U.S. President Donald Trump signed an executive order on October 22 aimed at reducing the cost of buying and owning single-family homes, as housing affordability remains a major concern for American households. The order, titled “Decreasing Housing Costs for the American People,” directs federal agencies to pursue measures targeting mortgage insurance premiums, refinancing expenses, interest rates on certain government-backed loans and the cost of building homes.
One key provision directs the Federal Housing Finance Agency to establish a pilot program that could proactively cancel mortgage insurance premiums for eligible borrowers once they meet the required home-equity thresholds. The program would use current property valuations and other available data to identify qualifying homeowners, potentially reducing their monthly payments and eliminating unnecessary paperwork and appraisal costs. Any cancellation would remain subject to applicable legal, contractual and financial requirements.
The order also directs federal housing authorities to expand an existing pilot program allowing certain eligible homeowners to refinance their mortgages without a traditional lender’s title insurance policy. The administration says the measure could reduce closing costs and make refinancing more affordable. In addition, the secretaries of Agriculture and Veterans Affairs are directed to reduce interest rates on eligible single-family home loans issued directly by their departments, subject to applicable laws and available funding.
Another component establishes a federal task force focused on manufactured and factory-built housing. The group will develop recommendations to streamline permitting, inspections and certification requirements, reduce duplicative federal reviews and encourage modern construction methods. The administration hopes these changes will help increase the supply of affordable homes while maintaining standards for safety, quality and consumer protection.
The announcement follows other Trump administration efforts to address housing affordability, including measures targeting large institutional investors purchasing single-family homes. However, the extent to which the new order will reduce overall housing costs remains uncertain and will depend on implementation, eligibility requirements and broader market conditions. The measures primarily address financing and construction costs rather than directly reducing home prices, and several provisions require further action by federal agencies before their effects can be assessed.
