Mortgage rates delivered encouraging news last week, dropping 22 basis points after Fannie Mae and Freddie Mac were directed to purchase $200 billion in mortgage-backed securities, according to CNBC. That move brought the average 30-year fixed mortgage rate down to 5.99%, its lowest level since February 2, 2023, offering buyers and homeowners a meaningful step toward improved affordability.
Large-scale purchases of mortgage-backed bonds have historically helped ease borrowing costs, and this action reflects a familiar playbook. During the early months of the COVID pandemic, the Federal Reserve used similar measures—purchasing hundreds of billions of dollars in agency mortgage-backed securities—to support housing and restore stability to financial markets. While today’s environment is different, the direction of policy signals an effort to create more favorable conditions for consumers.
As rates continue to trend lower, analysts are increasingly optimistic about what could come next. Many forecasts point to an additional 25 to 50 basis point decline, with some projecting even greater improvement. While lower rates alone may not immediately unlock a surge in home sales, they do improve flexibility for buyers who have been waiting for a better entry point.
Home prices remain elevated compared to pre-pandemic levels, and inflation continues to influence household budgets. Even so, gradually declining mortgage rates, combined with more balanced inventory and steady pricing, create a foundation for renewed confidence. As CNBC notes, these shifts may work together over time to support healthier, more sustainable momentum in the housing market. Need help finding a mortgage lender? I work with customer-focused lenders talented at finding unique loan programs for buyers at all levels. Contact me to learn more.
