Trump Just Flipped The Housing Market

追加: 2026-05-19

[00:00:00]President Trump just signed a new executive order to make buying a house more affordable.

[00:00:04]>> He signed yesterday an executive order promoting access to mortgage credit. It says every American looking to buy a home should have access from a reliable lender at a rate based on their creditworthiness.

[00:00:17]>> But this executive order to change how you get a mortgage is just one part of his broader housing market agenda.

[00:00:23]President Trump has also launched a new retirement account called a Trump IRA, which will allow some Americans to get free money from the United States government as a investment match into your Trump IRA account, which you can then use to help fund your down payment on your house. And on top of that, he's ordering Fanny May and Freddy Mack to buy hundreds of billions of dollars of mortgage back securities to impact how much money you're going to pay on your mortgage. So, if you're thinking about buying a house or you own a house, this video is for you. The housing market has changed a lot since the pandemic. If you wanted to go out and buy this regular house in the early part of 2020, it would have cost you $266,300 and you can get a mortgage for around $3.1%. Which means if you put down 20% to buy this house, your monthly mortgage payments would be right around $910 a month. Let's fast forward to 2026 and see what happens if you wanted to buy that exact same house. Now, instead of paying $266,000, you're going to be paying $423,000 for that same house. But you're not just borrowing more dollars. You're also paying a higher interest rate on those more dollars because now you're going to be paying 6.5%, not threeome%, which means now your monthly mortgage payment is going to be right around $2,138 for that same house. But to really compare apples to apples, we should also take a look at how your income has changed over these years because most people's incomes have gone up pretty significantly since the pandemic. But did it keep up with the growth of your housing cost? In 2020, the median income in the United States was around $67,500, which means your mortgage payment was approximately 16.2%.

[00:02:10]Fast forward to today, the median income of the United States is about $87,630.

[00:02:16]Which means you have the median income.

[00:02:18]You want to buy the median house today, it is now going to cost you about $29.3% of your income. This is why housing has become so much less affordable over the years. It's not just that the cost of buying a house is more expensive. It's not just that the mortgage rates are more expensive. incomes have not kept up with the housing prices, let alone the mortgage rates, which means now you have to pay more money out of every single paychecks to be able to afford the average house. And this is where the Trump administration has put together a four-step plan now based off of what we know today to be able to address this housing problem. So, I'm going to break this down one by one, starting with what I talked about in the beginning of this video, the executive order on getting a mortgage and mortgage credits. This is why again I want to emphasize it is so important for you to be an investor because while the average person who's just relying on their salary has slowly become poorer. What we've seen over the last number of years is that investors have become wealthier. So if you want to learn how to become an investor or find better investment opportunities as an investor I have a free investing master class that I put together walk you through how you can start as an investor and find hidden investment opportunities before they hit the headlines. I'll show you the exact framework that my firm and I use to research investment opportunities. It's a completely free master class. And when you sign up, as a bonus, you're also going to get market briefs, which is my newsletter for investors, read by hundreds of thousands of investors every single morning. So, if you want to get my investing master class and market briefs, all for free.

[00:03:49]All you have to do is sign up, and I have the link for you down in the description below. This new executive order on mortgages is designed to help you save money on your closing costs.

[00:03:58]for a median house is estimated that it could save you between5 to $8,000. What it does is number one is it legalizes AI appraisals. If you want to go and buy a house and get a mortgage, the mortgage company is going to do an appraisal on the house. Well, getting an appraisal can cost thousands of dollars depending on how big the house is. But if the bank is doing an AI appraisal, well, now it's significantly cheaper, which means you get to pay less money on that appraisal.

[00:04:24]Number two, this executive order is supposed to make it easier and cheaper for community banks to be able to compete against the larger banks and mortgage companies. And number three, it's designed to make getting a mortgage a lot more digitized because if you go and buy a house today or before, you'd have to sign all these papers by hand.

[00:04:42]The idea here is we can save money on all the papers. We can save money and all that headache by having somebody sit there by having you sign the paperwork digitally. The second change has to do with the Trump IRA. The Trump IRA was this idea that a lot of Americans don't have a 401k or don't qualify for a 401k.

[00:04:58]So, they cannot contribute to their retirement with a 401k. And this President Trump has announced something called a Trump IRA, a government sponsored retirement account that's not supported by your employer, is supported by the government. The idea being that if you don't qualify for a 401k, you can qualify for this Trump IRA and contribute to your retirement through this Trump IRA, which has these investment accounts already built in it.

[00:05:21]And the nice thing about the Trump IRA or the pitch here is that you can invest money into the Trump IRA and if you meet the income requirements, the government is going to give you free money on top of that because you don't get an employer match with an IRA. But with the Trump IRA, the government is going to give you a match. Now, unfortunately, the government doesn't have any money to give you the match because we have this huge $39 trillion of national debt. So, the cost of that is a separate story.

