Freddie Mac reports recurring developments tied to U.S. housing finance, mortgage liquidity and its role as the Federal Home Loan Mortgage Corporation. Company news commonly covers the Primary Mortgage Market Survey® for conventional conforming mortgage rates, quarterly financial results, monthly volume summaries and activity across mortgage-related portfolios, securities issuance, delinquencies, debt activities and risk management.
Freddie Mac also reports capital markets activity connected to its Single-Family credit risk transfer programs. Updates include STACR® Structured Agency Credit Risk notes, ACIS® reinsurance transactions and tender offers for certain STACR securities, reflecting the company’s use of private capital markets to transfer residential mortgage credit risk.
Freddie Mac (OTCQB: FMCC) reported minimal movement in mortgage rates, with the 30-year fixed-rate mortgage (FRM) averaging 6.95%, slightly down from 6.96% last week but up from 6.63% a year ago. The 15-year FRM decreased to 6.12% from 6.16% last week, compared to 5.94% a year ago.
Chief Economist Sam Khater noted that the 30-year fixed-rate has remained between 6% and 7% for approximately two and a half years. The current market faces significant challenges due to higher rates and persistent supply shortages, creating affordability barriers that keep many potential buyers sidelined.
Freddie Mac (OTCQB: FMCC) has released its Monthly Volume Summary for December 2024, providing comprehensive information about the company's key operational metrics. The report includes details on mortgage-related portfolios, securities issuance, risk management practices, delinquency rates, debt activities, and various investments.
Freddie Mac (OTCQB: FMCC) reported a decrease in mortgage rates, with the 30-year fixed-rate mortgage (FRM) averaging 6.96%, down from 7.04% last week. This marks the first decline in six weeks after crossing the 7% threshold. The 15-year FRM also decreased to 6.16% from 6.27% last week.
Compared to a year ago, the 30-year FRM is higher (previously 6.69%), and the 15-year FRM has also increased from its previous rate of 5.96%. According to Chief Economist Sam Khater, while affordability challenges persist, this rate decrease is positive news for potential homebuyers, as evidenced by an increase in purchase applications.
Freddie Mac (OTCQB: FMCC) reported that mortgage rates have increased for the fifth consecutive week, with the 30-year fixed-rate mortgage (FRM) reaching 7.04%, surpassing 7% for the first time since May 2024. This represents an increase from last week's 6.93% and is higher than the 6.60% rate recorded a year ago.
The 15-year FRM also saw an increase, averaging 6.27%, up from last week's 6.14% and significantly higher than the 5.76% rate from a year ago. According to Sam Khater, Freddie Mac's Chief Economist, the underlying strength of the economy is contributing to the rate increase. Despite rising rates, Freddie Mac's research indicates that consumers can potentially save money by shopping around for different lender quotes.
Freddie Mac Multifamily reported a strong performance in 2024 with total production volume reaching $66 billion, marking a 34% increase from 2023. The volume comprised $65 billion in multifamily financing and $1 billion in Low-Income Housing Tax Credit (LIHTC) equity investments.
The company supported 507,191 affordable rental units across the United States, with 65% of production volume qualifying as mission-driven affordable housing, exceeding the FHFA's 50% goal. Notable achievements include:
- 93% of financed units were affordable at or below 120% of AMI
- Record $17 billion in Targeted Affordable Housing volume, supporting nearly 133,000 rent-restricted units
- Creation of affordable units for over 23,000 families through forward commitments
- Seven new credit facilities generating almost $2 billion in new funding
Freddie Mac (OTCQB: FMCC) and Intercontinental Exchange (NYSE:ICE) announced technological enhancements to streamline mortgage loan underwriting processes. The collaboration integrates Freddie Mac's Loan Product Advisor® (LPA®) with ICE's Encompass® digital lending platform, offering lenders improved efficiency in loan origination.
The enhanced Encompass Underwriting Center provides access to LPA ChoiceSM feedback messages, employment warranty relief eligibility, and automated collateral evaluation options. The system delivers detailed information about debt-to-income ratios, loan-to-value ratios, and reserves.
According to Freddie Mac's analysis, loans originated using their automated offerings are up to four times less likely to have defects compared to loans without this technology. This automation is particularly valuable for income verification, as income-related issues represent nearly one-third of all purchase transaction defects.
Freddie Mac (OTCQB: FMCC) has announced mortgage relief options for homeowners affected by wildfires in the Los Angeles area. The company's forbearance program offers up to 12 months of mortgage relief without late fees or penalties. Affected homeowners with Freddie Mac mortgages can access these disaster relief options if their property experiences an insurable loss or is located in Presidentially-Declared Major Disaster Areas.
The relief package includes suspension of foreclosure proceedings and multiple options for repayment:
- Lump sum reinstatement (not required)
- Repayment plan with additional monthly payments
- Payment deferral with missed payments added to loan end
- Loan modification for long-term financial hardships
Homeowners are encouraged to contact their mortgage servicers to discuss available options, including those whose employment has been impacted by the disaster.
Freddie Mac Multifamily issued $56 billion in securities through its multifamily risk transfer platform in 2024, effectively transferring various risks from U.S. taxpayers to private investors. The company settled $27.7 billion in K-Deals and $22.1 billion in Multi PC issuances.
Key developments in 2024 included the introduction of Giant PCs and multi-sponsor Q-Deals, along with reaching $24 billion in total Impact Bond issuances since 2019. The company issued $4.3 billion of Impact Bonds in 2024 alone, demonstrating its commitment to affordable housing.
Notable achievements include winning GlobalCapital's CMBS Issuer of the Year award and Environmental Finance's Sustainability Bond of the Year for ML-20. Since 2009, Freddie Mac has settled $738 billion in Multifamily securities through various risk-transfer offerings, with over 90% of eligible rental units funded being affordable to families with low-to-moderate incomes.
Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage (FRM) averaged 6.93% as of January 9, 2025, showing an increase from 6.91% last week and 6.66% a year ago. The 15-year FRM also rose to 6.14%, up from 6.13% last week and 5.87% from the previous year.
According to Sam Khater, Freddie Mac's Chief Economist, the economy's continued strength has put upward pressure on mortgage rates. Combined with high home prices, these factors are affecting housing affordability. The situation is particularly challenging for first-time homeowners due to the lack of entry-level supply in the market.
Freddie Mac (OTCQB: FMCC) has released its 2025 Multifamily Outlook, forecasting an increase in originations despite market challenges. The report predicts rent growth of 2.2%, below the long-term average, and vacancy rates rising to 6.2%. Gross rental income growth is projected at 2% for 2025.
Multifamily origination volume is expected to reach $320 billion in 2024 and increase to $370-380 billion in 2025. The market shows varying performance across regions, with Sun Belt and Mountain West markets experiencing high supply levels and weaker performance, while smaller Sun Belt markets and coastal areas are expected to perform stronger.
Despite short-term pressures from high interest rates and record supply levels, multifamily remains a favored asset class due to economic strength, demographic trends, and housing alternatives.