Trump Calls Out Homebuilders: What Fannie Mae & Freddie Mac Can Actually Do

Trump's Social Media Post

• 🗣️ President Trump posted on Truth Social, calling on homebuilders to increase construction and stating that Fannie Mae and Freddie Mac can help.
• 🏠 He claimed builders are sitting on a record 2 million empty lots and urged the FHFA to encourage them to build.

FHFA Response and Tools

• 🛠️ FHFA Director Bill Py confirmed he would meet with builders and stated the agency has "a lot of tools" as the main buyer of mortgages.
• ❓ However, when asked about specific actions, Py responded, "we shall see."

Reality of Builder Lot Inventory

• 📊 Data from Zelman Associates indicates that while public homebuilders have around 2.2 million lots, barely a quarter are ready for construction (with roads, sewers, and approvals).
• 📉 Builders aim to sell lots quickly because carrying costs are expensive, contradicting the idea they are hoarding them.

Current Market Conditions

• 📈 The current rate of homebuilding relative to demand is over 100%, suggesting builders are actually overbuilding.
• 🏠 Builders are aggressively constructing speculative homes (without buyers) to meet perceived pent-up demand, even with margin pressure.

Potential Solutions and Challenges

• 📉 Analysts believe Fannie Mae and Freddie Mac cannot significantly impact homebuilding without risking a repeat of the 2006 foreclosure crisis by lowering underwriting standards.
• 🔑 The primary request from builders is for the federal government to pressure states and local municipalities to ease regulatory environments, making home building faster and cheaper.