Housing-linked stocks rally after Trump's US$200-billion mortgage bond-buy order

U.S. housing and mortgage-related stocks rose after President Trump said representatives would buy US$200 billion in mortgage bonds to lower mortgage rates; the Federal Housing Finance Agency said Fannie Mae and Freddie Mac will execute the purchase.

U.S. mortgage lenders and housing-related stocks rose on Friday after President Donald Trump said he is ordering representatives to buy US$200 billion in mortgage bonds. Trump posted the move on Truth Social and said the purchase aims to bring down mortgage rates and monthly payments. Federal Housing Finance Agency Director Bill Pulte said on X that Fannie Mae and Freddie Mac will execute the purchase. Housing affordability has been under strain amid high mortgage rates and elevated home prices. Key facts: - U.S. mortgage lenders and housing stocks rose on Friday following the announcement. - President Trump said he ordered representatives to buy US$200 billion in mortgage bonds to lower mortgage rates and monthly payments, posting the remark on Truth Social. - FHFA Director Bill Pulte said Fannie Mae and Freddie Mac will execute the purchase, according to his post on X. - The announcement came amid persistent housing affordability challenges driven by high mortgage rates and elevated home prices. - Brian Jacobsen, chief economic strategist at Annex Wealth Management, said the purchase may push mortgage yields lower but could also increase housing demand, which could affect affordability. - Earlier in the week, Trump said his administration is moving to ban Wall Street firms from buying up single-family homes to try to reduce home prices. Summary: The announcement lifted housing-linked stocks as markets reacted to the policy move. The Federal Housing Finance Agency said Fannie Mae and Freddie Mac will carry out the US$200 billion bond purchases. Undetermined at this time.