Trump Administration Intervenes in Mortgage Market Amid Housing Affordability Challenges
Key Facts
- The administration directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities.
- The typical age of first-time home buyers has reached a record high of 40 years old.
- Median single-family home prices are currently five times the median household income.
- The House passed a bipartisan housing bill on Monday that includes zoning guidelines and environmental review streamlining.
- Establishment cable news primetime viewership declined by 45% between 2017 and 2025.
- Right-leaning media's share of the cable news audience grew to 63% in 2025.
- Approximately 80 million U.S. households have discontinued cable services.
The Trump administration has directed government-controlled agencies to purchase $200 billion in mortgage-backed securities in an effort to lower interest rates. While Federal Housing Finance Director Bill Pulte stated that mortgage affordability reached a four-year high following the intervention, economists from Moody’s Analytics suggest the policies are "on the margin" and may not significantly impact the $55 trillion housing market before the November midterm elections. The administration also implemented an executive order to prevent institutional investors from receiving government support when purchasing single-family homes, though market analysts noted that the 30-year fixed mortgage rate rebounded quickly after an initial decline.
Historical Context
The U.S. housing market is currently facing a long-term supply shortage, with annual construction starts dropping from 6,000 per million people in the two decades before the housing collapse to 3,000 since. Consequently, the national median single-family home price has risen to five times the median household income, compared to approximately three times in the 1990s, while the typical age of a first-time home buyer has reached a record high of 40 years old.
Perspective Analysis
Sources: Politico · The Hill · Fox News | Aggregators: Economic Monitor
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