US 30-year fixed-rate mortgage drops to near 3-1/2-year low of 6.06%

Group 1 - U.S. mortgage rates have significantly decreased, with the average rate on a 30-year fixed-rate mortgage falling to 6.06%, the lowest since September 2022, down from 6.16% last week [1] - The Federal Housing Finance Agency (FHFA) has initiated purchases of mortgage-backed securities as part of a strategy to enhance housing affordability, following an order from President Trump to purchase $200 billion of bonds issued by Freddie Mac and Fannie Mae [2][3] - The average rate on a 15-year fixed-rate mortgage also declined to 5.38% from 5.46% in the previous week, compared to an average of 6.27% during the same period last year [4] Group 2 - FHFA Director William Pulte indicated that the agency began with a $3 billion initial round of purchases to support the housing market [3] - President Trump is facing pressure to reduce costs, including housing expenses, as the Republican party aims to maintain control of Congress in the upcoming mid-term elections [3] - Trump has proposed measures to restrict institutional investors from purchasing single-family homes, which may impact the housing market dynamics [4]