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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Mortgage Rates are NOW 5.7%! Mortgage costs were HUGE under Biden (around 8%). That’s why almost no young families could afford a home. With my focus on Housing Affordability, and after I authorized Fannie Mae and Freddie Mac to invest their cash, and BUY $200 Billion Dollars in Mortgage Bonds, Mortgage Rates moved down to 5.7%. This is GREAT news for American Families, and real cost relief. We are bringing Housing Costs DOWN, and putting Americans FIRST!”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because If investors believe Trump’s claim of materially lower mortgage rates driven by large-scale MBS purchases, it could support sentiment for housing- and mortgage-sensitive names like homebuilders (DHI, LEN), mortgage REITs (AGNC, NLY), Rocket Companies, and broad real estate ETFs (VNQ, IYR, XLRE) on expectations of stronger housing demand and refinancing activity. At the same time, lower long-term rates and tighter mortgage spreads can pressure net interest margins for large and regional banks (BAC, JPM, WFC, KRE) and financial ETFs (XLF, VFH), though this might be partially offset by higher loan volumes and improved credit quality. Consumer discretionary ETFs (VCR, XLY) could benefit from the narrative of improved affordability and household cash flow, but the overall market impact depends on whether traders view the post as credible policy guidance or political messaging with limited immediate economic effect.
Here are some of the stocks that might be affected:
AGNC Investment Corp. ((AGNC)),
Annaly Capital Management ((NLY)),
Bank of America ((BAC)),
D.R. Horton Inc ((DHI)),
JPMorgan Chase & Co. ((JPM)),
Lennar Corporation ((LEN)),
Wells Fargo & Company ((WFC)),
Financial Select Sector SPDR Fund ((XLF)),
SPDR S&P Regional Banking ETF ((KRE)),
Vanguard Consumer Discretionary ETF ((VCR)),
Vanguard Financials ETF ((VFH)),
Vanguard Real Estate ETF ((VNQ)),
Consumer Discretionary Select Sector SPDR Fund ((XLY)),
iShares U.S. Real Estate ETF ((IYR)),
Real Estate Select Sector SPDR Fund ((XLRE)),
Rocket Companies Inc ((RKT)).