Freddie Mac Refinance Share Now Under 60 Percent

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 12.9 percent in June compared to an 8.6 percent gain in May.  The portfolio balance at the end of the period was $3.021 trillion compared to $2.980 trillion the prior month and $2.477 trillion a year earlier. Purchases and Issuances totaled $92.609 billion, and Sales were ($1.369) billion. The May numbers were $91.739 billion, and ($1.292) billion, respectively.

Single-family refinance loan purchase and guarantee volume was $50.9 billion in June compared to $57.1 billion in May, representing a 59 percent share of total single-family mortgage portfolio purchases and issuances, down from 66 percent the previous month.

Purchases in Freddie Mac's Mortgage Related Investments Portfolio totaled $61.787 billion for the month compared to $62.471 billion during the prior period. Liquidations were ($1.330) billion and ($1.318) billion for June and May, respectively and Sales for the two periods were ($74.465) and ($77.034) billion. The ending balance in the portfolio was $113.235 billion, compared to $127.243 billion in May and $194.110 billion in June 2020.

The annualized growth of the Mortgage Related Investments portfolio was -132.1 percent compared to a decline of 133.1 percent in May and growth of  39.7 percent a year earlier.

The $113.235 billion ending balance of the Mortgage Related Investments Portfolio was composed of $45.786 billion in Agency Securities, Mortgage Loans valued at $66.123 billion, and Non-Agency Securities at $1.326 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 16.7 percent in June compared to 12.9 percent in May. 

Freddie Mac's single-family delinquency rate decreased from 2.01 percent in May to 1.86 percent in June. The multi-family delinquency rate decreased 4 basis points to .15 percent.   

Freddie Mac said the measure of its exposure to changes in portfolio value averaged $17 million in June compared to $21 million in May. Maximum exposure to Fannie Mae-issued collateral that was included in Freddie Mac-issued resecuritizations was approximately $99.0 billion.