President Donald Trump signed an executive order Thursday designed to bring down housing costs, addressing voters' affordability concerns less than two weeks before the midterm elections.
The order directed the Federal Housing Finance Agency to establish a pilot program under which mortgage insurance premiums could be canceled proactively once borrowers meet equity and other requirements based on their homes' current market values.
The program would apply only to mortgages originated after its establishment.
The order also established a task force focused on reducing the cost of manufactured housing. The group will be co-chaired by Housing and Urban Development Secretary Scott Turner and FHFA Director Bill Pulte, or their designee.
It also directed the Agriculture and Veterans Affairs departments to reduce interest rates on single-family home loans issued directly by those agencies, subject to applicable law and available funding.
“Homeownership is a vital pillar of our great Nation, and President Trump and his Administration are working tirelessly to cut burdensome costs and red tape to make the American dream of homeownership more affordable for all Americans,” the White House said in a fact sheet on the order. “Unnecessary regulations and outdated mortgage processes have made homeownership unaffordable and driven up closing costs.”
High home prices and elevated mortgage rates have cooled the housing market.
However, the average rate on a 30-year fixed rate mortgage fell to 7.32% this week from 7.40% the previous week, its first decline in nine weeks, Freddie Mac reported Thursday.
The Census Bureau reported Tuesday that single-family housing starts fell an estimated 4.6% in September from August, while permits for future single-family construction declined 4%.
The order also called for expanding a separate title insurance pilot into an ongoing nationwide program, subject to specified conditions, allowing alternatives to lenders’ title insurance policies on eligible refinances and potentially reducing closing costs.
With mortgage rates remaining elevated, the refinancing changes could become more beneficial to borrowers if rates decline further.
Separately, the Treasury Department announced proposed regulations Thursday to restrict large institutional investors from purchasing single-family homes, implementing provisions of the 21st Century ROAD to Housing Act.
“Treasury is working to ensure American families and workers have a fair shot at purchasing homes in their communities by increasing housing supply and limiting large institutional investors’ role in the market, while supporting a strong, stable housing market and avoiding unnecessary disruption,” Treasury Secretary Scott Bessent said.
Beginning Jan. 7, 2027, large institutional investors with direct or indirect investment control over at least 350 single-family homes generally would be prohibited from purchasing additional homes, with exceptions for certain new construction, rehabilitation, and homeownership programs.
“It is the policy of my Administration to reduce regulatory barriers to mortgage origination and costs impeding homeownership; embrace innovative risk and value assessment technologies that incorporate Super Intelligence to drive down mortgage and homeownership costs; and promote competition and innovation throughout the housing and mortgage market,” Trump's order stated.
Michael Katz ✉
Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.
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