Trump seeks lower rates and a ban on institutional home purchases

At the World Economic Forum in Davos, President Trump outlined measures to lower mortgage and credit card interest rates and to bar large institutional investors from buying single-family homes. He signed an executive order to review rules on investor purchases and said the government would buy $200 billion in mortgage bonds.

President Trump spoke at the World Economic Forum in Davos and described several housing measures his administration is pursuing. He said the measures are intended to make homeownership more affordable. The remarks follow a multiyear slowdown in U.S. home sales and a period of higher mortgage rates. The administration has announced both executive actions and requests to Congress on these issues. Key facts: - Trump outlined policies to lower mortgage and credit card interest rates and to restrict large institutional purchases of single-family homes. - He directed the government to buy $200 billion in mortgage bonds and signed an executive order to review the laws governing large investor purchases. - The administration is asking Congress to cap credit card interest rates at 10% for one year and said a new Federal Reserve chair will be announced soon as Jerome Powell's term ends in May. - Officials and some economists have said the effects on mortgage rates and the housing market are uncertain, and the administration has not yet defined what constitutes a "large investor." Summary: The administration presented measures intended to lower borrowing costs and to limit large institutional purchases of single-family homes. Undetermined at this time.