Overview
- Freddie Mac reports the average 30-year fixed rate at 6.06% and the 15-year at 5.38% for the week ending January 15, both the lowest since September 2022.
- Mortgage Bankers Association data show purchase applications rose 16% and refinance applications surged 40% last week, with refis comprising about 60% of activity.
- President Trump instructed Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds, with FHFA’s Bill Pulte noting an initial $3 billion in purchases as MBS prices climbed.
- Analysts caution that the Fed remains independent and GSE portfolios face regulatory caps, leaving uncertainty over how large and durable the rate relief will be.
- Lower rates have not resolved affordability constraints as prices remain elevated and inventory tight, though signs suggest the lock-in effect is easing for some owners.