Federal Home Loan Mortgage Corp (FMCC, Financial), commonly known as Freddie Mac, announced the results of its Primary Mortgage Market Survey® (PMMS®) on December 19, 2024. The survey revealed that the 30-year fixed-rate mortgage (FRM) averaged 6.72 percent, marking a slight increase from the previous week's average of 6.60 percent. This rate is comparable to the 6.67 percent average recorded at the same time last year. The 15-year FRM also saw a rise, averaging 5.92 percent, up from 5.84 percent the previous week. Freddie Mac's Chief Economist, Sam Khater, noted that homebuyers are gradually adjusting to these higher rates, leading to increased purchase activity.
Positive Aspects
- Freddie Mac continues to provide valuable insights into mortgage rate trends through its PMMS®.
- Homebuyers are showing resilience and adaptability to the current mortgage rate environment.
- The company remains committed to promoting liquidity, stability, affordability, and equity in the housing market.
Negative Aspects
- Mortgage rates have increased slightly, which may pose challenges for potential homebuyers.
- The current rates are higher compared to historical lows, potentially impacting affordability.
Financial Analyst Perspective
From a financial analyst's viewpoint, the slight increase in mortgage rates reported by Federal Home Loan Mortgage Corp (FMCC, Financial) reflects ongoing adjustments in the housing market. While the rise in rates may initially seem unfavorable for potential homebuyers, the gradual acceptance and adaptation by consumers indicate a resilient market. This trend suggests that Freddie Mac's efforts to maintain market stability are effective, even amidst fluctuating economic conditions. Investors and stakeholders should monitor these trends closely, as they could influence future housing market dynamics and investment opportunities.
Market Research Analyst Perspective
As a market research analyst, the data from Freddie Mac's latest PMMS® highlights the evolving landscape of the housing market. The increase in mortgage rates, while modest, underscores the importance of understanding consumer behavior and market trends. The willingness of homebuyers to proceed with purchases despite higher rates suggests a robust demand for housing. This resilience could drive future market growth and presents opportunities for stakeholders to capitalize on emerging trends. Additionally, Freddie Mac's commitment to promoting equity and affordability remains crucial in supporting diverse consumer needs.
Frequently Asked Questions
What is the current average rate for a 30-year fixed-rate mortgage?
The 30-year fixed-rate mortgage averaged 6.72 percent as of December 19, 2024.
How does the current 15-year FRM compare to last week's rate?
The 15-year FRM averaged 5.92 percent, up from 5.84 percent the previous week.
What is the focus of the PMMS®?
The PMMS® focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with excellent credit who put 20 percent down.
Read the original press release here.
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