President Donald Trump said he is reestablishing the American dream of homeownership, but one of his most recent housing policy proposals may put the dream even more out of reach, experts say.Speaking Wednesday at the World Economic Forum in Davos, Switzerland, Trump touted his barrage of recent housing policy executive orders, including preventing institutional investors from buying single-family homes and attempting to lower mortgage rates by directing government-controlled mortgage finance firms Fannie M ...

"We're going to allow people to take money out of their 401(k)s and use that ‌for down payment," ‌he told Fox Business Network in an interview, adding that U.S. President Donald Trump "will put the final plan ‌out in Davos in Switzerland next week."The expected plan comes as Trump ‌grapples with economic headwinds ‍a year after taking office and ahead of November's midterm ‍election, having campaigned on a quick fix to higher prices ‌for American consumers.U.S. housing affordability in particular has remai ...

Core Insights - The use of an AI-cloned voice of President Trump in a Fannie Mae advertisement highlights the administration's focus on housing affordability and reform [1][3] - The ad emphasizes Fannie Mae's role as a "protector of the American Dream" and its commitment to increasing mortgage approvals for potential homebuyers [1][4] Company and Industry Summary - Fannie Mae and Freddie Mac, which have been under government control since the Great Recession, play a crucial role in the U.S. housing market by buying mortgages that meet their risk criteria, thus providing liquidity [3] - The two firms guarantee approximately half of the $13 trillion U.S. home loan market, making them essential to the stability of the U.S. economy [3] - There are discussions about potentially selling shares of Fannie Mae and Freddie Mac on a major stock exchange, although no concrete plans have been established yet [4] - Trump has proposed extending the 30-year mortgage to 50 years to lower monthly payments, although this idea has faced criticism regarding its impact on housing equity [5] - The federal government is set to purchase $200 billion in mortgage bonds to help reduce mortgage rates, utilizing cash reserves from Fannie Mae and Freddie Mac [6] - Trump has expressed intentions to block large institutional investors from buying houses, aiming to facilitate home purchases for younger families [7]

Core Insights - The ad featuring an AI-cloned voice of President Trump promotes Fannie Mae as a "protector of the American Dream" and highlights the administration's focus on housing affordability [1][2] - The ad is part of a broader initiative by the Trump administration to address housing market concerns, with Trump planning to discuss housing at the World Economic Forum [2][3] Company and Industry Summary - Fannie Mae and Freddie Mac, which have been under government control since the Great Recession, play a crucial role in the U.S. housing market by buying mortgages that meet their risk criteria, thus providing liquidity [3] - The two firms guarantee approximately half of the $13 trillion U.S. home loan market, making them essential to the stability of the U.S. economy [3] - The ad indicates that Fannie Mae will collaborate with the banking industry to approve more homebuyers for mortgages, reflecting a push to increase homeownership [4] - There are discussions about potentially selling shares of Fannie Mae and Freddie Mac on a major stock exchange, although no concrete plans have been established yet [4] - Trump and Bill Pulte have proposed extending the 30-year mortgage to 50 years to lower monthly payments, although this idea has faced criticism [5] - Trump announced plans for the federal government to purchase $200 billion in mortgage bonds to help reduce mortgage rates, leveraging the cash reserves of Fannie Mae and Freddie Mac [6] - Trump also expressed intentions to block large institutional investors from buying houses, aiming to facilitate home purchases for younger families [7]

When Housing Policy Becomes Monetary PolicyFannie Mae and Freddie Mac should be ended, not expanded. ...

Mortgage rates fell again this week to the lowest level in more than three years, mortgage buyer Freddie Mac said Thursday. Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage decreased to 6.06% from last week's reading of 6.16%. The average rate on a 30-year loan was 7.04% a year ago. It's the lowest level since Sept. 15, 2022, when the average rate on a 30-year mortgage was 6.02%. A sign outside a home for sale in Sacra ...

