Trump Promised Lower Mortgage Rates. Here’s What Happened Instead
Summary
President Donald Trump promised to lower mortgage rates to around 2 percent if elected in 2024. However, mortgage rates have generally remained high, rising to 6.71 percent by September 2025, partly due to ongoing conflicts in the Middle East and inflation. These higher rates make it harder for homeowners to move or refinance their homes.Key Facts
- President Trump promised to reduce mortgage rates to pandemic-era lows near 2 percent during his 2024 presidential campaign.
- The average 30-year fixed mortgage rate was 6.09 percent when Trump made this pledge in September 2024.
- When Trump returned to office in January 2025, mortgage rates were about 6.96 percent.
- Rates peaked at 7.79 percent in October 2023 after the Federal Reserve raised interest rates to control inflation.
- The Federal Reserve cut interest rates three times in 2025, which helped lower mortgage rates temporarily.
- By September 2025, mortgage rates rose back to 6.71 percent, the highest since July 2025.
- The war with Iran and higher oil prices contributed to inflation and pushed mortgage rates up again.
- Higher mortgage rates discourage homeowners from selling or refinancing, lowering the number of homes available for sale.
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