The executive order would prevent federal agencies and the government-sponsored enterprises from facilitating the acquisition of a single-family home by a large institutional investor.
Thom Malone, principal economist at Cotality, said in a report that investors are waiting until a home has been sitting on the market so they can negotiate a lower price.
Uncertainty on the future of Fannie Mae and Freddie Mac has caused some lenders to deliver their agency-eligible production to the non-agency secondary market.