The share of U.S. homeowners with high mortgage rates has surged in the past few years, impacting refinancing and home sales. Over 30% of homeowners now have rates above 5%, up from 10% in 2022. The Trump administration aims to lower rates by purchasing $200 billion in mortgage-backed bonds.

Home sales have been lackluster, hovering around 4.06 million in 2024, down from a high of 6.12 million in 2022. The National Association of Realtors attributes the rise in higher-interest-rate borrowers to recent sales and cash-out refinancing. Applications to refinance have spiked by 120% compared to last year.

The potential rate drop from the bond purchases could save homeowners at least 75 basis points on their mortgage rate, making refinancing financially beneficial. However, a 15-basis-point decrease on the 30-year fixed rate would only save prospective buyers around $35 a month on their mortgage payment for the average-priced home.

Read more at CNBC: Here’s the breakdown of U.S. borrowers