Trump’s 2026 Housing Affordability Plan: What to Expect This Week

Housing affordability has remained a major challenge for the U.S. economy, and President Donald Trump is preparing to unveil a series of “aggressive” reforms aimed at addressing the issue. He is expected to use his Wednesday speech at the World Economic Forum in Davos, Switzerland, to outline proposals that could significantly impact mortgages and the way Americans purchase homes.

High home prices and elevated mortgage rates directly impact household budgets, labor mobility, and long-term wealth building especially for first-time buyers. Policy changes that affect borrowing costs, housing supply, or retirement savings can ripple across the broader economy, shaping consumer spending, investment returns, and financial security in retirement.

President Donald Trump is set to propose allowing Americans to tap into their 401(k) retirement savings to help cover housing costs. Currently, savers can withdraw up to $10,000 penalty-free from IRAs, but not from 401(k)s, which are more common workplace benefits.

National Economic Council Director Kevin Hassett explained that monthly payments for an average family have nearly doubled, while required down payments have jumped from about $15,000 to $32,000. The proposal aims to ease affordability pressures by giving buyers more flexibility in financing home purchases.

President Donald Trump has proposed banning large institutional investors from purchasing single-family homes, a move aimed at freeing up more housing inventory for families. “People live in homes, not corporations,” Trump wrote on social media earlier this month.

Industry experts note that most investors in the housing market are smaller players, meaning the ban would primarily target larger institutions. The proposal is part of Trump’s broader housing affordability agenda, designed to ease supply pressures and improve access for individual buyers.

President Donald Trump signaled a major housing reform by directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds. The move is designed to push mortgage rates lower and improve affordability.

Goldman Sachs reported that rates fell 15 basis points following the announcement, with analyst Arun Manohar forecasting a 5% to 7% rise in home sales in 2026. The policy aims to strengthen buyer sentiment ahead of the critical spring homebuying season.

Among the housing reforms President Donald Trump may outline this week are proposals for a 50-year mortgage and a “portable mortgage.” Longer loan terms could reduce monthly payments for borrowers but increase total borrowing costs over time.

A portable mortgage would allow homeowners to transfer their existing loan to a new property, potentially easing affordability challenges. The concept has also gained recent support from Senate Democrats in their housing policy proposals.

Supporters argue that portable mortgages could ease the “lock-in” effect, where homeowners hesitate to sell because their current mortgage rate is far lower than today’s borrowing costs. By allowing borrowers to transfer their mortgage to a new property, the idea aims to unlock housing supply.

However, critics caution that the U.S. mortgage system isn’t designed to support portability. Realtor.com Senior Economist Jake Krimmel noted that even if feasible, the policy wouldn’t resolve the broader affordability challenges facing the housing market.

President Donald Trump’s proposed housing reforms including tapping retirement funds, banning large investors, government bond purchases, and new mortgage structures aim to improve affordability and expand access to homeownership.

While these measures could lower borrowing costs and increase housing supply, experts caution that structural challenges like the multi-million home shortage and persistently high prices will keep affordability strained for many buyers, especially younger households.