Trump signs executive order geared at lowering housing, mortgage costs

President Trump signed an executive order Thursday aiming to lower mortgage payments as elevated borrowing costs have stifled the housing market .

Trump’s order directs Federal Housing Finance Agency (FHFA) Director Bill Pulte to create a pilot program to cancel insurance premiums for government-backed mortgages once a borrower has satisfied equity requirements.

The president also established a task force to lower home construction costs and improve the quality of housing by “facilitating the use of modern manufacturing methods” in the production of units eligible for federal programs.

“Homeownership is a vital pillar of our great Nation, and President Trump and his Administration are working tirelessly to cut burdensome costs and red tape to make the American dream of homeownership more affordable for all Americans,” the White House said in a fact sheet outlining the order.

The average 30-year mortgage rate has soared above 7 percent amid the Iran war , as spikes in bond yields and oil prices push borrowing costs up for prospective homebuyers.

The average 30-year mortgage rate dipped this week for the first time since mid-August, falling from 7.4 percent to 7.32 percent, according to data from Freddie Mac. The average 15-year mortgage rate also decreased week over week, from 6.71 percent to 6.68 percent.

The months-long increase in mortgage rates poses a challenge to the housing market. Pending home sales decreased by 7.3 percent from August to September and were down by 11.3 percent year over year, per the National Association of Realtors (NAR).

“Market conditions weakened in September due to fast-rising mortgage rates,” said Dr. Lawrence Yun, NAR’s chief economist. “Although job growth and income gains can support home purchases, housing affordability is more affected by changes in mortgage rates.”

Trump’s executive order also directs Pulte to expand the FHFA’s title insurance waiver pilot into a permanent program, which will “allow more borrowers to utilize cost-friendly alternatives” to title insurance and thereby reduce refinancing costs, the White House said.

The president also ordered Agriculture Secretary Brooke Rollins and Veterans Affairs Secretary Doug Collins to lower interest rates on single-family home loans their respective departments provide.

Pulte, a fierce proponent of Trump’s agenda who briefly served as acting director of national intelligence earlier this year, argued Thursday the president’s order was the “greatest” such action ever taken on housing.

“Because of President Trump’s bold actions to put Americans First, millions of Americans will save thousands and thousands of dollars,” Pulte wrote on social media Thursday.

Shannon McGahn, NAR’s executive vice president, also praised Trump’s order as helping to “address the costs associated with homeownership,” adding it “takes steps toward making homeownership more sustainable” for Americans.