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].

Core Insights - Freddie Mac reported that the average 30-year fixed-rate mortgage (FRM) is now at 6.15%, marking a decrease from 6.18% the previous week and down from 6.91% a year ago, indicating a positive trend for potential homebuyers as the new year approaches [1][6]. Group 1: Mortgage Rate Trends - The 30-year FRM averaged 6.15% as of December 31, 2025, down from 6.18% the previous week [6]. - The 15-year FRM averaged 5.44%, a decrease from 5.50% the prior week [6]. - Year-over-year, the 30-year FRM has decreased from 6.91% and the 15-year FRM from 6.13% [6]. Group 2: Freddie Mac's Mission - Freddie Mac's mission is to enhance liquidity, stability, and affordability in the housing market, supporting families in buying, renting, or maintaining their homes since 1970 [3].