Refinancing Share of Freddie's Volume Soared in October

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 3.0 percent in October, down from 10.7 percent the previous month.  The portfolio balance at the end of the period was $2.301 trillion compared to $2.295 trillion at the end of September and $2.157 trillion a year earlier.

Purchases and Issuances totaled $51.128 billion and Sales were ($1.578) billion. The September numbers were $61.80 billion and ($2,205) billion respectively. 

Single-family refinance loan purchase and guarantee volume was $26.9 billion in October, up from $22.2 billion in September and representing a 57 percent share of total single-family mortgage portfolio purchases and issuances compared to 48 percent the previous month.   

Purchases in Freddie Mac's Mortgage Related Investments Portfolio totaled $38.415 billion for the month compared to $46.142 billion in September. Liquidations were ($2.706) billion and ($2,912) billion for October and September respectively and Sales for the two periods were ($40.496) and ($40,249) billion. The ending balance in the portfolio was $216.813 billion about 4.8 billion lower than in September.  The elevated number the previous month was, according to Freddie Mac, primarily due to an increase in mortgage loans awaiting securitization. 

The ending balance of the Mortgage Related Investments Portfolio was composed of $116.611 billion in Mortgage Related Securities, Mortgage Loans valued at $90.569 billion, Non-Agency, non-Freddie Mac Mortgage-Related Securities at $1.746 billion; and Agency non-Freddie Mac Mortgage related securities of $7.887 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 5.8 percent compared to 6.4 percent the previous month.   

Freddie Mac's single-family delinquency rate was unchanged, remaining at 0.61 percent for the fourth month.  In October 2018 the rate was 0.71 percent.  The rate for credit-enhanced Primary Mortgage Insurance loans was up 1 basis point to 0.77 percent and the non-credit portion was down 1 basis point to remained at 0.71 percent.  The multi-family delinquency rate was 0.04 percent, the same as in both August and September.  The rate a year earlier was 0.01 percent.  

Freddie Mac said the measure of its exposure to changes in portfolio value averaged $70 million in October, up from $48 million in September.