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Mortgage Rates Fall to 6.06%, Sparking Buying Surge and Trump Bond Proposal

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Rates dip to 6.06%, lowest since September 2022 Freddie Mac reported the 30‑year fixed‑rate mortgage averaged 6.06% for the week ending Jan 15, the lowest level in nearly four years [1]. A $450,000 home with 20% down would see monthly principal‑and‑interest drop from about $2,405 to $2,172, saving roughly $230 per month [1]. The decline follows a gradual easing from the 2023 peak above 7% and signals the first substantive rate relief for borrowers since late 2022 [1].

Purchase applications and refinances jump after rate slide Freddie Mac’s chief economist noted a sharp rise in weekly purchase loan applications and refinance activity, attributing the surge to the lower borrowing cost [1]. Lenders report increased inquiries from first‑time buyers and homeowners seeking to lock in the new rate [1]. The uptick suggests the market could experience a stronger spring sales season if rates remain near this level [1].

Trump urges $200 billion mortgage‑bond purchases President Donald Trump posted that the government should buy about $200 billion of mortgage‑backed securities to push rates lower and make homeownership more affordable [1]. He claimed the purchases would directly reduce mortgage rates and monthly payments, framing the move as a quick‑acting affordability tool [1]. No formal policy has been announced, and the proposal remains a political suggestion rather than an enacted program [1].

Early signs of downward pressure and reduced lock‑in effect Economist Susan Wachter observed modest downward pressure on rates, noting that early data may reflect the impact of anticipated bond purchases even though the full $200 billion plan has not materialized [1]. A Realtor.com analysis showed the share of homeowners with rates above 6% now exceeds those with sub‑3% rates, indicating fewer owners are “locked in” and more are likely to move [1]. This shift could increase housing inventory and further stimulate buyer activity [1].

Sources

Timeline

Oct 2025 – The 30‑year fixed mortgage rate spikes to a record 7.79%, the highest level since the pandemic‑era surge, underscoring how sharply borrowing costs can climb when Treasury yields rise and the Fed’s policy stance tightens [2].

Dec 24, 2025 – Freddie Mac reports the 30‑year average drops to 6.18%, down from 6.21% the week before and well below the 6.85% average a year earlier. The 10‑year Treasury yield nudges up to 4.15%, while listings rise sharply and sellers lower prices, giving cash‑ready buyers a stronger negotiating position [3].

Dec 28, 2025 – The 30‑year rate hovers at 6.22% for the week ending Dec 11, keeping mortgage costs just above the 6% threshold that analysts expect to dominate 2026. Forecasts diverge: Bright MLS sees ~6.15% by year‑end, Realtor.com ~6.3%, and Fannie Mae ~5.9% for late 2026. Unemployment climbs to 4.6%, the highest in four years, and analysts warn that a recession could push Treasury yields—and thus mortgage rates—lower if growth stalls [2].

Jan 15, 2026 – Freddie Mac notes the 30‑year average falls to 6.06%, the lowest level since September 2022. The dip translates into roughly $230 monthly savings on a $450,000 home with 20% down. Weekly purchase applications and refinance activity jump, suggesting renewed buyer momentum ahead of a solid spring sales season. Earlier in the month, President Donald Trump urges the government to buy $200 billion of mortgage‑backed securities, claiming the move would “reduce mortgage rates and monthly payments” and make homeownership more affordable. Susan Wachter observes that these prospective purchases “may be contributing to modest downward pressure on mortgage rates,” even though the full program has not yet materialized. A Realtor.com analysis shows the share of homeowners with rates above 6% now exceeds those with ultra‑low sub‑3% rates, indicating the “lock‑in” effect is thawing and more owners may be willing to move [1].

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