Trump Directs $200 Billion Mortgage Bond Buy in Housing Push

Jan 8, 2026

Guest

Alexandra Levine

Conor Sen, a Bloomberg Opinion columnist and founder of Peachtree Creek Investments, discusses President Trump's recent push to buy $200 billion in mortgage bonds to lower housing costs. Ali McCartney, a wealth management director, emphasizes the importance of focusing on fundamentals rather than political chatter for investment strategies. David Woo shares insights on how U.S. actions aim to impact oil prices and affordability ahead of midterms. Tech reporter Alexandra Levine updates on TikTok's ongoing negotiations and the implications for U.S. national security.

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ADVICE

Fix Zoning And Restore Transactions

Tackle zoning and local restrictions to increase housing supply where shortages exist.
Also restore normal transaction volumes to free up regional inventory via migration, Sen advises.

INSIGHT

Housing Shortage Is Two-Tiered

Housing shortages are regional: surplus in Sun Belt, scarcity in Northeast and Midwest.
Solutions must pair mobility-restoring policies with local zoning reforms.

INSIGHT

Large Fed Cuts Seem Unwarranted

Stuart Paul argues 150 basis points of Fed cuts is excessive given current signals from credit and asset markets.
He views labor-market softness as structural, reducing urgency for big rate easing.

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US President Donald Trump said he was directing the purchase of $200 billion in mortgage bonds, which he cast as his latest effort to bring down housing costs ahead of the November midterm election.

Trump announced the move on Thursday in a social media post. The director of the Federal Housing Finance Agency, Bill Pulte, said soon after that the president aims for Fannie Mae and Freddie Mac to execute the purchases.

“This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable,” Trump wrote in his post.
He added that his decision not to sell Fannie Mae and Freddie Mac during his first term allowed them to amass “$200 BILLION DOLLARS IN CASH” and that he was making his announcement “because of that.”

“It is one of my many steps in restoring Affordability, something that the Biden Administration absolutely destroyed,” the president said. Mortgage backed securities rallied relative to Treasuries on the news.

Fannie Mae and Freddie Mac have added billions of dollars of mortgage-backed securities and home loans to their balance sheets in recent months, fueling speculation that they’re trying to push down lending rates and boost their profitability ahead of a potential public offering.

Today's show features:

Conor Sen, Bloomberg Opinion columnist and Founder of Peachtree Creek Investments, on his latest column about President Donald Trump's proposal to ban institutional investors from buying single-family homes
Bloomberg Economics US and Canada Economist Stuart Paul on Thursday’s jobs data and what to expect from Friday’s nonfarm payrolls report and Alli McCartney, Managing Director of Wealth Management with Alignment Partners at UBS, on key market indicators to watch in early 2026
David Woo, Macro Strategist and former Bank of America Head of Global Interest Rates, Foreign Exchange, Emerging Markets Fixed Income Strategy & Economics Research
Bloomberg News Technology Reporter Alexandra Levine on what appears to be the end of the effort to ban TikTok in the US with a sale to American investors

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