July Home Sales Drop 1.7% as Mortgage Rates Hit 6.69%, Defying Hopes for Rebound
FMCC sits 57% above its 52-week low of $3.4 on light trading volume (0.1× avg).
Summary
Existing home sales fell 1.7% in July to a 4.06M annual rate, worse than the 1% decline economists expected. The 30-year fixed mortgage rate averaged 6.69% last week, the fifth straight weekly increase, and up from 6.43% at the start of July. This continues the housing market's sluggish trend seen in recent months, with sales down from June's 1.4% decline. For Freddie Mac, which reported strong Q2 earnings driven by credit reserve releases, the persistent rate pressure and weak sales volume could weigh on future mortgage origination activity. The median home price rose 2% year-over-year to $434,100, the second-highest on record, while inventory fell 1.9% from June, keeping supply tight. The data underscores that high rates continue to stifle demand, with no relief expected soon amid geopolitical tensions and inflation concerns.
At the time of this announcement, FMCC was trading at $5.33 on OTC in the Real Estate & Construction sector, with a market capitalization of approximately $3.5B. The 52-week trading range was $3.40 to $14.99. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.