Trump Directs $200 Billion MBS Purchase to Boost Housing Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
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Should l Buy DOUG?
Source: Fool
- MBS Purchase Initiative: Trump has directed the purchase of $200 billion in mortgage-backed securities (MBS) to lower mortgage rates by increasing demand, potentially providing significant financial relief to homebuyers and stimulating a recovery in the housing market.
- Positive Market Response: Douglas Elliman reported $30.1 billion in real estate sales during the first three quarters of 2025, a 9% increase year-over-year, demonstrating the company's resilience in a challenging market, with expectations that the new policy will further boost sales growth.
- Strong Stock Performance: Douglas Elliman's stock surged by 42% in 2025, significantly outperforming the S&P 500's 17% increase, reflecting optimistic market sentiment regarding its future growth potential, especially in the context of falling interest rates.
- Attractive Valuation: With a price-to-sales ratio of just 0.2, significantly lower than its 0.8 peak in 2021, Douglas Elliman's stock presents a compelling investment opportunity, suggesting that a market recovery could yield fourfold returns for investors, thereby attracting more capital inflow.
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Analyst Views on DOUG
About DOUG
Douglas Elliman Inc. is a holding company. The Company is engaged in the real estate services and property technology (PropTech) investment business. The Company’s segments include Real Estate Brokerage, and Corporate Activities and Other. The Real Estate Brokerage segment provides the residential real estate brokerage services through its subsidiary Douglas Elliman Realty, which operates residential brokerage companies in the New York metropolitan area and also conducts residential real estate brokerage operations in Florida, California, Texas, Colorado, Nevada, Massachusetts, Connecticut, Maryland, Virginia, Washington, D.C. Arizona, New Hampshire and Michigan. The Corporate Activities and Other the operations segment include operations of the holding company as well as its investment business that invests in select PropTech opportunities through our New Valley Ventures subsidiary. The Company's PropTech investments include Rechat, Purlin, LiveEasy, Fyxify, Bilt, among others.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- MBS Purchase Initiative: Trump has directed the purchase of $200 billion in mortgage-backed securities (MBS) to lower mortgage rates by increasing demand, potentially providing significant financial relief to homebuyers and stimulating a recovery in the housing market.
- Positive Market Response: Douglas Elliman reported $30.1 billion in real estate sales during the first three quarters of 2025, a 9% increase year-over-year, demonstrating the company's resilience in a challenging market, with expectations that the new policy will further boost sales growth.
- Strong Stock Performance: Douglas Elliman's stock surged by 42% in 2025, significantly outperforming the S&P 500's 17% increase, reflecting optimistic market sentiment regarding its future growth potential, especially in the context of falling interest rates.
- Attractive Valuation: With a price-to-sales ratio of just 0.2, significantly lower than its 0.8 peak in 2021, Douglas Elliman's stock presents a compelling investment opportunity, suggesting that a market recovery could yield fourfold returns for investors, thereby attracting more capital inflow.
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- Market Conditions: Existing home sales in the U.S. are near a five-year low, with 529,770 more sellers than buyers in November, indicating that elevated interest rates have reduced borrowing capacity for first-time buyers, leading to decreased market activity.
- Trump's Response: President Trump has instructed representatives to purchase $200 billion worth of mortgage-backed securities (MBS), aiming to lower mortgage rates by increasing MBS demand, thereby stimulating a revival in the real estate market and alleviating burdens on homebuyers.
- Douglas Elliman's Growth Potential: Douglas Elliman reported $30.1 billion in sales during the first three quarters of 2025, a 9% increase year-over-year, demonstrating strong business growth despite challenging market conditions, with expectations for accelerated sales growth if Trump's plan succeeds.
- Attractive Stock Valuation: Douglas Elliman's price-to-sales (P/S) ratio stands at just 0.2, significantly lower than its peak of 0.8 in 2021, indicating strong investment potential; if the market recovers, investors could see a fourfold return, and its valuation is also lower than competitor Compass's P/S ratio of 1.
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- Platform Expansion: Douglas Elliman's Elliman Capital mortgage platform, initially launched in Florida, has now expanded to New York City and surrounding areas, including Long Island and the Hamptons, significantly enhancing the company's service capabilities in the luxury real estate market.
- Diverse Loan Products: Elliman Capital offers a wide range of financing options, including conventional loans, construction loans, and commercial lending, specifically catering to self-employed individuals and foreign nationals, addressing market needs that traditional financial services often overlook.
- Technology-Driven Process Optimization: The new platform streamlines the mortgage application and approval process through advanced technology, enabling Douglas Elliman agents to track loan progress in real-time, thereby enhancing client experience and accelerating transaction completion.
- Enhanced Competitive Advantage: The launch of Elliman Capital not only strengthens Douglas Elliman's market competitiveness but also meets the growing demand for personalized financing solutions among homebuyers, positioning the company favorably in a dynamic market landscape.
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- Platform Expansion: Douglas Elliman's Elliman Capital mortgage platform has expanded from Florida to New York City and surrounding areas, including Long Island and the Hamptons, significantly enhancing the company's competitive edge in the luxury real estate market.
- Diverse Loan Offerings: Elliman Capital provides a wide range of financing options, including conventional loans, construction loans, and flexible solutions for self-employed individuals and foreign nationals, thereby increasing customer loyalty and market share.
- Technology-Driven Process Optimization: The new platform integrates advanced technology to streamline the mortgage application and approval process, enabling Douglas Elliman agents to track loan progress in real-time, enhancing client experience and accelerating transaction speed.
- Enhanced Professional Support: The dedicated team at Elliman Capital focuses on providing tailored financing solutions for each client, further solidifying Douglas Elliman's market leadership by combining its reputation for luxury service with comprehensive mortgage capabilities.
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- Financing Solution Expansion: Douglas Elliman launches the Elliman Capital mortgage platform in New York, covering NYC, Long Island, and the Hamptons, aiming to provide comprehensive financing solutions for both traditional and non-traditional borrowers, which is expected to enhance the company's competitiveness in the luxury real estate market.
- Diverse Loan Products: Elliman Capital offers a wide range of financing options, including conventional loans, construction loans, and commercial lending, specifically catering to self-employed individuals and foreign nationals, thereby addressing their unique financing challenges and increasing customer loyalty.
- Technology-Driven Process Optimization: The new platform simplifies the mortgage application and approval process through advanced technology, enabling Douglas Elliman agents to track loan progress in real-time, which is anticipated to accelerate transaction completion and improve client satisfaction.
- Market Demand Response: The launch of Elliman Capital responds to the growing demand from homebuyers for personalized and flexible financing options, and combined with Douglas Elliman's luxury service reputation, it is expected to further solidify its leadership position in the U.S. real estate market.
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- E-commerce Dominance: Sea Limited's Shopee processed 10 billion orders worth $90.6 billion in the first three quarters of 2025, solidifying its position as Southeast Asia's largest e-commerce platform, thereby enhancing the company's competitiveness in the digital economy.
- Financial Services Expansion: Sea's Monee platform provides loans to Shopee merchants and offers 'buy now, pay later' services, which are expected to further increase user engagement and market share as merchants grow their businesses.
- Gaming Development Strength: Garena, as one of the world's top game development studios, has launched hits like Free Fire and Call of Duty: Mobile, boosting Sea's influence in the global gaming market and driving revenue growth.
- Market Outlook Analysis: Despite Sea's stock being down 35% from its 52-week high, the company is projected to achieve its fastest revenue growth in four years at over 30% in 2025, presenting a compelling entry point for long-term investors.
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