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Mortgage Rates Dip to Around 6% as Fannie and Freddie Bond-Buy Plan Lifts Activity

Lenders report a surge in applications, with durability likely to depend on the timing and scale of the government-sponsored enterprises’ mortgage-bond purchases.

Overview

  • Average 30-year fixed quotes are hovering near or just below 6%, with Zillow showing 5.99% on Jan. 14 after briefly hitting 5.87% earlier in the week.
  • Mortgage News Daily pegged the 30-year average near 6.01%, and MBA data showed 6.18% for the week ended Jan. 9, one of the lowest readings since 2022.
  • President Donald Trump directed Fannie Mae and Freddie Mac to purchase up to $200 billion in mortgage-backed securities, and FHFA’s Bill Pulte said an initial $3 billion buy has already been made.
  • Cheaper financing sparked stronger demand, with MBA reporting purchase applications up nearly 16% last week and refinances jumping more than 40%.
  • Realtor.com’s analysis of FHFA data shows 21.2% of outstanding mortgages carry rates at or above 6%, now exceeding the 20.0% share below 3%, even as more than half of loans remain at 4% or lower, keeping lock-in pressures in place.