Universe Today
When the Moon is low on the horizon there are lots of objects (hills, houses, trees etc) against which you can compare its size. When it’s high in the sky it’s there in isolation. This might create something akin to the Ebbinghaus Illusion, where identically sized objects appear to be different sizes when placed in different surroundings.
When seen against nearer foreground objects which we know to be far away from us, our brain thinks something like this: “wow, that Moon is even further than those trees, and they’re really far away. And despite how far away it is, it still looks pretty big. That must mean the Moon is huge!”.