Federal Reserve officials express skepticism about Trump administration plan to lower housing costs by buying mortgage-backed bonds, arguing housing affordability is more about supply than financing. President Trump’s plan aims to buy $200 billion in mortgage bonds to lower borrowing costs, with $3 billion in purchases already made. Analysts predict a modest impact on mortgage rates. The plan is similar to quantitative easing, where the central bank buys bonds to stimulate the economy. Fed’s previous mortgage bond purchases during the pandemic totaled $2 trillion. Trump’s move to buy mortgage bonds outside of crisis conditions blurs lines between normal and emergency market conditions.

Read more at Yahoo Finance: Two Fed officials say key to fixing US housing more about supply than financing