Freddie Mac reports dip in 30-year mortgage rates

Published 06/03/2025, 18:06
Freddie Mac reports dip in 30-year mortgage rates

MCLEAN, Va. - Mortgage buyer Freddie Mac, a prominent player in the Financial Services industry with a market capitalization of $17.14 billion, announced on Thursday that the 30-year fixed-rate mortgage (FRM) has experienced a significant weekly decline, averaging 6.63%, as the spring homebuying season commences. According to InvestingPro data, the company has demonstrated strong financial health with annual revenue reaching $23.44 billion. This marks the most substantial drop since mid-September, potentially enhancing the purchasing power for prospective homebuyers and offering current homeowners refinancing opportunities.

According to the Primary Mortgage Market Survey® (PMMS®), the 30-year FRM average fell from 6.76% the previous week. In comparison, the rate stood at 6.88% one year prior. The 15-year FRM also saw a decrease, averaging 5.79%, down from last week’s 5.94% and last year’s 6.22%.

This reduction in mortgage rates arrives at a strategic time, potentially stimulating the housing market by encouraging home purchases and refinancing. The refinance share of mortgage applications has reached nearly 44%, hitting its highest point since mid-December. InvestingPro analysis shows Freddie Mac’s impressive market performance, with a year-to-date return of 68.12% and a remarkable one-year return of 399.09%. For deeper insights into Freddie Mac’s financial metrics and future outlook, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Freddie Mac’s survey focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with excellent credit who make a 20% down payment. The organization’s longstanding mission has been to maintain liquidity, stability, and affordability in the housing market, assisting families with home purchases, rentals, and retention since 1970. With an overall Financial Health Score rated as "GOOD" by InvestingPro, the company continues to demonstrate strong market presence and operational efficiency.

The reported data is based on a press release statement from Freddie Mac, providing insights into current mortgage trends as of March 6, 2025.

In other recent news, Freddie Mac reported a strong financial performance for the fourth quarter of 2024, with net income reaching $11.9 billion, marking a 13% increase year-over-year. The company’s net revenues also grew by 13%, totaling $23.9 billion, while its mortgage portfolio expanded to $3.6 trillion, a 3% increase from the previous year. These results reflect Freddie Mac’s strategic focus on affordable housing, with 53% of home loans directed towards low and moderate-income families. Additionally, Freddie Mac’s net worth increased by 25% to $59.6 billion, underscoring its strengthening position in the housing finance market. The company’s efforts in packaging mortgage-backed securities reached $411 billion, an 18% increase year-over-year, highlighting its innovative approach. Furthermore, Freddie Mac’s multifamily business reported a 67% increase in net income, driven by higher net revenues and lower provision for credit losses. Despite economic challenges, Freddie Mac continues to emphasize its role in providing liquidity and stability to the housing market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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