A Senior White House official rejected the fund manager's proposal to spin off parts of Fannie Mae and Freddie Mac on Wednesday.
Sales of previously-owned homes continue to decline from higher loan rates and a shortage of homes, but some of the decline is seasonal.
The consumer relief portion of JPMorgan's $13 billion settlement is likely to come under criticism for the way it has been structured.
Investors betting on Fannie, Freddie shares are up against policymakers who have been surprisingly centrist about housing finance reform.
National Association of Home Builders' monthly survey showed builder sentiment was unchanged from the previous month in November, although buyer confidence waned.
Pershing Square's Bill Ackman disclosed a less than 10% stake in both bailed-out housing giants.
Bruce Berkowitz's offer to buy out parts of Fannie Mae and Freddie Mac promises upside for common shareholders.
Foreclosure activity ticks up in October as banks auctioned off more homes.
Despite the recent price slowdown, homes are still being snapped up from the market.
Housing finance reform might be too complicated to tackle in a comprehensive manner, according to housing experts.