On The Market Rates Fall to 5% Range as Big Investor “Ban” Gains Support
17 snips
Jan 15, 2026 Mortgage rates drop to the low 5% range as a new bond-buying plan is unveiled. There's buzz about a potential ban on institutional investors in the single-family home market, which could favor first-time buyers. Experts discuss the implications of this ban and its potential to revitalize inventory in certain cities. Predictions suggest fix-and-flip investments may experience a profitable surge by 2026. The housing market dynamics are shifting rapidly, creating new opportunities for savvy investors.
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Agency Bond Buying Lowers Rates Briefly
- Trump’s plan to have Fannie and Freddie buy $200B in mortgage bonds pushed mortgage rates down about 0.25%.
- The purchase uses agency profits rather than money printing, so it’s not traditional quantitative easing.
Consider Locking Your Mortgage Now
- Lock a mortgage now if you want to take advantage of the immediate rate drop.
- Understand the move may be temporary unless larger, riskier QE-style purchases occur.
Profit-Funded Purchases Aren’t QE — Yet
- Buying mortgage-backed securities with agency profits mimics QE effects but avoids printing new money.
- Repeating the program at larger scale would likely require true QE and raise inflation risk.
