MCLEAN, Va., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.22%. “This week the 30-year fixed-rate mortgage averaged 6.22%. On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving,” said Sam Khater, Freddie Mac’s Chief Economist. News Facts The 30-year FRM average ...

Mortgage Rates - Mortgage rates have decreased for the fourth consecutive week, with the average rate on a 30-year fixed mortgage falling to 6.17% from 6.19% last week, compared to 6.72% a year ago [1][4] - The average rate on a 15-year fixed mortgage also declined to 5.41% from 5.44% last week, down from 5.99% a year ago [4] Market Dynamics - Nearly 1 in 5 American homes have reduced prices as buyers gain leverage in the shifting market, attributed to lower mortgage rates encouraging more homebuyers to enter the market [2] - The recent decline in mortgage rates, which have fallen 87 basis points from their mid-January peak, has provided relief for potential buyers and homeowners considering refinancing, although the housing market remains challenging due to economic uncertainties and rising house prices [9] Federal Reserve Actions - The Federal Reserve announced a second interest rate cut of the year, lowering the benchmark federal funds rate by 25 basis points to a range of 3.75% to 4%, following a similar cut in September [4] - Fed Chairman Jerome Powell indicated that the ongoing government shutdown may impact the central bank's decision-making process, emphasizing a cautious approach until clearer economic data is available [5][6] Treasury Yields - The benchmark U.S. 10-year Treasury note yield experienced its largest daily rise since June 6, increasing by about 2.3 basis points to 4.095%, which closely influences mortgage rates [8]

Core Insights - The housing market is experiencing a slowdown, leading to builders cutting prices and offering incentives to sell finished homes, which in turn affects the demand for construction materials like lumber [1][3][19] - Lumber futures have decreased significantly from their August peak of around $695 per thousand board feet to the $590–$610 range, indicating a shift in market dynamics where supply exceeds demand [3][4][17] - Steel demand is also weak, with global prices under pressure due to insufficient consumption across various sectors, although certain regions still show strong demand for steel related to infrastructure and industrial projects [12][16][20] Lumber Market Analysis - Builders overestimated the demand for new homes, leading to excess inventory and a subsequent decline in lumber prices as housing starts and permits dropped [2][3][4] - The lumber market is signaling that housing is not absorbing materials quickly enough, which is a precursor to a slowdown in flatbed freight related to residential construction [8][19] - The expectation is that flatbed carriers heavily reliant on residential construction will face increased competition and need to diversify their service offerings to maintain profitability [10][18] Steel Market Analysis - Global steel demand has been weak throughout 2025, with prices affected by oversupply and insufficient end-use demand, particularly in Asia [12][13] - U.S. steel mills are benefiting from tariffs that limit imported steel, allowing them to maintain production levels despite weak global demand [14][16] - Certain sectors, such as energy and infrastructure, continue to drive demand for steel, indicating that while the overall market is soft, opportunities still exist in specific regions and industries [15][20] Future Outlook - The overall sentiment for flatbed freight heading into 2026 is one of caution, with expectations of a slow recovery in both lumber and steel markets [17][20] - The best opportunities for flatbed carriers will likely shift away from residential construction towards non-residential projects that are less sensitive to interest rates, such as utility infrastructure and industrial builds [18][20] - Carriers are advised to adapt to the changing landscape by broadening their service areas and focusing on sectors that continue to show demand despite the cooling housing market [10][18]

Market Guidance - The company has revised its closing guidance for 2025 down to a midpoint of 12,900 units, a reduction of 100 units from previous estimates, reflecting a choppy market environment [1][2] - Despite the adjustment in closings, the company has maintained its margin guidance without changes [2] Mortgage Applications and Market Conditions - Mortgage applications have decreased for four consecutive weeks, with the 30-year fixed mortgage rate hovering around 6.3% [3] - There is an expectation that the market will eventually respond positively to the easing conditions [3] Affordability and Market Dynamics - The company is focused on delivering homes at prices affordable for first-time buyers, with approximately 70% of its business affected by macroeconomic factors [4] - Current consumer confidence is not at a peak, and resolution of macro-level issues, including political factors and interest rate declines, is anticipated to improve market conditions [5] Industry Relations and Housing Supply - The company is actively engaging with the administration to address housing shortages and improve affordability, emphasizing that builders are eager to increase housing supply [6][7] - There is a recognition of excess inventory in the market, and the company is working to manage this responsibly while collaborating with various stakeholders to tackle the affordability issue [8][9] Inventory Management - The company is addressing mixed messages regarding the number of lots it controls, noting that some land is not yet entitled [10] - The priority remains on moving inventory quickly and responsibly, with a commitment to work with the administration to find solutions for housing affordability [11]

Core Insights - The analysis by SmartAsset ranks the 50 largest U.S. cities based on housing costs relative to median household income, highlighting affordability issues across the country [2] Housing Affordability - A poll by Redfin indicates that 44% of over 4,000 homeowners and renters have struggled to afford mortgage or rent payments, leading many to change their living situations [5] - The median sale price of a house in the U.S. was $410,800 in Q2 2025, reflecting a nearly 30% increase from $317,100 five years prior [6] - National median rent has increased by over 32% from 2020 to 2024, indicating a significant rise in rental costs [6] Budgeting and Financial Management - The average percentage of income spent on housing is 28.43%, with a weighted monthly housing payment of $2,422 and a median household income of $102,235 [8] - It is recommended that individuals spend no more than 30% of their gross income on housing, but many are exceeding this threshold due to rising costs [3][7] - The traditional budgeting model suggests allocating 50% of the budget to needs, 30% to wants, and 20% to debt repayment and savings, which may need adjustment if housing costs exceed 50% of needs [11]

