Freddie Mac's Investment Portfolio Posts Second Gain of 2018

Freddie Mac reported today that its total mortgage portfolio increased at an annualized rate of 6.3 percent in May. The portfolio balance at the end of the period was $2.123 trillion compared to $2.112 trillion at the end of April and $2.033 trillion at the end of May 2016.

Purchases and Issuances totaled $35,493 billion, bringing the 2018 year-to-date total to $147.627 billion, Sales were ($1.215) billion and Liquidations ($22.226) billion in May and totaled ($8.527) and ($113.371) billion respectively so far this year.  The annualized growth rate for 2018 through the end of May was 2.9 percent and the liquidations rate for the entire year was (13.0) percent. 

Single-family refinance-loan purchase and guarantee volume was $8.1 billion, representing 30 percent of total single-family mortgage portfolio purchases or issuances. 

The Mortgage Related Investments Portfolio had an ending balance of $242.114 billion, an increase of $1.8 billion or  9.0 in the aggregate unpaid principal balance compared to April and the first gain since January.  The portfolio had declined 43 percent in February and 28 percent in March making the annualized growth rate for the year to date as of May (10.7) percent.  Freddie Mac had purchases of $26.994 billion for the month and $108.555 billion thus far in 2018.  Liquidations in May were ($2.832) billion and Sales were ($22.350) billion and, for the year, ($14.063) billion and ($105.834) billion respectively. 

The ending balance of the Mortgage Related Investments Portfolio was composed of $127.836 billion in Mortgage Related Securities, Mortgage Loans valued at $103.577 billion, Non-Agency, non-Freddie Mac Mortgage-Related Securities at $6.635 billion; and Agency non-Freddie Mac Mortgage related securities of $4.356 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 6.0 percent in May.

Freddie Mac's single-family delinquency rate increased from 0.94 percent in April to 0.87 percent in May, identical to the rate in May 2017.  The rate for credit-enhanced Primary Mortgage Insurance loans declined by 9 basis points month-over-month and the non-credit enhanced rate was down 6 basis points to 1.13 percent and 0.98 percent respectively. The multi-family delinquency rate was 0.01 percent, unchanged from both April and May 2017.