Trump Wants Fannie, Freddie to Buy More Mortgage Bonds. Here’s Why.

That’s how much mortgage rates could fall if Fannie Mae and Freddie Mac buy more mortgage bonds, according to National Housing Conference Chief Executive David Dworkin.

Late Thursday, President Trump said the two government-backed companies would buy $200 billion’s worth of mortgage bonds, as part of a push to make home ownership more affordable.

The companies used to buy securities regularly before the 2008-09 financial crisis. “There is no question” that resuming this strategy would have downward pressure on mortgage rates, said Dworkin. Mortgage rates have hovered just under 6.2% in recent weeks.