Freddie Mac reports slight rise in mortgage rates

MCLEAN, Va. - According to the latest Primary Mortgage Market Survey (PMMS) released by Freddie Mac (FMCC), the 30-year fixed-rate mortgage (FRM) averaged 6.67% as of today, showing a marginal increase from the previous week’s average of 6.65%. This figure remains below the 7% threshold for the ninth consecutive week, providing a relatively stable landscape for those in the housing market. As a prominent player in the Financial Services industry with a market capitalization of $16.4 billion, Freddie Mac continues to demonstrate strong market presence, with its stock showing remarkable performance, up over 55% year-to-date.

The survey also noted a slight uptick in the 15-year FRM, which now averages at 5.83%, up from last week’s 5.80%. In a historical context, both the 30-year and 15-year FRMs have seen a decrease in average rates compared to the same period last year, when they were at 6.87% and 6.21%, respectively. According to InvestingPro data, Freddie Mac has maintained strong financial health with a robust current ratio of 131.78, indicating excellent liquidity management.

Freddie Mac’s Chief Economist, Sam Khater, highlighted that the consistency of mortgage rates under 7% benefits both potential home buyers and sellers, contributing to a more accessible housing market. The PMMS focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with strong credit profiles and a 20% down payment. With annual revenue of $23.44 billion and a positive revenue growth of 6.04%, Freddie Mac maintains its position as a key player in the mortgage market. InvestingPro subscribers can access 12 additional exclusive insights about Freddie Mac’s financial performance and market position.

Since its inception in 1970, Freddie Mac has played a pivotal role in the U.S. housing market, aiming to provide liquidity, stability, and affordability through various economic cycles. The organization’s efforts have facilitated homeownership and rental opportunities for tens of millions of American families. For detailed analysis and comprehensive insights about Freddie Mac’s performance and future outlook, access the full Pro Research Report available exclusively on InvestingPro.

This report is based on a press release statement from Freddie Mac. The survey serves as a prominent indicator of mortgage rate trends in the United States, reflecting the rates available to borrowers who meet specific criteria. As the housing market continues to adapt to economic conditions, these weekly rate averages serve as a critical measure for potential market entrants evaluating their financing options.

In other recent news, Freddie Mac reported robust financial results for the fourth quarter of 2024, with a notable increase in both net income and revenue. The company achieved a net income of $11.9 billion for the year, reflecting a 13% rise compared to the previous year. Additionally, Freddie Mac’s mortgage portfolio expanded to $3.6 trillion, marking a 3% growth year-over-year. In a strategic move to manage its portfolio, Freddie Mac announced an auction of approximately $290 million in non-performing loans, aiming to reduce less-liquid assets. The sale will be structured through four pools, allowing participation from diverse businesses, with BofA Securities, Inc. and First Financial Network, Inc. advising on the transaction.

Freddie Mac also reported that the 30-year fixed-rate mortgage has stabilized at an average of 6.65%, a slight change from previous weeks. This stability is seen as beneficial for the spring homebuying season, according to Chief Economist Sam Khater. The organization’s efforts in affordable housing were highlighted, with 53% of home loans directed towards low and moderate-income families. Analysts from various firms have not provided specific upgrades or downgrades in the context provided. Freddie Mac’s continued focus on liquidity, stability, and affordability in the housing market remains central to its mission since its inception in 1970.

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