Big Wins for American Families as Gas Prices, Mortgage Rates Plummet
1/12/2026
Action Summary
- America First Impact: President Trump’s agenda delivers tangible economic relief for American families with significant reductions in both energy and housing expenses.
- Record-Low Gas Prices: Gas prices are at their lowest in five years with a consistent decline over seven weeks; prices now fall below $3 per gallon in 43 states, dropping further in many locations.
- Consumer Savings: Estimated $11 billion reduction in overall gas spending in 2026 compared to 2025, reducing the burden on household disposable income.
- Mortgage Rate Decline: Average interest rates for a 30-year fixed mortgage hit a three-year low, resulting in the lowest monthly housing payments in over two years.
- Housing Affordability Measures: Strategic actions include a $200 billion purchase of mortgage-backed securities and a ban on large institutional investors buying single-family homes, thereby increasing property availability for everyday Americans.
Risks & Considerations
- The decrease in gas prices and mortgage rates may not directly impact university operations, but could influence the broader economic environment, affecting decisions related to campus utilities and transportation costs.
- Lower mortgage rates might increase demand for housing near the university, potentially impacting off-campus housing availability for students and faculty.
- The focus on energy dominance and housing affordability may shift federal priorities, potentially leading to changes in funding for energy-related research and development projects.
- Vanderbilt University should consider how these economic changes might affect student enrollment decisions, with more families potentially able to afford college tuition and associated costs.
Impacted Programs
- Economics Department: Faculty may find increased opportunities to engage in research related to the economic impacts of federal energy and housing policies.
- Vanderbilt’s Office of Real Estate: May need to adjust strategies in response to changing housing demand and affordability trends in the Nashville area.
- The Vanderbilt Institute for Energy and Environment could see shifts in research funding priorities, necessitating strategic alignment with new federal energy policies.
- Financial Aid Office: Potential adjustments in aid offerings as families experience changes in disposable income and financial capacity.
Financial Impact
- While direct financial impacts on university operations may be limited, the broader economic trends could influence financial planning, particularly in areas related to energy consumption and real estate.
- Potential increases in enrollment and housing demand could affect university revenue and necessitate infrastructure investment to accommodate growth.
- As disposable incomes rise, there may be an opportunity for increased fundraising and alumni contributions, leveraging improved economic conditions.
Relevance Score: 3 (The changes present moderate risks, mainly involving potential shifts in economic conditions affecting university strategies and planning.)
Key Actions
- Vanderbilt University’s Financial Office should assess the implications of reduced gas prices and mortgage rates on the university’s operational costs and potential savings. This could lead to reallocating resources to other strategic initiatives or providing additional financial support to students.
- The Vanderbilt Real Estate and Facilities Department should explore opportunities presented by the lower mortgage rates. This might include campus expansion or renovations at a reduced cost, aligning with the university’s long-term strategic goals.
- Office of Federal Relations should monitor further developments in federal housing policies. Understanding how these policies might affect housing availability and affordability for students and staff will be crucial for future planning.
- Economic Research Institute at Vanderbilt could analyze the broader economic impacts of these changes, potentially contributing valuable insights to discussions about energy and housing policy.
Opportunities
- The reduction in gas prices presents an opportunity for Vanderbilt’s Transportation Services to review and potentially reduce transportation costs, benefiting both the university and its community.
- With mortgage rates at historic lows, Vanderbilt’s Alumni Relations might consider developing programs or workshops to educate alumni and students about homeownership opportunities, enhancing engagement and support.
- The economic relief from lower gas and housing costs may increase disposable income for potential students, potentially impacting enrollment positively. Admissions Office should evaluate this trend for recruitment strategies.
Relevance Score: 3 (Some adjustments to processes and strategies are needed to capitalize on economic changes.)
Timeline for Implementation
N/A – There are no specific deadlines or enforcement delays mentioned within the directives.
Relevance Score: 1
Impacted Government Organizations
- Fannie Mae: Directed to purchase mortgage-backed securities as part of the initiative to drive down borrowing costs and promote homeownership.
- Freddie Mac: Tasked similarly with acquiring mortgage-backed securities to help make housing more affordable for American families.
Relevance Score: 1 (Only 1 or 2 agencies are directly impacted by the directive.)
Responsible Officials
- N/A – The text outlines policy outcomes and directives without specifying any particular agency official or executive branch office to implement them.
Relevance Score: 1 (Directives are described in terms of policy outcomes without reference to responsible executive officials.)