Overview
- The administration has launched $200 billion in mortgage-backed securities purchases through Fannie Mae and Freddie Mac, a move that briefly pulled mortgage rates below 6%.
- Treasury Secretary Scott Bessent says the proposed prohibition on large institutional purchases of single-family homes will not force retroactive sales, with thresholds and enforcement still undecided.
- Analysts note that firms owning 100 or more homes hold only a small share of the national single-family stock—commonly cited near 1–3%—even as corporate ownership is far higher in some metros such as Atlanta, Jacksonville and Phoenix.
- Economists warn that rate relief can stoke demand and lift prices, while builders and industry executives argue institutions help de-risk projects by buying bulk inventories, so a ban could curb new construction.
- Political reaction is mixed, with Democratic Rep. Emanuel Cleaver questioning the policy’s impact, Sen. John Fetterman expressing openness, and state lawmakers pursuing their own limits.