Trump orders pilot to cancel mortgage insurance early and cut refinancing costs

The pilot would apply only to mortgages made after it is set up, according to the order's text. The order also directs the FHFA to turn a title insurance waiver pilot for refinancings into an ongoing nationwide program, creates a Task Force on Manufactured Housing Innovation co-chaired by the HUD secretary and the FHFA director, and tells the agriculture and veterans affairs secretaries to lower interest rates on their departments' direct single-family home loans.

Reuters noted that the average 30-year fixed mortgage rate reached 7.40% last week, the highest in about three years, before easing to 7.32% this week, according to Freddie Mac. Reuters also reported that affordability has become a political vulnerability for Republicans ahead of the midterms.

Why it matters: The task force must send recommendations to the president within 180 days, and the mortgage insurance and title steps depend on determinations by the FHFA director.