Mortgage rates have been moving within an 11-basis-point range from their 2025 low since late October. However, President Trump's push for government mortgage makers Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds could be the stimulus that mortgage rates need to finally sink below 6%. The national average 30-year fixed mortgage this week was 6.16%, up one basis point, according to Freddie Mac. The 15-year fixed rate was 5.46%, up two basis points. Current mortgage rates Here are the ...

Core Viewpoint - President Trump's proposal to purchase $200 billion in mortgage-backed securities is facing significant criticism from economists, who warn that while it may temporarily lower mortgage rates, it could worsen housing affordability in the long run [1]. Group 1: Economic Concerns - Economist Mohamed El-Erian highlights that the proposal revives concerns about political interference in monetary policy, particularly regarding the Federal Reserve's asset purchases, which he refers to as "People's QE" [2][3]. - El-Erian also notes that public anxiety over affordability will likely lead to more aggressive policy responses, indicating a shift in market dynamics [4]. Group 2: Long-term Implications - Economist Peter Schiff criticizes the plan, stating that using $200 billion to buy mortgage bonds reduces the funds available for Treasury purchases, potentially leading to increased Treasury yields and inflation in the long term [5]. - Schiff argues that the fundamental issue in the housing market is not high mortgage rates but rather high home prices, suggesting that the proposed policy could exacerbate the crisis by allowing buyers to overpay for homes [6]. Group 3: Unusual Intervention - Nick Timiraos from The Wall Street Journal points out the unusual nature of this intervention, noting that it occurs during a period of solid economic activity without systemic risks, indicating a political motivation behind the move [7][8]. - Timiraos emphasizes that previous Federal Reserve purchases of mortgage-backed securities were made without profit motives and often resulted in significant losses, contrasting this with the current proposal [8]. Group 4: Market Reactions - Following Trump's announcement, prominent real estate stocks, including the Vanguard Real Estate Index Fund ETF and Opendoor Technologies Inc., experienced a rally, indicating a positive market reaction despite the underlying economic concerns [8].

Core Viewpoint - The administration is attempting to lower housing prices by enhancing a portfolio that was central to the 2008-09 financial crisis [1] Group 1 - The initiative aims to address the ongoing challenges in the housing market [1] - The portfolio in question is linked to previous financial instability, indicating potential risks associated with its enhancement [1]

Economic Indicators - The US added 50,000 jobs in December, falling short of economists' expectations of approximately 70,000 positions [3] - The unemployment rate decreased to 4.4% from 4.6% in November, reflecting a stable labor market theme of "no-hire, no-fire" [4] Market Reactions - US stock futures showed slight increases, with S&P 500 and Nasdaq 100 rising by 0.3% and 0.4% respectively, while Dow Jones Industrial Average futures also rose by 0.3% [1] - All three major indexes are on track to close the first full week of 2026 higher [1] Tariffs and Trade - The Supreme Court is expected to rule on the legality of President Trump's tariffs, which could have significant implications for US economic strategy and global trade [5] - The ruling will determine whether Trump properly invoked a law meant for national emergencies when imposing global duties [5] Government Actions - President Trump directed Freddie Mac and Fannie Mae to purchase $200 billion in mortgage-backed securities to lower mortgage rates and address affordability concerns [7] - The details surrounding this plan remain unclear, leading to market assessments of potential fallout [7] International Developments - The US is reassessing its approach to Venezuela, with Trump canceling a second wave of attacks in favor of cooperation on rebuilding the country's energy infrastructure [6] - A meeting with global oil majors has been called to discuss the future of Venezuela's significant oil reserves [6]

President Donald Trump speaks during a bill signing ceremony in the Oval Office of the White House, in Washington, Dec. 12, 2025.It was unclear who Trump is referring to as his representatives. The White House and the Federal Housing Finance Agency did not immediately respond to CNBC's requests for clarity.Trump, in a Truth Social post , said he was issuing that directive because Fannie Mae and Freddie Mac, the two government-sponsored mortgage-issuing entities, are flush with cash.President Donald Trump on ...

WASHINGTON (AP) — President Donald Trump said on social media Thursday that he is directing the federal government to buy $200 billion in mortgage bonds, a move he said would help reduce mortgage rates at a time when Americans are worried about home prices. Trump and the White House have been trying to show they are responding to voter concerns about affordability ahead of midterm elections in November. Home prices have generally risen faster than incomes because of a persistent construction shortfall, ma ...

Core Insights - Mortgage rates experienced a slight increase in the first week of 2026, with 30-year fixed-rate mortgages averaging 6.16% as of January 8 [2] Group 1: Mortgage Rates - The average rate for 30-year fixed-rate mortgages rose marginally to 6.16% [2] Group 2: Residential Demand - An improving momentum in for-sale residential demand was observed despite the rise in mortgage rates [2]

Mortgage Rates Overview - The average rate on a 30-year U.S. mortgage increased to 6.16%, slightly up from 6.15% last week, and down from 6.93% a year ago [1][2] - The average rate on 15-year fixed-rate mortgages rose to 5.46% from 5.44% the previous week, compared to 6.14% a year ago [2] Influencing Factors - Mortgage rates are influenced by the Federal Reserve's interest rate policy, bond market expectations for the economy and inflation, and generally follow the trajectory of the 10-year Treasury yield [2][4] - The 10-year yield was at 4.17% at midday Thursday, with mortgage rates having been mostly steady since dropping to 6.17% on October 30, 2024 [3] Market Dynamics - The average rate on a 30-year mortgage ended last year nearly a percentage point lower than at the start of 2025, which helped boost home shoppers' purchasing power [5] - Despite lower mortgage rates, existing home sales in November slowed compared to the previous year for the first time since May, indicating a potential decline in sales for the year [6] Housing Affordability - The recent decline in mortgage rates has benefited home shoppers, with the median U.S. monthly housing payment falling to $2,365, a 4.7% decrease from the same period last year [7] - However, the housing market remains challenging for many potential homeowners, particularly first-time buyers, due to high home prices and stagnant wage growth [8]

Core Insights - Freddie Mac's Primary Mortgage Market Survey indicates that the 30-year fixed-rate mortgage (FRM) averaged 6.16% as of January 8, 2026, showing a slight increase from the previous week when it averaged 6.15% [1][4] - The 15-year FRM averaged 5.46%, up from 5.44% the previous week, and down from 6.14% a year ago [4] - The overall mortgage rates have remained stable, hovering close to the 6% mark, which has contributed to a more than 20% increase in purchase applications compared to the same period last year [2] Industry Overview - Freddie Mac's mission is to enhance liquidity, stability, and affordability in the housing market across all economic cycles, having assisted millions of families since its inception in 1970 [3] - The PMMS focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with excellent credit who make a 20% down payment [2]

Mortgage Rates Overview - The 30-year fixed mortgage rate has decreased to 6.24%, down from 6.25% last week, marking the lowest level since September 2024 [1] - The current mortgage rates for various loan types are as follows: 30-year at 6.24%, 15-year at 5.54%, and 30-year jumbo at 6.42% [2] Economic Context - The U.S. economy expanded by 4.3% in the summer months, which typically influences mortgage rates positively [5] - The national median family income for 2025 is projected at $104,200, with the median home price at $409,200, leading to a monthly payment of $2,013, which is about 23% of the typical family's income [3] Future Projections - Analysts expect the average 30-year fixed mortgage rate to potentially fall below 6% for the first time since summer 2022, with estimates as low as 5.5% due to anticipated Federal Reserve rate cuts [6] - The Mortgage Bankers Association predicts that mortgage rates will remain around 6.4% throughout 2026, citing a growing economy and persistent inflation [6]