Mortgage Rates Drop Below Seven Percent

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported a decline in mortgage rates in its Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage (FRM) averaged 6.94% as of May 23, 2024, down from 7.02% the prior week. The 15-year FRM also dropped to 6.24% from 6.28%. This significant drop below 7% for the first time in over a month offers a potential boost for the housing market. Despite a decline in previously owned home sales, the inventory of both new and existing homes has increased. Freddie Mac aims to enhance liquidity, stability, affordability, and equity in the housing market.

Positive

• 30-year FRM decreased to 6.94% from 7.02%.
• 15-year FRM decreased to 6.24% from 6.28%.
• Increased inventory of new and existing homes.
• Potential boost for spring homebuyers due to lower mortgage rates.

Negative

• Previously owned home sales showed a decline.

MCLEAN, Va., May 23, 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 6.94 percent.

“Spring homebuyers received an unexpected windfall this week, as mortgage rates fell below the seven percent threshold for the first time in over a month,” said Sam Khater, Freddie Mac’s Chief Economist. “Although this week’s data on previously owned home sales showed a decline, total inventory of both new and existing homes is up. Greater supply coupled with the recent downward trend in rates is an encouraging sign for the housing market.”

News Facts

• The 30-year FRM averaged 6.94 percent as of May 23, 2024, down from last week when it averaged 7.02 percent. A year ago at this time, the 30-year FRM averaged 6.57 percent.
• The 15-year FRM averaged 6.24 percent, down from last week when it averaged 6.28 percent. A year ago at this time, the 15-year FRM averaged 5.97 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/2ddba3a1-81bb-4da5-9aeb-6a1feb12d17d

FAQ

What are the latest mortgage rates reported by Freddie Mac?

The 30-year fixed-rate mortgage (FRM) averaged 6.94% and the 15-year FRM averaged 6.24% as of May 23, 2024.

How have mortgage rates changed compared to last week?

The 30-year FRM decreased from 7.02% to 6.94%, and the 15-year FRM decreased from 6.28% to 6.24%.

What was the 30-year FRM rate a year ago?

The 30-year FRM was 6.57% a year ago.

What was the 15-year FRM rate a year ago?

The 15-year FRM was 5.97% a year ago.

What is the significance of mortgage rates falling below seven percent?

The drop below seven percent for the first time in over a month could be a positive sign for the housing market, potentially aiding homebuyers.

What does Freddie Mac’s PMMS® focus on?

The PMMS® focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with excellent credit who put 20% down.