This Could Open Up Homebuying for Millions

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Jan 27, 2026

A new federal proposal could let buyers tap retirement accounts penalty-free for down payments, sparking a heated debate about tradeoffs. Reported declines in monthly housing costs suggest improving affordability for first-time buyers. Policymakers are weighing bond purchases and an executive order aimed at curbing large investor buy-ups to reshape who can buy homes.

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INSIGHT

Affordability Is Improving Modestly

Redfin found median monthly housing payments fell 5.5% year-over-year, easing affordability pressures.
Dave Meyer says lower rates, flat prices, and rising wages combined to improve affordability for six months straight.

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INSIGHT

Bond Buying Had Limited Impact

Trump's $200B MBS purchases nudged mortgage rates down about 25 basis points but didn't move housing costs much.
The bigger constraint remains low inventory, which limits buyers' ability to act on slightly lower rates.

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ADVICE

Treat Rate Drops As Temporary

Expect other global and geopolitical factors to push rates back up despite targeted bond purchases.
Treat any rate improvement as temporary unless deeper economic signals change.

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Redfin: Monthly Housing Costs Fall 5%

02:50 • 3min

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Local Inventory Shortages and Buyer Behavior

06:04 • 1min

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Why Trump's MBS Purchases Haven't Lowered Rates Much

07:28 • 6min

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Mortgage-Rate Volatility and Lock Strategy

401(k) Penalty-Free Down Payments Debate

16:44 • 4min

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Leveraging Housing vs. Stock Returns

20:48 • 4min

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Demand-side Policies vs. Supply Problems

Executive Order to Curb Big Investor Purchases

28:20 • 2min

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Will Curtailing Subsidies Hit Institutional Buyers?

30:31 • 3min

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Barriers to Increasing Housing Supply

33:21 • 2min

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Permitting Delays' Impact on Development

This could open up homebuying for millions of Americans. The question is: Is it worth it?

A new housing proposal from the Trump administration adds yet another lever that first-time buyers can pull to pay for their first house. But it’s got financial advisors sweating.

We’re back with another headline episode, talking about recent moves shaking up the housing market. First, some good news from Redfin that shows the housing market is actually getting more… affordable? That’s right. A substantial decline in housing costs may be just the start as homebuyer purchasing power grows year over year. We’re on the right track…but will it continue?

Next, why mortgage rates went back up after Trump’s proposed $200B bond-buying exercise—when many expected rates to keep falling. Using a 401(k) to buy a home? One new proposal could make it penalty-free, opening up access to hundreds of thousands of dollars for average Americans. Finally, the big investor ban begins, but here’s what the actual executive order says.

In This Episode We Cover

Penalty-free 401(k) down payments? The On the Market panel is sharply divided

Affordability sees a massive win, but will it keep improving?

Why mortgage rates didn’t keep declining after Trump’s $200B bond purchase proposal

President Trump signs the long-awaited big investor ban—but will it actually change anything for homebuyers?

And So Much More!

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On the Market 392 - Trump's Housing Proposals Could Work, There's Just One Problem