President Donald Trump has signed an executive order titled 'Decreasing Housing Costs for the American People,' which seeks to alleviate the financial burden of homeownership amid rising interest rates and inflation. The order instructs federal agencies to cancel mortgage insurance for eligible future loans and to expand a program that makes refinancing more affordable.
Bill Pulte, director of the Federal Housing Finance Agency (FHFA), stated that this could save millions of Americans significant amounts of money, although the exact consumer impact remains uncertain, according to Keith Gumbinger, vice president of mortgage website HSH.
The timing of the order is notable, as it comes just before the Nov. 3 midterm elections, where housing affordability is a key voter concern. The executive order builds on previous measures aimed at limiting Wall Street's acquisition of single-family homes.
Homeownership has become increasingly unaffordable, with the Federal Reserve reporting that in 2025, the monthly payment for a 30-year fixed-rate mortgage on a median-priced home constituted about 33% of the median family's income, up from 26% in 2022.
The order includes provisions for mortgage insurance changes, particularly for conventional loans, which typically require private mortgage insurance (PMI) when down payments are below 20%. The FHFA is tasked with creating a pilot program to cancel PMI for borrowers once their home equity reaches a specified threshold.
PMI costs can range from 0.2% to 2% of the loan annually, significantly impacting monthly payments. Additionally, the order aims to make refinancing cheaper by making permanent a pilot program that waives the lender's title insurance policy, which is often a substantial part of closing costs.
As of late October 2026, mortgage interest rates for 30-year fixed-rate loans were at 7.32%, with refinancing demand down 59% compared to the previous year. While experts like Gumbinger caution that the executive order may not drastically change housing costs, they acknowledge that any reduction in expenses could be beneficial for borrowers