President Donald Trump has called on Fannie Mae and Freddie Mac—the two mortgage giants that back more than half of the U.S. housing market—to “get Big Homebuilders going” and spur new construction across the country. The remarks, made Sunday during a campaign-style event in Florida, have drawn mixed reactions from economists, housing analysts, and federal officials.
Trump’s request comes as the U.S. struggles with a persistent housing affordability crisis, record-high mortgage rates, and a nationwide shortage of single-family homes. But experts say the president’s directive to Fannie and Freddie—government-controlled enterprises (GSEs) primarily designed to support mortgage liquidity rather than construction—is “a mystery” in both strategy and scope.
Trump Targets Big Builders for “Sitting on 2 Million Lots”
Trump’s comments specifically targeted large national homebuilders, accusing them of “sitting on more than 2 million empty lots” and artificially inflating housing prices.
“I’m asking Fannie Mae and Freddie Mac to get Big Homebuilders going, and by so doing, help restore the American Dream,” Trump said. “People deserve to buy a home they can afford again.”
His remarks sparked immediate debate within the housing industry. Builders’ groups quickly pushed back, saying the claim oversimplifies the challenges facing the construction sector—especially rising material costs, labor shortages, and restrictive zoning laws.
The National Association of Home Builders (NAHB) said that while Trump’s focus on housing supply is welcome, Fannie and Freddie have “little direct influence over land development decisions.”
What Can Fannie Mae and Freddie Mac Actually Do?
Analysts note that Fannie Mae and Freddie Mac were not created to fund construction. Instead, they buy and guarantee mortgages from lenders, providing liquidity that helps banks issue more loans.
“Fannie and Freddie don’t directly finance homebuilding—they finance home buying,” said Sarah Bloom Raskin, a former Treasury official. “So unless there’s a major policy change, Trump’s proposal is more political rhetoric than practical reform.”
Still, some experts suggest Trump may be signaling plans to expand the GSEs’ authority if re-elected, potentially allowing them to support development loans for builders.
“The president may be floating the idea of repurposing Fannie and Freddie to incentivize supply rather than demand,” noted Robert Dietz, NAHB’s chief economist. “That could mean new programs that support land acquisition or affordable housing partnerships.”
Housing Market Reaction and Investor Buzz
Following Trump’s statement, shares of Fannie Mae (FNMA) and Freddie Mac (FMCC) saw a brief uptick in pre-market trading, as investors speculated about possible policy shifts or new federal programs.
Housing stocks such as Lennar, D.R. Horton, and PulteGroup also rose modestly, though analysts cautioned that market enthusiasm might fade once the logistical limits of Trump’s plan become clearer.
Meanwhile, housing affordability remains one of the administration’s most pressing political challenges. According to Realtor.com, the average U.S. home price now exceeds $420,000, while mortgage rates hover above 7%—the highest level in over two decades.
Lawmakers Demand Clarity
Members of Congress are already pressing the White House for details. Democratic Senator Elizabeth Warren criticized the move as “economic theater,” arguing that Trump is using Fannie and Freddie “as campaign talking points rather than policy tools.”
Republicans, on the other hand, have largely praised the president’s call as a sign of urgency. “The federal government has to step in to fix what the Federal Reserve broke,” said Senator Tom Cotton, referring to high interest rates that have stalled new home construction.
The Mystery Behind the Message
Despite the political noise, the central question remains: How can Fannie and Freddie spur homebuilding without major legislative change? Bloomberg analysts note that the administration has not yet outlined any executive orders or new programs tied to Trump’s call.
“It’s unclear whether this is a policy proposal or simply a public challenge to big developers,” said Bloomberg’s housing correspondent, describing the move as “a mystery” that left Wall Street and Washington equally puzzled.
For now, the president’s remarks appear to be part of a broader strategy to show action on housing as the 2025 election cycle intensifies. Whether Fannie Mae and Freddie Mac can actually build new homes—or just finance them—remains to be seen.
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