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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Biden ignored the Housing Market, and instead was immersed with High Crime, Open Borders, runaway INFLATION, the Afghanistan Disaster, and a Military that he left in Chaos and Confusion. Everything was broken, but I, as President of the United States, have already fixed it! Now, I am giving special attention to the Housing Market. Because I chose not to sell Fannie Mae and Freddie Mac in my First Term, a truly great decision, and against the advice of the “experts,” it is now worth many times that amount — AN ABSOLUTE FORTUNE — and has $200 BILLION DOLLARS IN CASH. Because of this, I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS. This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable. It is one of my many steps in restoring Affordability, something that the Biden Administration absolutely destroyed. We are bringing back the AMERICAN DREAM that was destroyed by the last Administration. MAKE AMERICA GREAT AGAIN!”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Trump’s post pledging to use Fannie Mae and Freddie Mac to buy $200 billion of mortgage bonds, if taken as credible policy direction, could boost sentiment for rate‑sensitive and housing‑linked stocks by implying lower future mortgage rates and stronger housing demand. Homebuilders like D.R. Horton (DHI) and mortgage REITs such as Annaly Capital Management (NLY) might see buying interest on the prospect of cheaper financing and higher origination/refinancing volumes, while large banks (WFC) and financial ETFs (XLF, KRE, VFH) could benefit from improved loan demand but face margin uncertainty if long‑term rates fall. Real estate‑focused ETFs (VNQ, IYR, XLRE) may respond positively to expectations of more affordable financing and potentially higher property values, though moves would likely be tempered by skepticism about implementation and timing given the political context and lack of formal policy change.
Here are some of the stocks that might be affected:
Annaly Capital Management ((NLY)),
D.R. Horton Inc ((DHI)),
Wells Fargo & Company ((WFC)),
Financial Select Sector SPDR Fund ((XLF)),
SPDR S&P Regional Banking ETF ((KRE)),
Vanguard Financials ETF ((VFH)),
Vanguard Real Estate ETF ((VNQ)),
iShares U.S. Real Estate ETF ((IYR)),
Real Estate Select Sector SPDR Fund ((XLRE)).