10/24/2026
REAL ESTATE POLICY UPDATE: Trump Signs Executive Order Targeting Housing Costs
On October 22, 2026, President Trump signed an executive order titled Decreasing Housing Costs for the American People. The order addresses several areas of the housing market, including mortgage insurance, manufactured housing, refinancing costs, and certain government-backed home loans.
Here is a breakdown of what the order directs and what it could mean for homebuyers, homeowners, and the housing market in the years ahead.
1. Proactive PMI Cancellation
The order directs the Federal Housing Finance Agency (FHFA) to establish a pilot program for eligible future mortgages backed by Fannie Mae and Freddie Mac.
The program would periodically review property values and identify borrowers who appear to have sufficient equity to qualify for mortgage insurance cancellation.
Potential benefits include:
Earlier cancellation for eligible homeowners who meet the program requirements.
Fewer unnecessary appraisal expenses and paperwork.
Lower monthly housing expenses once mortgage insurance is canceled.
The program applies to mortgages originated after it is established. It does not automatically cancel PMI for every existing homeowner.
2. Expanding Manufactured and Factory-Built Housing
The order establishes a federal task force focused on modernizing the process for building manufactured, modular, and other factory-built homes.
The task force will examine ways to:
Standardize specifications, inspections, certifications, and approvals.
Reduce duplicative federal reviews and requirements.
Encourage modern construction methods that could reduce building time and costs.
Use federal financing and housing programs to encourage more affordable factory-built homes.
Promote competition while maintaining safety, quality, durability, and consumer protections.
It will also evaluate whether federal grant funding could be used to encourage states and localities to adopt standardized permitting and licensing practices.
The task force must submit recommendations within 180 days of the order.
3. Reducing Title Insurance Costs When Refinancing
The order directs the FHFA to consider expanding an existing title-acceptance pilot into an ongoing nationwide program through Fannie Mae and Freddie Mac.
For eligible refinances, an approved automated title review or alternative title-risk assessment could be accepted instead of a traditional lender’s title insurance policy.
The order calls for consideration of:
Expanding eligibility to certain refinances with higher loan-to-value ratios.
Removing geographic restrictions and approving additional title-assessment providers.
Reducing documentation requirements for certain refinances that lower monthly payments.
Reducing or eliminating certain enterprise fees.
Importantly, the order directs that savings from the program be passed on to borrowers and that lenders inform borrowers of those savings.
4. Reducing Interest Rates on Certain USDA and VA Direct Loans
The order directs the U.S. Department of Agriculture and the Department of Veterans Affairs to reduce interest rates on qualifying single-family home loans made directly by those departments, subject to applicable law and available funding.
The potential benefit is lower borrowing costs for eligible borrowers.
This provision concerns qualifying direct loans. It should not be interpreted as an across-the-board reduction in interest rates for every USDA or VA mortgage offered through private lenders.
5. Financial Safeguards and Implementation
The order makes implementation subject to existing laws, agency authority, contractual obligations, financial safety standards, and available appropriations.
For the PMI pilot, borrowers must satisfy applicable equity requirements, payment-history standards, and other eligibility conditions.
The order does not establish a universal PMI cancellation date, guarantee savings for every borrower, or immediately change every existing mortgage.
The ultimate impact will depend on how federal agencies implement these directives and which borrowers qualify.
6. Legal and Administrative Limitations
The order states that it does not override existing legal authority or create a new independently enforceable right to benefits against the federal government.
In practical terms, signing the order initiates or directs administrative action, but several provisions require further implementation before their full effects can be determined.
If these initiatives are implemented effectively, potential longer-term effects could include:
Lower ownership costs for some qualifying borrowers.
Reduced refinancing expenses for eligible homeowners.
More efficient approval processes for factory-built housing.
Greater competition among certain housing and title-service providers.
Potential improvements in affordability for some households.
However, mortgage rates, housing inventory, property taxes, insurance costs, construction expenses, and local zoning restrictions will continue to influence overall housing affordability.
For Central Virginia and the Shenandoah Valley, these are developments worth watching as buyers evaluate financing options and homeowners consider refinancing or building.
As always, buyers should make decisions based on current loan terms, confirmed eligibility, and their individual financial circumstances rather than assuming future policy changes will guarantee savings.
Follow Journey Real Estate Team for continued real estate education and updates on developments affecting buyers, sellers, and homeowners throughout Central Virginia and the Shenandoah Valley.
