Trump Signed: How Can Housing Loan Costs Decrease in ABD?

U.S. President Donald Trump signed a new executive order on October 22, 2026, aimed at reducing the cost of homeownership. The regulation announced by the White House includes easing mortgage insurance payments, cutting refinancing costs, and lowering interest rates on certain public housing loans. However, the relevant agencies must create new programs for the measures to take effect.

A New Era Could Begin in Mortgage Insurance

In the U.S., buyers who put down less than 20% when taking out a mortgage typically obtain private mortgage insurance (PMI) on conventional loans. Trump’s executive order instructs the Federal Housing Finance Agency (FHFA) to create a pilot program for certain loans backed by Fannie Mae and Freddie Mac.

Under the program, after the order takes effect, the current market value of the home and the borrower’s equity in the loans to be used can be regularly reviewed. Those who meet the required conditions are targeted for automatic termination of their insurance payments. This measure will not automatically cancel existing homeowners’ insurance.

Mortgage Refinancing Costs Could Be Reduced

When interest rates fall or more favorable loan terms arise, homeowners can choose to refinance their existing mortgages. However, appraisal, title insurance, and other transaction fees can make the process expensive.

The new decree foresees expanding the scope of title‑insurance exemptions in certain refinancing transactions and turning the existing pilot program into a permanent one. It also plans to reduce appraisal and income‑verification procedures for qualifying loans and lower certain loan fees. The savings to be achieved are to be passed on to borrowers, the decree states.

Interest Rate Reductions on Certain Public Housing Loans

The decree also instructs the U.S. Department of Agriculture (USDA) and the Department of Veterans Affairs (VA) to lower the interest rates on single‑family housing loans issued directly by their agencies. The reductions will apply only to loans covered by the respective programs. Thus the regulation does not mean that all mortgage rates in the United States will fall.

Targeting More Affordable Housing Production

Another pillar of the decree is the widespread deployment of homes manufactured in factories and then placed on sites. The administration aims to cut construction costs by encouraging modern production techniques and to facilitate the production of prefab houses that meet federal housing program standards.

Within this framework, a new task force will be established. The task force is expected to submit its proposals to reduce barriers in housing production within 180 days.

Implementation schedule and savings amount are still unclear.

The decree signed on October 22 instructs relevant agencies to develop new programs and reduce certain costs. However, who will benefit from the mortgage insurance program, how much the fees will be reduced, and when the savings will begin will become clear as the program details are finalized.

In the U.S., everyone paying a mortgage will not see their monthly installment drop immediately. The new regulations have the potential to reduce additional costs for qualifying homeowners.