Why a fully paid-off home in retirement is extremely valuable — especially in Trump's economy

When official data suggested that U.S. annual inflation hit 4.2% in May — the highest rate in three years — President Donald Trump had an unexpected response: "I love the inflation," he told reporters, according to the BBC (1). He went on to claim that prices would "come down like a rock" when the conflict with Iran is resolved.

The comments highlight just how volatile and unpredictable Trump's economy has become. Sudden waves of tariffs, foreign invasions, geopolitical crises and spikes in inflation have made retirement planning significantly more difficult.

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This concern is reflected in the polls, as Trump's approval rating on the economy dipped to a record-low 29%, with 63% disapproval, according to a YouGov/ The Economist poll (2) published in June. A whopping 57% of respondents to that survey also said that they expect the economy to get worse.

If you're part of that pessimistic cohort, there is one relatively mundane way to boost your financial security: paying off your home. Here's how a paid-off property can help you in Trump's economy.

The rising cost of living isn't good for anyone, but it's particularly hard on borrowers and retirees living on fixed incomes.

High inflation can lead to higher interest rates as a way to cool the economy and Dallas Fed President Lorie Logan recently raised this possibility: "I am increasingly concerned that higher interest rates could be necessary later this year," she said in a recent speech, according to CNBC (3).

Simply put, if you're looking to move to a new home, refinance your property or downsize, the prospect of higher mortgage rates should concern you.

If your move is unavoidable, trying to get the best rate possible is still worth the effort.

Freddie Mac recommends shopping around, obtaining quotes from three to five lenders to secure the best possible mortgage rate possible . Even a small rate reduction can translate into significant savings over the life of a loan.

To make this process easier, places like the Mortgage Research Center (MRC) can help you quickly compare rates and estimated monthly payments from multiple vetted lenders. By entering basic details — such as your zip code, property type, price range and annual income — you can view mortgage offers tailored to your needs and shop with confidence.

But if you're happy to stay where you are, paying off your mortgage could help you eliminate a major line item on your annual budget.

It also helps you protect your wealth, as real estate is more likely to retain its value when inflation and volatility are rising. Owning your home free and clear gives you the sense of security and predictability you need to navigate your retirement with confidence.

However, paying off your mortgage in retirement may also have some downsides.

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