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Trump administration shakes up housing market

Posted by Mehran Aram on Wed, Sep 11, 2019 @ 06:09 AM

The Trump administration announced last week a sweeping new plan that would revamp the housing market in the U.S. with 50 new proposals aimed at shrinking the government’s role in the real estate industry.

Among the most notable changes is a proposal to end the decade-long government control Fannie Mae and Freddie Mac which back over half of the nation’s mortgages. The two mortgage giants buy mortgages from lenders, package them into securities and sell them to investors. The government put them under conservatorship 11 years ago amid the financial crisis.

The changes are unlikely to happen quickly however as they require approved by a divided Congress.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.

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Topics: mortgages, real estate, Fannie Mae, Freddie Mac, Mortgage Market, Mortgage rates, Donald Trump, Trump Administration