US New Home Sales Plunge 7.3% in May, Marking Second Straight Decline
FMCC sits 68% above its 52-week low of $3.4 on light trading volume (0.3× avg).
Summary
US new single-family home sales unexpectedly dropped 7.3% in May to an annualized rate of 580,000 units, marking the second consecutive monthly decline and the lowest level since January. This follows previous reports of surging mortgage rates and falling housing starts, indicating a sustained downturn in the housing market. The continued weakness in home sales, driven by high mortgage rates and prices, directly impacts Freddie Mac's core business of purchasing and securitizing mortgages, potentially reducing new business volume and increasing credit risk. The average 30-year fixed mortgage rate, as reported by Freddie Mac, has risen to 6.47%.
At the time of this announcement, FMCC was trading at $5.71 on OTC in the Finance sector, with a market capitalization of approximately $3.7B. 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 8 out of 10. Source: Reuters.