Another data point for The Trump policies are working.

Quote:

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The average rate for a 30-year fixed mortgage was 5.98% this week, the lowest level since September 2022 and a slight decline from last week, Freddie Mac said Thursday.

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Mortgage rates will not be 3% that was a rare occurrence but should see them in 5% range:

Quote:

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Home shoppers realize that mortgage rates aren't about to fall below 3% againas they did during the pandemic-period housing boomand that between 5% and 6% is the new norm, said Bill Banfield, chief business officer at the mortgage company Rocket.

"So if you can get into that 5% zone," Banfield said, "they're willing to do it."

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https://www.wsj.com/economy/housing/mortgage-rates-fall-below-6-for-the-first-time-since-2022-f572ed7e

Democrats will be hollering "how will the poor banks make money now!"

Kvetch said:

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4.5% would be ideal.

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4.98% would be the psychological breaking point. Finger out of the dike.

But there are going to be a lot of mortgages instituted this Summer and Fall if rates even come down 1/2% more.

Getting inflation somewhat more under control along with minimal job creation has allowed the Fed to lower their target rates, which affect treasury yields, which is what mortgage rates are largely based on.

Massive irs refunds + low interest rates = Republican sweep in midterms

BREAKING 🚨: U.S. Housing Market

Home Sellers now outnumber Buyers by more than 600,000, the largest gap ever recorded 🤯👀 pic.twitter.com/JbS7yZOme4

— Barchart (@Barchart) February 23, 2026

Cool.

Now to see how long it takes for them to get back to 2.7% like in his first term. Hopefully by the end of this term it'll be there or close.

Baby steps.

I am actually in the market. For once, my timing might not be the worst.

No Spin Ag said:

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Cool.

Now to see how long it takes for them to get back to 2.7% like in his first term. Hopefully by the end of this term it'll be there or close.

Baby steps.

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Outside of a one-time, temporary collapse in rates due to a severe economic contraction, that's not happening. With our annual budget deficits of 6% to 7% per year we keep adding to our outrageous national debt. That will force up rates over time for the 10 year bond, which heavily influences mortgage rates.

If the bottom does fall out of rates, it will be due to severe economic collapse that won't be good for employment and wages.

The days of cheap money as far as the eye could see are over.

No Spin Ag said:

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Cool.

Now to see how long it takes for them to get back to 2.7% like in his first term. Hopefully by the end of this term it'll be there or close.

Baby steps.

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Want to know what won't be happening?
The only way rates get that low again is if we have an economic collapse like we did in 2020. No one wants that.

This summer is likely to be a great time to be buying for investment real estate. Because the market supply is so high in many areas, there are deals to be had for sellers that don't have the option to continue to hang on. Lock those up at a 6% interest rate (which you won't be able to get for an investment property unless interest rates come down some more), and you are likely in a pretty good position.

The one thing you have to worry about is whether or not the market you are buying in would suffer if emigration (people leaving) ramps up under Trump in 2026 or Vance in 2028. Could be a risk on rent prices.

I bought a few rental real estate properties from 2012 - 2014 with sub 5% interest rates (on an investment property), and it is now the largest portion of my net worth.

Colonel Kurtz said:

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BREAKING 🚨: U.S. Housing Market

Home Sellers now outnumber Buyers by more than 600,000, the largest gap ever recorded 🤯👀 pic.twitter.com/JbS7yZOme4

— Barchart (@Barchart) February 23, 2026

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and houses still priced at least 15k more than they should be.

Had a 1800sq ft 3 bed 2 bath on a good sized lot pop up on one of the apps for $190K. Sounds like a great price until you see the pictures and realize that the house hasn't been touched since 1984 and requires a complete gut.

So glad I sold in 2021.

Are mortgage rates affected by buyer demand? Is this a positive indicator or a signal of a bad housing market? I have no idea just asking.

Queso1 said:

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Are mortgage rates affected by buyer demand? Is this a positive indicator or a signal of a bad housing market? I have no idea just asking.

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Not correlated.

Queso1 said:

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Are mortgage rates affected by buyer demand? Is this a positive indicator or a signal of a bad housing market? I have no idea just asking.

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Mortgages are most effected by the risk free rate, followed by the global, world-wide risk premium for secured loans over the risk free rate.

Borrower demand is way, way, way down the list, so small that it is negligible. One basis point, maybe.

More winning!


https://townhall.com/tipsheet/amy-curtis/2026/02/26/rocket-mortgage-announces-partnership-with-compass-to-make-trumps-home-affordability-agenda-a-reality-n2671958

Icecream_Ag said:

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Colonel Kurtz said:

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BREAKING 🚨: U.S. Housing Market

Home Sellers now outnumber Buyers by more than 600,000, the largest gap ever recorded 🤯👀 pic.twitter.com/JbS7yZOme4

— Barchart (@Barchart) February 23, 2026

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and houses still priced at least 15k more than they should be.

Had a 1800sq ft 3 bed 2 bath on a good sized lot pop up on one of the apps for $190K. Sounds like a great price until you see the pictures and realize that the house hasn't been touched since 1984 and requires a complete gut.

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Houses are overpriced by closer to 100k. But I guess lower interests rates than Biden had is good.

Queso1 said:

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Are mortgage rates affected by buyer demand? Is this a positive indicator or a signal of a bad housing market? I have no idea just asking.

