MCLEAN, Va. - Freddie Mac (OTCQB: FMCC (OTC:FMCC)) reported today that the 30-year fixed-rate mortgage (FRM) has fallen to its lowest level in nearly three months, averaging 6.86 percent. This slight decrease from last week's average of 6.87 percent is part of a downward trend observed in mortgage rates, offering a potential reprieve for prospective homebuyers.
In contrast, the 15-year fixed-rate mortgage (FRM) experienced a marginal increase, averaging 6.16 percent, up from 6.13 percent the previous week. The current rates for both 30-year and 15-year FRMs are higher compared to the same period last year, when they averaged 6.71 percent and 6.06 percent, respectively.
The reported figures are part of Freddie Mac's Primary Mortgage Market Survey® (PMMS®), which focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with excellent credit who put a 20 percent down payment.
Sam Khater, Freddie Mac’s Chief Economist, commented on the results, stating that the economy remains in good condition by historical standards. He anticipates that mortgage rates will continue to decline over the summer months, which could attract more buyers into the housing market.
Freddie Mac, a public government-sponsored enterprise, has been a cornerstone of the housing finance system since 1970. Its mission is to provide liquidity, stability, and affordability to the U.S. housing market, particularly during all economic cycles. Over the decades, Freddie Mac has facilitated home purchases, rentals, and ownership for tens of millions of American families.
This report is based on a press release statement from Freddie Mac. The data provided by Freddie Mac's survey is a widely observed benchmark for tracking mortgage rates and is crucial for homebuyers and the housing industry at large. As the market adjusts to these new rates, it remains to be seen how this will impact the housing market dynamics in the coming months.
In other recent news, Freddie Mac, the mortgage finance company, has announced its intention to voluntarily delist its last security traded on the New York Stock Exchange due to the unnecessary burden of compliance with NYSE rules. This decision comes after the delisting of Freddie Mac's common stock from the NYSE in 2010, under the direction of its conservator, the Federal Housing Finance Agency.
In terms of mortgage rates, Freddie Mac reported a series of changes in the 30-year fixed-rate mortgage rates, with fluctuations seeing the rates dip below 7% for the first time since early April, averaging at 6.94%. However, the rates subsequently increased for five weeks, reaching an average of 7.22%, before stabilizing around 6.82%.
These developments have been attributed to data indicating a slowdown in economic growth. Despite signs of decreasing inflation rates, Freddie Mac's Chief Economist, Sam Khater, does not anticipate a significant drop in mortgage rates in the near future. However, he notes an improvement in housing inventory, which could potentially moderate the growth of home prices.
These recent events are significant to potential homebuyers and the broader economy, influencing consumer spending and the construction industry. It is important to note that these developments were reported based on data from Freddie Mac's Primary Mortgage Market Survey, which tracks conventional, conforming home purchase loans for borrowers who place a 20 percent down payment and possess excellent credit.
InvestingPro Insights
Freddie Mac (OTCQB: FMCC) continues to play a pivotal role in the housing finance system, and recent data from InvestingPro provides a deeper dive into the company's financial health and stock performance. With a market capitalization of $4.09 billion, Freddie Mac stands as a significant entity in the financial services industry. Despite a challenging past year, reflected by a negative price-to-earnings (P/E) ratio of -259.26, analysts are optimistic about the company's future, predicting profitability in the upcoming year. This outlook is bolstered by a substantial revenue growth of 35.37% over the last twelve months as of Q1 2024.
Investors should note that Freddie Mac's stock price has experienced considerable volatility, with a six-month price total return of 64.85% and a one-year price total return of 183.32%. This indicates that while the stock has seen impressive gains over the past year, it has also faced periods of significant price declines, such as the 22.84% drop over the last three months. However, the company's liquid assets surpassing short-term obligations points to a strong liquidity position.
For those looking to gain further insights into Freddie Mac's financials and stock performance, InvestingPro offers additional tips that can help investors make informed decisions. As of now, there are 11 additional InvestingPro Tips available for Freddie Mac, which can be accessed at https://www.investing.com/pro/FMCC. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to comprehensive analysis and data that can aid in navigating the volatile landscape of financial markets.
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