One day of bond market move can wipe out any price benefit from the Agencies buying $200 billion of Agency MBS. In his Davos speech yesterday at the World Economic Forum in Switzerland, President Trump argued that homeownership is central to the American dream and criticized large institutional investors for driving up prices, saying “homes are built for people, not for corporations,” and touting an executive order aimed at restricting such investors from buying single-family homes to help buyers compete. Trump also reiterated plans to support lower mortgage costs by directing policy actions (including government purchases of mortgage-backed securities) and linked these moves to broader affordability goals, while emphasizing that he does not want housing to become so cheap that it harms existing homeowners’ equity.
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