Group 1 - U.S. mortgage rates have significantly decreased, with the average rate on a 30-year fixed-rate mortgage falling to 6.06%, the lowest since September 2022, down from 6.16% last week [1] - The Federal Housing Finance Agency (FHFA) has initiated purchases of mortgage-backed securities as part of a strategy to enhance housing affordability, following an order from President Trump to purchase $200 billion of bonds issued by Freddie Mac and Fannie Mae [2][3] - The average rate on a 15-year fixed-rate mortgage also declined to 5.38% from 5.46% in the previous week, compared to an average of 6.27% during the same period last year [4] Group 2 - FHFA Director William Pulte indicated that the agency began with a $3 billion initial round of purchases to support the housing market [3] - President Trump is facing pressure to reduce costs, including housing expenses, as the Republican party aims to maintain control of Congress in the upcoming mid-term elections [3] - Trump has proposed measures to restrict institutional investors from purchasing single-family homes, which may impact the housing market dynamics [4]

Core Insights - Sales of new U.S. single-family homes fell slightly by 0.1% in October, reaching a seasonally adjusted annualized rate of 737,000 units, after two months of increases [2] - Year-over-year, new home sales increased by 18.7% in October, indicating a strong annual performance despite the slight monthly decline [3] Sales and Inventory - The new home sales rate in September was revised to 738,000 units from 711,000 in August, reflecting volatility in monthly sales data [2] - New housing inventory remained unchanged at 488,000 units in October, with a supply level that would take 7.9 months to clear at the current sales pace [8] Pricing Trends - The median price of new houses dropped by 8.0% to $392,300 in October compared to the previous year, driven by weak demand and high inventory levels [6] - Elevated mortgage rates, which are significantly higher than three years ago, continue to exert pressure on housing prices [4][6] Mortgage Rates and Economic Factors - Mortgage rates are influenced by the benchmark 10-year Treasury yield, which has been under upward pressure due to fiscal deficits and inflation concerns [5][6] - The Trump administration's recent directive for the Federal Housing Finance Agency to purchase $200 billion in bonds aims to lower mortgage rates, although analysts predict limited impact [4][5]

Group 1 - Bill Ackman has proposed a method to lower mortgage rates in the U.S. by introducing prepayment penalties on government-backed home loans [1][2] - The proposal involves Fannie Mae and Freddie Mac offering non-prepayable mortgages, which would require borrowers to pay a penalty for prepayment [2] - Ackman estimates that this change could save borrowers approximately 65 basis points on a 30-year mortgage [3] Group 2 - The proposal is timely as U.S. mortgage rates have been a concern, with recent actions leading to a decrease in the average 30-year fixed mortgage rate below 6% for the first time since 2022 [5] - Ackman has previously suggested merging Fannie Mae and Freddie Mac to minimize mortgage spread risks and unlock value [6]

Group 1 - The article discusses major developments under the Trump Administration, including the capture of Venezuelan President Nicolas Maduro and the U.S. support for oppressed peoples globally [1] - The U.S. is actively supporting the Iranian people's fight for freedom, indicating a broader strategy of promoting democracy and human rights [1] - The article highlights the economic benefits of Greenland joining the U.S., suggesting potential positive impacts on both regions [1] Group 2 - Riots occurred in Portland and Minneapolis after military withdrawal, emphasizing the ongoing challenges in law enforcement and public safety [2] - The establishment of a new Department of Justice Division for National Fraud Enforcement aims to tackle fraud, with cash rewards announced for whistleblower information [2] - The article outlines the government's efforts to dismantle trafficking networks and arrest members of terrorist gangs and cartels [2] Group 3 - The Food Pyramid has been revamped to promote real, nutrient-dense food, reflecting a shift towards healthier eating habits [3] - President Trump has implemented a 10% cap on credit card interest rates and authorized $200 billion investment in mortgage bonds, contributing to lower mortgage rates [3] - The DOW Jones reached record highs, closing at a 2.3% increase, which is beneficial for American investors [3] - Gas prices in Des Moines, Iowa, were reported at $1.89 per gallon, contributing to overall affordability for consumers [3] - Intel launched the first Sub 2 Nanometer CPU Processor, which is expected to generate significant economic benefits for American shareholders [3]