Bond buys fall flat

THERE’S scant evidence so far that US President Donald Trump’s bid to make housing more affordable by purchasing mortgage-backed bonds has had its desired effect, and to the extent it has, broader geopolitical anxieties driven by his ­administration look set to make borrowing more expensive over time.

The targeted US$200bil of purchases appears likely to make borrowing costs cheaper only at the margin, while a wide range of experts agree the key to making homes more affordable is to bolster housing supply.