Summary
President Donald Trump has announced a plan for Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds to lower homeownership costs. An economist warns that this plan might raise house prices by increasing demand. Some experts argue this may not significantly improve affordability for first-time buyers.
Key Facts
- President Trump wants to lower home loan costs through a $200 billion mortgage bond purchase initiative.
- Fannie Mae and Freddie Mac are the agencies tasked with carrying out this plan.
- The plan aims to reduce mortgage rates and make homes more affordable.
- Mark Zandi from Moody's Analytics argues the plan might increase home prices due to higher demand.
- The initiative could worsen the housing supply shortage in the U.S.
- Recent mortgage rates have fallen below 6%, partly credited to the plan's announcement.
- Experts believe the plan might offer only minimal impact on long-term housing affordability.
