Trump Pledges $200 Billion Bond Buy to Slash Mortgage Rates

In a powerful new push to restore affordability to American families, President Donald Trump announced Thursday that his administration will direct $200 billion toward the purchase of mortgage bonds a move aimed at slashing mortgage rates, lowering monthly payments, and reversing the Biden-era housing disaster that’s priced out millions.

Trump made the announcement on Truth Social, where he reminded Americans of a key decision from his first term: refusing to sell off Fannie Mae and Freddie Mac, despite pressure from so-called "experts."

“Because I chose not to sell Fannie Mae and Freddie Mac in my First Term... it is now worth many times that amount AN ABSOLUTE FORTUNE and has $200 BILLION DOLLARS IN CASH,” he wrote.

“This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable.”

This comes as part of a larger housing reform plan designed to put working Americans not hedge funds or megabanks back in control of the housing market.

• Trump has vowed to ban large institutional investors from gobbling up single-family homes, a trend that has exploded under Biden’s watch and contributed to artificial inflation in home prices.

• He will pressure the next Federal Reserve chair to aggressively cut rates, calling out Jerome Powell for choking the housing industry with high borrowing costs.

• The $200 billion bond purchase is expected to lower yields and drive mortgage interest rates down, making monthly homeownership costs manageable again.

These proposals target a real and growing crisis. Since 2013, home prices have soared by 105%, according to MoneyLion. Yet wages have not kept pace, and mortgage rates driven up by Bidenflation and Powell’s slow response have priced out first-time buyers in record numbers.

“Could somebody please inform Jerome ‘Too Late’ Powell that he is hurting the Housing Industry, very badly?” Trump posted previously. “There is no Inflation, and every sign is pointing to a major Rate Cut.”

Biden, meanwhile, has done next to nothing. After spending trillions on pet projects, climate nonsense, and Ukraine, the administration ignored housing entirely leaving a generation of Americans without a path to ownership.

Trump’s decision to address the issue head-on is more than a policy shift it’s a political one. Housing and affordability have already become central issues on the 2026 campaign trail, and with this move, Trump positions himself as the only candidate willing to challenge the financial elite and reclaim the American Dream for middle-class families.

He’ll expand on the plan at the upcoming Davos summit, where he’s expected to lay out further reforms aimed at reining in corporate landlords, boosting home construction, and making interest rates livable again.

For everyday Americans who’ve watched the cost of living skyrocket while Wall Street buys up their neighborhoods, help may finally be on the way.

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