SALINA, Kan. — President Donald Trump announced plans for Fannie Mae and Freddie Mac to invest $4.3 billion in Kansas home loans next year, saying the initiative could help 15,000 residents buy homes.
Speaking at a rally in Salina, Trump said the government-backed mortgage companies’ investment would “help 15,000 Kansas home buyers achieve their American dream.”
Trump thanked Federal Housing Finance Agency Director Bill Pulte for supporting the initiative.
“So, we got a lot of money coming to Kansas,” Trump said, according to Yahoo Finance.
The announcement comes as high borrowing costs and rising home prices continue to strain housing affordability.
As the CU Daily reported earlier, Trump signed an executive order last month directing the FHFA to launch a pilot program eliminating mortgage insurance premiums for eligible borrowers with sufficient equity. The order also made permanent a title insurance waiver for qualifying refinancings.
Monthly Payments Up 97%
Monthly mortgage payments on a median-priced existing home have risen 97% since January 2020, compared with a 33% increase in incomes and a 48% increase in home prices, according to John Burns Research & Consulting figures cited by Yahoo Finance.
The National Association of Home Builders’ builder sentiment index fell in October to its lowest level since June 2012, Yahoo Finance reported, as high mortgage rates, rising material costs and labor shortages weighed on builders.
J.P. Morgan analysts described the housing market as largely “frozen,” with elevated mortgage rates and limited supply keeping affordability under pressure, according to Yahoo Finance.
John Sim, the firm’s head of securitized products research, said purchasing a median-priced home would consume roughly 50% of median income for renters entering the market. Existing homeowners with lower mortgage rates spend about 20% to 25%, he said.
