What Do Trump's Housing Announcements Mean for Murfreesboro Home Buyers and Sellers?

This past week, President Trump made two major announcements related to housing. Within hours, mortgage rates dropped below 6 percent for the first time in three years. If you're thinking about buying or selling a home in Murfreesboro, you're probably wondering what all of this means for you.

Let me break down both announcements and explain how they could affect our local market in Rutherford County.

Announcement 1: The $200 Billion Mortgage Bond Buyback

The first announcement was an order for Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds. If you're not familiar with how this works, here's the simple version.

Fannie Mae and Freddie Mac are government-sponsored companies that help make mortgages available to everyday buyers. When they buy mortgage bonds, it increases demand for those bonds. When demand goes up, interest rates go down.

The announcement alone caused an immediate reaction. On Thursday, the weekly mortgage rate average was 6.16 percent, which was already near a 14-month low. By Friday, after the announcement, rates briefly dipped to 5.99 percent. That's the lowest we've seen in three years.

On a $425,000 home, which is about the national average, that rate drop saves a buyer around $118 per month. That's real money that makes a difference for families trying to qualify for a mortgage.

What Lower Rates Mean for Murfreesboro Buyers

If you've been sitting on the sidelines waiting for rates to come down, this is the direction you were hoping for. The goal of this policy appears to be getting mortgage rates into the 5s and keeping them there.

Lower rates mean lower monthly payments. They also mean you can qualify for more house with the same income. A buyer who was maxed out at $375,000 at 7 percent might be able to afford $400,000 or more at 5.5 percent.

Here's the trade-off to think about. If rates continue to drop, more buyers will come back into the market. That means more competition for homes. Sellers will have more leverage. Prices could stabilize or even tick up in response to increased demand.

The best strategy might be to buy now while you still have negotiating power and refinance later if rates drop further. You get the house at today's prices with today's lower competition, and you can always adjust your rate down the road.

What Lower Rates Mean for Murfreesboro Sellers

For sellers, lower rates are mostly good news. More buyers in the market means more demand for your home. The first full week of January already showed a jump to 94 pending sales, up from 57 the same week last year. Activity is picking up.

Lower rates may also help free up inventory. A lot of homeowners have been stuck in place because they locked in rates in the 2s and 3s and didn't want to give that up. If rates get down to the mid-5s, some of those owners might decide it's close enough to make a move. That could bring more starter homes and move-up homes onto the market.

The key for sellers right now is pricing correctly. Even with more buyers entering the market, homes that are overpriced will sit. The days of slapping any price on a house and getting offers are not coming back anytime soon.

Announcement 2: The Proposed Ban on Institutional Investors

The second announcement was about banning large institutional investors from owning residential homes. These are the real estate investment trusts, sometimes called REITs, that have been buying up single-family houses in markets across the country.

This policy is still in the early stages, and there are a lot of questions about whether it's legal and how it would be enforced. But if it moves forward, it could have a noticeable impact on markets like ours.

At one point, nearly 10 percent of homes in Rutherford County were owned by real estate investment trusts. That's about one out of every ten homes. Between 5,000 and 8,000 homes in our county are owned by investors at any given time, though not all of those are owned by the big institutional players.

How an Investor Ban Could Affect Murfreesboro

If institutional investors are forced out of the residential market, a few things could happen.

First, they might start selling off properties. That would increase inventory, especially in the price ranges where they tend to buy. In our market, that often means homes in the $250,000 to $400,000 range. More inventory at those price points would be good news for first-time buyers who have been struggling to find affordable options.

Second, reduced competition from investors could make it easier for regular buyers to win offers. Right now, individual buyers sometimes lose out to cash offers from investment companies. Removing that competition would level the playing field.

Third, it could affect rental prices over time. Many of these investor-owned homes are rentals. If those properties get sold to owner-occupants, there would be fewer rental options available. That could push rents higher for people who aren't ready to buy.

It's also worth noting that mom-and-pop investors, people who own a handful of rental properties, are different from the big REITs. Most of the investor-owned homes in Rutherford County are actually owned by smaller local investors, not Wall Street firms. How the policy treats these different groups will matter.

What Should You Do Right Now?

Policy announcements create movement, but they don't change everything overnight. The mortgage bond buybacks haven't actually happened yet. The investor ban is still being debated. A lot could change between now and when any of this takes full effect.

What we do know is that mortgage rates are at a three-year low right now. We know pending sales jumped this week compared to last year. We know the market is showing early signs of life after a slower 2025.

If you're a buyer, waiting for perfect conditions usually means missing the window. Rates are down. Competition is still manageable. If you've been wondering whether to buy now or wait, the conditions right now are worth serious consideration.

If you're a seller, the market appears to be turning in your favor. More buyers are coming. Rates are helping affordability. Pricing your home right from the start will put you in position to take advantage of the shift.

Have Questions?

These policy changes are complex, and every situation is different. If you want to talk through what this means for your specific plans to buy or sell in Murfreesboro, Smyrna, La Vergne, or anywhere in Rutherford County, reach out. I'm happy to walk through the numbers with you and help you figure out your best path forward.

John Turner

Team Lead, Turner Victory Team at Onward Real Estate

With over 25 years of experience and more than 4,200 homes sold, John Turner helps buyers and sellers in Murfreesboro and Rutherford County make informed real estate decisions backed by real market data.

Website: TurnerVictory.com

Homebuyer Guide: TurnerVictory.com/homebuyer-guide

Seller Guide: TurnerVictory.com/sell-your-home

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