Mortgage Rates Decrease to Lowest Level in Over a Year
Freddie Mac's latest Primary Mortgage Market Survey® reveals a significant drop in mortgage rates, with the 30-year fixed-rate mortgage (FRM) averaging 6.47%, down from 6.73% last week and 6.96% a year ago.
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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 6.47%, down from 6.73% last week and 6.96% a year ago. The 15-year FRM also decreased to 5.63% from 5.99% last week and 6.34% a year ago. This decline, attributed to a less favorable employment report and financial market turbulence, marks the lowest rates in over a year.
Chief Economist Sam Khater notes that this drop could increase homebuyers' purchasing power and stimulate interest in the housing market. Additionally, it presents refinancing opportunities for existing homeowners, with the refinance share of mortgage applications reaching nearly 42%, the highest since March 2022.
Positive
- Mortgage rates decreased significantly, with 30-year FRM at 6.47% and 15-year FRM at 5.63%
- Rates are at their lowest level in over a year
- Refinance share of mortgage applications reached 42%, highest since March 2022
- Lower rates could increase homebuyers' purchasing power and stimulate market interest
Negative
- Less favorable employment report mentioned
- Financial market turbulence noted
Details
News Market Reaction – FMCC
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AI-generated analysis. How Rhea-AI works. Not financial advice.
MCLEAN, Va., Aug. 08, 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 6.47 percent.
“Mortgage rates plunged this week to their lowest level in over a year following the likely overreaction to a less than favorable employment report and financial market turbulence for an economy that remains on solid footing," said Sam Khater, Freddie Mac's Chief Economist. "The decline in mortgage rates does increase prospective homebuyers’ purchasing power and should begin to pique their interest in making a move. Additionally, this drop in rates is already providing some existing homeowners the opportunity to refinance, with the refinance share of market mortgage applications reaching nearly 42 percent, the highest since March 2022.”
News Facts
- The 30-year FRM averaged 6.47 percent as of August 8, 2024, down from last week when it averaged 6.73 percent. A year ago at this time, the 30-year FRM averaged 6.96 percent.
- The 15-year FRM averaged 5.63 percent, down from last week when it averaged 5.99 percent. A year ago at this time, the 15-year FRM averaged 6.34 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/f18d2ec2-1c65-47df-ae46-40c4cd76a74c
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