President Trump’s directive to slash mortgage rates just delivered the first sub-6% mortgage rate in over three years, breaking the housing market freeze that trapped American families under Biden-era inflation.
Story Highlights
- Mortgage rates dropped to 5.98% for the first time since September 2022, driven by Trump’s $200 billion mortgage-backed securities directive
- Monthly payments on median-priced homes now consume 22% of median income, restoring affordability after years of Biden’s inflationary crisis
- The breakthrough ends the “lock-in” effect that paralyzed buyers and sellers, with refinancing applications surging 2.8% week-over-week
- Economists warn persistent housing shortages could reverse gains without increased supply, threatening another price spike
Trump’s Intervention Breaks Biden’s Housing Stranglehold
Freddie Mac’s Primary Mortgage Market Survey released February 26, 2026, confirmed the 30-year fixed mortgage rate hit 5.98%, down from 6.01% the prior week and a crushing 6.76% one year earlier under the Biden administration’s fiscal wreckage.
President Trump’s early January directive ordering Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities forced rates down from 6.24% pre-announcement to 6.18% shortly after, demonstrating the power of pro-growth policy over leftist economic mismanagement.
Chief Economist Sam Khater called the milestone “meaningful” for spring homebuying as inventory finally improves after years of market paralysis.
Mortgage rates fell below 6% this week for the first time in more than three years, welcome news for waves of house hunters heading into the busy spring home-buying season https://t.co/wVrum4YRBQ via @WSJ
— Bo Snerdley (@BoSnerdley) February 26, 2026
Biden’s Inflation Legacy Left Families Locked Out
Mortgage rates exploded from pandemic-era lows near 2.5% to a devastating 7.8% peak in October 2023 as the Federal Reserve scrambled to combat Biden-era inflation fueled by reckless spending and energy policies that punished American workers.
The Fed’s three benchmark rate cuts in 2025 initiated only a tempered decline, proving monetary policy alone couldn’t undo the damage of progressive economic sabotage.
Homeowners clung to sub-6% rates, creating a “lock-in” effect where families refused to sell and lose their low-rate mortgages, strangling market activity and trapping first-time buyers. Median home prices reached $396,800 in January 2026, with national growth slowing to just 1.3% in 2025 as half of top metro areas saw outright declines.
Affordability Window Opens Amid Supply Concerns
Monthly payments on a median-priced home with 20% down at 6.10% rates now total approximately $1,924, representing 22% of median household income—a workable ratio that restores the American dream of homeownership after years of government-induced crisis.
Mortgage applications jumped 2.8% week-over-week, driven by refinancing as homeowners seized the opportunity to escape Biden-era rate traps, though purchase loan applications dipped slightly.
Experts including Kate Wood of NerdWallet predict the psychological boost of sub-6% rates will nudge sidelined buyers and reluctant sellers back into action, unlocking transactions frozen since 2022. However, Jack Krimmel of Realtor.com warns that without a supply ramp-up, renewed demand could trigger price spikes in hot markets, threatening the very affordability gains Trump’s policies created.
Long-Term Outlook Depends on Market Fundamentals
Fannie Mae forecasts mortgage rates will hover around 6% through 2026-2027, sustaining affordability improvements if housing supply finally expands to meet pent-up demand from years of construction underperformance and regulatory overreach.
Lisa Sturtevant of Bright MLS anticipates the Federal Reserve may deliver one rate cut in the first half of 2026 if labor markets weaken, though strong employment data could keep rates steady.
Bill Banfield of Rocket Mortgage notes rates have already fallen 1% year-over-year without additional Fed cuts, crediting Trump’s MBS directive as the key catalyst for relief. The persistent housing shortage remains the critical wildcard—builders face high costs and regulatory pessimism inherited from Biden-era policies, threatening to cap supply growth even as demand surges back to life.
POTUS Trump, promises made promises kept.
Mortgage rates fall below 6% for first time since 2022https://t.co/KU30xj15oo— Brooklyn Kidd (@kidd15_kidd) February 26, 2026
Trump’s decisive action proves limited government intervention targeted at market liquidity can reverse leftist economic failures without the bloated spending and regulatory shackles that created the crisis.
The sub-6% milestone delivers tangible relief for families crushed by inflation, but lasting affordability requires dismantling the regulatory barriers and permitting nightmares that choke housing construction across blue states. Conservative principles of economic freedom and market-driven solutions are restoring opportunity after years of progressive stagnation that left Americans sidelined in the most important investment of their lives.
Sources:
Mortgage rates fall below 6% for first time since 2022 – Fox Business
Mortgage rates analysis for February 25, 2026 – Bankrate
Mortgage rates fall below 6% for the first time in years – WUSF
