Mortgage Rates Continue to Fall
Freddie Mac's latest Primary Mortgage Market Survey® reveals a decline in mortgage rates, with the 30-year fixed-rate mortgage (FRM) averaging 6.77%, down from 6.89% last week. This marks the lowest level since mid-March. The 15-year FRM also decreased to 6.05% from 6.17% last week.
Despite lower rates, homebuyer demand remains sluggish, with purchase application demand about 5% below Spring levels. Sam Khater, Freddie Mac's Chief Economist, notes this paradox is not uncommon, as buyers may be waiting to ensure rates don't decline further before making a purchase decision.
The survey focuses on conventional, conforming home purchase loans for borrowers with 20% down payment and excellent credit. Freddie Mac continues its mission to promote liquidity, stability, affordability, and equity in the housing market.
- 30-year fixed-rate mortgage decreased to 6.77%, the lowest since mid-March
- 15-year fixed-rate mortgage dropped to 6.05% from 6.17% last week
- Economy remains resilient, a positive sign for the housing market
- Homebuyer demand remains weak, with purchase application demand about 5% below Spring levels
- Buyers are hesitant to respond to lower rates, potentially waiting for further declines
MCLEAN, Va., July 18, 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 6.77 percent.
"The 30-year fixed-rate mortgage fell to its lowest level since mid-March, dropping 12 basis points from last week,” said Sam Khater, Freddie Mac’s Chief Economist. “Mortgage rates are headed in the right direction and the economy remains resilient, two positive incremental signs for the housing market. However, homebuyers have yet to respond to lower rates, as purchase application demand is still roughly 5 percent below Spring, when rates were approximately the same. This is not uncommon: sometimes as rates decline, demand weakens, and the apparent paradox is driven by buyers making sure rates don’t decline further before they decide to purchase.”
News Facts
- The 30-year FRM averaged 6.77 percent as of July 18, 2024, down from last week when it averaged 6.89 percent. A year ago at this time, the 30-year FRM averaged 6.78 percent.
- The 15-year FRM averaged 6.05 percent, down from last week when it averaged 6.17 percent. A year ago at this time, the 15-year FRM averaged 6.06 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 | Twitter | 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/c877d0ad-8b77-4461-9bf9-ebae2b0aa6ff
FAQ
What is the current 30-year fixed-rate mortgage average according to Freddie Mac's survey (FMCC)?
How has the 30-year fixed-rate mortgage changed compared to last week for Freddie Mac (FMCC)?
What is the current 15-year fixed-rate mortgage average reported by Freddie Mac (FMCC)?
How has homebuyer demand responded to the recent decrease in mortgage rates, according to Freddie Mac (FMCC)?
