Mortgage Rates Drop to their Lowest Level Since February 2023

Rhea-AI Summary

Freddie Mac's latest Primary Mortgage Market Survey® reveals a significant drop in mortgage rates, with the 30-year fixed-rate mortgage (FRM) averaging 6.20%, the lowest since February 2023. This represents a decline of over half a percent in the past six weeks. The 15-year FRM also decreased to 5.27%.

Despite the improving rate environment, Chief Economist Sam Khater notes that potential buyers remain hesitant due to high house prices and persistent supply shortages. Compared to a year ago, both 30-year and 15-year FRMs show substantial decreases from 7.18% and 6.51%, respectively.

Positive

• 30-year fixed-rate mortgage dropped to 6.20%, the lowest since February 2023
• 15-year fixed-rate mortgage decreased to 5.27%
• Mortgage rates have fallen more than half a percent over the last six weeks
• Current rates are significantly lower compared to a year ago (30-year FRM: 7.18%, 15-year FRM: 6.51%)

Negative

• Potential buyers remain hesitant despite improving mortgage rates
• High house prices continue to be a barrier for prospective buyers
• Persistent supply shortages in the housing market

MCLEAN, Va., Sept. 12, 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 6.20 percent.

“Mortgage rates have fallen more than half a percent over the last six weeks and are at their lowest level since February 2023,” said Sam Khater, Freddie Mac’s Chief Economist. “Rates continue to soften due to incoming economic data that is more sedate. But despite the improving mortgage rate environment, prospective buyers remain on the sidelines, as they negotiate a combination of high house prices and persistent supply shortages.”

News Facts

• The 30-year FRM averaged 6.20 percent as of September 12, 2024, down from last week when it averaged 6.35 percent. A year ago at this time, the 30-year FRM averaged 7.18 percent.
• The 15-year FRM averaged 5.27 percent, down from last week when it averaged 5.47 percent. A year ago at this time, the 15-year FRM averaged 6.51 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/fff2cd22-3ba4-4ca0-bcce-d66bb3326318

FAQ

What is the current 30-year fixed-rate mortgage average according to Freddie Mac (FMCC)?

According to Freddie Mac's Primary Mortgage Market Survey as of September 12, 2024, the 30-year fixed-rate mortgage averaged 6.20%.

How much has the 30-year fixed-rate mortgage (FMCC) dropped in the past six weeks?

Freddie Mac reports that mortgage rates have fallen more than half a percent over the last six weeks.

What factors are keeping potential buyers hesitant despite lower mortgage rates, according to Freddie Mac (FMCC)?

According to Freddie Mac's Chief Economist, potential buyers remain hesitant due to a combination of high house prices and persistent supply shortages in the housing market.

How does the current 15-year fixed-rate mortgage compare to last year's rate, as reported by Freddie Mac (FMCC)?

The current 15-year fixed-rate mortgage average of 5.27% is significantly lower than the 6.51% rate reported a year ago by Freddie Mac.