Recent figures from CNN highlight a significant decrease in average monthly home mortgage payments since President Donald Trump took office. The network reported that the average payment is down about $260 from January 2025, when it stood at $2,672 for a $500,000 home with a 20 percent down payment. As of now, that monthly payment is approximately $2,414. This drop translates to $3,000 less in interest payments over a single year, or a staggering $90,000 over the loan’s lifetime. Matt Egan, CNN’s business reporter, remarked, “That’s huge. That’s less money going to the bank, and more for everything else.”

This decrease in mortgage costs could be attributed to a few key factors. One significant factor is Trump’s initiative for the federal government to have Fannie Mae and Freddie Mac purchase $200 billion in home mortgages. This move allows these entities to buy loans from lenders, bundle them, and sell them as mortgage-backed securities. By doing so, they replenish the funds available to lenders, which helps keep interest rates lower and more stable for homebuyers.

Inflation rates have also played a role in the reduction of mortgage payments. Under Trump, the Consumer Price Index rose by just 2.6 percent last month. This decline has allowed the Federal Reserve the flexibility to lower the interest rate it charges banks, which subsequently influences the prime lending rate offered to consumers. Lower lending rates mean less financial burden for potential homebuyers.

In addition to the impact of lower interest rates, home prices have noticeably declined as a result of the Trump administration’s stance on immigration. The White House noted a correlation between the removal of illegal immigrants and declining home prices in metropolitan areas with significant illegal migrant populations. According to their social media posts, “In 14 of the top 20 metro areas with the largest illegal migrant populations, home list prices DECLINED year-over-year in December.” Notably, the few cities that experienced modest price increases were identified as sanctuary cities. The effect is evident in border states like Texas, Arizona, and California, where some of the steepest price declines have been reported. Realtor.com indicated that cities such as Tampa, Phoenix, Dallas, Miami, and San Diego faced significant drops in home prices.

This shift in the housing market reflects broader economic trends under the current administration, highlighting the substantial impact of interest rates and immigration policy on home affordability. As homeowners and potential buyers navigate these changes, the financial landscape appears to favor more affordable housing opportunities.