Biden destroyed the American Dream of homeownership for millions of families.
Mortgage rates skyrocketed, home prices went through the roof, and young Americans gave up on ever owning a home.
And Trump just revealed one bold move that has the housing industry buzzing.
Trump Orders Fannie Mae and Freddie Mac to Buy $200 Billion in Mortgage Bonds to Lower Rates
Trump announced Thursday he's directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds to drive down rates and monthly payments.
The President wrote on Truth Social that his decision not to sell the two government-sponsored enterprises during his first term allowed them to amass $200 billion in cash.
"Because I chose not to sell Fannie Mae and Freddie Mac in my First Term, a truly great decision, and against the advice of the 'experts,' it is now worth many times that amount — AN ABSOLUTE FORTUNE — and has $200 BILLION DOLLARS IN CASH," Trump stated.
He added the bond purchases would "drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable."
Bill Pulte, director of the Federal Housing Finance Agency which oversees Fannie Mae and Freddie Mac, confirmed on X that "Fannie and Freddie are the entities that will do the purchases."
Pulte told reporters in a phone interview that the two companies have "ample liquidity" to execute the purchases immediately.
The FHFA director said in an interview the move "can be executed very quickly."
"We have the capability, we have the cash to do it, and we are going to go about executing it very smartly and in a very big way," Pulte explained.
Mortgage-backed securities rallied compared to Treasuries following Trump's announcement, and mortgage-linked stocks including Rocket Companies and LoanDepot increased.
How Biden's Housing Policy Destroyed Affordability and Drove Mortgage Rates to 7%
Trump's move comes after four years of Biden policies that destroyed housing affordability for American families.
When Biden took office in January 2021, the average 30-year mortgage rate stood at 2.77 percent.
By the time Trump won the 2024 election, mortgage rates had shot up to around 7 percent — more than double what they were when Trump left office.
Biden's term saw home prices surge more than 27 percent while mortgage rates tripled, according to The Heritage Foundation.
A family buying the typical American home now pays $2,075 per month compared to $979 when Trump left office.
That's an extra $13,000 every year for the exact same house.
Trump blasted Biden for ignoring the housing crisis while focusing on radical left-wing priorities.
"Biden ignored the Housing Market, and instead was immersed with High Crime, Open Borders, runaway INFLATION, the Afghanistan Disaster, and a Military that he left in Chaos and Confusion," Trump wrote.
He added that "Everything was broken, but I, as President of the United States, have already fixed it!"
Biden's reckless $6 trillion spending spree in 2021 and 2022 triggered the inflation crisis that forced the Federal Reserve to spike interest rates.
The result was devastating for anyone trying to buy a home — especially young families and minorities who saw their dreams slip away.
Black homeownership remained below 50 percent as mortgage rates climbed, according to The Heritage Foundation.
Nearly one in five millennials told real estate platform Redfin in a 2023 survey they believe they'll never own a home.
How Trump's 2026 Housing Plan Will Lower Mortgage Rates and Monthly Payments
Here's how Trump's move works: Fannie Mae and Freddie Mac will buy mortgage bonds from banks and lenders.
Those institutions get cash they can immediately turn around and lend to homebuyers.
More money available for mortgages means lenders compete for customers by lowering rates.
David Dworkin, president and CEO of the National Housing Conference, said Trump's move will definitely put downward pressure on mortgage rates.
"If the Trump administration allows Fannie and Freddie to grow their retained portfolios, there's no question it will have downward pressure on mortgage rates – probably at least a quarter of a point, maybe more," Dworkin explained.
Citigroup analysts said if Fannie and Freddie increase their portfolio by $250 billion, then premiums on their mortgage bonds would fall by 0.25 percent — resulting in a similar drop in mortgage rates for homeowners.
Having Fannie and Freddie purchase additional mortgage-backed securities to drive down mortgage rates was a concept previously endorsed by the Community Home Lenders of America and the Independent Community Bankers of America.
Back in October, these community banking groups wrote Pulte and Treasury Secretary Scott Bessent asking them to let Fannie and Freddie buy up to $300 billion each in mortgage securities.
The groups argued such actions would "address the secular and structural decline in demand for mortgage-backed securities" and "could reduce mortgage rates by 30 basis points or more."
Fannie Mae and Freddie Mac are each limited by law to holding $225 billion in mortgage securities.
They've already purchased roughly $70 billion since May 2025.
Trump's $200 billion purchase would bring them right up to that legal cap, according to John Burns Research and Consulting.
Pulte said the bond-buying initiative creates a "one-two punch" with Trump's Wednesday announcement banning institutional investors from buying single-family homes.
The President plans to discuss more details about his housing affordability platform when he speaks at the World Economic Forum in Davos, Switzerland, later in January.
Financial experts note the Federal Reserve previously purchased mortgage bonds during times of economic turmoil — including during the COVID-19 pandemic when it bought hundreds of billions of dollars worth of mortgage-backed securities.
Those purchases helped push mortgage rates to historic lows, though the Fed is an independent entity that cannot be ordered by the executive branch to make such purchases.
Trump's directive uses Fannie Mae and Freddie Mac — which remain under federal conservatorship since the 2008 financial crisis — to achieve the same goal of driving down rates.
The President is delivering on his campaign promise to restore affordability and bring back what Biden destroyed.
Sources:
- Sean Moran, "Trump: Fannie, Freddie to Buy $200 Billion of Mortgage Debt to Bring Mortgage Rates Down," Breitbart, January 8, 2026.
- "Trump says he's instructing his 'Representatives' to buy $200 billion in mortgage bonds, claiming it will lower rates," CNBC, January 8, 2026.
- "Trump orders 'my representatives' to buy $200 billion in mortgage bonds in effort to lower housing costs," CNN Business, January 8, 2026.
- "Trump says he's ordered $200 billion mortgage bond purchase," The Hill, January 8, 2026.
- "Pulte confirms Fannie and Freddie will buy $200 billion of mortgage bonds, per Trump's instructions," Scotsman Guide, January 8, 2026.
- "How Bidenomics Wrecked America's Housing Market," The Heritage Foundation.
- "Mortgage Rates Have Skyrocketed Under Joe Biden, Chart Reveals," Newsweek, September 27, 2023.