Mortgage rates fall to lowest level in more than three years

Mortgage rates fell to just above 6%, the lowest level in more than three years, after a White House-directed $200 billion mortgage bond purchase by Fannie Mae and Freddie Mac; home sales rose more than 5% in December.

Mortgage rates fell to just above 6%, the lowest level in more than three years. The decline followed a White House directive for Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds. That action is described in the article as part of broader efforts to address affordability ahead of midterm elections. Industry officials say the rate decline helped increase borrower demand at the start of 2026. Key facts: - Mortgage rates fell to just above 6%, the lowest level in more than three years. - President Trump directed Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds last week, which the article says put downward pressure on rates. - The article reports the purchase was part of broader affordability efforts ahead of midterm elections. - Bob Broeksmit, chief executive of the Mortgage Bankers Association, said the decline "fueled a sharp increase in borrower demand" at the start of 2026. - Home sales rose more than 5% in December, the biggest gain in nearly two years, while the year as a whole remained among the weakest in decades. Summary: The article links the recent drop in mortgage rates to the announced bond purchases and notes a corresponding rise in borrower demand and a December increase in home sales. The broader effects on the housing market and any further policy steps are undetermined at this time.