Market Update · August 23, 2026 · 7 min read
Freddie Mac's Primary Mortgage Market Survey pegged the 30-year fixed rate at 6.65% this week. The 15-year sits at 5.95%. Those aren't the worst numbers we've seen in the past two years, but they're high enough that buyers keep asking me the same thing at open houses in Harford and Baltimore County: Can't someone just… fix this?
HousingWire published a piece this weekend titled "What can the government do to lower mortgage rates?" and I read it twice, because it's exactly the conversation I'm having with clients who are trying to buy homes in Cecil County or sell in Anne Arundel. The short answer? They have levers to pull. But not before some pretty significant issues get resolved.
Let me translate what that means if you're shopping for a house in Maryland, DC, Pennsylvania, or Delaware right now.
First things first: the Federal Reserve doesn't wake up and decide your mortgage rate. They set the federal funds rate, which is what banks charge each other for overnight loans. Mortgage rates follow the 10-year Treasury yield, and that yield moves based on inflation expectations, economic growth, and investor confidence.
Right now, Zillow Research points out that the 30-year Treasury yield recently hit a 19-year high before retreating after the announcement of larger bond buybacks. That retreat helped, but the underlying forces—government deficit, oil shocks, and inflation—are still there. So when people ask what the Fed can do, the honest answer is: they can influence sentiment, but they can't wave a wand.
The government can also work through Fannie Mae and Freddie Mac, who back the vast majority of mortgages in this country. But here's where it gets messy.
HousingWire reported Friday that Fannie Mae notified several senior officials Wednesday that their positions had been eliminated. The Wall Street Journal broke the story. We don't have full details yet on how many people or which divisions, but anytime a government-sponsored enterprise that underwrites trillions in mortgages starts cutting leadership, it signals internal turbulence.
That matters for Maryland buyers because Fannie and Freddie set underwriting standards, loan limits, and eligibility rules. If there's confusion or transition at the top, new programs slow down. Policy shifts stall. The kinds of targeted rate relief or first-time buyer incentives that could make a difference in places like Prince George's County or York County, PA? Those take clarity and continuity to implement.
I spent 20 years in education and leadership before I became a realtor. I can tell you from experience: when you lose institutional knowledge at the executive level, even well-intentioned reforms can get stuck in bureaucracy.
So what can government do? A few things, according to the HousingWire piece and the research I pulled:
Lower the federal funds rate. The Fed held rates steady at their July meeting, but Zillow noted that three policymakers actually pushed for a hike. That tells you how divided the conversation is right now. Lower rates would eventually filter through to mortgages, but it takes time and depends on inflation staying under control.
Increase bond buybacks. Treasury did just announce larger buybacks, which mechanically pushed yields down. That's why we saw a dip to 6.65% this week instead of something higher. But buybacks are expensive and can't run indefinitely without fiscal consequences.
Adjust conforming loan limits. Fannie and Freddie have caps on the size of loans they'll back. In high-cost areas like Montgomery County, those limits are already higher, but bumping them further could help more buyers qualify for lower rates. The catch? It also signals that home prices are expected to keep climbing, which doesn't help affordability in the long run.
Targeted programs. Down payment assistance, first-time buyer credits, or tax incentives. Maryland already has programs through the Maryland Department of Housing and Community Development, but expanding those or creating new federal versions takes Congressional action, and that's slow in an election year.
None of these are magic bullets. They're tools, and they take time.
Let me ground this in what's happening on the street. Redfin reported that 14% of U.S. homebuying deals fell through in July—the highest share since November 2023. Buyers have more power than they've had in years, especially in southern markets with a lot of inventory. But in Maryland? It's more nuanced.
Another Redfin report said mid-September is the prime dealmaking window for buyers in Baltimore. We're in late August right now, which means the next three weeks are critical. Inventory is ticking up—new listings climbed 1.2% week over week—but pending sales are falling. The National Association of REALTORS® reported that pending home sales slipped 2.3% in July and were down 2.2% year over year.
Translation: more choices, fewer buyers. That's a buyer's market on paper, but only if you can stomach the monthly payment at 6.65%.
I just worked with a family in Harford County who penciled out three different scenarios: buy now, wait for rates to drop, or keep renting. At 6.65%, their payment on a $425,000 house (about median for a single-family in Bel Air) was $2,690 before taxes and insurance. If rates dropped to 6%, they'd save about $160 a month. That's real money over 30 years, but it's not life-changing right now. And if home prices go up another 3-4% while they wait—which Redfin's July price data suggests is possible, with prices up 3.4% year over year—they lose that savings and then some.
If you're thinking about selling a home in Baltimore County, Howard County, or down in Charles County, this rate environment cuts both ways. Yes, fewer buyers are getting off the fence. But the buyers who are looking tend to be serious. The tire-kickers have largely gone back to renting or waiting it out.
I wrote earlier this week about why mid-September is Baltimore's sweet spot, and that timing still holds. But if you're counting on government intervention to suddenly flood the market with buyers in October, I wouldn't hold my breath. The levers exist, but they're slow, and they're tangled up in bigger fiscal and political fights.
Your best bet as a seller right now? Price it right from day one, stage it so it photographs well (I've seen what happens when you don't), and be ready to negotiate. Buyers have choices, and they know it.
I'm licensed in York and Lancaster Counties in Pennsylvania and New Castle County in Delaware, and the dynamics are similar but not identical. Pennsylvania's housing stock skews older, so buyers there are often weighing renovation costs on top of mortgage payments. Delaware's lack of a sales tax makes it appealing for retirees and military families relocating to Dover Air Force Base, but inventory in New Castle County has been tight.
The rate conversation is the same everywhere, though. At 6.65%, buyers need to put more down, stretch their DTI ratios, or compromise on location or size. If the federal government wants to help, the fastest path is probably targeted assistance for down payments and closing costs—not rate cuts, which take months to filter through.
Can the government lower mortgage rates? Yes, indirectly, over time, with a combination of Fed policy, bond buybacks, and fiscal discipline. Will it happen fast enough to change your decision about buying or selling a home this fall in Maryland, DC, Pennsylvania, or Delaware? Probably not.
What you can control: your credit score, your down payment, your choice of lender, and your timing. I wrote earlier this week about how pending sales fell even as rates dipped, which tells me a lot of buyers are paralyzed by uncertainty. Don't be one of them.
If you're serious about buying or selling, let's talk strategy. I work in Cecil, Harford, Montgomery, Howard, Anne Arundel, Charles, and Baltimore County and City in Maryland; Prince George's County; Washington D.C.; York and Lancaster in Pennsylvania; and New Castle in Delaware. I've got 20 years of teaching experience, so I'm going to walk you through the numbers and the options without the sales pitch.
You can browse current listings here or get in touch directly. The window between now and mid-September is real, and it's not going to last forever.
Katrina Kirton Sherrod, REALTOR® · Samson Properties · Licensed in MD, DC, PA & DE · 443-616-9770 · Katrina@kkstherealtor.com
“Ninety percent of all millionaires become so through owning real estate.” — Andrew Carnegie