President Donald Trump signed an executive order on October 5, 2026, aimed at lowering mortgage costs to help combat rising interest rates and inflation, which have made homeownership less affordable. The order, titled “Decreasing Housing Costs for the American People,” instructs federal agencies to take steps such as proactively canceling mortgage insurance on eligible future conventional loans and expanding a program designed to reduce refinancing expenses. Federal Housing Finance Agency (FHFA) Director Bill Pulte expressed optimism that millions of Americans will save significant amounts thanks to these changes, though experts note that the full consumer impact remains uncertain without more details.

The executive order builds on the administration’s previous efforts to address housing affordability, including restrictions on Wall Street firms buying single-family homes. Recent data show the cost burden for homeowners has increased, with median monthly mortgage payments rising from 26% of the median family’s income in 2022 to about 33% in 2025. The order’s mortgage insurance provisions target conventional loans, where private mortgage insurance (PMI) is typically required if down payments are under 20%. The FHFA is tasked with launching a pilot program to automatically cancel PMI once homeowners reach a certain equity threshold, easing the financial load on future borrowers.

Another key focus of the order is mortgage refinancing costs. It directs the FHFA to make permanent a pilot program that waives lender title insurance policies and introduces more affordable alternatives. Although mortgage interest rates remain high at about 7.32% for 30-year fixed-rate loans, and refinancing demand has dropped 59% year-over-year, experts believe reducing closing costs through this program could save borrowers between $500 and $1,500. Title insurance fees are a major component of mortgage closing expenses, so this initiative aims to provide meaningful financial relief to homeowners who refinance.

While the executive order offers targeted measures to reduce mortgage-related expenses, housing affordability challenges persist mainly due to high home prices and interest rates. The timing of the order, less than two weeks before the November 3 midterm elections, highlights the political importance of addressing voter concerns about housing costs. Industry leaders and analysts applaud efforts to lower costs for future homeowners, but emphasize that broader market factors will continue to play a decisive role in the overall accessibility of homeownership going forward.