Eurodollar University Trump Just Triggered Housing QE (Brace for Impact)
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Jan 12, 2026 In this discussion, Steve Van Metre, a commentator on housing and banking dynamics, shares insights on the $200 billion GSE QE plan announced by the Trump administration amidst declining housing construction. They debate whether this initiative will effectively lower mortgage rates and stimulate buyer interest. Van Metre highlights how historical Fed buying had minimal impact on rates and discusses the political motivations behind such proposals. Ultimately, they suggest that the plan may not significantly alter lending practices or the housing market.
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Government Using GSEs As QE Proxy
- The Trump plan asks Fannie Mae and Freddie Mac to buy $200B of mortgage securities to lower mortgage costs.
- Jeff Snider says this is being called 'GSE QE' and aims to bypass the Fed to affect housing affordability.
Jobs Matter More Than Rate Cuts
- Steve Van Metre argues lower rates alone won't entice buyers in a slowing economy.
- He emphasizes job security matters more than modest monthly payment reductions.
Anticipate Symbolic Policy Moves
- Policymakers will try rate tools when they can't fix structural problems like jobs or incomes.
- Expect political pressure to produce symbolic measures rather than cures for structural weakness.