Trump may declare a national housing emergency

Plus: Metros where mortgage originations are growing

September 03, 2025

In partnership with

🐪 Welcome back! Today's newsletter is 701 words, a 2.5-minute read. Let’s dive in…

Disclaimer: Average mortgage rates as of September 02, 2025. © MND Daily Rate Index.

1. Mortgage demand pulls back after four weeks of gains

Mortgage rates fell again last week, but not enough to pull overall demand out of the rut it’s been in for the past month. Total mortgage application volume dropped 1.2% last week compared with the previous week, according to the MBA.

  • Applications for a mortgage to purchase a home dropped 3% for the week and were 17% higher than the same week one year ago.

  • Applications to refinance a home loan increased 1% for the week and were 20% higher than the same week one year ago.

  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, decreased to 6.64% from 6.69%

“Refinance applications saw a small increase from the previous week, driven by FHA and VA refinance applications, but conventional refinances declined. The FHA rate is averaging about 30 basis points lower than the conventional rate in 2025, which has made those loans relatively more appealing to eligible borrowers,” said Joel Kan, MBA’s deputy chief economist in a release. “Purchase activity pulled back, after a four-week run of increases, as slower homebuying activity led to declines in applications across the various loan types.”

2. Trump may declare a national housing emergency

President Trump may declare a national housing emergency this fall, said Treasury Secretary Scott Bessent. It would be the first national emergency related to housing declared since the collapse of the housing bubble drove the U.S. into the 2008 financial crisis.

“We may declare a national housing emergency in the fall,” Bessent told the Washington Examiner on Monday. “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.”

Declaring a national housing emergency would let President Trump bypass Congress and wield broad executive powers to intervene in the market. It could fast-track building on federal land, override zoning rules, lower closing costs, or direct funds to affordability programs. Supporters say it could quickly boost supply, while critics argue it stretches emergency powers beyond their intent.

A MESSAGE FROM THE DAILY UPSIDE

The Business Brief Executives Actually Trust

In a world of sensational headlines and shallow takes, The Daily Upside stands apart. Written by former bankers and veteran journalists, it delivers crisp, actionable insights that top execs use to make smarter decisions. Over 1M readers — boardrooms to corner offices — trust it every morning. Join them. Free, no fluff, just business clarity.

3. More Nuggets

📈 Rising payment-to-income ratios flagged as early warning for mortgage delinquencies. (TransUnion)

📊 Mortgage rates slightly higher to start September. (MND)

🎥 The secrets behind RE/MAX’s top team and its billion in sales. (Inman Podcast)

🏡 Gen Z is renting, not buying—Here's what it means for the country's future. (NewsWeek)

💼 Lisa Cook mortgage scrutiny increases with new criminal referral. (CSPAN)

💭 Does the trigger leads bill opt-in provision wave goodbye to competition? (HW)

💰 Figure announces launch of IPO, looks to raise $526M. (MorningStar)

4. Number of unsold completed homes for sale

Housing inventory is approaching levels not seen since the financial crisis, a further sign of ongoing difficulties for the sector and the economy as a whole.

The July figure (121,000 unsold completed new homes) published last week is the highest level since July 2009 (126,000).

5. Metros where mortgage originations are growing

Residential mortgage originations climbed in Q2 2025, with 1.76 million loans issued — up 19.4% from the prior quarter and 6.3% year over year, according to ATTOM. Total lending volume reached $601.7 billion, a 22.8% quarterly gain and 10.3% higher than last year.

Growth came from both purchase and refinance activity, with HELOCs also edging higher. Still, analysts cautioned the rebound reflects seasonal trends and modest rate relief, not a full housing recovery. Here are the top 10 metros with the largest annual increases in total mortgage originations in Q2:

  1. Anchorage, AK: +44.5%

  2. Hilo, HI: +38.7%

  3. Yuma, AZ: +38.6%

  4. Huntington, WV: +36.1%

  5. Ann Arbor, MI: +35.3%

  1. Evansville, IN: +31.5%

  2. Indianapolis, IN: 29.1%

  3. Columbus, GA: +28.2%

  4. Hilton Head, SC: +26.4%

  5. Davenport, IA: +25.9%

A MESSAGE FROM PACASO

Keep This Stock on Your Watchlist

They’re a private company, but Pacaso just reserved the Nasdaq ticker “$PCSO.” No surprise the same firms that backed Uber and Venmo also backed Pacaso. What is unique is that 10,000+ regular people joined them. Founded by a former Zillow exec, Pacaso has earned $110M+ in gross profits to date. Until 9/18, you can join, too.

Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.

☀️ You’re all caught up. See you on Friday!

🚀 Wanna help our newsletter grow? Forward it to a friend or colleague.

Would you like to receive a ready-to-send weekly marketing email for your realtors and/or clients? Start your 30-day free trial here.

Was this email forwarded to you? Subscribe here.

Interested in advertising to 40k+ loan officers? Get in touch.