Mortgage rates fell sharply after President Donald Trump announced plans for Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed securities, aiming to make homeownership more affordable.

The 30-year mortgage rate dropped to 5.99%, matching its lowest level since February 2023.

Analysts say the MBS purchases could reduce rates by 10–25 basis points, slightly lowering monthly payments for buyers and potentially boosting demand.

Experts note that affordability remains a challenge, as home prices are nearly 50% higher than pre-pandemic levels, and down payments remain a barrier for first-time buyers, CNBC has reported.

The move also provides psychological support for buyers and may benefit homebuilders’ margins, while encouraging refinancing for some homeowners.