Trump Signs Executive Orders to Tackle Home Affordability Ahead of Midterms
President Donald Trump has signed two executive orders on Friday, March 13, 2026, targeting housing and mortgage affordability as a strategic move ahead of the November midterm elections. The orders, obtained exclusively by The Associated Press, aim to demonstrate Trump's commitment to addressing a critical concern for voters, particularly those under 40, who are grappling with high home prices and mortgage costs.
First Order: Reducing Regulatory Burdens on Housing Construction
Under the first executive order, the federal government will work to reduce its own housing regulatory burdens and create incentives for state and local governments to adopt best practices. The goal is to streamline the construction process, making it easier for builders to increase the housing supply. A draft of the order highlights that "layers of unnecessary regulatory barriers, slow permitting processes, and onerous mandates at all levels of government have delayed construction, restricted development, and driven up the costs of new housing." These constraints have made housing less affordable for many Americans.
The order focuses heavily on environmental regulations, directing agencies like the EPA and the Department of the Army to review and update stormwater, wetlands, and other water-related permitting requirements. This aims to reduce costs and improve home insurance availability. Additionally, multiple federal agencies, including the Departments of Commerce, Housing and Urban Development, and Transportation, are instructed to eliminate regulations that hinder residential development. White House officials noted that Biden-era energy efficiency mandates could add up to $9,000 to construction costs, and the order seeks to cut such regulations to lower expenses.
However, the order does not change state and local zoning codes, as the administration aims to preserve suburban housing rather than increase density. Instead, federal agencies will incorporate best practices, such as a 60-day deadline for approving building permits, as criteria for discretionary grants to state and local governments. This is expected to have a longer-term effect on homebuilders and buyers.
Second Order: Streamlining Mortgage Processes
The second executive order targets mortgage affordability by directing the Consumer Financial Protection Bureau (CFPB) to update guidelines under the Home Mortgage Disclosure Act. This aims to reduce regulatory burdens, making it easier for smaller community banks to provide home loans. The administration's theory is that increased competition among financial institutions will lower borrowing costs for buyers, while maintaining the financial safety and stability of the mortgage market.
White House officials anticipate that potential homebuyers could see the impact of these changes within months. This move comes as mortgage rates have spiked post-pandemic, with the average 30-year rate at 6.05% in February 2026, down from 6.84% a year ago but still higher than the sub-3% averages seen in 2020-2021.
Political Context and Broader Efforts
Housing affordability has emerged as a fundamental political challenge for both Republicans and Democrats, with lawmakers working on measures to address concerns that buying a first home has become difficult for middle-class families. On Thursday, the Senate passed a bipartisan housing bill to increase construction and limit institutional ownership, though its path in the House remains uncertain. The White House expressed support for this measure in a March 2 statement.
Trump has previously taken other steps to address affordability, such as directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds and calling for limits on financial institutions buying homes. However, he has balanced this with a desire to keep home prices high to protect existing homeowners' wealth, stating at a January Cabinet meeting, "People that own their homes, we're going to keep them wealthy. We're going to keep those prices up."
The effectiveness of these federal efforts is unclear, as key regulatory issues involve state and local policies, and mortgage rates depend on financial markets. A multiyear construction shortage has kept prices high, with the median price of an existing home sold in February at $398,000—nearly five times the median household income, compared to a historic rule of thumb of three times income. This issue could impact GOP election fortunes, especially among younger voters.
