‘I think everything is on the table,’ Treasury Secretary Scott Bessent said in a Labor Day interview.
President Donald Trump is thinking about declaring “a national housing emergency in the fall,” Treasury Secretary Scott Bessent has said.
In a Labor Day interview with the Washington Examiner, Bessent stated that the administration is considering a list of measures to bolster supply and cut housing costs, including possible tariff exemptions on construction materials. They are also studying tactics to standardize local building and zoning codes, the finance head said.
“We’re trying to figure out what we can do, and we don’t want to step into the business of states, counties, and municipal governments,” he said on Sept. 1. “I think everything is on the table.”
He said that if the Federal Reserve cuts interest rates this year, it could improve housing affordability.
Investors overwhelmingly expect the Fed to lower the federal funds rate—a key policy rate that affects business, consumer, and government borrowing costs—later this month. Mortgage rates typically track the 10-year Treasury yield, which is partially influenced by the Fed funds rate.
According to Freddie Mac’s Primary Mortgage Market Survey, the average 30-year fixed rate mortgage was 6.56 percent for the week ending Aug. 28, down 21 basis points from a year ago.
Bessent acknowledged that the administration can employ policies to ensure more families can purchase a residential property.
“We may declare a national housing emergency in the fall,” he said.
So far this year, the president has declared several national emergencies, including those related to border security and economic threats.
On the 2024 election campaign trail, Trump vowed to open up federal land for housing development and slash red tape that he said was driving up costs.
State of the US Housing Market
The U.S. real estate market experienced a boom after the COVID-19 pandemic, driven by low housing inventories, surging demand, and near-zero interest rates that enabled homebuyers to secure extremely low mortgage rates.
Recent industry data indicate that the national housing market has since come to a standstill.
Last month, Redfin estimated that there were 36 percent more sellers than buyers, the widest gap since 2013.
By Andrew Moran
