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Posted on 01/10/2026 8:01:10 AM PST by Angelino97
Mortgage rates plunged to their lowest level in nearly three years on Friday after President Donald Trump said he had ordered a massive government intervention aimed at pushing borrowing costs down.
In a surprise post on Truth Social, Trump said he was directing mortgage giants Fannie Mae and Freddie Mac to buy $200 billion worth of mortgage bonds — a move that immediately rippled through financial markets...
New figures out this afternoon show the average rate on a 30-year fixed mortgage dropped 22 basis points to 5.99 percent, according to Mortgage News Daily, matching the lowest level since February 2023 and marking a sharp fall from last year’s peak above 7 percent...
For first-time buyers that could be enough to tip the balance — although saving for a down payment remains the biggest obstacle.
But there is a twist — one that is bad news for buyers but a relief for existing homeowners worried about falling prices.
Lower mortgage rates can actually push home prices higher by pulling more buyers back into the market at a time when there are still too few homes for sale.
At the heart of the move are mortgage-backed securities, often called mortgage bonds. These are bundles of home loans that are packaged together and sold to investors, such as pension funds and asset managers.
When investors buy these bonds, the companies that lend money to Americans ... get their money back faster. That frees them up to issue new mortgages and offer lower interest rates to borrowers...
By stepping in as a major buyer of mortgage bonds, the government is effectively boosting demand for those securities, pushing up their prices and pushing down the interest rates tied to new mortgages.
(Excerpt) Read more at dailymail.co.uk ...
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Trump bailing out his real estate pals?
Probably 90% of student loans paid for garbage degrees (an intangible asset) that have no economic value or worse...they taught the next generation of SJWs and Wokesters who are out in the streets fighting ICE and supporting criminals.
People with real, productive jobs who contribute to the country buy houses (a tangible asset) to live in.
That’s why.
Right or wrong aside, a homeowner is a more substantial benefit to society than a Ph.D. in Gender Studies.
That’s why.
Like all those people who, it turned out, bought houses they couldn't afford during the 2008 housing crash?
Trump bailing out his real estate “
No the TDS scumbags at Daily Mail trying to find negative spin. Get a clue troll.
Trump is a smart guy. But when the government (any government) interferes in the free market, bad things can happen. Maybe not immediately. But usually eventually.
There's no such thing as a "friendly" poker game nor a real estate "pal."
If we gave free homes to everyone, would everyone be "a substantial benefit" to the U.S.?
Are those Somalis who defrauded the govt suddenly "a substantial benefit" because they bought homes?
Were all those people who, during the 2008 housing crash, turned out to have bought homes they couldn't afford "a substantial benefit" to the U.S.?
And what percentage of student loans are for "Gender Studies" degree? According to Grok:
The percentage of U.S. college graduates who earn degrees in gender studies (or closely related fields like women's studies, gender and sexuality studies) each year is very small — typically well under 0.1% of all bachelor's degrees conferred.
So can this "Gender Studies degree" canard. Many student loans are for serious subjects.
Even so, it shouldn't matter. Government shouldn't subsidize either student loans or home mortgages. In both cases, it ...
1. Drives up the cost, and
2. Provides more loans to people who are likely to default.
Biden interferes in the market.
SOCIALISM!
Trump interferes in the market.
MAGA!
Few Americans understand anything about how money works and how the govt should interface with citizens in finance and here’s the evidence.
5.99 % Whoopdidoo. It will help a few more people buy and MAY encourage a few to sell.
My last mortgage was 3.2%.
This was my exact take on it. Anything the government interferes in almost always has disastrous consequences.
That’s why Mamdani’s plans for New York city are sure to lead to disaster...He’ll blame Trump, inevitably.
I’m sitting on 2.75% that the bank is BEGGING me to refinance and take some equity out.
Nope.
Because home loans have collateral. Defaulted student loans have liberal arts majors working at fast food joints.
Biden? Seriously? Try harder
“Why is it wrong for the government to subsidize student loans, but okay to subsidize home loans?”
It is not subsidizing home loans.
2.75. That’s nice.
“Because home loans have collateral. Defaulted student loans have liberal arts majors working at fast food joints.”
Chatgpt: “Housing consistently makes up about 16% of the entire U.S. economy, according to the most recent national data. This includes both home construction/remodeling and the ongoing cost of housing services like rent and utilities. Recent estimates place the range between 15–18% of GDP, with the latest figures landing at 16.1%”
“Student loans make up a small share of the total U.S. economy but a large share of household debt. Outstanding student debt is about $1.6–$1.77 trillion, which is roughly 5.5–6.5% of U.S. GDP, based on the latest available figures”
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