Mortgage rates in the United States have dropped below 6% for the first time in nearly two years, a development that housing analysts say could influence both prospective buyers and homeowners who have been hesitant to make a move.
According to new data released by the Federal Home Loan Mortgage Corp., widely known as Freddie Mac, the average rate on a 30-year fixed mortgage now stands at 5.98%. The last time rates were at this level was in September 2022.
Industry observers describe the move under 6% as an important psychological turning point. Many homeowners have been reluctant to sell because doing so would mean giving up mortgages secured at much lower rates in prior years. At the same time, elevated borrowing costs have discouraged would-be buyers, contributing to a constricted housing market.
During the height of the pandemic, mortgage rates averaged around 2.5%. However, as inflation rose, the Federal Reserve increased its benchmark interest rate, pushing mortgage rates sharply higher in response.
Rates eventually climbed to roughly 7.8% in October 2023, marking their recent high.
Since the Federal Reserve began lowering its key interest rate — cutting it three times last year — mortgage rates have trended downward, though gradually. In addition, last month President Trump directed Freddie Mac and Fannie Mae, the government-backed entities that buy and bundle home loans for investors, to acquire $200 billion in mortgage-backed securities. Analysts say that move may have contributed to the continued decline in rates, as stronger demand for loans on the secondary market enables lenders to offer more favorable terms.
Although rates are only modestly lower than they were a week ago and remain well above the record lows seen during the pandemic, some experts believe crossing the 6% threshold could spur renewed activity. Kate Wood, a housing specialist at the personal finance site NerdWallet, said the psychological shift alone may encourage more Americans to reenter the market. Some buyers have been waiting for rates to fall, while many homeowners have delayed selling to avoid surrendering cheaper existing mortgages.
A rate below 6% could provide the push some need. “ There are people who are certainly going to reach that breaking point of ‘I love my mortgage rate, but my goodness, I cannot stand this house anymore,'” says Wood.
Recent data from the Mortgage Bankers Association showed total mortgage applications rose 2.8% in the week ending Feb. 13 compared with the prior week. However, that increase was largely driven by refinancing activity. Applications for other types of loans declined, suggesting the broader housing market remains sluggish.
Even though several years of elevated rates have softened home prices somewhat, affordability challenges persist. The median sales price of a home in the United States at the end of last year was $405,000.
A key driver of the nation’s housing affordability problem continues to be limited supply. The number of homes available for sale remains low, and new construction has not kept pace with demand. A recent report from Realtor.com cautioned that if inventory does not increase alongside a potential surge in buyers, prices could climb again, wiping out affordability improvements created by lower mortgage rates. At the same time, builders have expressed concerns about a difficult construction environment marked by high costs.
“ If you don’t add supply to the market, either in the form of new construction or existing homes from new listings, you’re going to see that demand increase turn into price increases,” said Jake Krimmel, senior economist at Realtor.com.
{Matzav.com}
A Columbia University student taken into custody by federal immigration authorities at her campus residence Thursday morning was released later in the day after New York City Mayor Zohran Mamdani said he received personal assurances from President Trump during a White House meeting.
Mamdani announced the development shortly after speaking with the president. “Just got off the phone with President Trump. In our meeting earlier, I shared my concerns about Columbia student Elaina Aghayeva, who was detained by ICE this morning. He has just informed me that she will be released imminently,” Mamdani wrote on X late Thursday afternoon.
Several hours afterward, Columbia University confirmed that the student had been freed.
“The university is relieved and thrilled that our student, Ellie, has been released from detainment. We will share additional details this evening,” the university said in a statement posted to Instagram.
Mamdani was in Washington, DC, for a previously undisclosed Oval Office meeting with Trump — the second time the two have met face-to-face since Mamdani’s victory in the November mayoral election.
Aghayeva, who is expected to graduate from the Ivy League institution this year, posted a message to Instagram shortly after being taken into custody around 6:30 a.m., writing, “Dhs illegally arrested me. Please help.”
The Department of Homeland Security stated that Aghayeva is an illegal immigrant from Azerbaijan whose student visa had been revoked in 2016 by the Obama administration after she allegedly failed to attend classes.
According to Columbia’s acting president, Claire Shipman, federal agents arrived at the university’s Morningside Heights campus at approximately 6:30 a.m. Thursday. In a letter to the campus community, Shipman alleged that officials made “misrepresentations” in order to gain entry to the student’s apartment before detaining her.
The operation reportedly involved multiple agents, who told campus security they were pursuing a missing persons investigation involving a 5-year-old child.
In a statement provided to The Post, DHS said officers were admitted into the apartment by the building’s manager and the student’s roommate. The agency added that all agents displayed badges and immediately identified themselves.
Following her arrest, Aghayeva again turned to Instagram, posting the message, “Dhs illegally arrested me. Please help,” alongside what appeared to be a point-of-view image showing a woman’s legs from inside the back seat of a vehicle.
Several Democratic officials in New York City sharply criticized the arrest.
Manhattan Borough President Brad Hoylman-Sigal accused federal authorities of misleading university officials. In an angry post on X, he claimed agents “purposefully deceived campus housing/security to gain entry to the student’s apartment.”
“The level of civil rights violations that took place is staggering,” he fumed.
City Council Speaker Julie Menin, who graduated from Columbia, described the episode as “disturbing” and issued a rebuke of ICE in her own social media statement.
“ICE has no place in our schools and universities. These activities do not make our city or country safer, but rather drive mistrust and danger. As Columbia College alumni, our hearts are with the community there, and we have been in contact with the University to offer our assistance.”
New York Gov. Kathy Hochul also condemned the arrest and said she intends to introduce legislation that would prohibit ICE from entering what she described as sensitive locations, including schools and dormitories.
“Let’s get it passed now,” she wrote on X.
Senate Minority Leader Chuck Schumer likewise denounced the detention as “unacceptable,” calling for immediate clarification about Aghayeva’s situation and stating that his office was coordinating with Columbia and appropriate authorities.
{Matzav.com}
