Trump Proposes Policies to Lower Interest Rates and Restrict Large Investors in Single-Family Homes

Summary

At the Davos forum, former President Trump proposed policies to lower interest rates and address living costs, including a one-year 10% cap on credit card interest rates and restricting large investors from purchasing single-family homes.Sina Finance+ 2 He has already signed an executive order to limit institutional home buying and intends to pursue legislation. These measures, which also include using Fannie Mae and Freddie Mac to buy mortgage bonds, are being rolled out ahead of the 2026 midterm elections.Sina Finance

Impact Analysis

This is a classic pre-midterm populist blitz, throwing everything at the wall to address cost-of-living anxieties. They want you to focus on ‘making housing affordable,’ but the real story is a direct assault on specific business models. The ban on institutional home buying—already initiated via executive order—is an existential threat to the growth of single-family rental REITs. Meanwhile, the proposed 10% cap on credit card rates would crush issuers’ profitability and likely trigger a credit crunch for riskier borrowers.InfoCast

This isn’t about sound economics; it’s about creating politically-driven market dislocations. The play is straightforward: short the SFR REITs (like INVH, AMH) and major credit card issuers who are directly in the crosshairs. The flip side is a potential tailwind for homebuilders, who would face less competition from institutional cash buyers. This is a clear signal to bet on sector dispersion driven by populist headlines.