Key Points
- President Trump has promised major housing reforms to lower costs in 2026.
- The administration is considering a 50-year mortgage to reduce monthly payments.
- Trump plans to appoint a new Fed chair who will lower interest rates.
- A bipartisan bill in Congress aims to encourage more home construction.
President Trump is promising a major push to make housing more affordable in the new year. In a recent address, he said he will soon announce some of the “most aggressive housing reform plans in American history” and that mortgage payments will be “coming down even further.” While he didn’t give many specifics, the administration has been floating several big ideas for months.
The housing market has been a major headache for many Americans. Mortgage rates have been stuck above 6% for three years, and a severe shortage of homes for sale has kept prices sky-high. To address this, Trump could take several steps. Treasury Secretary Scott Bessent has suggested that the President could declare a “national housing emergency,” which would give him more power to act quickly.
One of the more radical ideas on the table is a 50-year mortgage. The thinking is that extending the loan term by two decades would result in lower monthly payments.
Critics, however, point out that this would also mean paying a lot more in total interest over the life of the loan. The administration is also exploring ways to reduce closing costs and standardize local building codes, which many people blame for driving up construction costs.
Trump has also said he will appoint a new Federal Reserve chair in May who will lower interest rates. While the Fed doesn’t directly control mortgage rates, a move to lower short-term borrowing costs could eventually trickle down to home loans.
Congress is also working on the problem. A bipartisan bill, the Housing for the 21st Century Act, is making its way through both the House and the Senate. This legislation aims to make it easier for developers to secure approval for new projects by establishing federal “best practices” for local governments. It would also raise the loan limits for apartment buildings and improve rural housing programs.
With both the White House and Congress focused on the issue, 2026 could be a pivotal year for the U.S. housing market.
