Trump 'Not A Huge Fan' Of Kevin Hassett's Proposal Of Using 401(k) For Home Buying, Citing Strong Retirement Accounts

Group 1: Trump's Opposition to 401(k) Proposal - President Trump opposes the use of 401(k) retirement funds for home purchases, despite the proposal from his chief economic adviser, Kevin Hassett [1][2] - Trump believes 401(k)s are performing well, citing an increase of 80-90% in some cases, and prefers to keep them separate from housing market transactions [1] Group 2: Housing Market Context - Rising housing costs have significantly increased typical monthly mortgage payments and down payment requirements, with down payments rising from about $15,000 to $32,000 [2] - Trump's administration is implementing policies to improve housing affordability, including allowing 401(k) withdrawals for home down payments [2] Group 3: Policy Moves to Boost Housing Market - Trump's directive for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities has led to a decrease in the average 30-year fixed mortgage rate below 6% for the first time since 2022 [3] - An executive order was signed to limit Wall Street institutions from buying single-family homes, aiming to enhance affordability for first-time buyers and young families [4] Group 4: Current Housing Market Challenges - The housing market is increasingly unaffordable, with analysts estimating that home prices would need to drop by about 24% to match rental affordability, which is considered unlikely [5] - The apartment REIT sector is experiencing a surge in demand, with expectations of significant investment opportunities as the gap between buying and renting widens [5]