Mortgage Rates Hit New One-Year High at 6.71%
FMCC sits 59% above its 52-week low of $3.4 on light trading volume (0.2× avg).
Summary
The 30-year fixed mortgage rate rose to 6.71% this week, a new one-year high, up from 6.66% last week and 6.23% in April. This follows the previous high of 6.58% set on July 23, showing rates are climbing again after a brief pause. Higher rates are driven by bond market tremors and inflation concerns, which could further cool the housing market. For Freddie Mac, higher rates may reduce mortgage origination volume but could also improve net interest margins on its portfolio. The trend suggests continued pressure on housing affordability and potential impact on Freddie Mac's business volumes. Barrons.com offers three reasons not to overreact to the possibility of 7% mortgage rates.
At the time of this announcement, FMCC was trading at $5.41 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 neutral market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.