Mortgage rates have fallen to their lowest levels in nearly four years, with the 30-year fixed rate now at 6.01% according to Freddie Mac data. This marks an 84 basis point drop from this time last year, though the Federal Reserve held its federal funds rate steady at its January meeting and is unlikely to cut rates until at least March.

President Trump's recent proposal to unfreeze mortgage rates by having Fannie Mae and Freddie Mac purchase billions in mortgage bonds has helped narrow the spread between mortgage rates and 10-year Treasury yields. While this has contributed to the recent decline, experts say sustained asset purchases would be needed for significant market movement. The 10-year Treasury yield currently sits at 4.03%, down from 4.30% a year ago.

Despite the downward trend, homebuyers shouldn't necessarily wait for rates to drop further. The housing market faces a fundamental supply-demand imbalance, with median home prices reaching $410,800 by Q2 2025 according to Federal Reserve Bank of St. Louis data. Even if rates fall during a potential recession, increased demand could offset affordability gains, making the current market conditions a critical window for prospective buyers.