Mortgage Rates Dip to Lowest Level Since February
Rhea-AI Summary
Freddie Mac's latest Primary Mortgage Market Survey® reveals a decline in mortgage rates, with the 30-year fixed-rate mortgage (FRM) averaging 6.73%, down from 6.78% last week and 6.90% a year ago. The 15-year FRM also decreased to 5.99% from 6.07% last week and 6.25% a year ago.
Chief Economist Sam Khater notes that expectations of a Fed rate cut and cooling inflation are positive signs for the market. However, consumer confidence remains cautious due to ongoing affordability challenges. Encouragingly, recent moderation in home price growth and increased housing inventory may benefit potential homebuyers.
Positive
- Mortgage rates decreased to the lowest level since February 2024
- 30-year FRM averaged 6.73%, down from 6.78% last week and 6.90% a year ago
- 15-year FRM averaged 5.99%, down from 6.07% last week and 6.25% a year ago
- Expectations of a Fed rate cut and signs of cooling inflation
- Recent moderation in home price growth
- Increases in housing inventory
Negative
- Apprehension in consumer confidence due to affordability challenges
News Market Reaction
On the day this news was published, FMCC declined 2.52%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
MCLEAN, Va., Aug. 01, 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 6.73 percent.
“Mortgage rates declined to their lowest level since early February,” said Sam Khater, Freddie Mac’s Chief Economist. “Expectations of a Fed rate cut coupled with signs of cooling inflation bode well for the market, but apprehension in consumer confidence may prevent an immediate uptick as affordability challenges remain top of mind. Despite this, a recent moderation in home price growth and increases in housing inventory are a welcoming sign for potential homebuyers.”
News Facts
- The 30-year FRM averaged 6.73 percent as of August 1, 2024, down from last week when it averaged 6.78 percent. A year ago at this time, the 30-year FRM averaged 6.90 percent.
- The 15-year FRM averaged 5.99 percent, down from last week when it averaged 6.07 percent. A year ago at this time, the 15-year FRM averaged 6.25 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:
Mollie Laniado
(571) 382-1784
Mollie_Laniado@FreddieMac.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/74ba92b1-a975-4781-a060-cc418627c0d4
FAQ
What was the average 30-year fixed-rate mortgage (FRM) according to Freddie Mac's PMMS on August 1, 2024?
How does the current 30-year FRM rate compare to the previous week and year for Freddie Mac (FMCC)?
What was the average 15-year fixed-rate mortgage reported by Freddie Mac (FMCC) on August 1, 2024?
What factors are contributing to the positive outlook for the mortgage market according to Freddie Mac's Chief Economist?
