Trump to would-be homebuyers: Hold off until rates drop further

President Donald Trump is urging would-be homebuyers frustrated by high borrowing costs to “wait a little longer” for mortgage rates to fall, Bloomberg writes. 

Speaking ahead of a trip to Texas, Trump said prospective buyers should save and hold off in anticipation of lower rates, expressing confidence the Federal Reserve will cut interest rates under his nominee to replace Chair Jerome Powell.

The administration is also pursuing policy moves aimed at easing costs. One order directs Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds, a step expected to push rates down by as much as 50 basis points. 

The average 30-year fixed mortgage has already slipped to 5.98%, the lowest level in more than three years. Other proposals, including restrictions on institutional investors buying single-family homes, face questions about their potential impact.

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