President Trump pressures Federal Reserve to lower interest rates, targeting Chair Powell. Fed governors have limited terms, new board member nominated. Trump’s actions could impact mortgage rates indirectly, as Fed controls federal funds rate, not mortgage rates. Decreased Fed independence could raise Treasury yields, causing spike in long-term yields.

Fed can manipulate Treasury bond demand to lower yields. Trump could influence mortgage rates by juicing demand for mortgage-backed securities. Privatizing Fannie Mae and Freddie Mac could raise rates, but removing caps on MBS purchases could lower rates. Ultimately, Fed controls yields and rates, investors determine demand.

Read more at Yahoo Finance: Ways Trump Can Control Mortgage Rates