US President Donald Trump has announced major steps aimed at reducing financial pressure on American households, focusing on credit card interest rates and housing affordability.
10% Cap on Credit Card Interest Rates
In a public statement, President Trump said his administration will no longer allow Americans to be “ripped off” by credit card companies charging interest rates between 20% and 30%.
Trump announced that effective January 20, 2026, he is calling for a one year cap of 10% on credit card interest rates. According to him, high borrowing costs were allowed to grow unchecked during the previous administration.
He said the move is focused on improving affordability and giving consumers relief from rising debt burdens.
Mortgage Rates Fall to 5.7%
Trump also claimed that mortgage rates have now dropped to 5.7%, compared to nearly 8% during the Biden administration, which he said made home ownership unaffordable for young families.
He attributed the decline in mortgage rates to his administration’s housing policy, including authorizing Fannie Mae and Freddie Mac to invest their cash reserves and purchase $200 billion worth of mortgage bonds.
According to Trump, this action helped push borrowing costs lower and ease pressure on the US housing market.
Focus on American Families
Calling the development “great news for American families,” Trump said his policies are aimed at reducing real living costs and putting Americans first.
He emphasized that lowering credit costs and housing expenses remains a key priority of his economic agenda.
40% US Homes Are Mortgage Free
Around 40% of homes in the United States are owned without a mortgage, up from 33% in 2010. This shows a steady rise in homeowners who have fully paid off their home loans over the past decade.
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