Mortgage Rates Drop to 9-Month Lows - Fannie & Freddie Eye $30B Public Return

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News Flash

Rates Give Buyers a Breather

Mortgage rates just hit their lowest point since October 2024, dropping to 6.63% for 30-year fixed loans.

That's a nine-basis-point drop from last week and marks three consecutive weeks of declines. The catalyst? A softer jobs report that's got everyone speculating about Fed moves.

This rate flirtation with the year's low of 6.62% from April is giving sidelined buyers their first real shot at affordability in months. For most of 2025, rates have been stubbornly camping near or above 7%.

The timing couldn't be better—we're smack in peak buying season. Expect pent-up demand to start unleashing as borrowers who've been playing the waiting game finally make their moves.

But let's be real: 6.63% isn't exactly the bargain basement rates we saw pre-pandemic. Still, in today's market, buyers will take what they can get.

The housing finance sector remains incredibly sensitive to economic data drops. Smart money is watching every jobs report and inflation print like hawks.

Fannie and Freddie Going Public?

Speaking of housing finance shakeups, the Trump administration is gearing up to take Fannie Mae and Freddie Mac public again. We're talking a massive $30 billion IPO later this year.

These mortgage giants have been living under federal conservatorship since the 2008 meltdown. Now it's time to cut the government umbilical cord and let private investors back into the driver's seat.

The $30 billion valuation signals serious investor appetite despite years of regulatory uncertainty. Industry insiders see this as the administration's biggest bet on reshaping mortgage finance.

Here's what this means for you: Less government control could spark more competition and innovation in mortgage lending. But it also adds complexity to an already intricate system.

The IPOs represent a major milestone in unwinding nearly two decades of federal intervention. Taxpayers who footed the bailout bill during the crisis are finally positioned to see some return on that investment.

The bottom line: Between falling rates and the Fannie/Freddie privatization push, the mortgage landscape is shifting fast. Whether these changes make your life easier or more complicated remains to be seen—but they're definitely worth watching.

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More You Should Know

• Retail Investment Surges in Q2: Retail real estate investment volume increased by 22% year-over-year in Q2 2025, according to Newmark's latest report, indicating growing investor interest and making retail the only property type consistently demonstrating positive value gains. [Source]

• ALTA Enhances Solar Title Coverage: The American Land Title Association (ALTA) has released new title insurance forms, including a specific endorsement for solar equipment on residential properties and revisions to existing forms like ALTA 9 and 36.6, to align with 2021 policy standards and support the growing residential solar sector. [Source]

• Commercial Property Prices Dip Slightly: Green Street's Commercial Property Price Index experienced a slight 0.1% dip in July 2025, reflecting continued challenges in the commercial real estate sector due to elevated borrowing costs and economic uncertainty. [Source]

• Office Vacancies Hit Record Highs: The national office vacancy rate reached a record 19.4% in June 2025, reflecting a significant increase over the past year and continued struggles in key markets like Austin, San Francisco, and Seattle, as new construction starts have also sharply declined. [Source]

• Senate Introduces ROAD to Housing Act: The bipartisan ROAD to Housing Act of 2025, introduced by Senators Tim Scott and Elizabeth Warren and unanimously passed by the Senate Banking Committee, seeks to boost housing supply, modernize financing, and reduce regulatory barriers, notably through a $200 million annual competitive grant program for local governments that demonstrate measurable increases in housing. [Source]

• New Home Sales Dip: New single-family home sales in June 2025 unexpectedly rose by a mere 0.6% to 627,000 units, falling short of market expectations and pushing unsold inventory to a 17-year high of 511,000 homes, despite a 2.9% decline in the median price. [Source]

• National Rent Prices Stabilize: National median apartment rents held steady at $1,402 in July, counter to typical seasonal increases, with a 0.8% year-over-year decline and a record 7.1% multifamily vacancy rate. [Source]

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