White House economic adviser Kevin Hassett said on Friday that the Trump administration plans to allow investors to use some retirement funds for a down payment on a house. More details will be released next week.
"We're going to allow people to take money out of their 401ks and use that for down payment," Hassett told Fox Business Network in an interview. He added that U.S. President Donald Trump "will put the final plan out in Davos next week."
Hassett, who will travel with the Republican president to the economic conference in Switzerland, said they were still looking for "a simple" way to allow the fund move so it would not hurt retirement plans. "We're still talking about the mechanics of it," Hassett told FBN's "Mornings with Maria" program.
The expected plan comes as Trump grapples with economic headwinds a year after taking office and ahead of November's midterm election. He campaigned on a quick fix to higher prices for American consumers.
U.S. housing affordability has remained a top issue. High mortgage rates and elevated home prices have sidelined many would-be buyers and slowed market activity.
Trump in recent weeks has offered a number of proposals. These include banning institutional investors from buying single-family homes and instructing the Federal Housing Finance Agency to purchase $200 billion of bonds issued by mortgage finance giants Fannie Mae and Freddie Mac. The aim is to bring down mortgage rates.
He has also repeatedly called on the U.S. Federal Reserve to lower its benchmark rates.
Consumer inflation data released by the Bureau of Labor Statistics this week showed housing inflation remained strong.
Investors have been eyeing policy moves, market shifts, or lower interest rates that could draw buyers back and lift mortgage application volumes after a prolonged housing slowdown.
But some analysts and economists say a key issue is a lack of supply. They note that local zoning and regulation could have a bigger impact. Lower rates, for example, could increase demand for homes. Without more supply, this would likely push prices higher.