economy

January 9, 2026

Mortgage rates drop to lowest level in nearly 3 years as Trump orders buying of $200 billion in mortgage bonds

President Donald Trump posted on social media Thursday that he is instructing mortgage giants Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds.

Mortgage rates drop to lowest level in nearly 3 years as Trump orders buying of $200 billion in mortgage bonds

TL;DR

  • A potential $200 billion purchase of mortgage-backed securities by the Federal Reserve could drive mortgage rates down.
  • Analysts predict a drop of 25-50 basis points, potentially bringing the 30-year mortgage rate close to 6.0%.
  • Lower mortgage rates could increase demand for housing and improve builder margins.
  • Despite potential rate drops, overall affordability remains a concern due to high home prices and consumer financial limitations.
  • Current homeowners may also benefit from refinancing opportunities.
  • Homebuilder stocks rallied on the news, though they are also concerned about rising costs and labor shortages.

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