Mortgage rates edge down, refinancing activity rises

MCLEAN, Va. - Freddie Mac (OTCQB:FMCC), a prominent player in the Financial Services industry with a market capitalization of $31.42 billion, reported Thursday that the 30-year fixed-rate mortgage averaged 6.27% this week, slightly down from 6.30% last week and lower than the 6.44% recorded a year ago.

The 15-year fixed-rate mortgage also decreased marginally to 5.52% from 5.53% last week. A year ago, the 15-year rate averaged 5.63%. According to InvestingPro data, Freddie Mac’s strong market position is reflected in its impressive year-to-date return of 192.76% and robust liquidity metrics.

Sam Khater, Chief Economist at Freddie Mac, noted that mortgage rates have remained relatively stable in recent weeks, creating favorable conditions for homeowners and potential buyers.

"Homeowners have noticed these consistently lower rates, driving an uptick in refinance activity," Khater said. "Combined with increased housing inventory and slower house price growth, these rates also are creating a more favorable environment for those looking to buy a home."

The mortgage rate data comes from Freddie Mac’s Primary Mortgage Market Survey, which focuses on conventional, conforming home purchase loans for borrowers with 20% down payments and excellent credit.

The slight decrease in mortgage rates reflects the current stability in the housing finance market, according to the press release statement.

In other recent news, Freddie Mac has reported a dip in mortgage rates, with the 30-year fixed-rate mortgage decreasing to 6.30% from 6.34% the previous week, marking its lowest level in about a year. The 15-year fixed-rate mortgage also saw a slight decrease to 5.53% from 5.55%. This decline in rates has spurred a significant increase in refinancing activity, with refinance applications making up nearly 60% of all mortgage applications, hitting a three-year high. Additionally, Freddie Mac has launched a cash tender offer for its Structured Agency Credit Risk (STACR) securities, covering multiple classes of STACR Notes. Wells Fargo Securities, LLC and Cantor Fitzgerald & Co. are leading this initiative, with CastleOak Securities, L.P. as co-dealer manager. These developments highlight Freddie Mac’s ongoing efforts to manage its financial instruments and respond to market conditions.

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