MCLEAN, Va. - Freddie Mac (OTCQB: FMCC (OTC:FMCC)) announced today that the 30-year fixed-rate mortgage (FRM) has seen an increase for the third consecutive week, averaging 6.44 percent. This marks a continued upward trend in mortgage rates, inching closer to the 6.5% threshold.
The latest figures from the Primary Mortgage Market Survey® (PMMS®) show a rise from the previous week's average of 6.32 percent. In comparison to the same period last year, the current average rate for a 30-year FRM is more than one percentage point lower, as rates averaged 7.63 percent a year ago.
Sam Khater, Freddie Mac’s Chief Economist, noted that the higher rates reflect economic strength that supports the housing market. He also highlighted the importance for potential homebuyers to benefit from these rates by shopping around, as mortgage rates can vary significantly between lenders.
The survey also reported an increase in the 15-year FRM average, which now stands at 5.63 percent, up from 5.41 percent last week. This time last year, the average for a 15-year FRM was 6.92 percent.
Freddie Mac's PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who have excellent credit, put 20 percent down, and are purchasing a home. The organization's mission is to promote liquidity, stability, affordability, and equity in the housing market, and has been supporting homeownership since 1970.
These statistics are based on a press release statement and provide a snapshot of the current state of the mortgage market, which is a critical indicator of the housing sector's health and economic trends.
In other recent news, Freddie Mac reported a significant increase in the 30-year fixed mortgage rate to 6.32%, marking a substantial weekly surge. This increase is connected to recent economic data that surpassed expectations, causing investors to reconsider their expectations for future Federal Reserve rate cuts. Despite this, Freddie Mac's Chief Economist anticipates the downward trend in rates to continue through the end of the year, influenced by a softening of incoming economic data.
Freddie Mac also reported a steady 30-year mortgage rate at 6.35% in another week, highlighting the dynamic nature of the housing market. In contrast, the rate reached its lowest point since May 2023, averaging 6.46%, showing a series of fluctuations in the U.S. 30-year fixed-rate mortgage.
The National Association of Realtors reported a 1.3% rise in existing home sales in July, ending a four-month streak of declines. However, the pace of home sales remains sluggish, according to Lawrence Yun, NAR's chief economist. These are recent developments that potential investors should take into consideration.
InvestingPro Insights
As Freddie Mac reports rising mortgage rates, it's worth examining the company's financial performance and market position. According to InvestingPro data, Freddie Mac (OTCQB: FMCC) has shown impressive revenue growth of 27.92% over the last twelve months as of Q2 2024, reaching $22.96 billion. This robust growth aligns with the economic strength mentioned by Chief Economist Sam Khater, which is supporting the housing market despite rising rates.
An InvestingPro Tip highlights that Freddie Mac is a prominent player in the Financial Services industry, underscoring its significant role in the mortgage market. This position allows the company to influence and benefit from trends in housing finance, as evidenced by the mortgage rate data it provides.
Another interesting insight from InvestingPro is that Freddie Mac's stock has seen a significant return over the last week, with a 1-week price total return of 11.5%. This recent performance could reflect investor confidence in the company's ability to navigate the current interest rate environment.
For those interested in a deeper analysis of Freddie Mac's financial health and market prospects, InvestingPro offers 8 additional tips, providing a comprehensive view of the company's position in the evolving mortgage landscape.
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