Former President Donald Trump has unveiled a series of proposals aimed at addressing the escalating concerns over housing affordability as the midterm elections approach. During a recent speech in Michigan, he sought to reassure voters by announcing measures designed to make homeownership more accessible for Americans.
One of the biggest of these proposals is Trump’s plan to ban Wall Street investors from buying up single family homes. By promoting private ownership, this ban seeks to lessen the demand on the cost of housing. Today, Trump’s anti-opioid initiative is making waves and winning praise. Analysts continue to doubt its lasting effect on market prices.
Trump’s proposals fit perfectly into a large discussion that has long marinated among this country’s elite policymakers. They are a sign of the times—that is, a growing awareness that far too many Americans cannot find or afford a place to live. The commitment of former president Biden to provide plenty of affordable housing options for everyday people was a keystone promise from his administration.
On the campaign trail, Trump proposed something similar—encouraging people to make down payments unlocked by using their retirement savings and investments. It’s a dramatic move that could change how Americans start the home-buying process. He laid the groundwork for a model in which families looking to buy their first home can put down 10% on a new house. Simultaneously they can count 10% of their home’s equity as a 401(k) asset. We are keeping our fingers crossed that this innovative new approach will help even more Americans gain access to the housing market.
“Suppose that you put 10% down on a home, and then you take 10% of the equity of the home and put it in as an asset in your 401(k). Then your 401(k) will grow over time.” – Kevin Hassett
Despite that, the announcement has already sent mortgage rates soaring. For the first time in almost three years, the average rate on a 30-year mortgage has dipped under 6%. Trump noted this development, stating, “and that’s not with the help of the Fed,” highlighting his administration’s role in influencing market conditions.
Trump directed government-sponsored enterprises Fannie Mae and Freddie Mac to purchase $200 billion worth of mortgage bonds. Through this directive, the administration is attempting to target liquidity back into the housing market. It will lower borrowing costs across the board, allowing families to more easily afford mortgages.
Kevin Hassett, once Trump’s chief economic advisor, sounded bullish on the plan’s capacity to improve lives. He remarked, “We’ve seen a pretty big reaction to the announcement, and I think that actually makes us all feel better, because the truth is that fewer people are buying homes right now than we’ve seen pretty much in my lifetime.”
At the next Davos World Economic Forum, Trump will unveil his final plan. We expect him to set a bold vision on making housing more affordable and accessible across America.
As we know, home affordability remains one of the biggest issues facing Americans today. In turn, Trump’s administration is emphasizing more initiatives that would help reduce the cost of home ownership. Along with the ongoing developments of these proposals, stakeholders all across the industry will have their eyes peeled on their effects on the housing market and overall economic conditions.