President Donald Trump took to Truth Social to once again criticize CNN while also boasting about his own achievements. The president highlighted a segment from CNN News Central that credited him with driving mortgage interest rates to their lowest level in over three years.
In a post shared on Friday, January 16, Trump shared his excitement over CNN’s coverage of the drop in mortgage rates, writing, “Even Fake News CNN is praising the DROP in Mortgage Interest Rates!” The segment from CNN News Central discussed the recent decline in borrowing costs and how it could potentially help revive a sluggish housing market.
CNN Business and Politics Correspondent Vanessa Yurkevich reported that the average rate for a 30-year fixed mortgage had fallen to 6.06 percent, down from above 7 percent a year earlier. Yurkevich attributed this decline to Trump’s directive to purchase $200 billion worth of mortgage bonds, aimed at lowering borrowing costs for homebuyers.
The lower mortgage rates are expected to encourage buyers to re-enter the market and motivate sellers to list their homes after months of slow activity. Yurkevich explained that a buyer purchasing a $450,000 home with a 20 percent down payment on a 30-year mortgage could save around $230 per month compared to last year.
While existing home sales saw a 5.1 percent increase in December compared to November, long-term price increases have not been reversed. The median existing home price reached $405,400 in December, marking 30 consecutive months of year-over-year price growth.
Anchor Brianna Keilar closed the segment by acknowledging the shift in perspective on borrowing costs, stating, “There are a few reasons to miss the year of 2020, Vanessa, but I will say 6.06 percent being something to celebrate might be one of them.” Yurkevich agreed, noting that while 6 percent may not be as low as some would like, it is still a significant improvement from previous rates.
Overall, Trump’s intervention in the mortgage market has led to a notable drop in interest rates, providing potential savings for homebuyers and injecting some much-needed activity into the real estate market. Despite some skepticism from critics, the impact of Trump’s policy on mortgage rates is undeniable, and the housing market is showing signs of recovery as a result.
