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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.