Freddie Mac's Portfolio Up 0.7 Percent in October

Freddie Mac reported today that its total portfolio increased at an annualized rate of 0.7 percent in October compared to 0.8 percent in September.  One year ago the portfolio decreased by 0.8 percent from the previous month.

The corporation purchased $9.19 billion in mortgages during the month, less than half the $18.84 billion purchased in September while liquidations totaled $10.4 billion compared to $10.8 billion a month earlier.  The net amount of mortgage-related investment portfolio mortgage purchases was $1.66 billion, down from the $4.6 billion in purchases the previous month.   The Total value of the portfolio decreased by 21.6 percent to $770.1 billion.   One year ago the value of the mortgage-related investments portfolio was $765 billion.

Under an agreement with the Department of the Treasury Freddie Mac's retained portfolio is capped at $900 billion until the end of this year when it must begin to decrease at the rate of 10 percent each year until it reaches $250 billion.

Freddie Mac purchased or issued $32.2 billion in loans for its total portfolio; in September that figure was $32.9 billion.  $28.8 billion in mortgages were liquidated, down from $31.2 billion for an ending balance of $2,243,920 billion, a net increase of $1.2 billion for the month.  One year ago the total portfolio was valued at $2,194,895 billion.   

The refinance-loan purchase and guarantee volume was down from $21.4 billion in September to $18.0 billion last month.

Single family mortgage delinquencies of 90 days or more including foreclosures rose again to 3.54 percent.  This was 21 basis points higher than in September.   Within that figure the delinquency rate for non-credit enhanced SFR mortgages was 2.7 percent (up from 2.6 percent) and for credit enhanced the rate was 7.4 percent (compared to 6.9 percent). One year ago the single family rate was 1.34 percent.  The multifamily rate was 0.12 percent, up one basis point.  One year ago the rate of delinquencies in the multi-family portfolio was 0.01 percent.

The measure of Freddie Mac's exposure to changes in portfolio market value (MPVS-L) averaged $472 million in October compared to $566 million in September.  The duration gap was unchanged at 0 months.