Freddie Mac Reports on 30-Year Fixed-Rate Mortgage Trends
Freddie Mac Reports on 30-Year Fixed-Rate Mortgage Trends
The latest mortgage market survey from Freddie Mac shows that the 30-year fixed-rate mortgage (FRM) averaged 6.46 percent. This figure is a slight decrease from the previous week, highlighting the current dynamics in the housing market.
Current Mortgage Rates Overview
Over the past couple of weeks, mortgage rates have remained relatively stable. However, recent economic data suggest a potential downward trend in these rates as the year progresses. According to Sam Khater, Chief Economist at Freddie Mac, the recent drop in mortgage rates has not significantly boosted buyer interest. He emphasizes that to truly stimulate the market, rates may need to decline further, potentially by another percentage point.
Understanding Fixed-Rate Mortgages
The 30-year fixed-rate mortgage is popular among homebuyers due to its stability and predictability. With interest rates now close to 6.5 percent, it marks a significant decrease from 7.23 percent this time last year. The 15-year fixed-rate mortgage has also seen a decline, averaging 5.62 percent, down from 5.66 percent the previous week.
Key Mortgage Market Insights
The Primary Mortgage Market Survey (PMMS) focuses specifically on conventional, conforming, fully amortizing home purchase loans. This data is applicable to borrowers who make a 20 percent down payment and possess excellent credit. The PMMS provides valuable insights into the rate trends affecting potential homebuyers.
The Impact on Potential Homebuyers
Despite the recent decline in mortgage rates, the market has yet to see a resurgence in buyer demand. Many potential homeowners remain hesitant due to various economic factors. To attract more buyers, the housing market may require further reductions in mortgage rates.
Freddie Mac's Role in Housing Market Stability
Freddie Mac actively promotes liquidity, stability, affordability, and equity in the housing market throughout different economic cycles. Since its inception in 1970, the organization has played a crucial role in aiding millions of families in their pursuit of home ownership. Its mission is to make home possible for families, ensuring broader access to housing opportunities.
Contact Information for Further Inquiries
For media inquiries, Angela Waugaman is available at (703) 714-0644 or via email at Angela_Waugaman@FreddieMac.com. Freddie Mac encourages interested parties to stay informed about ongoing developments in the housing market.
Frequently Asked Questions
What is the current average rate for a 30-year fixed mortgage?
The current average rate for a 30-year fixed-rate mortgage is 6.46 percent, reflecting a decrease from the previous week.
What is the PMMS?
The Primary Mortgage Market Survey (PMMS) provides insights into current mortgage rates, focusing on conventional, conforming home purchase loans.
How does the current mortgage rate compare to last year?
Last year, the average rate for a 30-year fixed mortgage was 7.23 percent, showing a notable decline in rates this year.
What can drive changes in mortgage rates?
Mortgage rates are influenced by various factors, including economic data, market demand, and broader financial conditions.
How does Freddie Mac support home ownership?
Freddie Mac's mission is to enhance liquidity and stability in the housing market, which helps numerous families secure their homes.
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