Freddie Mac's Volume Dropped Sharply in May

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 8.6 percent in May compared to a 13.2 percent gain in April.  The portfolio balance at the end of the period was $2.980 trillion compared to $2.959 trillion the prior month and $2.448 trillion a year earlier. Purchases and Issuances totaled $91.739 billion, and Sales were ($1.292) billion. The April  numbers were $121.668 billion, and ($1.761) billion, respectively.

Single-family refinance loan purchase and guarantee volume was $57.1 billion in May compared to $82.9 billion in April, representing a 66 percent share of total single-family mortgage portfolio purchases and issuances, down from 72 percent the previous month.

Purchases in Freddie Mac's Mortgage Related Investments Portfolio totaled $62.471 billion for the month compared to $86.081 billion during the prior period. Liquidations were ($1.318) billion and ($1.703) billion for May and April, respectively and Sales for the two periods were ($77.034) and ($115.710) billion. The ending balance in the portfolio was $127.243 billion, compared to $143.124 billion in April and $187.897 billion in May 2020.

The annualized growth of the Mortgage Related Investments portfolio was down to  (133.1) percent compared to a decline of (215.5) percent in April and (91.7) percent a year earlier.

The $127.243 billion ending balance of the Mortgage Related Investments Portfolio was composed of $51.832 billion in Agency Securities, Mortgage Loans valued at $74.070 billion, and Non-Agency Securities at $1.341 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 12.9 percent in April compared to 22.7 percent in March. 

Freddie Mac's single-family delinquency rate decreased from 2.15 percent in April  to 2.01 percent in May. The multi-family delinquency rate decreased 1 basis point to 19 percent.   

Freddie Mac said the measure of its exposure to changes in portfolio value averaged $21 million in May compared to $13 million in April.