Summary
President Donald Trump has announced a $200 billion plan to buy mortgage bonds to lower mortgage rates and make homes more affordable. The plan involves government-backed entities like Fannie Mae and Freddie Mac purchasing these bonds. Experts are skeptical about its impact on the long-term mortgage market.
Key Facts
- President Trump proposed a $200 billion purchase of mortgage bonds.
- The goal is to lower mortgage rates and make homeownership more affordable.
- Fannie Mae and Freddie Mac will handle the bond purchases.
- Buying mortgage bonds gives banks more money to lend, which can lower borrowing costs.
- Experts doubt the plan will significantly change long-term mortgage rates.
- The average mortgage rate for a 30-year loan is currently 6.2%.
- The $200 billion comes from a previous decision to keep Fannie and Freddie under government control.
