Name: U.S. mortgage rates hit three-year low
Uploaded: 2026-01-10T00:53:52.010Z
Duration: 3 min 13 s
Description: Mortgage rates fell 22 basis points after President Donald Trump instructed mortgage giants Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed bonds, or MBS. Analysts predict that $200 billion of MBS purchases could drive a 25 to 50 basis point drop in mortgage rates.

Mortgage rates fell 22 basis points after President Donald Trump instructed mortgage giants Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed bonds, or MBS. Analysts predict that $200 billion of MBS purchases could drive a 25 to 50 basis point drop in mortgage rates.

Washington

The average rate for a 30-year fixed mortgage in the United States has dropped to 5.99%, marking its lowest point since early February 2023. This decline followed an announcement that Fannie Mae and Freddie Mac would buy $200 billion in mortgage-backed securities, a move intended to lower rates and make homeownership more affordable.

Analysts predict the policy could further reduce rates by 25 to 50 basis points, potentially saving buyers of median-priced homes around $118 per month. However, challenges remain for first-time buyers, including saving for down payments and meeting credit and income qualifications, while the housing market continues to face high prices and limited supply.

U.S. mortgage rates hit three-year low

The average rate on the popular 30-year fixed mortgage dropped 22 basis points to 5.99 percent. It hasn't been that low since the start of February 2023, and that's according to Mortgage News Daily. This came after President Trump posted on social media Thursday that he is instructing mortgage giants Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed bonds, or so-called MBS. He said this will drive mortgage rates down, monthly payments down, and make the cost of owning a home more affordable. And clearly it did just that on the news. But what does it actually mean going forward if Fannie and Freddie do buy more MBS? Well, so Fannie and Freddie, which are in government conservatorship, they don't originate loans. They buy loans from lenders, bundle them into MBS, and sell them to investors. And that helps replenish lender funds for new loans and keeps interest rates lower and more stable for homebuyers. Purchasing more mortgage-backed bonds or securities does move mortgage rates lower. The Federal Reserve did it in the first years of COVID a lot more, in fact, and mortgage rates dropped to record lows. Now, while it is still not known how quickly this would start now and how long it would take, analysts are predicting where mortgage rates could end up. Analysts put the drop somewhere between 25 and 50 basis points, but some even lower. Analysts at UBS said this decline may provide a boost to both new construction demand and existing home turnover. So what does that mean to you and me? Well, a drop of a quarter of a percentage point, say 6.15% to 5.9%, would save you on your monthly payment. How much? Well, for someone buying the median-priced home, which is right around $425,000, using a 30-year fixed mortgage with a 20% down payment, the monthly payment would then drop by $118. Now, for some, that might not seem like a lot, but for first-time buyers right on the edge of affordability, it could make a difference. They would still, however, need to save for the down payment, which is currently the biggest hurdle for most first-timers who are already pretty stretched due to inflation. And then you still have to qualify for the mortgage with your credit rating and your income. Noted housing analyst Ivy Zelman points out that this is not enough to really get the market going because we know people can't qualify even at 4.99%. She said, I think there's more work to be done. Now, if you're thinking of a new construction home, builders have already been buying down mortgage rates into the 5% range. But Zelman notes that this could still bring out more buyers to new homes who might not have known about that. But what about high home prices? They have been easing up lately, but lower mortgage rates generally boost prices. If you have a lower rate, you can afford more homes, so you buy more home. That's why prices shot up nearly 50% since the start of COVID because rates sat at record lows for more than two years. Bottom line, lower rates will help some with affordability, but the housing market still needs prices to ease more, and it just needs more homes in general.

Iran's army is threatening to join the crackdown on protesters as demonstrations against the regime grow and the death toll mounts. Huge crowds have taken to the streets across the Islamic Republic. Iran's Revolutionary Guard calls them "terrorists." Haley Ott has more details.

Tehran

Iran's army threatens to join crackdown against protesters

President Trump said, "We are going to do something on Greenland, whether they like it or not," earlier this week. But Greenland, a territory of Denmark and a NATO ally, is rejecting the threats.

Nuuk

Greenland rejects Trump's threats

Trump, who often cites national security interests as the reason for taking Greenland, said that if the US does not do something, 'Russia or China will take over Greenland'.

Trump says U.S will act on Greenland, 'whether they like it or not'

Protests across the U.S., including in Minneapolis, Philadelphia and Miami, are taking place following the fatal shooting of 37-year-old Renee Good by an ICE agent in Minneapolis. Police declared the demonstrations in downtown Minneapolis an 'unlawful assembly'.

Philadelphia

Protests spread across the U.S. over ICE shooting of woman

Internet and phone lines in Iran have been cut off as anti-government protests enter their second week. Reports say at least 65 people have been killed and more than 2,300 others detained. U.S. President Donald Trump has warned of a possible U.S. response to the government crackdown.

Internet blackout in Iran enters second day as protests intensify

Rescue workers are trying to find dozens of people trapped under a collapsed landfill in the Philippines. At least four people have been confirmed dead. The incident took place on Thursday, with more than 100 workers on site at the time.

Cebu City

Philippines: Dozens still missing in landfill collapse

BRICS nations have launched joint naval exercises off the South African coast. Supporters say the drills will strengthen co-operation among emerging economies.  But critics warn they could deepen global divisions.

