WASHINGTON: White House economic advisor Kevin Hassett stated on Friday that the Trump administration intends to permit investors to use a portion of their retirement assets to make a down payment on a home. He added that further information will be made public next week. In an interview with Fox Business Network, he stated, “We’re going to allow people to take money out of their 401(k)s and use that for down payment.” He also mentioned that US President Donald Trump “will put the final plan out in Davos next week.”
Hassett noted that they were still searching for “a simple” approach to permit the fund to relocate so that it wouldn’t negatively impact people’s retirement plans, adding that he would be accompanying the Republican president to the economic meeting in Switzerland. Hassett stated on FBN’s “Mornings with Maria” program, “We’re still talking about the mechanics of it.” The anticipated move comes as Trump, who campaigned on a speedy cure for rising prices for American consumers, faces economic challenges a year after taking office and ahead of the midterm election in November. Particularly in the United States, housing affordability has continued to be a major concern since high mortgage rates and high property prices have discouraged many potential buyers and hindered market activity.
In an effort to lower mortgage rates, Trump has made several proposals in recent weeks, such as prohibiting institutional investors from purchasing single-family homes and directing the Federal Housing Finance Agency to buy $200 billion in bonds issued by mortgage finance behemoths Fannie Mae and Freddie Mac. Additionally, he has frequently urged the US Federal Reserve to reduce its benchmark rates. Housing inflation continued to be high, according to consumer inflation data issued this week by the Bureau of Labor Statistics. After a protracted housing slowdown, investors have been watching for changes in the market, policy, or interest rates that would attract buyers again and increase the number of mortgage applications.
However, a shortage of supply is a major problem, according to some analysts and economists, and municipal zoning and control may have a greater effect. For instance, lower rates might raise demand for properties, which would raise prices in the absence of increased supply.
