Housing News

Freddie Mac Delinquencies Jump for Second Month

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 20.0 percent in July compared to a 14.2 percent gain in June. The portfolio balance at the end of the period was $2.476 trillion compared to $2.436 trillion the prior month and $2.251 trillion a year earlier. The growth rate for the year to date is 10.7 percent.

Purchases and Issuances totaled $116.383 billion and Sales were ($3.803) billion. The June numbers were $94.331 billion and ($1.880) billion, respectively.

Single-family refinance loan purchase and guarantee volume was $77.700 billion in July compared to $65.500 billion in June and representing a 72 percent share of total single-family mortgage portfolio purchases and issuances compared to 78 percent the previous month.

Purchases in Freddie Mac's Mortgage Related Investments Portfolio totaled $86.189 billion for the month compared to $79.605 billion during the prior period. Liquidations were ($2.318) billion and ($2.264) billion for July and June respectively and Sales for the two periods were ($84.665) and ($71.127) billion. The ending balance in the portfolio was $193.316 billion, compared to $194.110 billion in June.

The Mortgage Related Investments portfolio growth declined by (4.9) percent compared to growth of 39.7 percent a month earlier. The annualized growth in June 2019 was (0.6) percent.

The ending balance of the Mortgage Related Investments Portfolio was composed of $91.855 billion in Mortgage Related Securities, Mortgage Loans valued at $96.679 billion, Non-Agency, non-Freddie Mac Mortgage-Related Securities at $1.498 billion; and Agency non-Freddie Mac Mortgage related securities of $3.284 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 23.3 percent, up from 9.5 percent the previous month.

Freddie Mac's single-family delinquency rate increased from 2.48 percent June to 3.12 percent in July. The rate has risen by 231 basis points since May. The multi-family delinquency rate decline from 0.10 percent to 0.9 percent.   

Freddie Mac said the measure of its exposure to changes in portfolio value averaged $80 million in July compared to $51 million in June.