Treasury Secretary Scott Bessent said the Trump administration may declare a national housing emergency this fall, reviving a measure last used during the 2008 financial crisis as affordability concerns mount and Republicans prepare for the 2026 midterms.
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Speaking at a Labor Day breakfast interview with the Washington Examiner in McLean, Virginia, Bessent said affordability would be a central theme for the Trump administration heading into next year.
"We may declare a national housing emergency in the fall," he said, adding that the White House is considering steps to cut costs and expand supply.
While specific measures were not disclosed, Bessent suggested officials are exploring ways to standardize local zoning and building codes, reduce closing costs, and even grant tariff exemptions on some construction materials.
"We're trying to figure out what we can do, and we don't want to step into the business of states, counties, and municipal governments," Bessent said. "I think everything is on the table."
Mortgage Rates and Sales Show Housing Strain
The housing market remains squeezed by high borrowing costs and tight supply.
The 30-year mortgage rate stood at 6.58% at the end of August and it has remained above 6% since September 2022.
Sales are struggling: existing home sales hovered around a seasonally adjusted annualized rate of 4.01 million in July 2025, down sharply from 6.43 million in January 2022. Before the pandemic, sales averaged between 5 million and 5.7 million units.
Meanwhile, the house price index has declined for three straight months, the longest negative streak since 2010, suggesting cracks in an overheated market.
Fed Rate Cuts Could Help — But Won't Be Enough
Bessent said he expects interest rate cuts from the Federal Reserve to ease some of the post-COVID-19 housing price pressures but acknowledged the administration is preparing additional measures.
Markets currently price in an almost 90% chance of a 25-basis-point rate cut in September, according to CME FedWatch.
Lower rates typically reduce mortgage costs, but they are unlikely to fix supply shortages.
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