"The average rate on a 30-year fixed-rate mortgage fell 11 basis points to 5.91% APR in the week ending Jan. 15, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of a percentage point. The drop follows last week's social media post from President Trump ordering government-sponsored enterprises Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed securities. That move would provide an influx of cash to lenders, who can lower rates knowing they have a guaranteed buyer."
""Inventory levels remain tight," NAR chief economist Lawrence Yun said in a news release. "With fewer sellers feeling eager to move, homeowners are taking their time deciding when to list or delist their homes. Similar to past years, more inventory is expected to come to market beginning in February.""
Average 30-year fixed mortgage rates fell 11 basis points to 5.91% APR in the week ending Jan. 15, per rates provided to NerdWallet by Zillow. A basis point equals one one-hundredth of a percentage point. The decline followed a social media directive for Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed securities, which would supply lenders with cash and a guaranteed buyer. Critics note that risky purchases by those agencies contributed to the 2008 financial crisis. Housing inventory remains tight, with unsold inventory down 18.1% month-to-month, limiting buyer options despite lower rates. Refinance activity typically jumps when rates drop.
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