U.S. 30-year mortgage rate holds steady at 6.95%

Published 30/01/2025, 18:06
U.S. 30-year mortgage rate holds steady at 6.95%

MCLEAN, Va. - Freddie Mac (OTCQB: OTC:FMCC), a prominent player in financial services with a market capitalization of $17 billion, reported today that the 30-year fixed-rate mortgage (FRM) averaged 6.95%, showing consistent stability in the housing market. This figure remains largely unchanged from the previous week’s average of 6.96%, continuing a trend that has seen rates fluctuate between 6% and 7% over the past two and a half years.

The survey, which is a key indicator of mortgage market trends, also noted a slight decrease in the 15-year fixed-rate mortgage, which fell from 6.16% last week to 6.12%. Compared to the same period last year, the 30-year and 15-year rates have seen an increase from 6.63% and 5.94%, respectively.

Sam Khater, Chief Economist at Freddie Mac, commented on the current state of the market, acknowledging the existing affordability challenges: "Driven by these higher rates and a persistent supply shortage, affordability hurdles still exist for many homebuyers and a significant number of them remain on the sidelines." According to InvestingPro data, Freddie Mac has demonstrated strong performance with a 397% return over the past year, despite these market challenges.

The PMMS® focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with excellent credit who put 20% down. This long-standing survey serves as a crucial benchmark for both potential homebuyers and the real estate market, reflecting the costs associated with obtaining a mortgage.

Freddie Mac has been a cornerstone of the American housing market since 1970, promoting liquidity, stability, and affordability. The organization’s mission is to make home ownership possible for families nationwide, regardless of the economic climate. With annual revenue of $23 billion and a "GOOD" financial health score according to InvestingPro, which offers 8 additional valuable insights about the company’s performance and prospects, Freddie Mac continues to maintain its strong market position.

The information presented in this article is based on a press release statement from Freddie Mac.

In other recent news, Freddie Mac’s revenue has reached $23.04 billion, marking a significant financial performance. The 30-year fixed-rate mortgage average has dipped to 6.96 percent, a decrease from the previous week’s average of 7.04 percent. This development has been noted as positive news for potential homebuyers by Freddie Mac’s Chief Economist, Sam Khater.

Freddie Mac also announced the election of Jane E. Prokop, Ph.D., to its Board of Directors, bolstering the company’s leadership with extensive fintech experience. Despite a third-quarter loss of -$0.02 per share, the company’s quarterly revenue significantly exceeded expectations, reaching $5.84 billion and surpassing the analyst estimate of $3.61 billion.

In the broader market, Pershing Square’s Bill Ackman proposed a plan for the restructuring of Fannie Mae (OTC:FNMA) and Freddie Mac, suggesting they could emerge from US conservatorship in the upcoming years. Lastly, Rocket Companies and its peers, including Fannie Mae and Freddie Mac, saw gains following the release of the latest inflation data. These are the recent developments in the financial services industry.

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

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