Federal Home Stock Price, News & Analysis

Freddie Mac (OTCQB: FMCC) has released its Monthly Volume Summary for August 2024, providing insights into the company's mortgage-related activities. The summary covers various aspects of Freddie Mac's operations, including securities issuance, risk management, delinquencies, debt activities, and other investments.

Freddie Mac's mission focuses on making homeownership accessible to families across the United States. The organization aims to promote liquidity, stability, affordability, and equity in the housing market throughout all economic cycles. Since its inception in 1970, Freddie Mac has assisted tens of millions of families in buying, renting, or maintaining their homes.

Freddie Mac's Primary Mortgage Market Survey® (PMMS®) reveals a decline in mortgage rates, with the 30-year fixed-rate mortgage (FRM) averaging 6.09%, down from 6.20% last week and 7.19% a year ago. The 15-year FRM averaged 5.15%, decreased from 5.27% last week and 6.54% a year ago.

Sam Khater, Freddie Mac's Chief Economist, notes that rates are approaching the 6% mark, stimulating purchase and refinance demand. He expects rates to fall further following the Federal Reserve's first rate cut in over four years, potentially boosting housing market activity.

The PMMS® focuses on conventional, conforming home purchase loans for borrowers with 20% down payment and excellent credit. Freddie Mac's mission is to promote liquidity, stability, affordability, and equity in the housing market throughout economic cycles.

Freddie Mac's Multifamily Apartment Investment Market Index® (AIMI®) rose 0.3% quarter-over-quarter and 2.2% year-over-year nationwide in Q2 2024. The quarter saw mixed results across metro areas, with 14 markets up, 9 down, and 2 unchanged. Key findings include:

- Net operating income (NOI) grew in 19 metros and nationally quarter-over-quarter, but fell in 14 of 25 markets year-over-year.
- Property prices dropped in most markets quarterly and all markets annually, declining 8.3% nationally.
- Mortgage rates increased by 21 basis points in Q2 and 64 basis points year-over-year.

The slight AIMI growth indicates the market is working towards stabilization after significant volatility. Higher mortgage rates were offset by lower property prices and modest rental income growth.

Freddie Mac's latest Primary Mortgage Market Survey® reveals a significant drop in mortgage rates, with the 30-year fixed-rate mortgage (FRM) averaging 6.20%, the lowest since February 2023. This represents a decline of over half a percent in the past six weeks. The 15-year FRM also decreased to 5.27%.

Despite the improving rate environment, Chief Economist Sam Khater notes that potential buyers remain hesitant due to high house prices and persistent supply shortages. Compared to a year ago, both 30-year and 15-year FRMs show substantial decreases from 7.18% and 6.51%, respectively.

Freddie Mac (OTCQB: FMCC) has announced the pricing of its second Seasoned Credit Risk Transfer Trust (SCRT) offering of 2024, a $658 million securitization backed by seasoned re-performing loans (RPLs). The offering includes $625 million in guaranteed senior certificates and $33 million in non-guaranteed mezzanine and subordinate certificates. The transaction, expected to settle on September 13, 2024, involves 3,762 seasoned fixed-, step-, and adjustable-rate RPLs.

This SCRT program is part of Freddie Mac's strategy to reduce less liquid assets and transfer credit and market risk. To date, Freddie Mac has sold over $10.3 billion of Non-Performing Loans and securitized approximately $78.6 billion of RPLs. The underlying loans will be serviced by Newrez , prioritizing borrower retention options and promoting neighborhood stability in case of default.

Freddie Mac (OTCQB: FMCC) has appointed Diana Reid as its new CEO, effective immediately. Reid, a veteran with over 40 years of experience in banking, real estate, capital markets, and affordable housing, will also join the company's Board of Directors. She replaces Interim CEO Michael Hutchins, who will continue as president. Reid's extensive background includes nearly 12 years leading PNC Financial Services Group's real estate business division and founding Beekman Advisors. The appointment comes after a comprehensive search by Freddie Mac's Board, with Board Chair Lance Drummond expressing confidence in Reid's ability to further the company's mission-driven work in housing finance.

Freddie Mac (OTCQB: FMCC) has announced the results of its tender offer for certain STACR® (Structured Agency Credit Risk) Notes. As of September 5, 2024, approximately $1.3 billion aggregate original principal amount of Notes had been validly tendered and not properly withdrawn. The offer was conducted in accordance with the conditions set forth in the Offer to Purchase dated August 29, 2024.

The settlement date for the accepted Notes is expected to be September 9, 2024. Any Notes tendered using the Notice of Guaranteed Delivery are expected to be purchased on September 11, 2024. Citigroup Global Markets Inc. and BofA Securities, Inc. are lead dealer managers, while Academy Securities, Inc. is co-dealer manager for the offer.

Freddie Mac's Primary Mortgage Market Survey® (PMMS®) shows mortgage rates remained flat this week, with the 30-year fixed-rate mortgage (FRM) averaging 6.35%, unchanged from last week. The 15-year FRM averaged 5.47%, down from 5.51% last week. Compared to a year ago, both rates are significantly lower, with the 30-year FRM down from 7.12% and the 15-year FRM down from 6.52%.

Sam Khater, Freddie Mac's Chief Economist, noted that markets are awaiting the August jobs report. Despite lower rates, home sales have been lackluster. However, homeowners who bought in recent years are taking advantage of declining rates to lower their monthly payments through refinancing.

Freddie Mac (OTCQB: FMCC) has announced a $233 million non-performing loan (NPL) sale via auction. The offering includes a Standard Pool Offering (SPO) and two Extended Timeline Pool Offerings (EXPO) targeting smaller investors, including non-profits and Minority, Women, Disabled, LGBTQ+, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs). Bids are due by September 26, 2024 for the SPO pool and October 10, 2024 for the EXPO pools.

The NPLs consist of seasoned, deeply delinquent residential first lien whole loans from Freddie Mac's mortgage-related investments portfolio. This sale is part of Freddie Mac's strategy to reduce less-liquid assets in an economically sensible way. Since 2011, Freddie Mac has sold $10.3 billion of NPLs and securitized approximately $78.6 billion of re-performing loans (RPLs).