Trump Urges Higher Home Prices to Favor Current Owners
Trump told his Cabinet on Jan. 29 he wants home prices to rise and proposed $200 billion in mortgage securities purchases.
Overview
President Donald Trump told his Cabinet on Jan. 29 he does not want housing prices to fall and said he wants them to rise to protect existing homeowners.
Permits to build single-family homes fell 9.4% over the 12 months to October to an annual rate of 876,000, according to the U.S. Census Bureau.
Brent Buchanan, whose polling firm Cygnal advises Republicans, said prioritizing older homeowners risks alienating under-40 voters and could affect Republican turnout in the November 2026 midterms.
In the 2024 election, 81% of President Donald Trump's voters were homeowners, according to AP VoteCast data.
President Donald Trump announced plans for Fannie Mae and Freddie Mac to buy at least $200 billion in home loan securities to reduce mortgage rates, a move critics say could spur higher inflation.
Analysis
Center-leaning sources portray Trump’s housing stance as privileging existing homeowners over broader affordability, using evaluative phrasing and selective emphasis. They juxtapose his quoted goals with data on permit declines and expert warnings about younger voters and supply shortfalls. Editorial choices — vocabulary, expert selection, and ordering — steer readers toward skepticism of his approach.
Sources (3)
FAQ
The plan directs Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed securities to lower mortgage rates and make home loans more affordable for buyers.[1]
Critics argue that lowering mortgage rates through such purchases could push home prices higher, especially with tight inventory, benefiting existing owners but harming new buyers.
Experts warn it exposes them to risks similar to the 2008 crisis, potentially distorting markets, crowding out private investors, and having only minimal impact on rates given the $13 trillion market size.
Trump issued an executive order to limit large institutional investors from buying single-family homes, prioritize individual buyers for foreclosures, and push for a 10% cap on credit card rates.
Mortgage rates fell nearly 0.2% to 5.99% the day after the January 8 announcement, though experts say the overall effect may be limited.[4]
History
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