Jim Cramer Warns Housing Market's Comeback Could Collapse If Mortgage Rates 'Go Sky High' Again

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CNBC's Jim Cramer warned connected Jan. 20, 2026, that a crisp emergence successful owe rates could rapidly reverse the U.S. lodging market's emerging recovery, conscionable arsenic little borrowing costs person begun to unlock purchaser request and seller activity.

In a station connected X, Cramer stated, "Can't spend to person owe rates spell entity precocious here. The lodging marketplace was conscionable astir to thaw…" His remark reflects wide interest that the caller dip beneath 6%—driven by assertive argumentation intervention—may beryllium short-lived.

The mean 30-year fixed-rate owe fell to 6.06% for the week ending Jan. 15, 2026, according to Freddie Mac's Primary Mortgage Market Survey—the lowest level since precocious 2022.

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The 15-year fixed complaint dropped to 5.38%. Purchase applications and refinance measurement jumped noticeably successful response.

The diminution accelerated aft President Donald Trump directed Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC) to acquisition $200 cardinal successful mortgage-backed securities (MBS).

The involution accrued request for MBS, narrowed the dispersed to Treasuries, and concisely pushed immoderate regular quoted rates to 5.99%. Industry observers described the marketplace arsenic "poised for a coagulated outpouring income season" if rates stay cooperative.

Can't spend to person owe rates spell entity precocious here. the lodging marketplace was conscionable astir to thaw…

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While the determination provided contiguous alleviation for homebuyers and locked-in homeowners reluctant to sell, it drew crisp criticism. Economists warned that diverting funds from Treasury purchases could propulsion longer-term yields higher and rekindle inflation.

Peter Schiff called the strategy a signifier of recognition misallocation that props up already elevated location prices alternatively than solving affordability. Mohamed El-Erian labeled it "People's QE," highlighting risks of governmental interference successful markets.

Cramer's alarm centers connected the fragility of the existent thaw: immoderate rebound successful rates—potentially fueled by tariff-driven ostentation oregon shifting Fed expectations—could re-lock homeowners, shrink inventory, and stall momentum.