The 30-Year Fixed-Rate Mortgage Reaches Lowest Level in Two Years
Rhea-AI Summary
Freddie Mac (OTCQB: FMCC) released its Primary Mortgage Market Survey® (PMMS®) on September 26, 2024, showing the 30-year fixed-rate mortgage (FRM) averaged 6.08%, its lowest level in two years. This slight decline from last week's 6.09% marks a significant drop from the 7.31% rate a year ago. The 15-year FRM averaged 5.16%, up marginally from last week's 5.15%, but still well below the 6.72% rate of the previous year.
Sam Khater, Freddie Mac's Chief Economist, noted that the downward trend in rates is boosting refinance activity, offering homeowners opportunities to reduce their monthly mortgage payments. He also observed that many potential homebuyers are waiting to see if rates will decrease further as new economic data is released in the coming weeks.
AI-generated analysis. Not financial advice.
Positive
- 30-year fixed-rate mortgage reached its lowest level in two years at 6.08%
- Significant year-over-year decrease in 30-year FRM from 7.31% to 6.08%
- Refinance activity is increasing due to lower rates
- 15-year FRM rate (5.16%) is considerably lower than a year ago (6.72%)
Negative
- 15-year FRM rate increased slightly week-over-week from 5.15% to 5.16%
- Potential homebuyers are delaying purchases, waiting for possible further rate decreases
News Market Reaction – FMCC
On the day this news was published, FMCC gained 0.84%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
MCLEAN, Va., Sept. 26, 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 6.08 percent.
“Although this week’s decline was slight, the 30-year fixed-rate mortgage trended down to its lowest level in two years,” said Sam Khater, Freddie Mac’s Chief Economist. “Given the downward trajectory of rates, refinance activity continues to pick up, creating opportunities for many homeowners to trim their monthly mortgage payment. Meanwhile, many looking to purchase a home are playing the waiting game to see if rates decrease further as additional economic data is released over the next several weeks.”
News Facts
- The 30-year FRM averaged 6.08 percent as of September 26, 2024, down from last week when it averaged 6.09 percent. A year ago at this time, the 30-year FRM averaged 7.31 percent.
- The 15-year FRM averaged 5.16 percent, up from last week when it averaged 5.15 percent. A year ago at this time, the 15-year FRM averaged 6.72 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/0354fd80-69df-453a-bd17-45f62595bfaf