Group 1: Company News - Rite Aid, once a major pharmacy chain in the US, has closed its remaining 89 stores after filing for bankruptcy for the second time in less than two years [2] - The number of individual Chapter 7 bankruptcy filings in the US increased by 15% in the first nine months of the year compared to the previous year, totaling 249,152 filings [7] - Maxwell House coffee is rebranding as "Maxwell Apartment" and temporarily lowering its price to $39.99 for four canisters, aiming to save consumers over $1000 annually compared to cafe purchases [15] Group 2: Economic Indicators - Housing affordability in the US has improved, with the monthly principal and interest payment on an average-priced home at $2148, which is 30% of the median household income, still above the long-run average [10][11] - Shipping costs from Shanghai to Los Angeles have dropped to $2311, the lowest since December 2023, with US import volumes projected to decline by 19% year-over-year by January 2026 [15] - The US national debt is nearing $38 trillion, with annual deficits approaching $2 trillion, raising concerns about the sustainability of the current debt-based monetary system [20][25] Group 3: Market Performance - The stock market experienced significant declines, with the Dow losing 1.9%, the S&P 500 falling approximately 2.7%, and the Nasdaq sliding 3.6% in response to President Trump's tariff promises [18] - Gold prices have increased by approximately 50% this year, marking the best annual performance since 1979, yet 40% of fund managers still do not own gold [32]

Market Instability & Contributing Factors - High interest rates, excessive vacancy rates for commercial office buildings, and lack of affordability in supply-constrained housing markets are already impacting the real estate market [3] - The government shutdown adds uncertainty and hinders new housing production, further hurting the housing market [4] Impact on Specific Geographic Areas - Washington DC metro area, especially Washington DC proper, is expected to be severely impacted due to high commercial office vacancy rates (well into the 20s), crime, cost of living, and regressive tax policy [5][6] - Northern Virginia is also affected by the government shutdown due to the large number of government employees, contractors, and consultants consuming office space [7] - South Florida's luxury condominium market is supply-constrained for new construction, while older buildings (15-25+ years) face challenges due to major repairs, high assessments, and insurance costs [11][12][13] Florida Real Estate Dynamics - South Florida (Miami, Miami Beach) is attractive to high-income earners due to good quality of life, zero personal income taxes, zero estate taxes, and a pro-business environment [10][11] - Central Florida (Tampa, Tampa Bay area) and other parts of Florida (Jacksonville, Daytona Beach, West Palm Beach) are still relatively affordable [14][15] - Florida's "live work" initiative, incentivizing zoning with a 40% affordable or workforce housing component, aims to address the workforce housing shortage [14]

Government Shutdowns & Market Impact - The market's lack of reaction to government shutdowns incentivizes politicians to continue this practice, as they perceive it as base signaling [5][6] - While shutdowns may not have immediate economic effects, a central bank making incorrect decisions due to missing data could have longer-term consequences [9] - Betting markets indicate the shutdown will likely end in a couple of weeks [2] Federal Reserve & Data Dependency - The Federal Reserve risks making policy decisions without complete information due to potential data delays from the shutdown, including jobs reports, CPI, and PPI [7][9] - There is concern that the Fed might rely on private jobs data and Google searches if official data is unavailable [9] Housing Market & Government Intervention - The president's urging of home builders to increase construction is viewed with concern, particularly regarding potential inflationary effects from mismatched supply and demand [10][12][13] - Artificially juicing demand for housing, especially with long-term supply issues related to local zoning regulations, could lead to problems reminiscent of 2008 [12][13] - The president should focus on encouraging states and local governments to ease zoning regulations to increase housing supply [14]

Core Insights - Homeownership rates in the U.S. fell in 2024 for the first time in eight years due to soaring home prices, making ownership unattainable for many [1] - As of early 2025, home prices have increased by 60% nationwide since 2019, with the median existing single-family home price reaching a new high of $429,400 [2] - Rising mortgage rates since 2020 have further exacerbated affordability issues, with the average 30-year fixed mortgage rate increasing from approximately 3.72% in January 2020 to around 6.30% today [3] Housing Market Trends - The increase in home prices and mortgage rates has led to a significant rise in the income required to afford a typical home, estimated at $117,000 for the average American household [3] - Despite the challenges, there are strategies to make homeownership more attainable, such as exploring home-buying assistance programs that can help with down payments and closing costs [5] - Alternative property types, such as condos, townhomes, and smaller single-family homes, can serve as more affordable entry points into homeownership [6] - Expanding the search radius for potential homes can lead to more affordable options, particularly in up-and-coming neighborhoods or suburbs [7]

Core Insights - A 32-year-old nurse is experiencing financial strain from her $259,000 lake house mortgage, which consumes nearly half of her biweekly paycheck of $1,950 [1][2] - The nurse has $24,000 in student loans and feels "house poor," questioning whether to sell, rent, or wait for a potential income increase [1][2] Financial Situation - The lake house is a 900-square-foot, two-bedroom, two-and-a-half-bath property that the nurse describes as her "dream home," but it has become difficult to sustain [2] - The estimated selling price of the home is around $350,000, which could allow her to purchase a smaller starter property [3] Community Feedback - Reddit users provided various strategies, with some suggesting to keep the home due to the potential for salary increases over time [4] - Others recommended finding new income sources, such as overtime shifts or renting the property through platforms like Airbnb, although the nurse is hesitant to share her living space [5] Broader Implications - The discussion sparked wider conversations about housing affordability, with commenters questioning the nurse's take-home pay of less than $4,000 monthly, which seems low compared to national averages for nurses [6]