Overview

• President Donald Trump urged Fannie Mae and Freddie Mac to spur large homebuilders he says are sitting on 2 million empty lots to help restore housing affordability.
• FHFA Director Bill Pulte said the government-sponsored enterprises will meet with each big builder to evaluate building more, growth opportunities and potential partnerships.
• Fannie Mae and Freddie Mac primarily buy mortgages and set credit standards, and their construction-related products support lenders and homebuyers rather than directly compelling builders to build.
• Market data show 490,000 new houses for sale at the end of August, and analysts note elevated completed units for sale are discouraging new permits and starts.
• Housing analyst Logan Mohtashami argues lower mortgage rates would do more to boost construction, while the National Association of Home Builders backs a supply push and urges tackling regulatory barriers.