President Donald Trump cools to 401(k) housing down payment proposal

president Donald Trump He said Thursday he’s “not a big fan” of a proposal his administration is developing that would allow potential homebuyers to withdraw from their 401(k) retirement accounts for a down payment.

“I’m not a big fan,” Trump told reporters aboard Air Force One as he prepared to return from his trip to participate in the World Economic Forum in Davos, Switzerland. “Other people like it. They talk about taking money to put down a deposit on a house.

“One of the reasons I don’t like it is because their 401(k) plan works so well. You know, 401(k) filed “80%-90% in some cases,” the president said. “The housing market is good, but the 401(k) is doing much better than the housing market.

“I like to keep their 401(k) plan in great shape,” Trump added. “I’m not a big fan of making a deposit, I’m not. I’m very happy with the way my 401(k) is working. We have people telling me they’re up 88% and over the course of a year, a whole year. It’ll be, I mean, it’ll be close to 100%.”

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Trump’s comments come after the administration previewed the 401(k) law. Initial payment Proposed last week as part of a broader push by the White House to improve the affordability of homeownership.

National Economic Council Director Kevin Hassett said Maria Bartiromo from Fox Business last week that “the typical monthly payment has nearly doubled for a typical family buying a typical home. The down payment they need to buy a home has gone from about $15,000 to about $32,000. So, there’s a lot of room for compensation.”

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The Trump administration has discussed a plan that would allow 401(k) withdrawals for down payments on a home. (iStock/Getty Images Plus/Getty Images)

“We will allow people to take money from their 401(k) retirement accounts and use it as a down payment,” Hassett went on, adding that the proposal will be unveiled during the president’s trip to Davos.

During his address World Economic Forumthe president did not mention the 401(k) down payment proposal and instead focused on other aspects of his affordability agenda.

Trump discussed his call for congress to set a 10% cap on credit card interest rates for one year and indicated they would rise. credit card Debt as a challenge for Americans trying to save for a down payment.

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NEC CEO Kevin Hassett rolled out the 401(k) down payment plan the week before Trump’s trip to Davos. (Al Drago/Bloomberg via Getty Images)

The president also discussed his plan to restrict institutional investors from buying homes, which he blamed for driving up housing prices and said was “not fair to the public.”

Trump’s proposed credit card interest rate cap has drawn opposition from the House of Representatives Financial services The industry, which has warned that capping interest rates would restrict consumers’ access to credit and cause many existing cardholders to lose their cards or cancel rewards and perks.

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Investors also criticized the president’s plan to bar corporations from buying single-family homes.

They point out that this is likely to lead to higher prices because the policy will not expand the supply of housing, etc Corporate investment It helped build new homes and expand the supply available on the market.