Retirement Accounts 'Bout to Unlock the Housing Market!

"Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that."

One of my favorite Martin Luther King Jr. quotes. In a time when it feels like we’re more divided than ever, it’s worth pausing to really reflect on these words. Nothing more needs to be said.

Even on this holiday, we are here to breakdown the latest and greatest in the mortgage world. Let's goooo!

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Read time: ~5 minutes

Rates ended HIGHER compared to last week, and volatility was HIGH. Rates remain in the low 6% range for most loan types without paying discount points. Paying discount points can get you in the high 5's.

Retirement Accounts 'Bout to Unlock the Housing Market!

Man, this current administration is desperate to jump start this housing market! Love or hate the moves, they are throwing everything but the kitchen sink at housing. The latest move came in the form of retirement accounts.

One thing most buyers don’t realize is that using a 401k for a down payment isn’t new. As long as you’re buying a primary residence, this option has existed for years. It’s just wildly underutilized because very few homebuyers even know it’s possible.

Under current guidelines, buyers can access their 401k by taking a loan against the balance. You pay it back over time, with interest, essentially paying yourself back. It’s been a quiet, behind-the-scenes strategy that hasn’t gotten much attention.

That's about to change.

On Friday, Trump’s National Economic Council Director, Kevin Hassett, shared that the administration is exploring a plan to allow buyers to use 401k funds for a down payment without it being a loan against the account. Basically, withdrawing the 401k without means of penalty or repayment. Details are still coming, but if this is approved for primary residences, it could be a major boost.

Here’s why it matters. The average 401k balance is roughly $40k for buyers 35 and under, and $100k for ages 35–44. A 5% down payment on a $500,000 home is $25,000.

The issue of lack of funds for a down payment has been solved!

If rates fall into the mid-to-high 5s this spring, a lot of “I’m years away” buyers may suddenly become buyers overnight.

And if the administration really wants to inject caffeine into the housing veins? Unlock the state retirement plans for teachers, police officers, and other public employees and the proverbial floodgates would open fast!

Can I get an AMEN?!?

The Ultra-Low "Golden Handcuffs" Starting to Break!

I swear, I didn't think this time would come anytime soon. 

But here we are.

Just five years after the COVID-era rock-bottom rates, those so-called “golden handcuffs” are finally starting to loosen! For the first time since the pandemic, more homeowners now have mortgage rates above 6% than those sitting on ultra-low sub-3% loans.

Ok, y'all...This is a big deal! We all know those ultra low rates have been the single biggest reason homeowners have stayed put!

Yes, plenty of people still have great mortgages, but the idea that everyone is locked into a 2–3% rate is fading fast. More homeowners have already moved, refinanced, or bought at higher rates and that group is clearly continuing to grow fast.

Why does this matter? Because rate lock-in is slowly losing its grip. The longer rates stay elevated, or even drift down slightly, the more people accept that 3% mortgages aren’t coming back anytime soon. And secretly, I hope they never get that low again.

Life clearly doesn’t pause for interest rates. People get married, divorced, have kids, change jobs, or simply outgrow their homes. Those moves keep happening, and we’re seeing it play out every day.

I am case in point. I happily (or begrudgingly if you ask my wife 🤣) gave up my sub-3% rate for a 6%+ mortgage thanks to Ruby Marie joining our world. As much as I loved my sexy low rate, we needed more space.

Inventory is continuing to improve in many markets, with some areas like Columbus even tipping buyer-friendly. We can thank the loosening of the Golden Handcuffs for that 🙂

Want Rates To Continue Lower? Don't Count on the Government

If you rely on the housing market to put food on the table, you have to selfishly love news that pushes mortgage rates lower. For example, Nick and I weren’t upset about the government’s plan to have Fannie Mae and Freddie Mac buy mortgage-backed securities. Because at the end of the day, it temporarily lowers rates, which results in more refinances and home purchases in the short term.

But let’s be honest: is government intervention the best long-term solution for lower rates? Not at all. Markets tend to correct themselves over time, and relying on artificial government fixes never ends well.

So what will really drive mortgage rates down sustainably in 2026? Two things: inflation and employment.

We’re already seeing movement in the right direction. December added just 50,000 jobs, which was way below expectations. Unemployment ticked down slightly to 4.4%, meaning the market isn’t crashing, just cooling. Inflation has drifted lower too, at 2.7% for the past year. Still above the Fed’s 2% goal but again trending down.

So, if you realistically want you want to see mortgage rates dip into the mid-5% range by the end of 2026, you need to quit looking at the government for solutions. The two things you should be rooting for are lower inflation and slower job growth. Any deviation such as faster hiring or a spike in prices will realistically keep rates above 6% for the foreseeable future.

Keep your eye on these two numbers; they’re the real drivers of where rates are headed in 2026.

Rebel 2026 - The AI Edge Every Realtor Needs in 2026

Here’s the Cliff’s Notes version of the Rebel speaker lineup, built specifically for people who sell, build, scale, and refuse to stay average:

One Room. Endless VALUE!

Dr. Ben Hardy – Performance & Identity Bestselling author of Who Not How and 10x Is Easier Than 2x. Teaches how top performers stop thinking like who they are today—and start operating like who they’re becoming.

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Jared James – Real Estate Growth Systems Trained tens of thousands of agents nationwide. Built a multi-seven-figure education platform. Knows exactly what separates producers from the “busy but broke.”

Tyler Mount – Personal Brand & Content That Converts Partnered with big agents like Glennda Baker and Ryan Serhant as a Brand strategist. Founder of Henry Street Creative. 1,000+ clients. $7B+ in marketing portfolio impact.

Lauren Lucas – AI for Business (No Tech Headaches) Helps agents and entrepreneurs use AI to save time and simplify marketing. No jargon. No theory. No tools you’ll forget to open.

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Mark Your Calendars 📅 The big event will be on Thursday February 5th, 2026

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Don’t hesitate to reach out if you need anything at all. Have a wonderful week!