President Trump announced on Thursday, January 8th, that the United States will purchase $200 billion worth of Mortgage Bonds with the aim of lowering housing costs. In a post on Truth Social, Trump wrote, “Because I chose not to sell Fannie Mae and Freddie Mac in my first term… their value has now more than quadrupled – considered a huge wealth – and they are sitting on $200 billion in cash.”
“I am directing relevant officials to purchase $200 billion in mortgage bonds. This will drive down mortgage rates, reduce monthly mortgage expenses, and alleviate the cost burden for people owning homes,” he added.
Federal Housing Finance Agency (FHFA) Director, Bill Pulte, later confirmed on the X platform that Fannie Mae and Freddie Mac will be responsible for executing this purchase plan.
Before this announcement was made, on January 7th, Trump stated that in order to reduce living costs, he intends to prohibit large institutional investors from continuing to purchase single-family homes. In a previous post, he pointed out, “Owning and purchasing a home has long been seen as the pinnacle of the American dream. It’s the reward for hard work and playing by the rules. But now… this American dream has become out of reach for too many people, especially the younger generation of Americans.” He emphasized, “Houses are meant for people to live in, not for companies to hold.”
He added, “Making life affordable for Americans again is my top priority.”
Analysts from the U.S. Department of Housing and Urban Development (HUD) noted that over the past decade, private equity firms and investment companies have extensively bought single-family homes, leading to rising rental costs and housing prices. Additionally, data from the “Private Equity Stakeholder Project” (PESP) as of April 2025 showed that Blackstone owns over 230,000 apartment units, while Greystar holds 138,000 units.
The ban on large investors is expected to face legal challenges from businesses, but Trump has urged Congress to legislate against such commercial practices.
“I will discuss this issue at the Davos speech in two weeks, including further housing and affordability proposals,” said Trump, referring to the World Economic Forum (WEF) Summit in Davos, Switzerland, from January 19th to 23rd.
In December 2025, Trump promised to unveil the “largest and most far-reaching housing reform plan in American history.”
The Trump administration has proposed multiple strategies to enhance housing affordability, such as introducing 50-year mortgages to reduce monthly repayment pressures for home buyers.
Other proposals include opening federal land for new construction developments and designing “portable mortgages” to allow homeowners to transfer existing loan terms when moving. The government is also considering eliminating capital gains tax on home sales and may declare a national housing emergency to expedite development processes.
According to the Federal Housing Finance Report, U.S. house prices rose by 2.3% between August 2024 and August 2025. With mortgage rates dropping to 6.3%, existing home sales grew by 3.3% in November 2025. However, affordability for home purchases has not improved, as households need nearly $108,000 in annual income to afford a median-priced home. As housing prices cool down, the number of “underwater mortgages” (where the mortgage balance exceeds the home value) has risen to a three-year high, affecting 1.6% of homeowners.
The luxury housing market is showing a trend of differentiation: in the top ten most expensive markets, eight areas saw price declines, with a 21% drop in Kahului-Wailuku, Hawaii. Refinancing activities have surged significantly; benefiting from lower rates, the market share of adjustable-rate mortgages (ARM) has now reached 11%.