Trump Is Set to Unveil Big Plans Addressing Housing Affordability This Week. Here's What We Know

Investopedia • January 19, 2026 • business

Key Points:

President Donald Trump plans to announce a series of aggressive housing market reforms at the World Economic Forum in Davos, aiming to address U.S. housing affordability issues.
One key proposal would allow Americans to use funds from their 401(k) retirement plans to buy homes, expanding on current rules that permit penalty-free withdrawals from IRAs but not 401(k)s.
Trump intends to ban large institutional investors from purchasing single-family homes to increase housing inventory, emphasizing that homes should be for people, not corporations.
The administration plans to lower mortgage interest rates by directing Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds, a move that has already contributed to a recent drop in mortgage rates.
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