How the Latest Executive Order and Mortgage Rates Impact Homebuyers in 2025
On January 20, 2025, President Donald Trump signed an executive order aimed at tackling inflation, with a major focus on reducing housing costs and increasing affordable home availability. While these policy changes are designed to ease the burden of rising home prices, mortgage rates remain a key factor in affordability—and as of now, they haven’t budged.
What the Executive Order Means for Housing
Lower Housing Costs – The order directs federal agencies to remove regulations that drive up home prices, aiming to make homeownership and renting more accessible.
More Homes on the Market – To address inventory shortages, federal agencies are pushing for policies that encourage more housing development.
Energy Policy Changes – The administration has reversed certain energy policies, with the goal of lowering energy costs, which could reduce some homeownership expenses.
What’s Happening with Mortgage Rates?
Despite these policy shifts, mortgage rates remain steady, with the average 30-year fixed mortgage rate holding at 7.07% as of January 21, 2025.
Why Haven’t Rates Changed?
Mortgage rates are driven by many factors, including inflation, economic data, and Federal Reserve policy. While regulatory changes could influence home prices over time, they don’t have an immediate effect on interest rates.
What This Means for Buyers & Homeowners
- If You’re Buying: While home prices may become more manageable in the future, mortgage rates are still a major factor in affordability. Now is a good time to explore loan programs and down payment assistance options.
- If You’re Refinancing: With rates holding steady, it’s important to evaluate your financial goals and whether refinancing makes sense in today’s market.
- If You’re Selling: Increased inventory could create more competition for sellers, so pricing your home right will be key in attracting buyers.
What’s Next?
While housing affordability remains a top priority, it will take time to see how these changes impact the market. If mortgage rates start to shift or home prices adjust, being informed and prepared to act will be the best strategy for buyers and homeowners.
Want to discuss your homeownership options? Contact us today to see how these changes may affect you!
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* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.