The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, said the mortgage rates have been sliding down towards a record low since the start of the last year thanks to improvement of economy and low interest rates.

“Mortgage rates continued declining towards the six percent mark, reviving purchase and refinance demand for many consumers,” Sam Khater, vice president and chief economist of the corporation, said in a press release on Thursday.

“While mortgage rates do not directly follow moves by the Federal Reserve, this first cut in over four years will have an impact on the housing market. “Declining mortgage rates over the last several weeks indicate this cut was mostly baked in, but we expect rates to fall further, sparking more housing activity,” he noted.

The 30-year FRM (fixed-rate mortgage) averaged 6.09 percent as of September 19, 2024, down from last week when it averaged 6.20 percent.

A year ago at this time, the 30-year FRM averaged 7.19 percent, according to Freddie Mac’s sta
tistics.

The 15-year FRM averaged 5.15 percent, down from last week when it averaged 5.27 percent. A year ago at this time, the 15-year FRM averaged 6.54 percent.

The PMMS (Primary Mortgage Market Survey) is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit.

Freddie Mac, headquartered Tysons, Virginia, aims to make home possible for families across the United States. It promotes liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, the corporation has helped tens of millions of families buy, rent or keep their homes.

Source: Kuwait News Agency