Core Viewpoint - President Trump's proposal to purchase $200 billion in mortgage-backed securities has led to a significant decrease in mortgage rates, reaching the lowest levels in nearly two years [1][4]. Group 1: Mortgage Rate Changes - The 30-year fixed-rate mortgage fell by 22 basis points to 5.99%, marking the first time since February 2023 that it has dipped below 6% [2]. - The announcement specifically affected loans backed by Fannie Mae and Freddie Mac, resulting in lower rates [4]. Group 2: Market Impact - The reduction in mortgage rates is expected to stimulate a depressed housing market, benefiting both potential home buyers and homeowners looking to refinance [4]. - Experts suggest that 2026 could see a shift in market dynamics, with existing homes gaining market share as resale buyers may be able to secure 30-year mortgages starting with a rate below 6% [5]. Group 3: Economic Context - Typically, mortgage rates are influenced by the yield on the 10-year Treasury note; however, the current changes are attributed to spreads rather than shifts in Treasury yields [6].