[00:05:47]It's not something I'm going to talk about today. But just understand that the government is going to give you a match. Now, why does this have anything to do with the housing market? Because the IRA has a rule, not just the Trump IRA, but the IRA in general. And the rule is as a first-time home buyer, you can withdraw up to $10,000 from your IRA penaltyfree, whether it's traditional or Roth to fund a firsttime down payment.

[00:06:10]By the way, it's $10,000 per person. So, if you and your spouse both have an IRA or Trump IRA, well, then you can pull out $10,000 each to fund a down payment on your house. So, the thinking here is the Trump IRA is supposed to make it easier for you to fund your retirement.

[00:06:25]On top of that, if you're lower income, well, now the government will be able to also give you more money towards your retirement, and you have the option to use some of that to help fund your down payment. Number three, President Trump has demanded that Fanny May and Freddy Mack buy hundreds of billions of dollars of mortgage back securities. The reason why this matters is because this is a way for the Trump administration to try to drive down mortgage rates. It's become clear to me that most people, including professionals in the real estate space like mortgage bankers and real estate agents, have no idea what decides mortgage rates. So, let me break it down. There are three primary factors that determine what your mortgage rate is. Number one is the 10-year yield, which is if you wanted to lend money to the United States government for 10 years, what interest rate is the government going to pay? Now, the reason why this one matters is because the government is known as a riskfree investment. You read any economics textbook, it'll tell you that the government always pays back their bills.

[00:07:22]So now, if you go to lend money to the United States government, they're going to give you this money back plus interest. The reason why that matters is because now if your bank has this money that they need to lend out, they're going to compare their different investment options. They can lend money to you, they can lend money to your brokers and bunty or they can lend money to the United States government. Well, the United States government is the safest investment because they can just raise taxes or get that money printed.

[00:07:46]You are not as safe as the United States government, but you're not as risky as your broke cousin Bundy. Your broke cousin Bundy is going to have to pay the highest interest rate because he doesn't have a stable income. he doesn't have a good credit score. You're somewhere in the middle. So, if you're more risky than the United States government, that means the government has to charge you a higher interest rate than what the government pays. That's why you want to pay attention to this 10-year yield because it'll give you an indication as to where mortgage rates are going. When the 10-year yield is going up, well, that means your mortgage rate is generally going up. The 10ear yield is going down, that means your mortgage rate is generally going down. And for those of you that are a little bit more sophisticated and technical on the financial side of things, the interest rate set by the Federal Reserve Bank impacts the 10-year yield. Then you have the profit set by the bank because every bank, every lender wants to make some money. So this one's pretty obvious. And then you have this, the MBS spread, the mortgage back securities spread. And what this is now is the interest rate on these mortgages in this public and private market. I'm not going to do a full deep dive analysis into how mortgage back securities work, but what you need to understand is that when your bank issues a loan, they don't just sit on that loan for the next 30 years. They take the loan and they're going to sell it off to somebody else and then it's going to be sold again. And that interest rate now is what you want to pay attention to because when there are more buyers of these mortgage back securities, well, then interest rates go down. where there are not enough buyers because people are concerned about the mortgage market. Well, that drives up these interest rates because then the free market has to price in this lack of demand. So, supply and demand. When there's a lot of buyers, interest rates go down. Where there's not a lot of buyers, interest rates go up. Well, when the president says that Fanny May and Freddy Mack have to go out and spend hundreds of billions of dollars buying this, what that does is it lowers this spread. And the reason why that matters is because when you add up the interest rate on the 10-year yield, you add up the interest rate on the profit, and you add up this mortgage back security spread, that's how you get your mortgage rate. And so what President Trump was trying to do here is lower your overall mortgage rate by lowering this spread right here. Now this was in the beginning part of 2026.

[00:10:05]But other things kind of came up in the way. We had this conflict in the Middle East, these concerns about inflation which then helped raise this which kind of counteracted that. But you get the idea. If you have more buyers and mortgage back securities, which is what Fanny May and Freddy Mack are doing, that helps lower this, which can help lower this. And last but not least is number four. President Trump is making a move to make it more difficult for institutional companies, those large corporations to go out and buy single family housing. Now, the thing that you want to understand about this is he did not make it illegal for institutional buyers to go out and invest in single family houses. What he did is he made it much more difficult for these corporations and institutions to get federal funding to go out and buy single family houses. So, it's not that they can't, it's just more difficult for them to go out and do so. And the idea here is supply and demand. If you want to go out and buy a house and you're competing against 10 more people or 10 other corporations, well, now you have more competition to buy a house, which can drive up the prices of housing because now you have to compete to buy the house, which is bidding wars. But if there's less buyers out there, well, now you have less competition, which means you have less bidding wars and you can hopefully get the house for a less expensive price. So, it's good for buyers, but not so good for sellers because as a seller, you want the highest price possible. You don't care if it's institution that you're selling it to. You don't care if it's a buyer.

