Mortgage rates dip as homebuyers respond to lower borrowing costs

MCLEAN, Va. - Freddie Mac, a prominent player in the Financial Services industry with a market capitalization of $38.56 billion, reported Thursday that the average 30-year fixed-rate mortgage fell to 6.30%, down from 6.34% last week, reaching its lowest level in about a year.

The 15-year fixed-rate mortgage also decreased slightly to 5.53% from 5.55% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey. According to InvestingPro data, the company has demonstrated remarkable market performance with a 263.5% return year-to-date.

"Over the last few weeks, mortgage rates have settled in at their lowest level in about a year," said Sam Khater, Freddie Mac’s Chief Economist. "There is growing evidence that homebuyers are digesting these lower rates and gradually are willing to move forward with buying a home, which is boosting purchase activity."

Year-over-year comparisons show the 30-year rate is slightly lower than the 6.32% recorded during the same period last year. However, the 15-year rate remains higher than the 5.41% average from a year ago.

The survey focuses on conventional, conforming home purchase loans for borrowers with 20% down payments and excellent credit scores.

Freddie Mac (OTCQB:FMCC), which promotes liquidity, stability, and affordability in the housing market, releases the mortgage rate survey weekly as a key indicator for the residential housing finance market.

The information is based on a press release statement from Freddie Mac.

In other recent news, Freddie Mac reported a decrease in the 30-year fixed-rate mortgage, which now averages 6.30%, down from 6.34% the previous week. Similarly, the 15-year fixed-rate mortgage saw a slight decline, averaging 5.53% compared to 5.55% the week before, as per the company’s Primary Mortgage Market Survey. This drop in mortgage rates has led to a surge in refinancing activity, with refinance applications making up nearly 60% of all mortgage applications, reaching levels not seen since January 2022. Additionally, Freddie Mac has launched a fixed-price cash tender offer to purchase several Structured Agency Credit Risk (STACR) Notes. The tender offer, involving multiple classes of STACR Notes, is being managed by Wells Fargo Securities, LLC and Cantor Fitzgerald & Co., with CastleOak Securities, L.P. as co-dealer manager. These developments indicate significant movements in the mortgage and securities sectors under Freddie Mac’s purview.

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