Trump Mortgage Rate Plan 2026: Will Rates Drop for Homebuyers?

Will mortgage rates drop? Here's what Trump's housing plans might mean

This week Trump announced two moves aimed at lowering housing costs: buying $200 billion in mortgage bonds and banning corporations from buying single-family homes.

The mortgage bond plan:

Trump told Fannie Mae and Freddie Mac to buy $200B worth of mortgage bonds. Think of it this way: when there's more demand for these bonds, mortgage rates typically drop.

How much? Experts estimate rates could fall 0.10 to 0.25 percentage points. That means the current 6.2% average could potentially drop to somewhere between 5.95% and 6.1% in the near term, possibly reaching 5.6% by year's end.

What that means in dollars:

On a $350,000 home, a quarter-point rate drop saves roughly $60–90 per month. Not massive, but worth having—especially for military families calculating whether their BAH covers a mortgage.

The catch:

Most economists say the effect will be small and temporary. The $200B sounds big, but it's only about 2% of the total mortgage bond market. Without ongoing support, rates drift back to wherever the overall economy pushes them.

The corporate buyer ban:

Trump also said he'll ban large investors from buying single-family homes. Right now, big corporations own somewhere between 1–3% of homes nationwide. In some Sun Belt cities like Atlanta, it's higher—around 25%.

Will it help?

Probably not much. The real problem is we don't have enough homes. Economists say we're short 3–4 million homes nationwide. Blocking a small slice of buyers doesn't fix that.

Bottom line:

Rates might tick down a bit if the bond purchases happen quickly. That's good news if you're shopping now or refinancing soon. But don't expect dramatic change without building more homes.

For Fort Campbell families on PCS orders: if rates drop closer to 5.5–5.75% this year, affordability improves. Just know these are political moves ahead of midterm elections, not permanent solutions to housing costs.