President Trump Signs Executive Order Aimed at Lowering Housing Costs

President Donald Trump signed an executive order on Thursday, October 22, 2026, designed to lower housing and mortgage costs for American families amid ongoing economic pressures and high borrowing rates. The directive instructs federal agencies to pursue targeted changes involving mortgage insurance, refinancing processes, government-backed loans, and manufactured housing options as affordability remains a primary concern for voters.

The executive order directs the Federal Housing Finance Agency (FHFA) to establish a pilot program that would periodically evaluate eligible single-family loans owned, guaranteed, or securitized by Fannie Mae and Freddie Mac. Using automated valuation models and other available data, the program aims to proactively cancel mortgage insurance for qualifying homeowners once they accumulate sufficient equity based on current market values, eliminating an ongoing monthly expense without requiring borrowers to initiate the cancellation process themselves.

However, the administration noted that the proposed pilot program would apply strictly to mortgages originated after the program is established, meaning existing home loans would not automatically qualify under its current terms. Furthermore, specific savings amounts, minimum equity thresholds, and implementation dates have not yet been announced by federal officials.

In addition to addressing mortgage insurance, the order seeks to reduce refinancing expenses by expanding alternatives to traditional lender's title insurance and exploring reduced appraisal requirements, income re-verification, and lending fees. The measure also directs the U.S. Department of Agriculture and the Department of Veterans Affairs to pursue lower interest rates on single-family home loans managed directly through their respective programs.

To address construction expenses and housing supply, the executive order establishes a multiagency Task Force on Manufactured Housing Innovation. Co-chaired by Housing and Urban Development Secretary Scott Turner and FHFA Director Bill Pulte, the task force includes representatives from the departments of Agriculture, Commerce, and Veterans Affairs. The group has 180 days to submit recommendations on modernizing federal construction standards, streamlining approval processes, and encouraging factory-built and modular homes.

The administration's actions arrive as prospective home buyers continue to face high borrowing expenses. According to Freddie Mac, the average rate on a 30-year fixed-rate mortgage stood at 7.32 percent following a recent weekly decline, while housing market activity has experienced notable slowdowns. High inflation and cost-of-living concerns have elevated housing affordability as a prominent issue for voters ahead of upcoming midterm elections.

Industry reactions to the executive order have generally welcomed the federal focus on reducing regulatory burdens and closing costs, though analysts emphasize that the real impact will depend on the speed and scope of implementation. White House officials stated that the initiatives are intended to cut red tape and make the American dream of homeownership more accessible, building upon earlier housing policies introduced by the administration earlier in the year.