Mortgage Rates Drop Below Seven Percent

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported a decrease in mortgage rates, with the 30-year fixed-rate mortgage (FRM) averaging 6.96%, down from 7.04% last week. This marks the first decline in six weeks after crossing the 7% threshold. The 15-year FRM also decreased to 6.16% from 6.27% last week.

Compared to a year ago, the 30-year FRM is higher (previously 6.69%), and the 15-year FRM has also increased from its previous rate of 5.96%. According to Chief Economist Sam Khater, while affordability challenges persist, this rate decrease is positive news for potential homebuyers, as evidenced by an increase in purchase applications.

Positive

• First mortgage rate decrease in six weeks
• 30-year FRM dropped below 7% to 6.96%
• 15-year FRM decreased to 6.16% from 6.27%
• Increase in purchase applications reported

Negative

• Mortgage rates remain higher compared to previous year (30-year FRM up from 6.69%)
• 15-year FRM increased year-over-year from 5.96%
• Affordability challenges continue to persist

MCLEAN, Va., Jan. 23, 2025 (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 6.96 percent.

“After crossing the 7%-mark last week, the 30-year fixed-rate mortgage saw its first decline in six weeks,” said Sam Khater, Freddie Mac’s Chief Economist. “While affordability challenges remain, this is welcome news for potential homebuyers, as reflected in a corresponding uptick in purchase applications.”

News Facts

• The 30-year FRM averaged 6.96 percent as of January 23, 2025, down from last week when it averaged 7.04 percent. A year ago at this time, the 30-year FRM averaged 6.69 percent.
• The 15-year FRM averaged 6.16 percent, down from last week when it averaged 6.27 percent. A year ago at this time, the 15-year FRM averaged 5.96 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/a01604ae-7e24-4b7d-b528-fd7094944782

FAQ

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

As of January 23, 2025, Freddie Mac's 30-year fixed-rate mortgage averaged 6.96%, down from 7.04% the previous week.

How much has FMCC's 15-year fixed-rate mortgage changed?

The 15-year fixed-rate mortgage averaged 6.16%, decreasing from 6.27% the previous week.

How do current FMCC mortgage rates compare to last year?

Current rates are higher than a year ago, with the 30-year FRM up from 6.69% and the 15-year FRM up from 5.96%.

What is the significance of FMCC's latest mortgage rate decrease?

This is the first decrease in six weeks after rates crossed the 7% mark, potentially improving affordability for homebuyers.

How are homebuyers responding to FMCC's recent rate decrease?

According to Freddie Mac, there has been an uptick in purchase applications following the rate decrease.