Mortgage-related stocks surged in overnight trading after President Donald Trump announced plans to direct representatives to purchase $200 billion in mortgage bonds, a move he claims will lower mortgage rates and housing costs.
loanDepot up 16.8%; Opendoor up nearly 10%; Rocket Companies up 8%.
Trump made the announcement on social media, stating he would instruct his representatives to "BUY $200 BILLION DOLLARS IN MORTGAGE BONDS" using funds from Fannie Mae and Freddie Mac, which he claimed have accumulated substantial cash reserves because he chose not to sell these entities during his first term.
"This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable," Trump wrote, adding that the initiative aims to restore housing affordability that he claims was "absolutely destroyed" by the Biden administration.
The President criticized the current administration for ignoring the housing market while being "immersed with High Crime, Open Borders, runaway INFLATION, the Afghanistan Disaster, and a Military that he left in Chaos and Confusion."