Refinancing Still Driving Freddie Mac Mortgage Volume

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 17.4 percent in September compared to a 23.7 percent gain in August. The portfolio balance at the end of the period was $3.137 trillion compared to $3.093 trillion the prior month and $2.613 trillion a year earlier. Purchases and Issuances totaled $112.333 billion, and Sales were ($498) billion. The August numbers were $119.682 billion, and ($277) billion, respectively.

Single-family refinance loan purchase and guarantee volume was $59.8 billion in September compared to $65.7 billion in August, representing a 58 percent share of total single-family mortgage portfolio purchases and issuances, unchanged from the share in August.

Purchases in Freddie Mac's Mortgage Related Investments Portfolio totaled $68.040 billion for the month compared to $70.749 billion during the prior period. Liquidations were ($1.165) billion and ($1.122) billion for September and August, respectively and Sales for the two periods were ($67.004) and ($66.193) billion. The ending balance in the portfolio was $113.773 billion, compared to $113.903 billion in August and $172.372 billion in September 2020.

The annualized growth of the Mortgage Related Investments portfolio was (1.4) percent compared to 37.3 percent in August and a decline of (64.6) percent a year earlier.

The $113.773 billion ending balance of the Mortgage Related Investments Portfolio composed of $50.074 billion in Agency Securities, Mortgage Loans valued at $62.440 billion, and Non-Agency Securities at $1.259 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 16.6 percent in September compared to 23.0 percent in August.

Freddie Mac's single-family delinquency rate decreased from 1.62 percent in August July to 1.46 percent in September. It was at 3.04 percent in September 2020. The multi-family delinquency rate was unchanged at .12 percent.   

Freddie Mac said the measure of its exposure to changes in portfolio value averaged $87 million in September compared to $81 million in August.