Mortgage rates inch higher after five-week decline

MCLEAN, Va. - The 30-year fixed-rate mortgage averaged 6.72% this week, breaking a five-week streak of declines, Freddie Mac (OTCQB:FMCC), a leading financial services company with a market capitalization of $24.26 billion, reported Thursday in its Primary Mortgage Market Survey.

The slight increase from last week’s average of 6.67% follows a stronger than expected jobs report, according to Sam Khater, Freddie Mac’s Chief Economist. Despite the uptick, current rates remain lower than the 6.89% average recorded a year ago. According to InvestingPro data, Freddie Mac has shown remarkable performance this year, with a 129.37% year-to-date return.

The 15-year fixed-rate mortgage also increased, averaging 5.86% this week compared to 5.80% last week. This rate is still below the 6.17% average from the same period last year.

Despite ongoing affordability challenges in the housing market, mortgage applications have shown significant year-over-year growth. Home purchase applications have increased by 25% compared to the same time last year, while refinance applications have surged by 56%. With annual revenue of $23.43 billion, Freddie Mac continues to play a crucial role in the mortgage market. InvestingPro subscribers can access detailed financial metrics and 12 additional exclusive tips about the company’s performance.

The Primary Mortgage Market Survey focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with 20% down payments and excellent credit.

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

In other recent news, Freddie Mac has reported that the 30-year fixed-rate mortgage rate has increased to 6.72%, following a stronger-than-expected jobs report. This rise comes after five consecutive weeks of declining rates. Meanwhile, Freddie Mac has also introduced a new machine learning-enhanced underwriting process within its Loan Product Advisor® tool, aiming to streamline the mortgage origination process and reduce costs. This initiative is expected to provide immediate cost savings and improve the homebuying experience. Additionally, Freddie Mac has been directed to recognize cryptocurrency as an asset for mortgage applications, marking a potential shift in asset evaluation for mortgage qualification. The introduction of the Freddie Mac Income Calculator is set to assist lenders in calculating income for wage earners and self-employed borrowers more accurately. Analysts have noted that these advancements could potentially cut mortgage process costs by up to 40%. These developments are part of Freddie Mac’s ongoing efforts to promote liquidity, stability, and affordability in the housing market.

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