Freddie Mac Portfolio Grows 3.5 Percent, Delinquencies Decrease

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 4.7 percent in October, up from 2.3 percent the previous month.  The portfolio balance at the end of the period was $2.159 trillion compared to $2.151 trillion at the end of September and $2.067 trillion a year earlier.  

Purchases and Issuances totaled $33.968 billion, bringing the 2018 year-to-date total to $319.568 billion, Sales were ($686) billion and Liquidations ($24.927) billion in October and totaled ($17.602) and ($239.930) billion respectively so far this year.  The annualized growth rate for 2018 through the end of October was 3.5 percent and the annualized liquidations rate was (13.7) percent. 

Single-family refinance-loan purchase and guarantee volume was $7.2 billion in October compared to $6.5 billion the prior month. The refinance share of total single-family mortgage portfolio purchases or issuances was 27 percent, unchanged from September.    

The Mortgage Related Investments Portfolio had an ending balance of $228.336 billion, an increase of approximately $500 million in the aggregate unpaid principal balance compared to September. The annualized growth rate for the year to date as of October was (11.9) percent.  Freddie Mac had purchases of $26.630 billion for the month and $238.687 billion thus far in 2018.  Liquidations were ($3.533) billion and Sales were ($22.565) billion and, for the year thus far, ($29.901) billion and ($233.905) billion respectively. 

The ending balance of the Mortgage Related Investments Portfolio was composed of $121.776 billion in Mortgage Related Securities, Mortgage Loans valued at $97.281 billion, Non-Agency, non-Freddie Mac Mortgage-Related Securities at $5.002 billion; and Agency non-Freddie Mac Mortgage related securities of $4.277 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 4.7 percent in October.

Freddie Mac's single-family delinquency rate decreased from 0.73 percent in  September to 0.71 percent and from .86 percent the previous October. The rate for credit-enhanced Primary Mortgage Insurance loans declined by 2 basis point month-over-month and the non-credit enhanced rate declined by 3 basis points to 0.71 percent and 0.85 percent respectively. The multi-family delinquency rate was 0.01 percent, unchanged from the preceding six months.  The rate in October 2017 was 0.03 percent.