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Mortgage rates are somewhat supply and demand driven, but it's related to the demand for the mortgage bonds. Not connected to housing supply/demand.

For instance, if all foreign investors decided they had no desire to buy or hold more US mortgage related bonds, mortgage rates would go up. I believe we saw that a few months ago when the Fed was cutting rates, but mortgages rates actually went up…China was dumping bonds.

Kvetch said:

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4.5% would be ideal.

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No, like drug prices, I'm hoping for 500% - 600% less.

You're about to see the last rush of buying at overly inflated prices that will lock many into highly leveraged loans at a loan value that will be above market value come 2028.

KentK93 said:

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Another data point for The Trump policies are working.

Quote:

---

The average rate for a 30-year fixed mortgage was 5.98% this week, the lowest level since September 2022 and a slight decline from last week, Freddie Mac said Thursday.

---

Mortgage rates will not be 3% that was a rare occurrence but should see them in 5% range:

Quote:

---

Home shoppers realize that mortgage rates aren't about to fall below 3% againas they did during the pandemic-period housing boomand that between 5% and 6% is the new norm, said Bill Banfield, chief business officer at the mortgage company Rocket.

"So if you can get into that 5% zone," Banfield said, "they're willing to do it."

---

https://www.wsj.com/economy/housing/mortgage-rates-fall-below-6-for-the-first-time-since-2022-f572ed7e

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please point to which policy achieved this feat.

Heineken-Ashi said:

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You're about to see the last rush of buying at overly inflated prices that will lock many into highly leveraged loans at a loan value that will be above market value come 2028.

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I've been hearing that since 2022. Prices aren't coming down

Keyno said:

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Icecream_Ag said:

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Colonel Kurtz said:

---

BREAKING 🚨: U.S. Housing Market

Home Sellers now outnumber Buyers by more than 600,000, the largest gap ever recorded 🤯👀 pic.twitter.com/JbS7yZOme4

— Barchart (@Barchart) February 23, 2026

---

and houses still priced at least 15k more than they should be.

Had a 1800sq ft 3 bed 2 bath on a good sized lot pop up on one of the apps for $190K. Sounds like a great price until you see the pictures and realize that the house hasn't been touched since 1984 and requires a complete gut.

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Houses are overpriced by closer to 100k. But I guess lower interests rates than Biden had is good.

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I'm seeing houses below 200k for the first time in a few years in some neighborhoods around me but they are generally small or need lots of work.

Did find a completely renovated trailer house in Katy for $95K.

Keyno said:

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Heineken-Ashi said:

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You're about to see the last rush of buying at overly inflated prices that will lock many into highly leveraged loans at a loan value that will be above market value come 2028.

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I've been hearing that since 2022. Prices aren't coming down

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I've talked with realtors and builders and they all agree prices aren't coming down without a terrible economic event

Jeeper79 said:

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KentK93 said:

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Another data point for The Trump policies are working.

Quote:

---

The average rate for a 30-year fixed mortgage was 5.98% this week, the lowest level since September 2022 and a slight decline from last week, Freddie Mac said Thursday.

---

Mortgage rates will not be 3% that was a rare occurrence but should see them in 5% range:

Quote:

---

Home shoppers realize that mortgage rates aren't about to fall below 3% againas they did during the pandemic-period housing boomand that between 5% and 6% is the new norm, said Bill Banfield, chief business officer at the mortgage company Rocket.

"So if you can get into that 5% zone," Banfield said, "they're willing to do it."

---

https://www.wsj.com/economy/housing/mortgage-rates-fall-below-6-for-the-first-time-since-2022-f572ed7e

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please point to which policy achieved this feat.

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Overall, the key Trump-led policy tied to the recent mortgage rate drop is the $200 billion MBS purchase program via Fannie Mae and Freddie Mac. This has been touted by the administration as a direct intervention to ease borrowing costs for homebuyers and refinancers.

Icecream_Ag said:

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Keyno said:

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Heineken-Ashi said:

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You're about to see the last rush of buying at overly inflated prices that will lock many into highly leveraged loans at a loan value that will be above market value come 2028.

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I've been hearing that since 2022. Prices aren't coming down

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I've talked with realtors and builders and they all agree prices aren't coming down without a terrible economic event

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Do boomers dying off or moving onto assisted living count as your economic event because that's going to happen. They've been the primary demo buying and selling homes for years now amongst one another. They own a **** load of property and all of that property will need to get absorbed back into the economy.

My parents owned 5 houses as recently as 3 years ago...four of them were rental properties. Down to 2 now. And we just put them on a waiting list for an independent / assisted living place.

That's two houses my brother and I will be selling. One is on the market now.

And prices have been falling in the markets I pay attention to. Maybe not enough yet but they are definitely falling now.

Honestly no idea what they look at, but the builders specifically sited materials not getting cheaper. Don't know how new builds effect established but if they weren't optimistic about prices getting better

Icecream_Ag said:

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Honestly no idea what they look at, but the builders specifically sited materials not getting cheaper. Don't know how new builds effect established but if they weren't optimistic about prices getting better

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Yeah, I have no idea what materials are doing these days. I will say in our neighborhood empty lots sale and new builds have been fairly steady, while existing home sales have been dead in the water. Seems odd to me but it's a second home hood so I guess if you have the money to have a second home you want to build what you want. Dunno. We do have a lot of renovations on existing homes.