President Donald Trump Reconsiders 401(k) Plan for Housing Down Payments
The Corcoran Group broker Noble Black breaks down President Donald Trump’s housing affordability proposals and the state of the market on Varney & Co.
On Thursday, President Donald Trump expressed his reservations about a proposal from his administration that would allow potential homebuyers to withdraw funds from their 401(k) retirement accounts for down payments.
While speaking to reporters aboard Air Force One, Trump stated, “I’m not a huge fan. Other people like it. They’re talking about taking money out to put a deposit down on a home.” He elaborated, saying, “One of the reasons I don’t like it is that their 401(k)s are doing so well. You know, 401(k)s are up 80%-90% in some cases.” He emphasized that while the housing market is performing well, the returns on 401(k) accounts are significantly better.
Trump continued, “I like keeping their 401(k)s in great shape. I’m not a huge fan of putting down a deposit, I’m not. I’m so happy with the way 401(k)s are doing. We’ve got people telling me they’re up 88% over the period of a year. It’s going to be close to 100%.”
HASSETT REVEALS TRUMP HOUSING PLAN WOULD LET AMERICANS TAP 401(K)S FOR DOWN PAYMENTS
President Donald Trump said he’s “not a fan” of the 401(k) withdrawal plan because retirement accounts have seen strong returns. (Denis Balibouse/Reuters)
These remarks follow the administration’s preview of the 401(k) down payment proposal, which is part of a broader initiative aimed at enhancing homeownership affordability. National Economic Council Director Kevin Hassett noted that the “typical monthly payment about doubled for an ordinary family buying an ordinary home,” with down payments increasing from approximately $15,000 to $32,000. “There’s a real lot of room to make up,” he added.
TRUMP MOVES TO BLOCK WALL STREET FROM BUYING SINGLE-FAMILY HOMES IN SWEEPING NEW EXECUTIVE ORDER
The Trump administration discussed a plan that would allow 401(k) withdrawals for home down payments. (iStock/Getty Images Plus / Getty Images)
Hassett indicated that the administration plans to allow individuals to withdraw from their 401(k)s for down payments, with the proposal expected to be unveiled during Trump’s trip to Davos. However, during his address at the World Economic Forum, the president did not mention this proposal, instead focusing on other elements of his affordability agenda.
Trump also called on Congress to impose a 10% cap on credit card interest rates for one year, highlighting the rising credit card debt as a significant hurdle for Americans trying to save for down payments.
EFFORT TO REIN IN WALL STREET LANDLORDS COULD PUSH US HOME PRICES UP, INVESTORS SAY
NEC Director Kevin Hassett floated the 401(k) down payment plan the week before Trump’s Davos trip. (Al Drago/Bloomberg via Getty Images)
Additionally, Trump discussed his initiative to limit institutional investors from purchasing homes, attributing rising housing prices to this trend and asserting that it is “just not fair to the public.” His proposed cap on credit card interest rates has faced criticism from the financial services sector, which warns that such a cap could restrict access to credit for consumers, potentially leading to the loss of cards or the elimination of rewards and perks for existing cardholders.
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Investors have also raised concerns regarding Trump’s plan to prevent firms from acquiring single-family homes, arguing that it could exacerbate price increases without expanding housing supply. They contend that corporate investment has been instrumental in the construction of new homes and increasing market availability.
The Corcoran Group broker Noble Black breaks down President Donald Trump’s housing affordability proposals and the state of the market on Varney & Co.
On Thursday, President Donald Trump expressed his reservations about a proposal from his administration that would allow potential homebuyers to withdraw funds from their 401(k) retirement accounts for down payments.
While speaking to reporters aboard Air Force One, Trump stated, “I’m not a huge fan. Other people like it. They’re talking about taking money out to put a deposit down on a home.” He elaborated, saying, “One of the reasons I don’t like it is that their 401(k)s are doing so well. You know, 401(k)s are up 80%-90% in some cases.” He emphasized that while the housing market is performing well, the returns on 401(k) accounts are significantly better.
Trump continued, “I like keeping their 401(k)s in great shape. I’m not a huge fan of putting down a deposit, I’m not. I’m so happy with the way 401(k)s are doing. We’ve got people telling me they’re up 88% over the period of a year. It’s going to be close to 100%.”
HASSETT REVEALS TRUMP HOUSING PLAN WOULD LET AMERICANS TAP 401(K)S FOR DOWN PAYMENTS
President Donald Trump said he’s “not a fan” of the 401(k) withdrawal plan because retirement accounts have seen strong returns. (Denis Balibouse/Reuters)
These remarks follow the administration’s preview of the 401(k) down payment proposal, which is part of a broader initiative aimed at enhancing homeownership affordability. National Economic Council Director Kevin Hassett noted that the “typical monthly payment about doubled for an ordinary family buying an ordinary home,” with down payments increasing from approximately $15,000 to $32,000. “There’s a real lot of room to make up,” he added.
TRUMP MOVES TO BLOCK WALL STREET FROM BUYING SINGLE-FAMILY HOMES IN SWEEPING NEW EXECUTIVE ORDER
The Trump administration discussed a plan that would allow 401(k) withdrawals for home down payments. (iStock/Getty Images Plus / Getty Images)
Hassett indicated that the administration plans to allow individuals to withdraw from their 401(k)s for down payments, with the proposal expected to be unveiled during Trump’s trip to Davos. However, during his address at the World Economic Forum, the president did not mention this proposal, instead focusing on other elements of his affordability agenda.
Trump also called on Congress to impose a 10% cap on credit card interest rates for one year, highlighting the rising credit card debt as a significant hurdle for Americans trying to save for down payments.
EFFORT TO REIN IN WALL STREET LANDLORDS COULD PUSH US HOME PRICES UP, INVESTORS SAY
NEC Director Kevin Hassett floated the 401(k) down payment plan the week before Trump’s Davos trip. (Al Drago/Bloomberg via Getty Images)
Additionally, Trump discussed his initiative to limit institutional investors from purchasing homes, attributing rising housing prices to this trend and asserting that it is “just not fair to the public.” His proposed cap on credit card interest rates has faced criticism from the financial services sector, which warns that such a cap could restrict access to credit for consumers, potentially leading to the loss of cards or the elimination of rewards and perks for existing cardholders.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Investors have also raised concerns regarding Trump’s plan to prevent firms from acquiring single-family homes, arguing that it could exacerbate price increases without expanding housing supply. They contend that corporate investment has been instrumental in the construction of new homes and increasing market availability.
