Particle.news
Download on the App Store

Trump Prioritizes High Home Prices as He Pushes for Lower Mortgage Rates

Trump’s housing push centers on lower borrowing costs to expand access without reducing home values.

Overview

  • At a Jan. 29 Cabinet meeting, the president said he wants to “drive housing prices up” to protect existing homeowners’ wealth while making buying easier through lower rates.
  • The administration has directed about $200 billion in mortgage‑backed securities purchases via Fannie Mae and Freddie Mac to help nudge borrowing costs lower.
  • An executive order seeks to restrict large institutional purchases of single‑family homes, with implementation details to follow through guidance and potential legislation.
  • Economists warn that easing rates without materially increasing housing supply could lift demand and push prices higher, offsetting affordability gains.
  • On Jan. 30, Trump named former Fed governor Kevin Warsh as his nominee for Federal Reserve chair, signaling continued pressure for lower interest rates.