U.S. mortgage rates briefly dipped below 6% in early 2026 after a Trump administration move, then rose due to trade tensions before easing slightly.

Mortgage rates in the U.S. swung between 6% and 6.21% in early 2026, briefly dipping below 6%—the lowest in nearly three years—after the Trump administration directed government-backed lenders to buy $200 billion in mortgage-backed securities. A subsequent tariff threat against European allies over Greenland triggered a sell-off in U.S. Treasuries, pushing the 10-year yield to 4.3% and raising mortgage rates. After the threat was withdrawn, yields eased but remained elevated. Analysts warn that ongoing trade tensions and potential foreign investor sell-offs, including from Denmark’s AkademikerPension, could destabilize markets and push rates higher. Despite volatility, rates have fallen from 7.08% to 6.17% since Trump took office, supported by cooling inflation and expectations of Federal Reserve rate cuts.