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MCLEAN, Va. - Freddie Mac (OTCQB:FMCC), a $39.14 billion market cap financial services giant with a remarkable 265% year-to-date return, reported Thursday that the 30-year fixed-rate mortgage (FRM) averaged 6.34% this week, up from 6.30% last week, but still below its 52-week average of 6.71%.
The 15-year FRM also increased, averaging 5.55% compared to 5.49% last week. A year ago, the 30-year and 15-year FRMs averaged 6.12% and 5.25% respectively. According to InvestingPro data, Freddie Mac maintains strong financial health with a current ratio of 105, indicating robust liquidity.
"The last few months have brought lower rates and as indicated by the recently reported increase in pending home sales, homebuyers are feeling more confident to get into the market," said Sam Khater, Freddie Mac’s Chief Economist.
Despite the weekly increase, mortgage rates remain below their annual average, potentially supporting continued buyer activity in the housing market.
The Primary Mortgage Market Survey focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with 20% down payments and excellent credit.
Freddie Mac’s mission involves promoting liquidity, stability, and affordability in the housing market throughout economic cycles, according to information provided in the company’s press release statement. With annual revenue of $22.97 billion and a beta of 2.1, the company shows both significant market presence and volatility. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Freddie Mac reported a notable decline in mortgage rates for the second consecutive week, with the 30-year fixed-rate mortgage averaging 6.26%, down from 6.35% the previous week. This decrease has led to a surge in refinancing activity, now accounting for nearly 60% of all mortgage applications, marking the highest level since January 2022. Despite the recent drop, current rates remain higher than the 6.09% recorded during the same period last year. Freddie Mac noted that this 15 basis point decline is the largest weekly drop in mortgage rates in the past year. Meanwhile, Keefe, Bruyette & Woods has maintained its "Underperform" rating on Freddie Mac shares. The firm cited potential dilution risks for common shareholders in the event of privatization, which they believe might start in early 2026. They noted that the probability of successful privatization has increased significantly over the past six months.
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