After a four-day hiatus, President Donald Trump returned with harsh statements aimed at Federal Reserve Chairman Jerome Powell. In a post on social media platform Truth Social on Tuesday night, Trump accused Powell of being the main cause of the weakening U.S. housing market.

Trump wrote:

"Can someone please inform Jerome 'Too Late' Powell that he is severely undermining the housing industry? People cannot get mortgages because of him. There is no inflation, and all signs indicate that a significant rate cut is needed. 'Too Late' is a disaster!"

These criticisms arise amid continuing deterioration in real estate market data, while builder confidence is increasingly declining.

Builder Confidence at Its Lowest Level Since 2022

According to the latest data, the number of housing starts in the U.S. last month increased by 5.2%, reaching an annual rate of 1.43 million units — the highest in five months. However, most of the growth came from multi-family housing projects, while the single-family segment remains sluggish.

The National Association of Home Builders (NAHB)/Wells Fargo Confidence Index dropped to 32 in August, the lowest since December 2022, contrary to economists' expectations that the index would rise to 34.

NAHB Chairman Buddy Hughes stated: "The biggest issue right now is affordability. Buyers are waiting for mortgage rates to drop before they are ready to make a decision." He also emphasized that aside from interest rates, the construction industry is facing challenges due to land regulations and complex administrative procedures.

In fact, over one-third of contractors have been forced to lower prices, with an average reduction of about 5%. Meanwhile, 66% of companies are offering promotional packages — the highest rate since the pandemic. However, customer traffic remains sparse, as many potential buyers are still postponing due to high interest rates.

Regionally, builder confidence in the Northeast has dropped to its lowest level since January 2023. In the South and Midwest, the index has barely changed, while the West region has seen slight but insignificant improvement.

Mortgage Rates Easing, Heavy Pressure on Jerome Powell

Last week, the 30-year fixed mortgage rate fell to 6.58%, the lowest level since October of last year, and down nearly 0.5 percentage points since the beginning of this year. However, this decrease is still not enough to stimulate demand. Homebuyers continue to wait, while builders face increasing difficulties.

Robert Dietz, chief economist of NAHB, commented: "With the weakening real estate market and various other economic data, the Fed should soon return to a rate-cutting cycle. This will reduce financial costs for housing construction and indirectly pull mortgage rates down."

Nevertheless, the Fed under Powell's leadership has yet to take any action. Investors and real estate developers are awaiting the next monetary policy meeting, with high hopes that a rate cut will be implemented soon.

Bleak Outlook for Upcoming Housing Data Release

This week, the U.S. Census Bureau is expected to release July data on new housing starts and building permits. Experts forecast that the figures will not be very bright. Previously, in June, the number of single-family housing starts dropped to an 11-month low, while new building permits hit a two-year low.

Observers suggest that if Powell continues to delay rate cuts, the sluggish condition of the real estate market will persist, putting further significant pressure on contractors, buyers, and the entire U.S. economy.

👉 This article reflects the tension in monetary policy between President Trump and Fed Chairman Powell, as well as the challenging state of the U.S. real estate market, with the chances of recovery still very fragile.