Trump's Latest Order Aims at Mortgage Expenses — What It Could Mean for 2027 Buyers

In a push ahead of the November midterm elections, President Donald Trump signed an executive order designed to reduce mortgage-related costs. Even so, people hoping to buy a home in 2027 may still find it difficult to afford the monthly payment.

The plan focuses on mortgage insurance and refinancing fees, while also setting a longer-range goal of lowering the cost of building homes. Whether those changes will actually make it easier to qualify for a mortgage remains unclear.

Lower Costs for Some Future Borrowers

The order, called “Decreasing Housing Costs for the American People,” directs federal agencies to cut certain expenses tied to homeownership.

One agency involved is the Federal Housing Finance Agency (FHFA), which has been told to create a pilot program that would identify eligible new loans for proactive private mortgage insurance (PMI) cancellation once borrowers reach an equity level based on the home’s current market value.

PMI is generally required on a conventional mortgage when the buyer makes a down payment of less than 20%. According to CNBC, annual premiums usually fall between 0.2% and 2% of the loan amount. For instance, on a $600,000 home purchased with a 10% down payment, a Freddie Mac calculator cited by CNBC puts the monthly PMI cost at $351 with a 7.3% mortgage rate.

That kind of charge can matter a lot for buyers already stretched thin. Eliminating a $351 monthly premium would save $4,212 a year once the borrower qualifies. However, the pilot would only cover mortgages originated after it begins, and buyers would still need to meet the equity threshold first.

Refinancing Costs May Also Fall

The executive order also tells FHFA to broaden an existing pilot program that offers lower-cost alternatives to a lender’s title insurance policy for some refinancing loans. FHFA figures cited by CNBC previously estimated that borrowers could save between $500 and $1,500 in closing costs.

That could benefit current homeowners who refinance when a new loan offers a real financial advantage. First-time homebuyers, however, would not get those refinancing savings when purchasing a house.

Freddie Mac reported the average 30-year fixed mortgage rate at 7.32% on October 23. At that rate, a buyer borrowing $400,000 would pay about $2,740 a month in principal and interest, before taxes and homeowners insurance.

Cheaper Homes Could Be a Longer-Term Goal

The order also creates a task force focused on manufactured housing, and it must deliver recommendations within 180 days. The goal is to identify ways to promote less expensive construction methods. Still, according to U.S. News & World Report, those recommendations alone are not likely to put more affordable homes on the market in 2027. How much the task force can actually accomplish is uncertain, since its approach has not been spelled out in detail.

The Bottom Line

For people planning to buy a home in 2027, the order could provide some relief. But it is unlikely to dramatically change the overall affordability picture for households already priced out of the market. Buyers who are paying hundreds of dollars a month in mortgage insurance may eventually keep more of their income, while those who are struggling to make a down payment or qualify for a mortgage may see little immediate benefit.

At the same time, the manufactured-housing effort could create another route to homeownership, although its impact will take time to show up in the market.

For now, prospective buyers should still budget based on the prices and mortgages they can actually obtain. The administration has outlined steps to reduce some costs, but making homes truly affordable for people who cannot buy one today would likely require a far broader policy change.