Name: Watch CNBC's full interview with FHFA director Bill Pulte
Uploaded: 2026-01-09T19:05:40+00:00
Duration: 563 s

Speakers

Bill Pulte — Director of the Federal Housing Finance Agency

Summary

Bill Pulte, FHFA director, discusses the Trump administration's directive for Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds, which has pushed mortgage rates below 6%. Pulte says the program is already being executed, aims to keep home prices high while improving affordability, and may help a future GSE IPO. He also supports a ban on institutional home buying and pressures homebuilders to develop entitled lots.

Trump administration directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds.
Mortgage rates fell below 6% after the announcement.
Pulte says the GSEs are already executing the mortgage-bond purchases with safe underwriting.
He wants home prices kept high while improving housing affordability.
He expects a ban on institutional investors buying homes.
He pressures homebuilders to put roughly 2 million entitled lots into production.
He says a future Fannie/Freddie IPO is not mutually exclusive with the mortgage-bond program.
He mentions 30-50 other housing policy options under consideration.

Ideas

Bill Pulte Director of the Federal Housing Finance Agency 0:44

GSEs buying mortgage bonds lowers rates

Pulte says Fannie Mae and Freddie Mac have excess cash and are executing a $200 billion purchase of mortgage bonds. He argues the GSEs' mortgage securities yield attractive returns, underwriting is safe and sound post-Great Recession, and the buying is already helping push mortgage rates into the 5% range, supporting agency MBS demand.

Bill Pulte Director of the Federal Housing Finance Agency 2:41

Policy aims to keep home prices high

Pulte repeatedly says the administration wants to keep home prices high while making housing more affordable. He points to lower mortgage rates from the GSE mortgage-bond purchases and a likely ban on institutional investors buying homes as policies that support housing demand and prices, protecting existing homeowners' equity.

Bill Pulte Director of the Federal Housing Finance Agency 2:52

Ban likely hurts institutional homebuyers

Pulte says a ban on institutional investors buying homes will likely happen, arguing institutional buyers have purchased homes 20-40% below prices available to consumers. He calls the ban a home run for new home prices, implying a negative demand shock for institutional single-family rental homebuyers and support for new-home pricing.

Bill Pulte Director of the Federal Housing Finance Agency 2:52

Ban likely hurts institutional homebuyers

Bill Pulte Director of the Federal Housing Finance Agency 3:32

GSE MBS buying may help IPO

Pulte says a Fannie Mae/Freddie Mac IPO is not mutually exclusive with the GSEs' mortgage-bond buying. If the President decides to take them public, the mortgage-bond program may actually help the IPO, and he says the GSEs are being run like businesses with safe and sound underwriting, creating a potential catalyst for the GSE equities.

Bill Pulte Director of the Federal Housing Finance Agency 4:29

Builders must develop entitled lots

Pulte says lower mortgage rates and policy support will help the builders, but they must do their part by putting their roughly 2 million entitled lots into production and accurately reflecting land inventory if they do business with Fannie and Freddie. He warns action may be coming on lot supply.

Watch CNBC's full interview with FHFA director Bill Pulte

Summary

Ideas

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