Multifamily Delinquencies Ticking Up Slowly

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 0.4 percent in November, down from 3.0 percent the previous month.  The portfolio balance at the end of the period was $2.302 trillion compared to $2.301 trillion at the end of October and $2.170 trillion a year earlier.

Purchases and Issuances totaled $55.446 billion and Sales were ($5.629) billion. The October numbers were $51.13billion and ($1.578) billion respectively. 

Single-family refinance loan purchase and guarantee volume was $26.8 billion in October, down from $26.9 billion in October and representing a 59 percent share of total single-family mortgage portfolio purchases and issuances compared to 57 percent the previous month.

Purchases in Freddie Mac's Mortgage Related Investments Portfolio totaled $37.384 billion for the month compared to $38.415 billion in October. Liquidations were ($3.157) billion and ($2,706) billion for November and October respectively and Sales for the two periods were ($46.496) and ($40,496) billion. The ending balance in the portfolio was $204.545 billion about $12 billion lower than in October.

The Mortgage Related Investments Portfolio's annualized growth rate which was a negative both in October and in November of 2018, (25.9) percent and (33.5) percent respectively, declined even further to (67.9) percent.

The ending balance of the Mortgage Related Investments Portfolio was composed of $117.485 billion in Mortgage Related Securities, Mortgage Loans valued at $77.665 billion, Non-Agency, non-Freddie Mac Mortgage-Related Securities at $1.731 billion; and Agency non-Freddie Mac Mortgage related securities of $7.664 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 7.5 percent compared to 5.8 percent the previous month.

Freddie Mac's single-family delinquency rate was up 1 basis point to 0.62. In November 2018 the rate was 0.70 percent. The rate for credit-enhanced Primary Mortgage Insurance loans was up 1 basis point to 0.78 percent as was the non-credit portion, rising to 0.72 percent. The multi-family delinquency rate was 0.06 percent, having risen 0.03 point since July. The rate a year earlier was 0.01.

Freddie Mac said the measure of its exposure to changes in portfolio value averaged $29 million in November, down from $70 million in October.