Trump Directs Agencies to Ease Regulations on Homebuilding and Mortgages

• The first order directs agencies to review and eliminate permitting and environmental requirements that slow housing projects and increase developer costs to accelerate new housing supply
• The second order instructs regulators to examine rules that have discouraged smaller lenders from offering home loans and restricted access to credit for homebuyers
• The orders build on earlier administration efforts including pushing Fannie Mae and Freddie Mac to expand mortgage-backed securities purchases and curbing institutional investors' single-family home purchases

Summary

Key Development:

President Donald Trump signed two executive orders on March 13, 2026, targeting housing affordability by reducing regulatory burdens on homebuilding and easing mortgage lending rules. The initiative comes as housing costs remain a critical political issue ahead of November's midterm elections, where Republicans defend slim congressional majorities.

Executive Order Details:

• First order: Directs federal agencies to identify and eliminate regulations that delay residential construction and increase developer costs, including reviews of permitting and environmental requirements to accelerate housing supply.
• Second order: Instructs regulators to examine mortgage lending rules that allegedly discourage smaller lenders from offering home loans and restrict credit access, aiming to lower borrowing costs for creditworthy buyers.

Market Context:

Housing affordability has intensified as a political concern, with home prices near record highs and elevated mortgage rates preventing many first-time buyers from entering the market. The White House has prioritized this issue as part of its economic agenda.

Related Actions:

Earlier in 2026, the administration pushed government-backed mortgage firms Fannie Mae and Freddie Mac to expand mortgage-backed securities purchases to reduce borrowing costs. The White House is also exploring measures to limit large institutional investors' single-family home purchases, which critics claim restrict supply for individual buyers.

Implications:

The orders signal potential regulatory relief for homebuilders and increased mortgage credit availability, which could stimulate housing supply and demand. However, actual impact depends on implementation details and regulatory responses. Investors should monitor developments affecting homebuilders, mortgage lenders, and housing-related securities.