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MCLEAN, Va. - Mortgage rates have seen a slight decline this week, according to the latest Primary Mortgage Market Survey® (PMMS®) released by Freddie Mac (OTC:FMCC), a prominent player in the Financial Services industry with a market capitalization of $20.04 billion. The 30-year fixed-rate mortgage (FRM) now averages 6.89%, a decrease from the previous week’s average of 6.95%.
The survey, which provides a snapshot of the nation’s average mortgage rates, also indicated a drop in the 15-year fixed-rate mortgage. As of today, the 15-year FRM stands at an average of 6.05%, down from 6.12% last week. According to InvestingPro, Freddie Mac has demonstrated strong financial performance, with revenue growth of 12.28% over the last twelve months.
Comparatively, a year ago, the 30-year FRM averaged 6.64%, while the 15-year FRM was at 5.90%. Despite the year-over-year increase, Freddie Mac’s Chief Economist, Sam Khater, noted that mortgage rates have remained stable over the past month and that recent data suggests the economy is on solid ground. This stability is reflected in the company’s stock performance, which has shown remarkable strength with a 428% return over the past year. Want deeper insights? InvestingPro subscribers have access to over 10 additional exclusive tips and comprehensive financial metrics.
Khater also observed that the last two weeks have seen a modest uptick in purchase applications compared to the same period last year, which may indicate a latent demand in the housing market.
The PMMS® focuses on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.
Freddie Mac, established in 1970, aims to provide liquidity, stability, affordability, and equity in the housing market. The organization has been instrumental in assisting millions of families in purchasing, renting, or maintaining their homes through various economic cycles.
The information for this report is based on a press release statement from Freddie Mac.
In other recent news, Freddie Mac reported a slight decrease in the 30-year fixed-rate mortgage, now averaging at 6.89%, down from the previous week’s average of 6.95%. This follows a period of stability in the housing market, with rates fluctuating between 6% and 7% over the past two and a half years. The 15-year fixed-rate mortgage also saw a decline, averaging 6.05%, down from last week’s 6.12%.
In other developments, shares of Fannie Mae (OTC:FNMA) and Freddie Mac experienced substantial growth following a report from the Wall Street Journal stating that privatizing the companies will be a priority. Fannie Mae’s shares saw an increase of up to 21%, while Freddie Mac’s shares gained as much as 22%.
These are recent developments that investors should take note of. Freddie Mac’s Chief Economist, Sam Khater, noted that despite higher rates compared to the previous year, purchase applications in the last two weeks are slightly higher than the same period a year ago, suggesting latent demand in the market. However, he also acknowledged that affordability challenges persist due to these higher rates and a persistent supply shortage.
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