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.
LLPAs are either paid upfront or baked into the interest rate. They vary based on factors including borrower credit score, down payment and property type. The Biden administration attempted to revamp the LLPA matrix in 2023, which would have permanently reduced or eliminated fees for first-time homebuyers and low- to moderate-income borrowers. The changes also included fees for borrowers with lower credit scores and higher down payments.