30-year mortgage rate hits 2025 low at 6.87%

MCLEAN, Va. - Freddie Mac (OTC:FMCC), a prominent financial services player with a market capitalization of $20.62 billion and strong revenue growth of 12.28% over the last twelve months, reported on Monday that the 30-year fixed-rate mortgage (FRM) has dropped to 6.87%, marking the lowest average rate thus far in 2025. Compared to last week’s average of 6.89%, this represents a slight decrease, while it is notably higher than the 6.77% average from the same period last year.

The 15-year fixed-rate mortgage, on the other hand, saw a marginal increase from 6.05% to 6.09% this week, which remains slightly below the 6.12% average recorded a year ago.

Sam Khater, Freddie Mac’s Chief Economist, commented on the implications of the current mortgage rate trends. He noted that the recent stability in mortgage rates is proving beneficial for potential homebuyers, as indicated by stronger purchase demand compared to last year. Khater suggests that this could signal an upturn in buyer activity in the housing market.

Freddie Mac’s Primary Mortgage Market Survey® (PMMS®) focuses on conventional, conforming, fully amortizing home purchase loans for borrowers who place a 20% down payment and possess excellent credit. The PMMS® serves as a key indicator of mortgage rate trends across the United States.

Freddie Mac, a public government-sponsored enterprise, is committed to promoting liquidity, stability, and affordability in the housing market. Since its inception in 1970, Freddie Mac has played a pivotal role in helping millions of families in purchasing, renting, or maintaining their homes through various economic cycles. The company’s stock has demonstrated remarkable performance, with a total return of over 487% in the past year, though InvestingPro’s Fair Value analysis suggests the stock may be currently overvalued.

This news article is based on a press release statement provided by Freddie Mac.

In other recent news, Freddie Mac reported robust financial growth in the fourth quarter of 2024, with significant increases in net income and revenue. The company’s net income for the year reached $11.9 billion, marking a 13% increase year-over-year, and its mortgage portfolio expanded to $3.6 trillion, a 3% increase from the previous year. Freddie Mac’s net worth also grew by 25%, reaching $59.6 billion. Additionally, the company’s commitment to affordable housing was evident, with 53% of home loans directed towards low and moderate-income families. These recent developments also include an 18% year-over-year increase in the packaging of mortgage-backed securities, valued at $411 billion. Despite potential economic challenges, Freddie Mac continues to emphasize its role in providing liquidity and stability to the housing market.

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