backed securities during periods of significant financial distress, such as the 2008-2009 financial crisis.
Market observers note that mortgage rates often correlate with the yields on long-term U.S. Treasury bonds. Following the president’s announcement, the yield on the 10-year Treasury note experienced a slight decrease in after-hours trading.
