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In a bid to lower costs for Americans, President Trump instructed two government-sponsored entities (GSEs) to purchase mortgage bonds, claiming the move would bring mortgage rates down.
Who is praying on the wall?
From Breitbart:
President Donald Trump said that having Fannie Mae and Freddie Mac purchase $200 billion in mortgage bonds would drive mortgage rates and monthly payments down as the administration works on affordability.
Trump wrote on Truth Social:
I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS. This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable. It is one of my many steps in restoring Affordability, something that the Biden Administration absolutely destroyed. We are bringing back the AMERICAN DREAM that was destroyed by the last Administration. MAKE AMERICA GREAT AGAIN!
According to Breitbart, Fannie Mae and Freddie Mac are GSEs that the government bailed out in 2008 during the financial crisis. President Trump highlighted the fact that he didn’t sell the companies during his first term in office, allowing them to amass over $200 billion.
Financial experts have said that the President’s strategy would work. According to Citigroup, if Fannie and Freddie increase their portfolio by $250 billion, premiums on their mortgage bonds would fall by 0.25%. That drop would cause a similar drop in rates for homeowners.
This move also comes as the President is taking other steps to make homes more affordable. The Trump administration recently announced it would ban major investors like Blackrock from purchasing single-family homes.
Let’s thank God for this decision, and let’s pray for President Trump as he works to make the American dream more affordable!
What do you think of this idea? Share your thoughts and prayers below.
(Excerpt from Breitbart. Photo Credit: Official White House Photo by Daniel Torok)