[00:11:30]You generally just want the highest price possible. We've seen this throughout time because, well, many sellers over the last six years didn't care who was buying their house. They just wanted the highest dollar amount possible. Now the thing that you have to understand here is that the government itself cannot change the housing market.

[00:11:46]They can create regulations but they cannot change the mortgage rate and they cannot force somebody to buy or sell their house. And so what ultimately will happen is going to depend on how all of these things impact supply and demand because right now we do have a lot of people that want to buy a house. They just can't afford to buy a house. We also have a lot of people that don't want to sell their house because they're saying, "I have a 3 and 12% mortgage. I don't want to sell and then have to go get a 6 and 12 or 7 12% mortgage." And that's where we're still seeing this gridlock in the housing market. Now, separately, yes, we have concerns about where mortgage rates are going to go.

[00:12:21]There was a lot of talks about mortgage rates falling drastically in 2026 because of Trump's new plans, but because of what's happening in the Middle East, that's made it less likely.

[00:12:31]The conflict in the Middle East has driven up. Like I was talking about before, those Treasury yields, the higher Treasury yields have also impacted mortgage rates. So, there's a lot of different factors at play here.

[00:12:42]We don't know what's going to come next.

[00:12:44]Again, as an investor, it's important for you to understand these factors because they can all create investment opportunity. Again, I have my free investing masterass for you down in the description. One of the things that I've learned in life is that often times the things you don't pay attention to end up mattering the most. And that's why I want to talk to you about life insurance with our sponsor, Policy Genius. Because if you don't have the assets to live off of yet, something tragically happened to you. The last thing you want is now your spouse and your family trying to struggle to survive financially. And that's where term life insurance can come into play. Now, I'm talking about term life insurance here, not whole life insurance. The whole idea with term life insurance is it's life insurance for a period of time, 10 years, 20 years, 30 years. That way you can work to build your assets. It is a lot cheaper than whole life insurance because the whole idea is you're not here trying to get rich off your life insurance. It's just there as a bridge until you can build your assets. This is one of those things where the earlier you start, the cheaper it is. Because if you're a healthy 30-year-old guy, you could potentially get a half a million dollar term life insurance policy for less than a dollar a day. So, if you have any questions, you want to learn more about term life insurance or you want to see how much a term life insurance policy would actually cost you, I'll put a link to Policy Genius's form down in the description. It only takes a few minutes to complete and it'll give you an actual quote on how much term life insurance will actually cost you. And I have that link for you down in the description.

[00:14:08]What we talked about today is that buying a house has become significantly less affordable. Why is it less affordable? because the cost to buying a house has gone up, mortgage rates are higher, and at the same time incomes have not kept up, which is why today many people have to pay more of their paycheck to be able to buy the same house as six years ago pre- pandemic.

[00:14:29]And that's another reason why the average age of somebody buying a house today, first-time home buyer, is now 40 years old. And so, this is where the Trump administration, in order to combat this, has put together a four-part plan that we are seeing in action right now.

[00:14:43]There could be more changes coming in the future. But what we're seeing today is number one, we've seen changes in the mortgage market. More specifically, the Trump administration has signed an executive order to make it cheaper and faster for people to get a mortgage. The way this works is by letting banks use AI instead of a human appraiser to go out and appraise your house to save you some money. It's supposed to help make things quicker with e-signing of mortgage documents instead of human signing and other things to make the mortgage process more efficient. Number two is through the Trump IRA. President Trump has announced this new retirement account called the Trump IRA where now anybody can invest money into this account. The government depending on your income might give you some free money as well and then you can use your IRA, your Trump IRA to then fund part of your down payment on your house. Number three, we talked about how President Trump is requiring Fanny May and Freddy Mack to buy hundreds of billions of dollars of mortgage back securities as a way to help drive down mortgage rates as well. And finally, number four, to help make it easier for people to buy a house. President Trump has made it more difficult for institutions to go out and get federal financing to go out and buy single family houses. The idea being there's less competition then for people to go out and buy a single family house.

[00:15:54]If you got value out of this video, the best thank you is a referral. So, if you could please share this video with a friend, family member, colleague, or fellow investor. That way, we can continue to spread this type of financial education. Thank you.

[00:16:05]President Trump just signed an executive order creating a new way for Americans to retire in the United States. It's not going to be with a 401k. It's going to be with a Trump IRA. Take a listen.

[00:16:16]every American, you know, most high-income people have an employer that gives them a 401k with a match, but low-income people or Uber drivers or something, they don't have access to