Trump vows to restore the 'American dream' with his latest move and make homes affordable
The struggle to buy a house in America is one of the most visible aspects of the country's affordability crisis. In a bid to address this, President Donald Trump recently asked representatives to buy mortgage bonds worth $200 billion to drive down interest rates even further. A Fox News report stated that mortgage rates had already been falling and were at their lowest point in almost a year. It now stands at 6.21%.
Despite all those efforts, housing sales have failed to pick up. Several owners are not willing to sell their properties just yet, as they might make a bigger profit on them later. The rate might still seem steep to potential buyers, as it used to be a lot lower in the past. As a result, the President has taken the step to ensure a further decline in mortgage rates in the new year.
It will be interesting to see if the strategy works. Trump made this announcement in a Truth Social post, which also slammed the Joe Biden administration for its negligence of the housing sector. "Biden ignored the Housing Market, and instead was immersed with High Crime, Open Borders, runaway INFLATION, the Afghanistan Disaster, and a Military that he left in Chaos and Confusion. Everything was broken, but I, as President of the United States, have already fixed it!” he wrote.
"Now, I am giving special attention to the Housing Market. Because I chose not to sell Fannie Mae and Freddie Mac in my First Term, a truly great decision, and against the advice of the ‘experts,’ it is now worth many times that amount — AN ABSOLUTE FORTUNE — and has $200 BILLION DOLLARS IN CASH. Because of this, I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS. This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable,” the post added.
The President then claimed that he was bringing back the American Dream, which was represented by affordable housing for all. "We are bringing back the AMERICAN DREAM that was destroyed by the last Administration. MAKE AMERICA GREAT AGAIN!” Trump concluded. The post was shared by the Director of Federal Housing, William Pulte, on X. "We are on it. Thanks to President Trump, Fannie and Freddie will be executing,” he wrote.
The housing affordability crisis might have resulted in some moving patterns among Americans. A recent report showed that thousands of Americans booked one-way U-Haul trucks, trailers, and moving containers to the Southern states. Texas led the way with the most such instances, followed by Florida, North Carolina, Tennessee, and South Carolina. The Midwest and Northeastern metros are the ones that are seeing the exodus.
More on Market Realist:
Trump wants to block Wall Street investors from buying single-family homes — here's why
Trump admin to block over $10 billion in childcare and family assistance — key details revealed
One US state Is quietly attracting millions of Americans with jobs and cheaper living
