Fed minutes show Trump mortgage plan has limited impact on housing affordability

Fed minutes show Trump's mortgage plan has not improved affordability. Officials noted that low supply remains the main challenge for the housing market.

The Federal Reserve released minutes of its January 27-28 meeting on Wednesday, reporting that the Trump administration's $200 billion mortgage bond purchase plan caused a notable decline in mortgage-backed securities yields relative to comparable Treasuries. Despite this shift in the US USUS financial landscape, the central bank concluded that the intervention by the administration led by Trump was unlikely to produce a material increase in mortgage refinancing. The minutes clarify that the $200 billion administration intervention has had a limited effect on housing affordability and underscore that housing supply and the Fed's monetary stance are the primary constraints on the housing market.
FILE PHOTO: A "sold" sign is seen outside of a recently purchased home in Washington, U.S., July 7, 2022. REUTERS/Sarah Silbiger/File Photo
FILE PHOTO: A "sold" sign is seen outside of a recently purchased home in Washington, U.S., July 7, 2022. REUTERS/Sarah Silbiger/File Photo
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