Fannie Mae, Freddie Mac shares tumble after conservatorship comments
MCLEAN, Va. - Mortgage rates have shown a slight decrease this week, according to Freddie Mac’s latest Primary Mortgage Market Survey® (PMMS®). The survey, released today, indicates that the 30-year fixed-rate mortgage (FRM) now averages 6.65%, a marginal decline from last week’s 6.67%. Freddie Mac, with its robust market capitalization of nearly $20 billion, continues to be a dominant force in the mortgage market.
The survey also revealed that the 15-year fixed-rate mortgage averaged 5.89%, which is a slight increase from the previous week’s average of 5.83%. In comparison to the same period last year, the 30-year FRM was at 6.79% and the 15-year FRM at 6.11%. According to InvestingPro data, Freddie Mac has demonstrated strong financial performance, with revenue growth of 6% over the last twelve months and maintains excellent liquidity with a current ratio exceeding 130.
Freddie Mac’s Chief Economist, Sam Khater, commented on the current stability of mortgage rates, noting that it "continues to benefit potential buyers this spring, as reflected in the uptick in purchase applications." This stability is observed amidst a landscape where home affordability remains a pressing concern for many Americans. InvestingPro analysis reveals over 10 additional key insights about Freddie Mac’s market position and financial health, available exclusively to subscribers.
The PMMS® focuses on conventional, conforming, fully amortizing home purchase loans for borrowers who place a 20% down payment and possess excellent credit. The survey serves as a significant indicator of mortgage rate trends in the United States and is closely watched by both industry professionals and potential homebuyers. Investors can access comprehensive analysis and Fair Value estimates for Freddie Mac through its detailed Pro Research Report, available among 1,400+ top stocks covered on InvestingPro.
Freddie Mac, a public government-sponsored enterprise, has been a cornerstone of the housing market since 1970. Its mission is to foster liquidity, stability, and affordability in the housing market, a mandate it pursues through various economic cycles.
The information provided in this article is based on a press release statement from Freddie Mac. The slight shift in mortgage rates could influence the decisions of homebuyers and investors as the spring buying season progresses.
In other recent news, Freddie Mac has reported a slight rise in mortgage rates, with the 30-year fixed-rate mortgage (FRM) averaging 6.67%, up from the previous week’s 6.65%. The 15-year FRM also saw a minor increase to 5.83% from 5.80%. In a separate announcement, Freddie Mac disclosed plans to auction approximately $290 million in non-performing loans as part of its strategy to reduce less-liquid assets. This sale will be structured through four pools, encouraging participation from smaller investors and diverse businesses. Additionally, Freddie Mac has noted a significant weekly decline in the 30-year FRM, which fell to 6.63% from 6.76%, marking the most substantial drop since mid-September. This reduction could potentially enhance purchasing power for prospective homebuyers. Furthermore, Freddie Mac reported that the 30-year FRM had previously hit a 2025 low at 6.87%, slightly down from 6.89% the week before. These developments reflect Freddie Mac’s ongoing efforts to promote liquidity and stability in the housing market.
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