One More Reason Why 2026 Will Be a Great Year to Buy a Home:

One More Reason Why 2026 Will Be a Great Year to Buy a Home:

Interest Rates and Trump’s Mortgage Bond Plan. Today’s topic is mortgage rates 2026. You’re going to hear a lot over the coming weeks that interest rates have dipped below 6% for the first time in four-plus years. It’s exciting, but let’s be real—not 100% true yet. As I write this, the average 30-year fixed mortgage rate is hovering at 6.125%. We’re close, but to see it reliably drop to 5.75% or lower, we need more than just Fed moves. The real push could come from President Trump’s mortgage bond plan. He recently announced the government plans to invest $200 billion in mortgage-backed securities (MBS). This is a big deal—similar to past quantitative easing that helped lower rates during economic challenges. The goal? Make homes more affordable in 2026 by reducing borrowing costs for buyers and stimulating the market. How Trump’s $200 Billion Bond Purchase Could Lower Rates.

When the government buys MBS (through entities like Fannie Mae and Freddie Mac), it injects cash into the system, encouraging lenders to offer lower rates. Historically, large-scale purchases have shaved 0.25-0.75% off mortgage rates. If this $200B rollout happens as planned, we could see lower interest rates 2026—potentially into the mid-5% range by mid-year. But it’s not instant. Markets need time to adjust—likely 30-90 days or more for meaningful impact. Some analysts are jumping the gun on “below 6%” headlines, but the Trump housing policy momentum is real. Bulletproof Steps to Prepare as a Home Buyer in 2026.

Don’t wait for rates to drop—get ready now so you’re positioned when they do. Here’s how to become a bulletproof home buyer:

Get Pre-Approved Early — Lock in today’s rates for 60-90 days; refinance if they fall further.
Improve Your Credit Score — Pay down debt, fix errors—higher scores mean better rates.
Save for Down Payment & Closing Costs — Aim for 20% to avoid PMI; extra cushion helps in bidding wars.
Work with a Local Expert — An agent who knows the south metro market can spot deals before they hit public listings.
Monitor Policy Changes — Trump’s plan could add inventory (if paired with investor restrictions) and ease competition.

Why This Matters for Minnesota Buyers & Sellers
In the Twin Cities area, where inventory has been tight, lower rates + potential supply increase could make home affordability 2026 a reality for first-time buyers and move-up families. Sellers? More buyers mean faster sales and potentially higher offers. If you’re thinking about buying or selling in Lakeville, Apple Valley, Eagan, Burnsville, or Bloomington—or anywhere in the south metro—let’s chat. Reach out today for a free 2026 market analysis and personalized prep plan—no obligation. Text or call me—Tom Sommers, Coldwell Banker Realty—and let’s make 2026 your year.

Final Thoughts-
Trump’s mortgage-backed securities push isn’t a silver bullet, but combined with Fed actions, it could drive lower mortgage rates in 2026. The key? Prepare now so you’re ready to act when opportunity hits. The market’s shifting—be ahead of it.