President Trump’s New Policy Makes Home-buying Possible!
By Royce Robinson
Millions of Americans who hoped to buy a home in 2025 remain on the sidelines as affordability
pressures persist. While there is no centralized data tracking delayed buyers, surveys suggest the
hesitation is widespread. A December 2025 RE/MAX survey found that 88% of prospective
homebuyers plan to purchase in 2026, while 71% said market conditions forced them to delay.
Post-Pandemic Boom and Affordability Squeeze (2020–2021)
Following the onset of the COVID-19 pandemic in 2020, mortgage rates fell to historic lows, often
below 3%. The drop fueled a surge in buyer demand, while limited housing supply accelerated price growth across much of the country.
Mortgage Rates Surge and Market Freeze (2022–2023)
Beginning in 2022, the Federal Reserve raised interest rates aggressively in an effort to rein in
inflation. Mortgage rates more than doubled from pandemic-era lows, sharply reducing affordability and discouraging existing homeowners from selling.
Figure 1. Average 30-year fixed mortgage rates rose sharply after 2021.
Lowest Sales in Decades (2023–2024)
As borrowing costs climbed and inventory remained constrained, existing-home sales declined to their lowest levels in nearly three decades. First-time buyers were among the most affected, as higher monthly payments pushed ownership further out of reach.
Figure 2. Existing-home sales fell sharply as mortgage rates increased.
Persistent Challenges Through 2025
Although mortgage rates eased slightly in 2025, they remained elevated compared with pre-pandemic norms, and home prices stayed high. Many buyers opted to wait, with surveys indicating growing expectations of purchasing in 2026.
Policy Shifts and a Potential Path Forward
Recent policy proposals aimed at limiting large institutional investors from acquiring additional
singlefamily homes could help reduce competition for individual buyers. While such measures would not immediately expand housing supply, they may help rebalance the market over time.
Data Sources
- Mortgage rate data: Freddie Mac Primary Mortgage Market Survey (PMMS), 2020–2025.
- Existing-home sales data: National Association of Realtors (NAR), annual existing-home sales reports, 2020–2024.
- Buyer sentiment data: RE/MAX Future of Real Estate Survey, December 2025
