MCLEAN, Va. - Freddie Mac (OTCQB: FMCC (OTC:FMCC)) announced on Thursday that the 30-year fixed-rate mortgage (FRM) has dropped to 6.94 percent, marking the first time in over a month that rates have fallen below seven percent. This decline offers a slight reprieve for spring homebuyers amid a fluctuating housing market.
The latest figures from the Primary Mortgage Market Survey® (PMMS®) represent a modest decrease from the previous week's average of 7.02 percent. In comparison to the same period last year, the current rate shows an increase from the 6.57 percent average.
The 15-year fixed-rate mortgage also saw a decrease this week, averaging 6.24 percent, down from 6.28 percent the week prior. This time last year, the 15-year FRM stood at an average of 5.97 percent.
Sam Khater, Chief Economist at Freddie Mac, noted that while recent data indicates a decline in sales of previously owned homes, there is an uptick in the total inventory of both new and existing homes. He suggests that the combination of increased supply and the recent downtrend in mortgage rates could signify a positive shift for the housing market.
The PMMS® is tailored to track conventional, conforming home purchase loans for borrowers who place a 20 percent down payment and possess excellent credit.
Freddie Mac has been a cornerstone in the national housing market since 1970, striving to facilitate homeownership for families across the United States, regardless of economic cycles. The organization plays a critical role in ensuring liquidity, stability, affordability, and equity in the housing market.
This reported decrease in mortgage rates is based on a press release statement from Freddie Mac.
InvestingPro Insights
As Freddie Mac (OTCQB: FMCC) continues to play a pivotal role in the U.S. housing market, recent data from InvestingPro paints a broader picture of the company's financial health and market performance. The organization's market capitalization stands at approximately $4.7 billion, reflecting its substantial presence in the financial services industry. While FMCC's P/E ratio is currently negative at -262.59, indicating challenges in profitability, analysts anticipate a turnaround with net income expected to grow this year.
Investors should note the company's significant price volatility, as Freddie Mac's stock has been known to experience large price movements. This could be attributed to a variety of factors, including market sentiment and broader economic trends impacting the housing sector. However, the company has shown a strong return over the last year, with a one-year price total return of 223.85%, signaling a substantial recovery and investor confidence over the past twelve months.
Looking at the liquidity aspect, Freddie Mac's liquid assets exceed its short-term obligations, which is a positive sign for the company's financial robustness. This aspect is crucial for investors to consider, especially in the context of the current economic environment where interest rates and mortgage demand may fluctuate.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available on the platform, which delve into Freddie Mac's market performance, including its role as a prominent player in the financial services industry and expectations for profitability in the upcoming year. To explore these insights and more, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. In total, there are 10 InvestingPro Tips available for Freddie Mac, offering a comprehensive look at the company's strategic position and potential investment opportunities.
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