MCLEAN, Va. - Freddie Mac (OTCQB: OTC:FMCC), a prominent player in the Financial Services industry with a market capitalization of $8.4 billion, today announced a decrease in the 30-year fixed-rate mortgage (FRM), marking the third consecutive week of declines. According to InvestingPro analysis, the company's stock is trading slightly above its Fair Value, reflecting strong market performance with a 300% return over the past year. According to the latest Primary Mortgage Market Survey® (PMMS®), the 30-year FRM averaged 6.60 percent, a drop from the previous week's average of 6.69 percent. This time last year, the average rate stood at 6.95 percent.
The 15-year fixed-rate mortgage also saw a reduction, averaging 5.84 percent, down from last week's 5.96 percent. Compared to the same period last year, the 15-year FRM averaged 6.38 percent.
Freddie Mac's Chief Economist, Sam Khater, commented on the trend, noting that despite the recent decreases in mortgage rates, the housing market's improvement is tempered by ongoing affordability challenges for homebuyers. The company maintains a solid financial position, with InvestingPro data showing annual revenue of $23.04 billion and a "GOOD" overall Financial Health Score. The survey reflects rates available to borrowers with strong credit profiles who are able to make a 20 percent down payment.
The PMMS® is a weekly survey that focuses on conventional, conforming, fully amortizing home purchase loans. Freddie Mac's role in the housing market is to promote liquidity, stability, affordability, and equity throughout all economic cycles. Since its inception in 1970, the organization has aided tens of millions of families in purchasing, renting, or maintaining their homes.
This information is based on a press release statement from Freddie Mac and does not include any marketing or promotional content. The data reflects the current state of the U.S. housing finance market as of December 12, 2024. For deeper insights into Freddie Mac's financial metrics and additional ProTips, visit InvestingPro.
In other recent news, Freddie Mac reported a loss in the third quarter of 2024, falling short of analyst estimates. The company posted a loss of -$0.02 per share for the third quarter, a significant decline from the same period the previous year. Analysts had projected earnings of $0.90 per share. Despite this, Freddie Mac's revenue for the quarter significantly surpassed expectations, coming in at $5.84 billion, a figure that exceeded the analyst estimate of $3.61 billion by a considerable margin.
In addition to financial results, Freddie Mac also announced that the 30-year fixed-rate mortgage rate has reached 6.72 percent, marking the highest level since early August. The company's Chief Economist, Sam Khater, noted the potential for continued rate volatility due to upcoming economic events, the 2024 election, and the Federal Reserve's interest rate decision. These are recent developments that highlight Freddie Mac's financial performance and market conditions in a volatile economic environment.
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