Mortgage rates fall to three-year low: Why mortgage rates are dropping — and whether Trump’s $200 billion bond move can fix housing affordability in 2026

Mortgage rates plunged to 6.06%, hitting a three-year low. This shift follows President Trump’s $200 billion mortgage bond initiative. The average 30-year fixed mortgage slid to 6.06%, down from 6.16% last week. The average 15-year fixed mortgage dropped to 5.38%, down from 5.46% last week. Refinance applications jumped 40% in a single week, as millions locked into 7%–8% mortgages rush to lower monthly payments.