MCLEAN, Va. - Freddie Mac (OTCQB: OTC:FMCC), a $16 billion market cap financial services giant that has delivered an impressive 582% return over the past year according to InvestingPro, reported on Monday that the 30-year fixed-rate mortgage (FRM) average has climbed to 7.04 percent. This marks the fifth consecutive weekly increase and the first time since May 2024 that rates have surpassed the seven percent threshold.
The mortgage giant's Primary Mortgage Market Survey® (PMMS®) highlighted the uptick from the previous week's average of 6.93 percent. In comparison, one year ago, the 30-year FRM averaged 6.60 percent. Similarly, the 15-year FRM also experienced a rise, averaging 6.27 percent, up from last week's 6.14 percent and last year's 5.76 percent. With revenue of $23.04 billion in the last twelve months and a strong current ratio of 138.08, Freddie Mac maintains a robust financial position despite market fluctuations.
Freddie Mac's Chief Economist, Sam Khater, attributed the rising rates to the underlying strength of the economy. Despite the increase, Freddie Mac's research suggests that consumers could still potentially save money by obtaining quotes from multiple lenders.
The PMMS® focuses on conventional, conforming, fully amortizing home purchase loans for borrowers who place a 20 percent down payment and possess excellent credit. This weekly survey serves as a benchmark for mortgage rates across the United States.
Freddie Mac, established in 1970, has a longstanding mission to make homeownership possible for families nationwide. It aims to ensure liquidity, stability, affordability, and equity in the housing market, regardless of economic conditions. Over the decades, Freddie Mac has assisted tens of millions of families with purchasing, renting, or maintaining their homes. InvestingPro analysis reveals the company maintains a "GREAT" overall financial health score, with 12 additional exclusive insights available to subscribers, including detailed valuation metrics and growth projections.
The information reported is based on a press release statement from Freddie Mac.
In other recent news, Fannie Mae (OTC:FNMA) and Freddie Mac have seen significant developments. Despite experiencing a slump, Fannie Mae's shares have risen almost 300% since the election victory of Donald Trump, as outlined by Bill Ackman from Pershing Square. Ackman proposed a plan for the restructuring of these entities, suggesting they could emerge from US conservatorship in the upcoming years.
Similarly, Freddie Mac has made key appointments to their leadership team. James Whitlinger has been appointed as the executive vice president and chief financial officer, while Jane E. Prokop, Ph.D., has joined the Board of Directors, bringing extensive fintech experience.
Rocket Companies and its peers, including Fannie Mae and Freddie Mac, saw significant gains following the latest inflation data, which eased investor concerns about aggressive interest rate hikes. Ackman has also predicted that the conservatorship of Freddie Mac may end under U.S. President-elect Donald Trump, potentially leading to privatization.
Freddie Mac reported a third-quarter loss of -$0.02 per share, falling short of analyst estimates. However, its quarterly revenue significantly exceeded expectations, reaching $5.84 billion, surpassing the analyst estimate of $3.61 billion. These are the recent developments in the financial services industry.
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