MCLEAN, Va. - Freddie Mac announced today that the 30-year fixed-rate mortgage (FRM) has dropped to 6.77 percent, marking the lowest level since mid-March and a decrease of 12 basis points from last week.
The 15-year FRM also fell to 6.05 percent, down from 6.17 percent the previous week. These figures are part of the company’s weekly Primary Mortgage Market Survey® which tracks conventional home purchase loans for borrowers with excellent credit who put 20 percent down.
Sam Khater, Freddie Mac’s Chief Economist, noted that while mortgage rates are moving in a favorable direction and the economy shows resilience, there hasn't been a corresponding uptick in homebuyer demand.
Purchase application demand remains about 5 percent lower than in the spring, despite similar mortgage rates. Khater explained that this lag in response could be due to potential buyers waiting to ensure rates do not fall further before committing to purchases.
In comparison to the same period last year, the rates have shown minimal change with the 30-year FRM at 6.78 percent and the 15-year FRM at 6.06 percent a year ago. The survey focuses on conventional, conforming, fully amortizing home purchase loans.
Freddie Mac has been a cornerstone of the housing market since 1970, promoting liquidity, stability, affordability, and equity through various economic cycles. The organization's mission is to make housing possible for families nationwide, having supported tens of millions in buying, renting, or maintaining their homes.
This information is based on a press release statement from Freddie Mac.
In other recent news, Freddie Mac has been experiencing a series of fluctuations in the 30-year fixed-rate mortgage rates. After a period of steady increases, the rates recently dipped below 7% for the first time since early April, averaging at 6.94%. Still, the rates subsequently increased for five weeks, reaching an average of 7.22%, before stabilizing around 6.82%.
Freddie Mac also announced its decision to voluntarily delist its last security traded on the New York Stock Exchange, citing the unnecessary burden of compliance with NYSE rules. This comes after the delisting of Freddie Mac's common stock from the NYSE in 2010, under the direction of its conservator, the Federal Housing Finance Agency.
Freddie Mac's Chief Economist, Sam Khater, attributes these rate adjustments to data indicating a slowdown in economic growth. Despite signs of decreasing inflation rates, Khater does not anticipate a significant drop in mortgage rates in the near future.
Still, he notes an improvement in housing inventory, which could potentially moderate the growth of home prices. These recent developments are significant to potential homebuyers and the broader economy, influencing consumer spending and the construction industry.
InvestingPro Insights
As Freddie Mac (FMCC (OTC:FMCC)) navigates the fluctuating landscape of mortgage rates, real-time data from InvestingPro provides a comprehensive look at the company's financial metrics and market performance. With an adjusted market capitalization of $4.28 billion and recent revenue growth figures showing a robust 35.37% increase over the last twelve months as of Q1 2024, Freddie Mac stands as a significant entity in the financial services industry.
An InvestingPro Tip highlights that Freddie Mac is expected to see net income growth this year, which could signal a strengthening of its financial position in the face of a dynamic housing market. Moreover, the company's high return over the last year, with a price total return of 209.88%, underscores its prominence and the investor confidence it has garnered despite not paying dividends to shareholders.
Investors and market watchers can delve deeper into the company's prospects with a vast array of additional InvestingPro Tips, which provide further insights into Freddie Mac's performance and outlook. For those interested in exploring these tips, a visit to https://www.investing.com/pro/FMCC and the use of coupon code PRONEWS24 can offer up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking valuable information that can guide investment decisions.
With analysts predicting profitability for Freddie Mac this year and its liquid assets exceeding short-term obligations, the company's financial health seems poised for positive developments. These insights can provide context to the current mortgage rate trends and Freddie Mac's role in the housing finance ecosystem.
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