MCLEAN, Va. - Freddie Mac (OTCQB: FMCC (OTC:FMCC)) announced today that the 30-year fixed-rate mortgage (FRM) has seen a slight decrease, averaging 6.79 percent, according to its Primary Mortgage Market Survey® (PMMS®). This represents a modest drop from the previous week's average of 6.87 percent. The 15-year fixed-rate mortgage also fell to an average of 6.11 percent, down from 6.21 percent last week.
These rates have been observed amidst a backdrop of slightly improving conditions for homebuyers, as indicated by recent data on existing home sales which suggest an increase in available inventory. Still, despite the minor relief, mortgage rates remain near the seven percent mark. The housing market continues to be closely monitored for signs of inflation easing, which could potentially lead to further decreases in mortgage rates.
The PMMS® focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with a 20 percent down payment and excellent credit. Freddie Mac's survey serves as a benchmark for the mortgage industry and is a key indicator of housing affordability trends.
Freddie Mac, established in 1970, has a longstanding mission to foster stability, affordability, liquidity, and equity in the housing market. The corporation plays a significant role in supporting homeownership and rental housing throughout various economic cycles. This latest data release is based on a press release statement from Freddie Mac.
InvestingPro Insights
As Freddie Mac (OTCQB: FMCC) continues to play a pivotal role in the housing market, recent metrics from InvestingPro show a company that is both a prominent player in the Financial Services industry and one that has experienced significant price volatility.
With a market capitalization of $4.8 billion and a remarkable one-year price total return of 310.13%, Freddie Mac's influence on housing affordability and mortgage rates is underscored by its financial performance.
InvestingPro Tips highlight that Freddie Mac's stock is currently in overbought territory according to the RSI, suggesting that investors are showing a high level of interest in the stock. Additionally, the stock has shown strong returns over the last month and three months, with price total returns of 48.62% and 102.5%, respectively. This could be an indicator of the market's optimism about the company's role in a potentially stabilizing housing market.
On the financial side, Freddie Mac has reported a gross profit margin of 100% for the last twelve months as of Q4 2023, indicating that it effectively retains all its revenue as gross profit. However, it is important to note that the company was not profitable over the same period.
This financial snapshot provides a broader context for understanding the company's current mortgage rate offerings and its impact on the housing market.
Those looking to delve deeper into Freddie Mac's financials and stock performance can find additional InvestingPro Tips, with a total of 9 tips available on the platform. To access these insights and more, visit https://www.investing.com/pro/FMCC and use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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