Trump Takes Aim at Housing Market Strains Caused by Fed Rate Hike
President Trump's efforts to make housing more affordable have been hindered by the Federal Reserve's recent decision to raise its benchmark interest rate. The hike, which brings rates to a range of 3.75% to 4%, is expected to increase mortgage rates and rents across the economy.
The White House has limited options to directly counter the Fed's move but can still take steps to mitigate its impact on housing affordability. One approach is to reduce regulatory barriers that slow down or increase the cost of building new homes.
President Trump has already taken steps in this direction, signing an executive order in March directing federal agencies to review and streamline regulations affecting residential construction. Now, his administration should prioritize implementation and encourage states and municipalities to shorten permitting timelines, cut unnecessary fees, and make it easier for builders to put new homes on the market.
Another strategy is to promote competition in the housing industry by examining whether dominant players are limiting access to listings or restricting consumers' ability to see available homes. This could involve scrutinizing companies like Compass, the country's largest residential brokerage, and Midwest Real Estate Data, one of the nation's largest MLSes.