Trump's $200 Billion Mortgage Package Could Trigger A Rally In These Two Stocks, Says Steve Eisman: 'Like Threading An Elephant Through A Needle'

Investor Steve Eisman said that President Donald Trump's push to lower mortgage costs could ignite a sharp, short-term rally in these U.S. homebuilder stocks, even if the policies don't solve the market's deeper problems.

Two Homebuilders Set To Rally

On the Real Eisman Playbook podcast last week, Eisman said Trump's proposal to purchase $200 billion in mortgage-backed securities to push down borrowing costs could spark a fresh rally in homebuilder stocks. “Yes, they all rallied on Friday, but they could have more to go,” he said.

He highlighted two prominent stocks in the sector, Lennar Corp. (NYSE:LEN) and D.R. Horton Inc. (NYSE:DHI), which were beaten down in 2025, but are now beginning to trend upward due to falling mortgage rates and their low valuations.

“Mortgage rates are now down to 6%,” he said, adding that “if they can get down to 5 and a half, my guess is that existing home sales will improve and new home sales will too.”

According to Eisman, given their low market capitalization, with D.R. Horton being the largest at $45 billion, “The stocks will go up more and faster than you might think,” which he likened to “threading an elephant through a needle.”

He, however, noted that Trump’s proposal was unlikely to fix the long-standing supply constraints facing U.S. housing, saying that they were all “at the local level,” with regulations making it difficult and expensive to build smaller homes.

Housing Stocks Off To A Good Start In 2026

Following a slump in 2025, when leading homebuilding stocks witnessed pullbacks throughout the year, owing to high rates, tariffs and aggressive immigration enforcement, the segment is off to a great start in 2026, with significant policy momentum aligning in its favor.

The iShares US Home Construction ETF does poorly on Momentum in Benzinga’s Edge Stock Rankings, but has a favorable price trend in the short, medium and long terms.

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