The United States has already begun purchasing $200 billion in mortgage-backed securities, according to Bill Pulte, director of the Federal Housing Finance Agency (FHFA). Pulte confirmed on January 9 that the initiative announced a day earlier by President Donald Trump is now underway, DKNews.kz reports.
The move signals a shift from policy announcements to direct market action, with the goal of easing pressure on mortgage rates and improving housing affordability.
From Announcement to Action
President Trump said earlier this week that government-backed housing agencies would be instructed to begin large-scale purchases of mortgage bonds. Pulte’s statement confirms that the process has moved beyond planning and into execution.
The program is expected to involve Fannie Mae and Freddie Mac, the two government-sponsored enterprises that play a central role in the US mortgage market.
Why the Move Matters
US mortgage rates have remained elevated, weighing on homebuyer demand and slowing activity across the housing sector. By purchasing mortgage-backed securities, the government is effectively injecting liquidity into the housing finance system, which could help push down yields on mortgage bonds.
Lower yields typically translate into lower mortgage rates for borrowers, reducing monthly payments and potentially reviving demand in the housing market.
Political and Market Implications
The timing of the initiative adds a political dimension. Lower housing costs are a key issue for American households, and the move may resonate strongly with voters as broader economic pressures persist.
Markets are now watching closely to assess the scale, pace, and durability of the bond purchases, as well as their potential impact on inflation and the broader fixed-income market.
What Investors Are Watching Next
Investors and analysts will be focused on:
- changes in mortgage rates over the coming weeks
- reactions in the bond market
- spillover effects on homebuilder and banking stocks
If sustained, the program could become a significant source of support for the US housing market in the months ahead.
