Donald Trump brags about CNN crediting him for the drop in mortgage rates
President Donald Trump has criticized CNN in yet another late-night outburst Truth Social messages while also bragging about his own successes.
The commander-in-chief highlighted the network’s reporting, touting a Trump-led policy that has sent mortgage rates soaring to their lowest levels in more than three years, RadarOnline.com reported.
Trump drew attention to a segment from CNN News Central that linked the recent decline in mortgage rates to a $200 billion purchase of mortgage bonds ordered by the president — a move that some critics have described as a short-term intervention.
“Even Fake news CNN Praises the decline in mortgage rates!” the president wrote in a message shared on Friday, January 16.
The CNN segment, which Trump added to his post, details a sharp drop in borrowing costs that industry experts hope could help thaw a housing market slowed by high prices and reluctant sellers.
“Encouraging news for the real estate market today. Mortgage rates have now fallen to their lowest levels in more than three years, and industry experts hope this will help break the impasse that is keeping reluctant sellers from selling and potential buyers from buying,” anchor Brianna Keilar said in introducing the report.
CNN Business and Politics correspondent Vanessa Yurkevich reported that the average interest rate for a 30-year mortgage fell to 6.06 percent, according to Freddie Mac, from more than 7 percent a year earlier.
“Yes, we are talking about the lowest level in more than three years,” Yurkevich said, noting that mortgage rates had returned to early 2023 levels. She added that some experts attributed the decline to Trump’s directive to buy large amounts of mortgage bonds, which were intended to lower borrowing costs.
Real estate professionals are hopeful that the lower rates will encourage buyers to reenter the market and convince sellers to put homes on the market after months of sluggish activity.
Outlining the potential savings for buyers, Yurkevich explained that a buyer of a $450,000 home who puts down 20 percent on a 30-year mortgage could see monthly payments drop by about $230 compared to last year.
“That’s a savings of $230 a month, which is significant if you want to spend money on other things like groceries or a car payment,” Yurkevich said.
Existing home sales rose 5.1 percent in December from November, suggesting some buyers are returning after being on the sidelines.
However, falling mortgage rates have not yet reversed long-term price increases. The median price of existing homes reached $405,400 in December, marking 30 consecutive months of year-over-year price growth.
Keilar closed the segment by noting the shift in perspective on financing costs. “There are a few reasons to miss 2020, Vanessa, but I will say 6.06 percent is something to celebrate, maybe one of them.”
Yurkevich agreed: “That’s for sure. That’s for sure. Unfortunately, we will never go back to that 2.3 percent anytime soon. So 6 percent might sound good to some people.”
