Purchasing power has increased $30,000 in the last six months, with rates falling below 6% the day after President Trump ordered a $200 billion mortgage bond purchase.
The daily average mortgage rate dropped to 5.99% on January 9, the lowest level in nearly three years, in the wake of President Trump’s order for the government to buy $200 billion in mortgage bonds. That means a homebuyer on a $3,000 monthly budget has gained roughly $14,000 in purchasing power since one month ago, when the average rate was 6.35%.
A buyer on that budget can afford a $479,750 home with today’s mortgage rate, compared to the $466,000 home they could have bought with a 6.35% rate. But even last month’s 6.35% rate is low compared to most of 2025; comparing to the average rate six months ago provides a sharper contrast. With a 6.8% rate, roughly the average at the start of July, a buyer on a $3,000 monthly budget could have bought a $449,500 home. That means a buyer on that budget has gained over $30,000 in purchasing power since the summer.
To look at affordability another way, the monthly mortgage payment on the median-priced U.S. home, which goes for roughly $433,000, is $2,537 with today’s average rate. Six months ago, when rates were around 6.8%, the monthly payment would have been $2,720, about $180 more.
Mortgage rates fell sharply on January 9, to 5.99% from 6.21% the day before, following Trump’s directive for Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds, which he said on social media would help bring down mortgage rates and housing costs. Mortgage rates are unlikely to fall much further than they already have, as this would be a relatively small asset purchase program by historical standards.
“House hunters should know that this may be near the lowest mortgage rates fall for the foreseeable future,” said Chen Zhao, Redfin’s head of economics research. “The Fed is on track to leave rates alone for the next few meetings, especially after today’s mixed jobs report. Another plus for buyers: There are hundreds of thousands more home sellers than buyers in the market, allowing buyers to negotiate. Serious buyers may want to jump in before competition heats up in the spring.”
Falling mortgage rates are an opportunity for home sellers, too. Although there are more total sellers than buyers out there, new listings are losing steam. Prospective sellers may consider listing now, while sub-6% rates are motivating buyers.
