Daily mortgage rates briefly fell below 6% this week for the first time since 2022, drawing attention from both buyers and homeowners. The drop followed an announcement from President Donald Trump indicating a proposed $200 billion purchase of mortgage backed bonds, intended to push borrowing costs lower and improve housing affordability.

After the announcement, the average 30 year fixed mortgage rate dipped to about 5.99%, with 15-year loans near 5.55%. By the following day, rates had moved back up slightly, settling just above 6%. While still lower than recent weeks, the move appears to be more of a short term reaction than a meaningful shift in the broader rate environment.

Historically, large scale bond purchases have influenced mortgage rates, but this proposed amount is modest compared to prior programs that exceeded $1 trillion. As a result, any downward pressure on rates is expected to be limited. Markets are still balancing inflation concerns, economic data, and long-term bond yields, which continue to keep mortgage rates elevated compared to pre 2022 levels.

For homeowners with rates in the high 7% range, this brief dip could present a narrow refinancing window. For buyers, however, the change is unlikely to significantly alter affordability or purchasing decisions. Current conditions do not suggest a return to the ultra low mortgage rates seen during the pandemic.

The takeaway is simple: rates may fluctuate in the short term, but the overall trend remains relatively stable near the 6% range. Any decisions around buying or refinancing should be made with long term goals in mind, rather than reacting to brief market movements.

Inspired by: Homes.com