Mortgage rates fell to their lowest level in nearly three years after President Donald Trump ordered Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities.
The average 30-year fixed mortgage rate dropped 22 basis points to 5.99 percent, matching levels last seen in early 2023.
Trump said the move would lower monthly payments and improve housing affordability by increasing liquidity in the mortgage market.
BREAKING: President Trump announces a $200 BILLION purchase of mortgage bonds to push mortgage rates down immediately
— Benny Johnson (@bennyjohnson) January 8, 2026
This is how you Make Housing Great Again and reclaim the American Dream
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Fannie Mae and Freddie Mac do not issue loans directly but buy mortgages from lenders, helping keep borrowing costs stable.
Analysts said the bond purchases could reduce mortgage rates by 10 to 25 basis points, with some forecasting even larger declines.
Lower rates could modestly boost homebuyer demand and refinancing activity, especially for recent borrowers.
Refinancing applications were already sharply higher before the announcement, according to the Mortgage Bankers Association.
Housing analysts cautioned that affordability challenges remain, as home prices are still far above pre-pandemic levels.
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