The White House’s 2026 Economic Report of the President puts a familiar problem back in focus: homeownership is getting further out of reach — and policymakers are once again looking to rates, supply, and market competition to close the gap.
Released April 13 by the Council of Economic Advisers, the report lays out the administration’s view of what’s driving the affordability crisis, backed by data that underscores just how sharply the math has shifted for today’s buyers.
According to the report, a typical homebuyer at the end of 2024 could expect to pay roughly $2,400 per month in mortgage principal and interest, up from about $1,400 at the end of 2019. Over a longer horizon, the imbalance is even more pronounced: real home prices rose 81.9% between 2000 and 2023, while real median income increased just 12.3%.
Entry-level inventory has also thinned dramatically. The report notes that homes priced below $300,000 accounted for nearly half of new construction in 2019, but just one-sixth by 2024 — a shift that continues to squeeze first-time buyers out of the market.
That pressure is showing up in borrower profiles. The median age of a first-time homebuyer has climbed to 40, according to the report, up from 28 in the early 1990s — a signal that access to homeownership is increasingly delayed, not just difficult.
Rates Are Moving — But Not Enough To Offset Structural Costs
Mortgage rates remain a central piece of the equation. The report says rates have come down from their peak and are “nearly a full percentage point” lower than in January 2025, framing that decline as a key lever in improving affordability.
Among the actions cited is a plan for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities, a move the administration says is intended to help push borrowing costs lower.
But the report makes clear that rates alone won’t solve the problem.
It points to structural cost pressures embedded in the housing market, estimating that regulatory requirements account for nearly 30% of the cost of a new home, adding more than $100,000 in some cases. That burden, the report argues, is a major factor behind elevated home prices.
Those costs are flowing directly into underwriting outcomes. The report notes that debt-to-income ratios account for more than one-third of mortgage denials, far outpacing down payment constraints, a sign that affordability challenges are increasingly about monthly payment, not just upfront cash.
Supply Constraints And Investor Competition Remain Key Pressure Points
The administration’s response leans heavily on deregulation. The report highlights efforts to reduce barriers tied to zoning, permitting, and construction requirements, arguing that these constraints have slowed development and limited supply in high-demand markets.
That push aligns with a broader federal review of mortgage rules affecting underwriting and compliance standards. National Mortgage Professional previously reported that the effort could touch areas such as ATR-QM requirements, appraisal frameworks, and other core components of the loan process.
At the same time, the report calls attention to competition within the housing market, particularly from institutional investors. It references an administration policy that large investors should not purchase single-family homes that could otherwise be bought by individual buyers, positioning investor activity as a contributing factor in tight inventory conditions.
The report also points to a persistent supply gap following years of underbuilding after the 2008 financial crisis, reinforcing the idea that today’s affordability challenges are as much about inventory as they are about rates.
The Economic Report of the President is, by design, a policy document — not a neutral market forecast. But it offers a clear signal of where federal housing policy is headed: lower borrowing costs, fewer regulatory constraints, and a more direct stance on investor competition.
For mortgage professionals, none of those themes are new. What’s notable is how explicitly they are now being tied together, and how directly they intersect with the realities of qualifying borrowers in today’s market.
