Mortgage Rates Climb to Near-Year High, Dampening Housing Market Outlook
FMCC sits 60% above its 52-week low of $3.4 on light trading volume (0.2× avg).
Summary
The 30-year fixed mortgage rate has risen to 6.58%, marking the highest level to date this year, according to Freddie Mac. This increase is driven by rising Middle East tensions pushing the 10-year Treasury yield to an 18-month high. Higher rates are further dampening the housing market, which saw a "bust" spring selling season and is in a four-year slump. This trend negatively impacts Freddie Mac's business by reducing mortgage origination volumes and increasing market risk. Economists anticipate rates could approach 7% in the coming weeks.
At the time of this announcement, FMCC was trading at $5.45 on OTC in the Finance 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.