The Treasury secretary said the president is set to address the high costs of housing in the coming weeks
While many in the mortgage industry enjoyed a holiday off with family and friends, an interview by Treasury secretary Scott Bessent on Labor Day got everyone’s attention.
Speaking with the Washington Examiner, Bessent said that President Donald Trump may declare a housing emergency to address the high costs of housing, along with the limited supply.
“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. “We may declare a national housing emergency in the fall.”
Bessent also spoke with Reuters on Monday, confirming the plans to tackle the high cost of housing, calling it an “all hands on deck” situation.
According to the report by Reuters, Bessent said the administration was hoping to simplify the permit process and encourage standardization in hopes of boosting construction. The hope is that these things would boost housing supply and reduce costs.
Lowering costs
Other details about what the emergency would entail were unknown. The legality of legislation by emergency declaration is an issue that is currently at the forefront of the administration’s tariff strategy.
Trump cited the 1977 International Emergency Economic Powers Act to declare his tariffs. However, last week, an appeals court said the act does not give him the right to initiate these tariffs. They confirmed that only Congress has that power.
The case is expected to go to the Supreme Court, which could set a precedent that could apply to actions that coincide with this housing emergency being planned.
In a related report released by Redfin on Tuesday, they stated that housing costs could return to “normal” by 2030 if price growth stabilizes, and mortgage rates fall to 5.5%.
While Redfin said this was not a prediction, they believed conditions could return to July 2018 levels if prices and rates cooperate.
Fed in focus
Any talk of housing affordability quickly turns attention back on the Federal Reserve. With September underway, it is just over two weeks before the central bank announces its rate decision.
Most experts believe the Fed will cut rates by 25 basis points on Sept. 17. CME FedWatch puts the odds of a cut at 89.8% on Tuesday morning.
However, there will likely be turmoil leading up to the vote. The status of Lisa Cook, whom the Trump administration is trying to remove “for cause,” could be a major factor in the final voting totals.
Federal Housing Finance Agency (FHFA) director Bill Pulte has filed a new criminal referral against Federal Reserve governor Lisa Cook as tensions between the Trump administration and the central bank rumble on. https://t.co/mYiEvczz2c
— Mortgage Professional America Magazine (@MPAMagazineUS) August 30, 2025
In addition, Stephen Miran, who is being nominated for the current open seat on the Fed, has some strong opinions about the future of the central bank. According to Politico, he has suggested measures that would allow Trump to fire Fed governors at will.
The White House is pressuring lawmakers to get Miran confirmed before the upcoming Fed meeting.
Sam Williamson, senior economist at First American, told Mortgage Professional America that while he isn’t necessarily worried about Fed independence, it is unknown what might happen to rates if independence is seriously challenged.
“Political pressure on the Fed is nothing new, and its independence has always existed within a broader political framework,” he said. “A combination of laws, norms, and institutional design grants the Fed meaningful autonomy in setting monetary policy. Governors serve staggered 14-year terms, the Fed is self-funded, and regional presidents are selected independently of the White House. These features help insulate the FOMC from short-term political influence.
“While the Fed is designed to operate independently, leadership transitions can still influence its tone and priorities. That said, the FOMC is a consensus-driven body, and any policy shifts—such as rapid rate cuts—would still require broad support. There’s little precedent for a major disruption to Fed independence, so the impact on rates is hard to predict.”
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
