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MCLEAN, Va. - The 30-year fixed-rate mortgage (FRM) averaged 6.35% as of Thursday, down from 6.50% last week, according to Freddie Mac’s (OTCQB:FMCC) Primary Mortgage Market Survey. The company, a prominent player in the Financial Services industry with a market capitalization of $44.3 billion, continues to influence the mortgage market significantly.
This 15 basis point decline represents the largest weekly drop in mortgage rates in the past year, the mortgage finance company reported in a press release. The news comes as Freddie Mac’s stock trades near its 52-week high, having delivered an impressive year-to-date return of nearly 288%.
"Mortgage rates are headed in the right direction and homebuyers have noticed, as purchase applications reached the highest year-over-year growth rate in more than four years," said Sam Khater, Freddie Mac’s Chief Economist.
The 15-year FRM also decreased, averaging 5.50% this week compared to 5.60% last week. A year ago, the 30-year and 15-year FRMs averaged 6.20% and 5.27%, respectively.
The survey focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with 20% down payments and excellent credit.
Freddie Mac, which promotes liquidity, stability, and affordability in the housing market, releases the Primary Mortgage Market Survey weekly to track mortgage rate trends.
In other recent news, Freddie Mac reported that the 30-year fixed-rate mortgage averaged 6.35%, marking the largest weekly drop in the past year. Despite this decrease, the rate remains higher than the 6.20% average recorded during the same period last year. Deutsche Bank initiated coverage on Freddie Mac with a Buy rating and set a price target of $25.00, highlighting the attractive upside potential for the company. Keefe, Bruyette & Woods, however, maintained an Underperform rating with a $4.50 price target, despite forecasting robust earnings for Freddie Mac.
U.S. Federal Housing Finance Agency Director William Pulte commented on the valuation of Freddie Mac, suggesting it could be worth between $500-$700 billion, with potential for significant growth. These comments have sparked investor interest in the company’s stock. Meanwhile, Democratic senators, including Elizabeth Warren and Chuck Schumer, have urged the Trump administration to halt plans to sell shares of Freddie Mac, citing concerns over potential impacts on mortgage rates. These developments reflect ongoing interest and scrutiny surrounding Freddie Mac’s financial health and market position.
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