In its report, Federal Home Loan Mortgage Corp (OTCBB:FMCC) said that the housing market in U.S. is improving. The housing finance company said that mortgage rates on a 30-year fixed loan declined from 3.78% to 3.69% this week. The weekly survey pointed that the average rate of mortgage on 15-year fixed mortgage dropped to 2.97% from 3.06%.
Federal Home Loan Mortgage Corp (OTCBB:FMCC)’s report signal that the drop in mortgage rates could propel home buying during the spring season. However, the housing giant said that it will be too early to comment whether cheap borrowing costs as well as improving employment in the U.S. will revive the housing market, which went sluggish last year.
The company pointed that home sales in Southern California fell in February. Also, the volume of owned homes sold remained softer across the nation. Despite the data, Federal Home Loan Mortgage Corp (OTCBB:FMCC)’s economist Len Kiefer expressed optimism that the current environment is conducive for prospective home buyers. The data came as a part of the housing company’s weekly practice of estimating mortgage rate status in the U.S.
FMCC veteran in FHA
Separately, the Wall Street Journal reported that Federal Home Loan Mortgage Corp (OTCBB:FMCC)’s veteran Edward Golding has been taken in as principal deputy assistant secretary. Sources claim that Golding has been brought into this position so that he could take over as head of the Federal Housing Administration eventually. Golding’s current position confers him with powers slightly limited to that of FHA commissioner. The move has been welcomed by the Mortgage Bankers Association as its President and CEO David Stevens said that Golding is an excellent choice to fill in for a critical role in FHFA.
Meanwhile, shares of Federal Home Loan Mortgage Corp (OTCBB:FMCC) were up by 0.01% to $2.39 during the after-hours. An average of 1.79 million shares traded during the last session.