Margaret Nelson: Trump’s housing order could lower mortgage costs for Alaska homeowners

By MARGARET NELSON

Oct. 30, 2026 – Alaskan homeowners may see a reduction in their home mortgages of up to 1 percent monthly under an executive order signed by President Donald Trump on Oct. 22. The order, titled “Decreasing Housing Costs for the American People,” aims to cut mortgage and refinancing expenses to improve housing affordability.

Also, Veterans Administration and US Department of Agriculture loan interest rates may be reduced on new mortgages. USDA loans are popular in rural Alaska.

For example, if an Alaskan owns a home with an original mortgage of $400,000 and the home now has 20 percent or more in home equity the mortgage may be reduced by up to 1 percent or $400 per month. The increase in equity may be due to either paying down the principal or market appreciation. The savings would come from a reduction in the need for private mortgage insurance,

The exact amount of savings depends entirely on the size of the mortgage, the owner’s credit score and the down payment amount. This possible savings applies to conventional mortgages and not to Federal Housing Administration or Veterans Administration mortgages as they do not have PMI. Conventional mortgages are usually backed by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac), both federal government entities.

Highlights of the executive order are:

*Directs Fannie Mae and Freddie Mac to launch a pilot program to review all single-family mortgages using automated valuation models to cancel PMI on loans as the equity increases:

*Expands acceptance of automated title reviews approved by Fannie Mae in place of traditional title insurance polies to cut closing costs on refinance mortgages; and,

*Establishes a task for manufactured housing to streamline factory built and modular housing production to cut red tape and align federal approvals within 180 days.

The median home price in Alaska is $431,300, according to recent data from Zillow. The average sales price of a home in the Anchorage municipality is $565,747, according to Alaska Multiple Listing Service, up 6.26 percent from 2025.

Statewide statistics:

• Median Home Value: $397,932 to $431,300 depending on the index reviewed (about 8.7% higher than the U.S. national median).
• Year-over-Year Growth: Up roughly 2.5% to 5.3% compared to previous years.
• Statewide Average Single-Family Price: Around $459,000 based on historical labor and housing reports.

Home prices vary significantly depending on the community:

• Anchorage: $450,000 – $483,125 median sale price
• Fairbanks: $310,000 median price ($175 per sq. ft.)
• Juneau: $472,500 median price
• Wasilla: $615,000 median price
• Palmer: $499,900 median price
• Sitka: $694,500 median price
• Homer: $669,500 median price
• Ketchikan: $429,000 median price
• Kenai: $399,000 median price
• Soldotna: $378,900 median price
• Yukon-Koyukuk (Borough): $116,000 median price

Homeowners can contact their mortgage servicer to determine how much equity is available in their home and if the mortgage has PMI that can be cancelled. The contact information is found on the mortgage statement.

Margaret Nelson is broker/owner of Denali Real Estate and a lifelong Alaskan.

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