WASHINGTON–Mortgage rates on Friday fell below 6% for the first time in several years on the same day President Donald Trump ordered his “representatives” to begin buying $200 billion worth of mortgage bonds (see related story).
The average interest rate for a 30-year fixed residential mortgage hit 5.99% on Friday morning, down from 6.21% on Thursday, according to data provider Mortgage News Daily. That’s the lowest the 30-year average rate has been since February 2023, the analysis stated.
The decline last week means rates for the average 30-year mortgage have now fallen more than one percentage point.
Interest rates for a 15-year fixed rate mortgage also dropped significantly on Friday, falling to 5.55%.
‘Well Out of Ordinary’
Given that mortgage rates typically rise and fall very slowly, almost always by just basis points, the latest moves are well out of the ordinary, Mortgage News Daily reported.
With the president ordering Fannie and Freddie to purchase more mortgages, the report noted that in recent months both GSEs have bought tens of billions of dollars’ worth of mortgage bonds, and as of their most recent public filings the two entities have combined holdings of mortgage securities worth more than $230 billion.
If Fannie and Freddie were to buy another $200 billion in bonds, it would nearly double their holdings.
