Trump ‘instructing’ his ‘Representatives’ to buy $200B in mortgage bonds

President Donald Trump claimed Thursday that he “instructed my representatives to purchase $200 billion in mortgage bonds” that would lower interest rates and monthly payments.

Trump, a Real Social postHe said he issued the directive because Fannie Mae and Freddie Mac, two issuers of government-backed mortgages, were strapped for cash.

It is unclear who Trump named as a representative. The White House and the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, did not immediately respond to CNBC’s requests for clarity.

FHFA Director Bill Pulte posted on X later Thursday: “We’re on this. Thanks to President Trump, Fannie and Freddie will be executed.”

Hours before Trump’s post, Pulte said in an interview with CNBC that he expected Trump to make a decision on Fannie and Freddie’s potential initial public offering within the next month or two.

Trump claimed his latest directive would help restore “affordability,” a word that has become key to the political messaging of Democrats, who accuse the Republican president of failing to meet high prices.

Trump has been critical of his predecessor Joe Biden’s administration, claiming Biden is “ignoring the Housing Market” amid a series of other policy failures.

“Everything is broken, but as President of the United States, I already fixed it!” Trump announced. “I now pay special attention to the Housing Market.”

“This was truly a great decision, as I chose not to sell Fannie Mae and Freddie Mac in my First Term, and despite the advice of the ‘experts,’ I now have $200 BILLION in CASH worth many times that amount – AN ABSOLUTE WEALTH,” he wrote.

“Therefore, I am directing my Representatives to PURCHASE $200 BILLION IN HOUSING BONDS.”

It was unclear in Trump’s post whether Fannie and Freddie, the Treasury Department, or another entity would make the purchase.

In the past, the Federal Reserve has purchased mortgage bonds to lower interest rates as part of monetary policy known as “quantitative easing.” However, the executive branch cannot order the independent central bank to initiate these transactions.

The Treasury has purchased mortgage-backed bonds in the past during periods of extreme turmoil, such as the housing crisis of 2008 and 2009.

It was also unclear whether this acquisition would have any impact on mortgage rates. The Fed’s quantitative easing typically involves purchasing multiple types of securities, with larger amounts made up of Treasury bills to lower long-term Treasury rates.

Mortgage rates generally follow the lead of long-term Treasury rates rather than mortgage bond yields.

The 10-year Treasury yield fell slightly hours after Trump’s comments.