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Trump signs order to cut mortgage costs, boost factory-built homes to make ownership more affordable
· Confirmed
In Short: Both the BBC (United Kingdom) and the City of Buffalo (.gov) agree that the executive order aims to make homeownership more affordable and accessible, with measures to reduce mortgage costs and expand factory-built homes eligible for federal housing programs.
President Donald Trump signed an executive order on Thursday directing federal housing agencies to pursue measures aimed at reducing mortgage and homeownership costs, according to the New Hampshire Union Leader and Just The News. The order includes proactive mortgage insurance cancellation, lower refinancing expenses, and reduced interest rates on certain government loans.
The executive order also establishes a task force on manufactured housing innovation to expand factory-built homes eligible for federal housing programs, as reported by the New Hampshire Union Leader. The Agriculture and Veterans Affairs secretaries are directed to reduce interest rates on single-family home loans issued by their departments.
According to the BBC (United Kingdom), markets have welcomed the reported reopening of the Strait of Hormuz, which strengthens the view that mortgage pricing may have peaked. However, recent volatility shows how quickly pricing can shift again.
The BBC (United Kingdom) also highlighted the challenges faced by individuals in lower-paying jobs, such as a supermarket worker who drives to work as an assistant buildings manager and is contending with higher petrol prices caused by the war.
The City of Buffalo (.gov) reported that the combined investment will support the construction of 47 homes throughout Buffalo, with an additional 24 homes to be listed beginning in September. The program aims to provide more opportunities for quality, stable, affordable homeownership.
Deputy Mayor Thomas Baines said, “Today is an especially meaningful milestone for me because I had the opportunity to help develop Building Buffalo Roots during my time with Erie County.” Erie County Executive Mark C. Poloncarz added, “Today's announcement highlights further progress as Erie County, the City of Buffalo, and our partners work collaboratively to provide more opportunities for quality, stable, affordable homeownership.”
The City of Buffalo (.gov) emphasized the importance of modernizing local infrastructure to drive economic development, enhance neighborhoods, and open doors to new housing and tourism opportunities.
The City of Buffalo (.gov) also noted that the program will reinvest and expand to provide more homeownership opportunities for Buffalo and Erie County, with more homes coming online and proceeds reflowing from these sales.
The City of Buffalo (.gov) highlighted the support from Governor Hochul's County Infrastructure Grant Program, which funded the vital water lines, sewers, and utility systems for these homes.
The BBC (United Kingdom) and the City of Buffalo (.gov) both emphasize the importance of addressing the challenges faced by first-time buyers and individuals in lower-paying jobs, while also highlighting the need for modernizing local infrastructure to drive economic development and enhance neighborhoods.
The executive order's impact on mortgage rates and homeownership costs remains a subject of ongoing analysis and debate among experts and financial markets.
Background
President Donald Trump signed an executive order establishing a White House Women's Health Task Force and a new NIH division, backed by First Lady Melania Trump.
US President Donald Trump signed an executive order on Monday establishing a White House Women's Health Task Force and a new women's health division at the National Institutes of Health (NIH), a move backed by First Lady Melania Trump.
What's confirmed
- AI Summary President Donald Trump signed an executive order on Thursday directing federal housing agencies to pursue measures aimed at reducing mortgage and homeownership costs, including proactive mortgage insurance cancellation, lower refinancing expenses and reduced interest rates on certain government loans.
- President Donald Trump on Thursday signed an executive order aimed at lowering single-family homeownership and mortgage costs, placing renewed emphasis on restoring the American Dream of homeownership amid persistent affordability challenges.
What's still developing
- Major mortgage lenders are making "meaningful" cuts to the rates on new deals, bringing some solace to first-time buyers hit by the economic impact of the Iran war.
- "We've already had to extend our mortgage by five years to 40 years." Both are in good jobs, still live at home to avoid high rents, have made sacrifices in their 20s to save money and are still finding it a huge stretch.
- Experts say there is some momentum in mortgage rate reductions, but the situation remains delicate with borrowers still exposed to the possibility of sudden shifts in mortgage costs.
- When setting mortgage rates, lenders are heavily influenced by a financial market measure called "swap rates" which reflect the market's view of which direction the Bank of England's interest rates will go.
- "Having a home shouldn't be a luxury," she said.
- So, if the Fed’s rate lands near 3.5 percent, mortgage rates might settle at around 6.5 percent – roughly where they are today.
- According to the White House, Trump is removing red tape and making homeownership more affordable for all Americans through his directive.
- As a result, housing starts are down, homeownership has become less affordable, and refis have been reduced to a trickle.
- The Federal Reserve will soon propose two mortgage-related regulatory rules designed to stabilize banks’ role in the mortgage market, Fed Vice Chair for Supervision Michelle Bowman announced in a speech Monday morning at the American Bankers Association’s Conference for Community Bankers.
- For more than 75 years, we have used data to make a difference—addressing the challenges of a changing world by illuminating issues, creating common ground, and advancing ambitious strategies that lead to tangible progress.
- On our internal factuality evaluation, which is based on de-identified real-world conversations where users flagged mistakes by our models, GPT‑6 Sol makes about half as many mistakes as its predecessor, approaching Astra-level reliability at much lower cost.
- Data from Moneyfacts shows the average two-year fixed mortgage has risen to its highest level since July 2024, whilst the average five-year home loan rate has reached its highest point since October 2023.