President Donald Trump faces fresh fallout from the fast-rising cost of living.
The average interest rate on a 30-year fixed mortgage rose to 6.51 percent this week, the highest since August last year, according to Freddie Mac. The figure also increased from 6.36 percent last week, marking the sharpest weekly increase since April 2025, when Trump first unveiled his market-crashing tariffs.
The increase spells a massive difference for American homebuyers during a busy time of year for home sales. Those with a $2,500 monthly budget and a 20 percent down payment, for example, can afford to buy a $400,000 home at a 6-percent mortgage rate. At 6.5 percent, that buyer can only afford a $384,000 home, according to The Wall Street Journal.
The White House maintained that Trump has been “laser-focused on making housing more affordable,” citing an executive order he signed in March that directed Freddie Mac to purchase $200 billion in mortgage bonds.
“The President will not stop fighting until the American Dream of homeownership is within reach for every American, which is why he continues to sign bold new executive orders and calls on Congress to pass further legislation,” it said in a statement.
The latest blow comes as Americans are already hard-pressed to afford groceries and gas.
Just last week, the Bureau of Labor Statistics reported that grocery prices went up 2.9 percent over the past year ending in April. The national average price for unleaded gasoline has also increased to $4.53 per gallon, about 43 percent higher than a year ago.
The Trump administration has been scrambling to address the affordability crisis, which has tanked the president’s popularity even among his own base.
An AP-NORC poll conducted May 14 to 18 found that 63 percent of Republicans approve of Trump’s handling of the economy, down from 78 percent at the start of his second term. Only 37 percent of Republicans disapproved.
Overall, 67 percent of Americans are unhappy with Trump’s handling of the economy and only 33 percent approve. When it comes to Trump’s broader performance as president, 62 percent disapproved and 37 percent approved.
Trump appeared to acknowledge that Americans are dissatisfied with the economy in his remarks at a White House event on Tuesday.
“We inherited high prices and we got the prices down, and we got them down to numbers that in some cases people have not seen before,” he said during a congressional picnic event, before making a pivot. “We have an economy—people aren’t seeing it yet.”
