Freddie Mac's Purchase Volumes Eroded in July

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 8.4 percent in July compared to a 12.9 percent gain in June.  The portfolio balance at the end of the period was $3.033 trillion compared to $3.021 trillion the prior month and $2.518 trillion a year earlier. Purchases and Issuances totaled $85.899 billion, and Sales were ($1.110) billion. The June numbers were $92.609 billion, and ($1.369) billion, respectively.

Single-family refinance loan purchase and guarantee volume was $40.5 billion in July compared to $50.9 billion in June, representing a 50 percent share of total single-family mortgage portfolio purchases and issuances, down from 59 percent the previous month.

Purchases in Freddie Mac's Mortgage Related Investments Portfolio totaled $51.881 billion for the month compared to $61.787 billion during the prior period. Liquidations were ($1.243) billion and ($1.330) billion for July and June, respectively and Sales for the two periods were ($53.403) and ($74,465) billion. The ending balance in the portfolio was $110.470 billion, compared to $113.235 billion in June and $193.316 billion in July 2020.

The annualized growth of the Mortgage Related Investments portfolio was (29.3) percent compared to declines of (132.1) percent in June and (4.9) percent a year earlier.

The $110.470 billion ending balance of the Mortgage Related Investments Portfolio was composed of $49.293 billion in Agency Securities, Mortgage Loans valued at $59.880 billion, and Non-Agency Securities at $1.297 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 11.4 percent in July compared to 16.7 percent in June. 

Freddie Mac's single-family delinquency rate decreased from 1.86 percent in June to 1.74 percent in July. The multi-family delinquency rate was unchanged at .15 percent.   

Freddie Mac said the measure of its exposure to changes in portfolio value averaged $63 million in July compared to $17 million in June. Maximum exposure to Fannie Mae-issued collateral that was included in Freddie Mac-issued resecuritizations was approximately $100.4 billion.