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Trump Announces $4.3 Billion Fannie Mae, Freddie Mac Housing Push in Kansas to Help 15,000 Homebuyers Achieve ‘American Dream’

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President Donald Trumpannounced a $4.3 billion mortgage investment for Kansas, saying the initiative could help 15,000 residents purchase homes next year as housing affordability remains under pressure nationwide.

Trump, in a rally in Salina, Kansas, on Sunday, announced that government-backed mortgage companies Fannie Maeand Freddie Macwill invest $4.3 billion in Kansas home loans next year.

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The President said that the program would "help 15,000 Kansas home buyers achieve their American dream." He also thanked Bill Pulte, director of Federal Housing Finance Agency (FHFA), for supporting the initiative.

"So, we got a lot of money coming to Kansas," Trump said during the event.

Home Affordability Hits Breaking Point

Last month, Trump signed an executive order targeting mortgage and homeownership costs. The order directed the FHFA to begin a pilot program eliminating mortgage insurance premiums for eligible borrowers with sufficient equity. It also made permanent a title-insurance waiver for qualifying refinancings, while 30-year mortgage rates remained above 7% and pending home sales reached a record low.

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Monthly mortgage payments on a median-priced resale home have nearly doubled since January 2020, rising 97%, compared with a 33% increase in incomes and a 48% jump in home prices, according to John Burns Research & Consulting.

The Kansas announcement comes amid mounting housing affordability concerns ahead of the midterm elections, with NAHB's builder sentiment index falling to its lowest level since June 2012 in October as high mortgage rates, rising material costs and labor shortages weigh on the industry.

U.S. housing affordability remains near its worst level since the 2008 financial crisis, with high mortgage rates, limited housing supply and weak income growth keeping the market largely "frozen," according to J.P. Morgan analysts. John Sim, Head of Securitized Products Research, said buying a median-priced home now costs renters roughly 50% of median income, compared with just 20% to 25% for existing homeowners locked into lower mortgage rates.

Photo courtesy: Shutterstock

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