Trump Signs Executive Order to Lower Housing and Mortgage Costs

Trump Signs Executive Order to Lower Housing and Mortgage Costs

Executive Order Targets Single-Family Homeownership Costs

On October 22, 2026, President Donald Trump signed an executive order titled "Decreasing Housing Costs for the American People," aimed at reducing the costs of single-family homeownership and mortgages and promoting innovation throughout the housing market. The White House described the move as part of its efforts to address housing affordability concerns. The order was issued less than two weeks before the midterm elections, in which affordability has emerged as a political vulnerability for Republicans.

Proactive Mortgage Insurance Cancellation to Cut Monthly Payments

The order directs the Director of the Federal Housing Finance Agency (FHFA) to create a pilot program that would proactively cancel borrowers' mortgage insurance premiums once they have satisfied their equity requirements based on current market value, eliminating a large monthly expense for qualifying Americans. According to The Hill, the average 30-year fixed mortgage rate dipped this week for the first time since mid-August, falling from 7.4 percent to 7.32 percent per Freddie Mac data. RealtyWire reported the rate stood at 7.32 percent on October 22, down from 7.40 percent a week earlier — the first weekly decline since August — but still well above the 6.19 percent of a year ago.

Title Insurance Waiver Made Permanent to Reduce Refinancing Costs

The order also directs the FHFA Director to reduce homeowners' refinancing costs by expanding the FHFA's title insurance waiver pilot into a permanent program, allowing more borrowers to utilize cost-friendly alternatives to title insurance and reducing closing costs. HousingWire reported that the draft called for expanding Fannie Mae's title waiver pilot program launched in 2024 into a permanent nationwide initiative with additional certified providers, and for FHFA to notify borrowers promptly when mortgage insurance may be cancelled while reducing unnecessary documentation requests, appraisal costs, and other administrative barriers.

Manufactured Housing Task Force to Lower Construction Costs

The order establishes the Task Force on Manufactured Housing Innovation, co-chaired by the Secretary of Housing and Urban Development and the FHFA Director, with members including the Secretary of Agriculture, the Secretary of Commerce, and the Secretary of Veterans Affairs. The task force aims to increase the quality and lower the cost of building a home by facilitating the use of modern manufacturing methods in factory-built housing eligible for federal programs. Yahoo News reported that the order reflects a draft previously published by POLITICO and directs various agencies to reduce mortgage costs and support manufactured housing development.

Lower Interest Rates for Agriculture and Veterans Home Loans

The order directs the Secretary of Agriculture and the Secretary of Veterans Affairs to reduce interest rates on single-family home loans made by their respective departments. Bloomberg Government News noted the order is intended to show voters the administration is addressing affordability concerns in the final sprint to the midterm elections. The White House fact sheet also noted that in January 2026, President Trump directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities to further drive down borrowing costs, and that the Working Families Tax Cuts doubled the investment limit for Fannie and Freddie's Low Income Housing Tax Credit, boosting housing supply in rural and underserved communities.

Part of a Broader 2026 Housing Agenda

Political.org reported this is one of several 2026 housing actions: in January, Trump signed an executive order preventing large institutional investors from buying single-family homes that could otherwise be purchased by families; earlier in January, he ordered Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds; and on March 13, 2026, he signed Executive Order 14394, "Removing Regulatory Barriers to Affordable Home Construction." Section 1001 of the 21st Century ROAD to Housing Act restricts large institutional investors from purchasing single-family homes.