Mortgage Rates Finally Crack 6% as Trump’s Bond-Buying Push Sends Shockwaves Through the Housing Market
Mortgage rates just delivered the kind of move homebuyers haven’t seen in years; and it didn’t come from the Federal Reserve.
Mortgage Rates Fall Below 6% for the First Time Since 2023
The average 30-year fixed mortgage rate dropped sharply to 5.99%, marking the first time it has fallen below 6% since February 2023. According to Mortgage News Daily, the rate plunged 22 basis points in a single day, an unusually large move for a market that typically shifts by mere hundredths of a percent.
Trump’s $200 Billion Mortgage Bond Plan Sparks Immediate Reaction
The sudden drop followed a social media post from President Donald Trump, who said he was instructing “representatives” to buy $200 billion in mortgage-backed securities. The goal, Trump said, was simple: drive mortgage rates lower and make homeownership more affordable for Americans.
Fannie Mae and Freddie Mac Confirm Early Purchases
Federal Housing Finance Agency Director Bill Pulte later confirmed that Fannie Mae and Freddie Mac would carry out the purchases. Pulte told reporters that the administration has already completed $3 billion in bond buying, signaling that the plan is no longer just rhetoric.
Why Mortgage Rates Fell Even Before the Buying Began
Remarkably, rates dropped almost immediately after Trump’s announcement; even before the full bond-buying program appeared to be underway. Experts say markets priced in the expectation of massive demand for mortgage bonds, which pushes yields down and lowers rates for borrowers.
Mortgage Rates Break From Treasury Yields
Normally, mortgage rates track the 10-year Treasury yield closely. This time, they didn’t. The 10-year yield remained largely unchanged, meaning the drop was driven by narrowing spreads, not broader bond market moves. “This is a story of spreads,” said Realtor.com senior economist Joel Berner.
A Potential Turning Point for a Frozen Housing Market
Lower mortgage rates could help thaw a housing market that has been largely stalled by affordability pressures.
In recent years, homebuilders dominated the market by offering rate buydowns to attract buyers. With 30-year mortgages starting with a “5” again, existing homeowners may regain market share; potentially reshaping housing dynamics in the year ahead.
15-Year Mortgage Rates Drop Sharply Too
It wasn’t just 30-year loans that benefited. The average 15-year fixed mortgage rate fell to 5.55%, offering attractive options for buyers and refinancers looking to pay off homes faster while locking in lower interest costs.
How Bond Buying Actually Lowers Mortgage Rates
When Fannie Mae and Freddie Mac buy mortgage bonds from lenders, banks suddenly have more cash to lend. With more money available and demand steady, the “price” of borrowing; interest rates; tends to fall, sometimes rapidly.
Can $200 Billion Really Move a $14.5 Trillion Market?
Not everyone is convinced the plan will have lasting effects. JPMorgan analysts noted that $200 billion represents just 1.4% of the total U.S. mortgage market, arguing the impact may be modest and short-lived.
Why the Lock-In Effect Still Limits Home Sales
The average rate on outstanding U.S. mortgages sits around 4.4%, far below today’s new loan rates. That gap means many homeowners may still hesitate to sell, limiting inventory even as rates fall.
Part of a Broader Housing Affordability Push
The bond-buying plan comes just days after Trump said he would move to ban large institutional investors from buying single-family homes. Together, the measures signal an aggressive effort to address housing affordability; especially as younger Americans struggle to enter the market.
Whether this mortgage-rate plunge marks a lasting shift or a temporary jolt, one thing is clear: the housing market just got its biggest jolt of optimism in years.
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Major Student Loan Changes Coming in 2026; From Parent PLUS Caps to the End of SAVE
Federal student loans are about to change in some of the biggest ways in decades. Beginning in 2026, new laws will reshape how much students and parents can borrow, eliminate long-standing loan programs, and overhaul repayment for future borrowers. For families planning for college, graduate students weighing advanced degrees, and borrowers already navigating repayment, these shifts could significantly alter education and financial decisions.
Major Student Loan Changes Coming in 2026; From Parent PLUS Caps to the End of SAVE
Trump’s ‘Big Beautiful Bill’ Just Changed Health Savings Accounts; What Millions Can Now Claim
The Trump administration has rolled out new details on Health Savings Accounts (HSAs) following the passage of the so-called “Big Beautiful Bill,” expanding who can use these powerful tax-advantaged savings tools. The changes could allow millions more Americans to lower their taxable income, earn interest on medical savings, and keep unused funds year after year.
Trump’s ‘Big Beautiful Bill’ Just Changed Health Savings Accounts; What Millions Can Now Claim
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John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
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