President Trump's Economic Policies Yield Lower Gas and Mortgage Rates

As 2026 begins, President Donald J. Trump’s administration is reporting significant declines in gas prices and mortgage rates, which are attributed to his America First agenda. Gas prices have reached their lowest levels in five years, with the national average falling below $3 per gallon in 43 states and below $2.50 in 17 states. This decline is projected to save American motorists approximately $11 billion in 2026 compared to the previous year. Concurrently, the average interest rate for a 30-year fixed mortgage has dropped to 5.7%, down from around 8% during the Biden administration, making homeownership more accessible for young families.

Big Wins for American Families as Gas Prices, Mortgage Rates PlummetDonald Trump Says ‘The USA Is The Hottest And Most Successful Country In The World’ After Claiming He Dropped Mortgage Rates And Will Be Enforcing A One-Year 10% Cap On Credit Card Interest RatesNewsmax (website)

The reduction in mortgage rates is largely credited to President Trump’s directive for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities. This federal intervention aims to lower borrowing costs and enhance housing affordability. The average household is expected to benefit from lower monthly payments, with rents also declining for five consecutive months. The Trump administration's actions are framed as a restoration of the American Dream of homeownership.

Newsmax (website)Big Wins for American Families as Gas Prices, Mortgage Rates PlummetDonald Trump Says ‘The USA Is The Hottest And Most Successful Country In The World’ After Claiming He Dropped Mortgage Rates And Will Be Enforcing A One-Year 10% Cap On Credit Card Interest Rates

In a recent statement, President Trump emphasized the success of his policies, asserting, “Mortgage Rates are NOW 5.7%! ... We are bringing Housing Costs DOWN, and putting Americans FIRST!” He also announced plans to cap credit card interest rates at 10% for one year, effective January 20, 2026, claiming this would protect consumers from high rates that proliferated during the previous administration.

Donald Trump Says ‘The USA Is The Hottest And Most Successful Country In The World’ After Claiming He Dropped Mortgage Rates And Will Be Enforcing A One-Year 10% Cap On Credit Card Interest Rates

Despite the positive outlook presented by the Trump administration, some analysts express skepticism regarding the long-term implications of government intervention in the housing market. Mike O’Rourke, a JonesTrading analyst, noted that if government-sponsored enterprises like Fannie Mae and Freddie Mac are utilized as funding arms for presidential policies, it may hinder their potential re-privatization.

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While the reported mortgage rate drop to 5.7% is significant, other sources indicate that the national average for a 30-year fixed mortgage was recorded at 6.06% on January 9, 2026. This discrepancy highlights ongoing debates about the accuracy of reported rates and the overall impact of government policies on the housing market.

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As the 2026 midterm elections approach, the effectiveness of these economic policies will likely be a focal point in political discourse. The administration's claims of economic recovery and affordability will be scrutinized as voters assess the tangible benefits of the Trump administration's initiatives.

Donald Trump Says ‘The USA Is The Hottest And Most Successful Country In The World’ After Claiming He Dropped Mortgage Rates And Will Be Enforcing A One-Year 10% Cap On Credit Card Interest Rates

• “If the GSEs (Government-Sponsored Enterprises) can serve as a funding arm for Presidential policy, we shouldn't ever expect them to be re-privatized again.” — Mike O’Rourke, Analyst at JonesTrading

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