Two Fed officials say key to fixing US housing more about supply than financingÂ

Two Federal Reserve officials, Raphael Bostic and Thomas Barkin, expressed skepticism about the Trump administration's plan to lower housing costs through mortgage-backed bond purchases. They emphasized that housing affordability is more about supply than financing. Bostic noted that challenges in housing affordability stem from supply and demand issues, while Barkin advocated for initiatives to increase housing supply. The Trump administration's plan aims to buy $200 billion in mortgage bonds to lower borrowing costs, but analysts predict only a modest impact on mortgage rates. The Fed's previous bond purchases during the pandemic significantly increased its holdings of mortgage-backed bonds.