Mortgage Affordability Reaches Four-Year Peak Amid White House Spotlight on Trump Housing Policies
‘The Big Money Show’ panel discusses how interest rate cuts are affecting the American housing market.
Mortgage affordability has reached a four-year high following a decline in rates this January. The White House has been highlighting President Donald Trump’s economic policies, emphasizing his commitment to “unlock” homeownership opportunities for American families.
According to ICE Mortgage Technology’s February 2026 Mortgage Monitor Report, the drop in mortgage rates has opened up refinancing opportunities for millions of borrowers. This shift has significantly improved housing affordability, marking a four-year high, as reported by HousingWire.
MORTGAGE RATES TICK HIGHER BUT REMAIN NEAR 6%
White House press secretary Karoline Leavitt stated to Fox News Digital, “Joe Biden’s inflation crisis crushed the dream of homeownership for millions of Americans — but President Trump is bringing it back. Thanks to the President’s successful economic policies, unnecessary red tape is being cut at a historic pace, borrowing costs are easing, and income growth is outpacing home price gains — finally making housing more affordable again.”
Sold house with blurred family in the background
Leavitt further emphasized, “President Trump knows America is strongest when it’s a nation of owners, not renters, and he is determined to unlock that opportunity for as many American families as possible.”
Freddie Mac’s latest Primary Mortgage Market Survey, released in early February, indicated that the average rate on the benchmark 30-year fixed mortgage was 6.11%. This is a notable decrease from 6.89% a year prior.
Sam Khater, Freddie Mac’s chief economist, remarked, “For the last several weeks, the 30-year fixed-rate mortgage has remained at its lowest level in years. The combination of improving affordability and availability of homes to purchase is a positive sign for buyers and sellers heading into the spring home sales season.”
HOME DELISTINGS SURGE AS SELLERS STRUGGLE TO GET THEIR PRICE
However, Realtor.com Senior Economist Anthony Smith noted that while the Federal Reserve maintained steady rates during its January meeting, the nomination of Kevin Warsh as the next Federal Reserve chair could introduce uncertainty into the market.
Smith explained that this nomination “has re-centered attention on the importance of policy credibility and investor expectations.”
More credit scores do not necessarily lead to more approved mortgages, as credit expert Micah Smith explains to Fox News Digital. (Getty Images / Getty Images)
Smith elaborated, “Mortgage rates are not directly set by the Fed but instead reflect long-term yields, which respond to shifting economic signals, market sentiment, and perceived risks. If investors grow uncertain about the Fed’s intentions or begin to question its independence, long-term yields can rise even during a rate-cutting cycle. This paradox underscores the risk of mixing political objectives with monetary policy.”
He added, “For housing, that means aggressive calls for rate cuts may not lower mortgage rates unless market confidence in the Fed’s inflation-fighting credibility remains intact.”
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Smith also noted that home affordability benefits from low inflation and a stable labor market, along with wage growth that enhances household purchasing power. “Whether buying a first home, relocating, or moving up, American families need both stable prices and steady income growth. A Fed that is seen as credibly delivering on its dual mandate of price stability and maximum employment is the most durable path to better housing affordability over time,” he concluded.
‘The Big Money Show’ panel discusses how interest rate cuts are affecting the American housing market.
Mortgage affordability has reached a four-year high following a decline in rates this January. The White House has been highlighting President Donald Trump’s economic policies, emphasizing his commitment to “unlock” homeownership opportunities for American families.
According to ICE Mortgage Technology’s February 2026 Mortgage Monitor Report, the drop in mortgage rates has opened up refinancing opportunities for millions of borrowers. This shift has significantly improved housing affordability, marking a four-year high, as reported by HousingWire.
MORTGAGE RATES TICK HIGHER BUT REMAIN NEAR 6%
White House press secretary Karoline Leavitt stated to Fox News Digital, “Joe Biden’s inflation crisis crushed the dream of homeownership for millions of Americans — but President Trump is bringing it back. Thanks to the President’s successful economic policies, unnecessary red tape is being cut at a historic pace, borrowing costs are easing, and income growth is outpacing home price gains — finally making housing more affordable again.”
Sold house with blurred family in the background
Leavitt further emphasized, “President Trump knows America is strongest when it’s a nation of owners, not renters, and he is determined to unlock that opportunity for as many American families as possible.”
Freddie Mac’s latest Primary Mortgage Market Survey, released in early February, indicated that the average rate on the benchmark 30-year fixed mortgage was 6.11%. This is a notable decrease from 6.89% a year prior.
Sam Khater, Freddie Mac’s chief economist, remarked, “For the last several weeks, the 30-year fixed-rate mortgage has remained at its lowest level in years. The combination of improving affordability and availability of homes to purchase is a positive sign for buyers and sellers heading into the spring home sales season.”
HOME DELISTINGS SURGE AS SELLERS STRUGGLE TO GET THEIR PRICE
However, Realtor.com Senior Economist Anthony Smith noted that while the Federal Reserve maintained steady rates during its January meeting, the nomination of Kevin Warsh as the next Federal Reserve chair could introduce uncertainty into the market.
Smith explained that this nomination “has re-centered attention on the importance of policy credibility and investor expectations.”
More credit scores do not necessarily lead to more approved mortgages, as credit expert Micah Smith explains to Fox News Digital. (Getty Images / Getty Images)
Smith elaborated, “Mortgage rates are not directly set by the Fed but instead reflect long-term yields, which respond to shifting economic signals, market sentiment, and perceived risks. If investors grow uncertain about the Fed’s intentions or begin to question its independence, long-term yields can rise even during a rate-cutting cycle. This paradox underscores the risk of mixing political objectives with monetary policy.”
He added, “For housing, that means aggressive calls for rate cuts may not lower mortgage rates unless market confidence in the Fed’s inflation-fighting credibility remains intact.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Smith also noted that home affordability benefits from low inflation and a stable labor market, along with wage growth that enhances household purchasing power. “Whether buying a first home, relocating, or moving up, American families need both stable prices and steady income growth. A Fed that is seen as credibly delivering on its dual mandate of price stability and maximum employment is the most durable path to better housing affordability over time,” he concluded.
