Mortgage Rates Continue to Drop

Rhea-AI Summary

Freddie Mac's Primary Mortgage Market Survey® reveals a decline in mortgage rates, with the 30-year fixed-rate mortgage (FRM) averaging 6.35%, down from 6.46% last week and 7.18% a year ago. The 15-year FRM also dropped to 5.51% from 5.62% last week and 6.55% a year ago. Chief Economist Sam Khater attributes this decrease to expectations of a Fed rate cut.

Khater predicts rates will continue to fall but notes that a rebound in purchase activity remains elusive until further declines occur. The survey focuses on conventional, conforming home purchase loans for borrowers with 20% down payment and excellent credit. Freddie Mac aims to promote liquidity, stability, affordability, and equity in the housing market throughout economic cycles.

Positive

• Mortgage rates decreased, with 30-year FRM averaging 6.35% compared to 7.18% a year ago
• 15-year FRM rates also dropped to 5.51% from 6.55% a year ago
• Expectations of a Fed rate cut are driving mortgage rates down

Negative

• Rebound in purchase activity remains elusive despite falling rates

MCLEAN, Va., Aug. 29, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.35 percent.

"Mortgage rates fell again this week due to expectations of a Fed rate cut,” said Sam Khater, Freddie Mac’s Chief Economist. “Rates are expected to continue their decline and while potential homebuyers are watching closely, a rebound in purchase activity remains elusive until we see further declines."

News Facts

• The 30-year FRM averaged 6.35 percent as of August 29, 2024, down from last week when it averaged 6.46 percent. A year ago at this time, the 30-year FRM averaged 7.18 percent.
• The 15-year FRM averaged 5.51 percent, down from last week when it averaged 5.62 percent. A year ago at this time, the 15-year FRM averaged 6.55 percent.

The PMMS^® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. For more information, view our Frequently Asked Questions.

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | X | LinkedIn | Facebook | Instagram | YouTube

MEDIA CONTACT:
Angela Waugaman
(703)714-0644
Angela_Waugaman@FreddieMac.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2f439e55-71de-4af3-ad4a-a0a45e681d59

FAQ

What is the current 30-year fixed-rate mortgage average according to Freddie Mac's PMMS?

As of August 29, 2024, the 30-year fixed-rate mortgage (FRM) averaged 6.35 percent, according to Freddie Mac's Primary Mortgage Market Survey® (PMMS®).

How has the 15-year fixed-rate mortgage rate changed compared to last year for FMCC?

The 15-year fixed-rate mortgage averaged 5.51 percent, which is down from 6.55 percent a year ago, showing a significant decrease.

What factor is contributing to the decline in mortgage rates, according to Freddie Mac's Chief Economist?

Sam Khater, Freddie Mac's Chief Economist, attributes the decline in mortgage rates to expectations of a Federal Reserve rate cut.

Has the decrease in mortgage rates led to an increase in home purchase activity for FMCC?

Despite the decline in rates, a rebound in purchase activity remains elusive, according to Freddie Mac's Chief Economist. Further declines may be needed to stimulate activity.