Mortgage Rates Continue to Drop

Rhea-AI Summary

Freddie Mac (FMCC) reports a continued decline in mortgage rates, with the 30-year fixed-rate mortgage (FRM) averaging 6.60%, down from 6.69% last week and 6.95% a year ago. The 15-year FRM also decreased to 5.84% from 5.96% last week and 6.38% year-over-year.

Chief Economist Sam Khater notes that declining mortgage rates, strong consumer income growth, and a bullish stock market have boosted homebuyer demand. However, he cautions that housing market improvements remain due to persistent affordability challenges for homebuyers.

Positive

• Mortgage rates decreased for third consecutive week
• 30-year FRM dropped to 6.60% from 6.69% week-over-week
• 15-year FRM decreased to 5.84% from 5.96% week-over-week
• Both rates show significant year-over-year improvement
• Increased homebuyer demand reported due to favorable conditions

Negative

• Persistent affordability challenges limiting housing market improvement
• Homebuyers still facing significant affordability headwinds

MCLEAN, Va., Dec. 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 6.60 percent.

“The 30-year fixed-rate mortgage decreased for the third consecutive week,” said Sam Khater, Freddie Mac’s Chief Economist. “The combination of mortgage rate declines, firm consumer income growth and a bullish stock market have increased homebuyer demand in recent weeks. While the outlook for the housing market is improving, the improvement is limited given that homebuyers continue to face stiff affordability headwinds.” 

News Facts

• The 30-year FRM averaged 6.60 percent as of December 12, 2024, down from last week when it averaged 6.69 percent. A year ago at this time, the 30-year FRM averaged 6.95 percent.
• The 15-year FRM averaged 5.84 percent, down from last week when it averaged 5.96 percent. A year ago at this time, the 15-year FRM averaged 6.38 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/5b2e0375-50ca-4718-862a-1884f902106e

FAQ

What is the current 30-year fixed-rate mortgage rate for FMCC as of December 12, 2024?

The 30-year fixed-rate mortgage averaged 6.60% as of December 12, 2024, down from 6.69% the previous week.

How much has FMCC's 15-year fixed-rate mortgage rate decreased compared to last year?

The 15-year FRM averaged 5.84%, down from 6.38% a year ago, showing a decrease of 0.54 percentage points.

What factors are driving increased homebuyer demand according to Freddie Mac's Chief Economist?

According to Sam Khater, three factors are driving increased homebuyer demand: mortgage rate declines, firm consumer income growth, and a bullish stock market.

What is the main challenge in the housing market despite FMCC's lower mortgage rates?

Despite lower rates, stiff affordability headwinds remain the main challenge limiting improvements in the housing market for homebuyers.