Trump Signs Executive Order Aimed at Reducing Mortgage Costs, per CNBC
Trump Signs Order Targeting Mortgage Costs
President Trump has signed an executive order that aims to reduce mortgage costs as rising interest rates and inflation make homeownership less affordable, per CNBC.
The order, titled "Decreasing Housing Costs for the American People," was signed on October 22, per the White House fact sheet.
It directs federal agencies to cut mortgage insurance costs on eligible loans and expand a program that makes refinancing cheaper, among other actions, per CNBC.
Federal Housing Finance Agency director Bill Pulte said in an X post that "millions of Americans will save thousands and thousands of dollars."
Mortgage Insurance Is the First Target
The order directs the FHFA to launch a pilot program that proactively cancels mortgage insurance premiums once borrowers have satisfied their equity requirements based on the current market value of their homes, per the fact sheet.
The pilot would use automated valuation models to check equity thresholds rather than waiting for borrowers to apply, per reporting on the order.
Private mortgage insurance is required on most conventional loans with less than 20 percent down. It typically runs from roughly 0.3 percent to more than 1 percent of the loan amount annually, adding $100 to several hundred dollars to monthly payments depending on credit score and down payment, per industry estimates.
The order also directs the FHFA to expand its title insurance waiver pilot into a permanent nationwide program, allowing more borrowers to use alternatives to title insurance and cut refinance closing costs, per the fact sheet.
A Manufactured Housing Push and Cheaper Government Loans
The order establishes a Task Force on Manufactured Housing Innovation, co-chaired by HUD Secretary Scott Turner and FHFA Director Bill Pulte, to promote modern factory-built methods and lower production costs for homes eligible for federal programs, per the fact sheet.
New manufactured homes have averaged around $135,000 in recent Census data, a fraction of site-built prices.
The secretaries of Agriculture and Veterans Affairs are directed to reduce interest rates on certain direct single-family loans issued by their departments, per the order.
The White House said the president "is lowering the costs of single-family homeownership and mortgages, and removing unnecessary red tape to make homeownership more affordable for all Americans," per its statement.
Affordability Is the Backdrop
The order arrives less than two weeks before the November 3 midterm elections, per CNBC, with housing affordability a major concern among voters.
In 2025, the monthly payment for a 30-year fixed-rate mortgage on a median-priced home was roughly 33 percent of the median family's income, up from 26 percent in 2022, according to the Federal Reserve's latest Survey of Consumer Finances published in early October, per CNBC.
The National Association of Realtors applauded the order. Its EVP and chief advocacy officer Shannon McGahn said it "helps address the costs associated with homeownership and takes steps toward making homeownership more sustainable for American families," per her statement.
Not everyone is convinced the savings arrive quickly. It is difficult to know the future consumer impact without more details, according to Keith Gumbinger, vice president of mortgage website HSH, per CNBC. One industry CEO called the order mostly "a long play" whose benefits consumers would reap years from now, per industry commentary.
What This Means for Markets
Mortgage insurers sit directly in the path of a program that cancels premiums earlier. Stocks to watch include ESNT, MTG, RDN and NMIH, along with title insurer FAF.
Cheaper refinancing and lower ownership costs could support originators such as RKT and UWMC, and builders including DHI and LEN if affordability improves at the margin.
Traders will watch for the FHFA's pilot design and timeline. The details will decide whether the savings are a headline or a material change to monthly payments.
Bottom Line
The executive order attacks two specific line items in the cost of owning a home: mortgage insurance that lingers past its equity threshold, and title insurance at refinance.
Whether it moves the needle depends on implementation, and the implementation now sits with the FHFA.
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