Simon's Town

South Africa hosts Russia, Iran and China for military exercise

Iran's Revolutionary Guards warned on Saturday that safeguarding security was a "red line" and the military vowed to protect public property, as the clerical establishment stepped up efforts to quell the most widespread protests in years.

Iran authorities signal intensified crackdown as unrest grows

Luigi Mangione was back in court on Friday, where his lawyers worked to block the Justice Department from seeking the death penalty in his federal trial for the killing of UnitedHealthcare CEO Brian Thompson. Mangione pleaded not guilty in April 2025.

New York

Luigi Mangione's lawyers fight to block death penalty

Fire crews battle spreading blazes while communities face evacuations and power cuts.

Victoria

Thousands of firefighters deployed to fight bushfires in Australia

The protest comes amid wider rallies against US immigration enforcement and over the fatal shooting of the 37-year-old Renee Nicole Good.

Minneapolis

Several arrested in Minneapolis during anti-ICE protest

Trump says U.S. will act on Greenland, 'whether they like it or not'

U.S. President Donald Trump began a meeting to discuss Venezuela with executives from some of the world's largest oil companies at the White House, saying he wants them to invest $100 billion in the country to vastly expand its production.

Venezuela Strikes

Trump urges U.S. oil giants to repair Venezuela's energy industry

The U.S. seized another oil tanker linked to Venezuela in the Caribbean, U.S. Southern Command confirmed on Friday (January 9). The seizure of the vessel comes as President Donald Trump prepares to meet with oil company executives at the White House.

U.S. seizes fifth tanker linked to Venezuela

U.S. President Donald Trump is reiterating his threats against Iran's regime if violence and deaths continue during protests. CBS News' Imtiaz Tyab has more.

Trump: U.S. to hit Iran 'very hard' if violence continues at protests

Russia fired a powerful hypersonic missile overnight at a target in Ukraine near the border with NATO-member Poland, in what Kyiv's European allies described as an attempt to intimidate them from supporting Ukraine.

Kyiv

Ukraine Invasion

Russia fires hypersonic missile at Ukraine target near NATO border

A majority of European Union countries have agreed to sign a trade deal with the South American trading bloc, Mercosur. It'll be the EU's biggest free-trade pact and comes after decades of negotiations.

Brussels

EU approves Mercosur trade deal despite protests

The Trump administration is pulling the U.S. out of dozens of international organizations, including key UN agencies and the treaty underpinning global climate talks, marking a deepening retreat from multilateral cooperation.

Trump admin. withdraws from dozens of international organizations

The brother of Venezuela's interim president, Delcy Rodriguez, and head of the country’s national assembly has announced the release of a wide raft of political prisoners. It's being viewed as a gesture to seek peace less than a week after the capture of President Nicolas Maduro by U.S. forces.

Cúcuta

Venezuela releases political prisoners

Residents in Portland, Oregon, protested Thursday after officials say two people were shot by Border Patrol agents. Gwen Baumgardner has more on how the shooting unfolded.

Portland

Two shot by border patrol agents in Portland

Russia launched a massive attack in Ukraine using drones and missiles, including a nuclear-capable Oreshnik missile. Michael Bociurkiw, nonresident senior fellow at the Atlantic Council's Eurasia Center, joins CBS News with more.

Odesa

Russia strikes Ukraine with hypersonic missile

Four crew members aboard the International Space Station will be brought home more than a month early in the coming days as NASA cuts its mission short due to health concerns.

NASA cutting current International Space Station mission short

Iran's supreme leader has condemned anti-government protests, denouncing demonstrators as vandals and saboteurs. Iran has shut down the internet and cut off international calls and is promising decisive punishment.

Iran's Supreme Leader defiant as protests grow

The U.S. Senate advanced a resolution that would bar President Donald Trump from further military action against Venezuela without congressional authorization, a rare rebuke of the Republican leader.

U.S. Senate advances measure curbing Trump's Venezuela war powers

U.S. officials have discussed sending lump sum payments to Greenlanders as part of a bid to convince them to secede from Denmark and potentially join the United States, according to four sources familiar with the matter.

Trump administration mulls paying Greenlanders to join U.S.

Iran’s connectivity drops sharply nationwide – As authorities tighten controls amid growing protests over the economy. NetBlocks says the apparent blackout follows ‘a series of escalating digital censorship measures targeting protests’.

Iran experiencing nationwide internet blackout as protests intensify

The Senate on Thursday voted to advance a resolution that could limit President Trump's ability to continue military action in Venezuela without congressional approval. It comes as the president told the New York Times that he could see the U.S. having direct oversight of Venezuela for years.

Caracas

Trump says U.S. could have direct oversight in Venezuela for years

The crew at the International Space Station will return home early because of what NASA is calling a medical concern with a crew member. CBS News space consultant Bill Harwood has more details.

Texas

ISS crew returning due to medical issue for first time in NASA history

President Trump plans to meet with Colombian President Gustavo Petro after Mr. Trump issued threats following the U.S. operation in Venezuela that led to the capture of Nicolás Maduro. CBS News' Lilia Luciano reports from Bogotá.

Trump to meet Colombia’s Petro after tensions over Venezuela operation

The United Kingdom aided the U.S. in an operation to seize a sanctioned oil tanker linked to Venezuela in the North Atlantic. CBS News' Ramy Inocencio reports.

Breakdown