Average monthly mortgage payments have dropped significantly over the past year, according to a report highlighted by CNN, marking a notable shift in housing affordability under President Donald Trump.
The network reported that the typical monthly mortgage payment is about $260 lower today compared to January 2025, shortly after Trump took office.
CNN business reporter Matt Egan compared payments for a buyer purchasing a $500,000 home with a 20 percent down payment at the start of 2025 versus current conditions.
In January 2025, that buyer faced a monthly payment of $2,672. Today, the same mortgage would cost roughly $2,414 per month.
The $260 monthly drop amounts to about $3,000 in savings over the course of a single year, according to Egan’s analysis.
Over the full life of a standard mortgage, those savings could total approximately $90,000 in reduced interest payments.
Egan described the reduction as substantial, noting that it means less money flowing to banks and more disposable income for households.
One factor driving the decline is Trump’s move to have Fannie Mae and Freddie Mac purchase roughly $200 billion in home mortgages.
Those government-sponsored enterprises buy loans from lenders, package them into mortgage-backed securities, and sell them to investors, helping replenish lender capital.
The increased liquidity allows lenders to offer lower interest rates, which directly reduces monthly payments for borrowers.
Cooling inflation has also played a role, with the Consumer Price Index rising 2.6 percent last month.
Lower inflation has given the Federal Reserve room to reduce interest rates, easing borrowing costs across the economy.
Home prices have also softened in several major markets, a trend the White House linked to the removal of millions of illegal immigrants from the country.
The administration said home list prices fell year over year in 14 of the 20 metro areas with the largest illegal migrant populations.
It added that the few metro areas that saw modest price increases were all sanctuary cities.
Some of the steepest home price declines were reported in border states such as Texas, Arizona, and California.
Realtor.com identified Tampa, Phoenix, Dallas, Miami, and San Diego as among the markets with the sharpest year-over-year drops.
In contrast, home prices rose in cities including Minneapolis, Cleveland, Boston, New York City, and Chicago.
Separately, Trump has also pointed to lower prescription drug prices as another area of consumer relief.
In December, he announced agreements with nine major pharmaceutical companies to lower prices on several widely used medications.
The deals are designed to match the lowest price paid for those drugs anywhere in the world, a policy Trump called “most favored nation” pricing, according to the Conservative Brief.
He said Americans have long paid far more than consumers overseas and insisted that practice is coming to an end.
Details on implementation timelines have not yet been released, but Trump said the agreements mark a major shift in consumer costs.
