Trump to Unveil Housing Affordability Plan in Davos

Overview

• The administration plans to highlight expanded Fannie Mae and Freddie Mac mortgage-bond purchases, including a reported $200 billion program aimed at lowering borrowing costs.
• Mortgage rates slipped roughly 15 basis points after the bond-buying signal, according to Goldman Sachs, which expects a modest boost to 2026 home sales.
• National Economic Council Director Kevin Hassett says the plan will propose penalty-free 401(k) withdrawals for home purchases.
• Trump has proposed barring large institutional investors from buying single-family homes, a step experts say would likely require 60 votes in the Senate.
• Other concepts under discussion include 50-year mortgages and portable loans, while industry groups press for complementary measures such as FHA premium reductions and construction-focused incentives.