Mortgage Rates Just Hit a 3-Year Low

ICYMI—mortgage rates just hit their lowest level in more than three years.

On Friday, January 16, the average 30-year fixed mortgage rate dropped to about 6.06%.

That's the lowest since September 2022 and down from over 7% a year ago.

The 15-year fixed rate also eased to about 5.38%.

So...what caused the "sudden" drop?

Trump is pushing for $200 billion in large mortgage bond purchases through Fannie Mae and Freddie Mac, government sponsored enterprises, to push rates down.

Mortgage bond purchases like this create demand.
That demand lowers rates.

Factors like the Federal Reserve cutting rates three times last year and the 10-year Treasury Yield dipping also played a role.

What do these new numbers actually mean for buyers and investors?

At last year's 7.04% rate, a $450K home (20% down) came with a monthly payment of around $2,405.

At today’s 6.06%, that payment drops to roughly $2,172.

That’s about $230/month saved—or nearly $84,000 over 30 years.

That might not seem like much. But for some buyers, it could be the difference between being priced out and buying their first home.

Lower rates make borrowing cheaper and underwriting easier.
But this doesn’t magically fix housing affordability.

Home prices are still high.
Inventory is still tight.

And the demand that comes with rate drops could push prices up in some markets.

For STR investors, the takeaway is simple:

• Better financing helps—but don’t expect a rate miracle
• Refinancing could improve cash flow
• Inventory and local data still matter more than headlines

👉 Read the full story here

And if you’re looking to buy your first property and take advantage of the 6% rate, use our FREE Airbnb Affordability Calculator to make sure the numbers actually work before jumping in.

Cheers,

The Host Camp Team

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