U.S. mortgage rates have plummeted after President Trump ordered the purchase of $200 billion in mortgage bonds to lower borrowing costs and increase home affordability. Federal Housing Finance Agency director Bill Pulte confirmed Fannie Mae and Freddie Mac will execute the purchases, with $3 billion already bought. Mortgage rates dropped 22 basis points to 5.99%.
The $200 billion mortgage bond order is one of many steps Trump plans to take to restore affordability. This move comes after his vow to prevent large institutional investors from buying single-family homes, as the American Dream of homeownership is unattainable for many. However, analysts doubt the impact, as $200 billion only accounts for 1.4% of the $14.5 trillion mortgage market.
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2. Colonial Pipeline resumes operations after a cyberattack forced a shutdown, causing fuel shortages in the Southeast. The company paid a ransom of $4.4 million to the hackers responsible for the attack, highlighting the growing threat of cybercrime.
3. Inflation spikes in April, with consumer prices rising by 4.2%, the largest increase since 2008. The surge in prices is attributed to a combination of factors, including supply chain disruptions and increased consumer demand as the economy reopens.
4. Dogecoin experiences a sharp drop in value after Elon Musk’s appearance on SNL fails to meet investors’ high expectations. The cryptocurrency, which started as a joke, continues to be highly volatile as it gains popularity among retail traders.
5. India surpasses 24 million COVID-19 cases as the country continues to battle a devastating second wave. The healthcare system is overwhelmed, with shortages of oxygen, hospital beds, and vaccines contributing to the crisis. International aid efforts are underway to help alleviate the situation.
Read more at Yahoo Finance: US mortgage rates sink to 3-year low after Trump’s astonishing $200B order. Capitalize fast even if you’re a homeowner