Mortgage Rates Climb to Fresh Nine-Month High of 6.53%, Dampening Housing Market
FMCC sits 93% above its 52-week low of $3.4 on light trading volume (0.1× avg).
Summary
The average 30-year fixed mortgage rate has risen to 6.53%, marking a new nine-month high. This follows a report on May 21st that rates had reached 6.51%, indicating a continued upward trend in borrowing costs. Higher mortgage rates typically suppress home-buying activity, which negatively impacts Freddie Mac's core business of purchasing and securitizing mortgages. This trend increases risk for their portfolio and reduces origination volumes.
At the time of this announcement, FMCC was trading at $6.55 on OTC in the Finance sector, with a market capitalization of approximately $4.3B. 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.