Federal Home Stock Price, News & Analysis

Freddie Mac (FMCC) released its Monthly Volume Summary for August 2022, detailing its mortgage-related portfolios and securities issuance. The report highlights Freddie Mac's ongoing efforts to enhance housing accessibility and affordability across the nation. The organization has been pivotal in providing mortgage capital to lenders since its inception in 1970, ensuring millions have access to home financing. Investors can find detailed financial insights, including risk management and delinquencies, on its official website.

Freddie Mac (OTCQB: FMCC) reported on September 22, 2022, that the 30-year fixed-rate mortgage averaged 6.29%, up from 6.02% the previous week and significantly higher than 2.88% a year ago. The 15-year fixed-rate mortgage rose to 5.44%, while the 5-year ARM increased to 4.97%. The housing market faces challenges as sales decline due to rising rates, although housing inventory remains low. Freddie Mac will enhance its Primary Mortgage Market Survey in November to improve data collection.

Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey® on September 15, 2022. The 30-year fixed-rate mortgage averaged 6.02%, a rise from 5.89% the previous week and significantly higher than the 2.86% average a year ago. The 15-year fixed-rate mortgage reached 5.21%, up from 5.16%, while the 5-year ARM increased to 4.93% from 4.64%. These rates reflect heightened inflation, leading to dampened demand and potential downward pressure on home prices, despite insufficient housing inventory.

Freddie Mac (OTCQB: FMCC) announced the establishment of a Low-Income Housing Tax Credit (LIHTC) Syndicator Fund in collaboration with Berkadia. This initiative aims to invest up to $850 million annually in equity for creating and preserving affordable housing, particularly in underserved communities, including rural areas. Since 2018, this marks Berkadia as the first LIHTC Syndicator named by Freddie Mac. In 2021, Freddie Mac set a record with $675 million in LIHTC equity investments, supporting over 4,800 affordable rental units, a trend expected to continue.

Freddie Mac (FMCC) has priced its second Seasoned Credit Risk Transfer Trust (SCRT) offering for 2022, amounting to approximately $536 million. This securitization includes both guaranteed senior and non-guaranteed subordinate securities backed by seasoned re-performing loans (RPLs). The offering consists of $492 million in guaranteed senior certificates and $45 million in subordinate certificates. The transaction is set to settle on September 14, 2022, and aims to reduce credit and market risks.

To date, Freddie Mac has securitized over $76 billion in RPLs.

The Freddie Mac Multifamily Apartment Investment Market Index (AIMI) fell by 11.7% in Q2 2022, declining 17.9% year-over-year due to record mortgage rate growth. All 25 markets experienced decreases, with notable impacts reflecting the largest annual AIMI decline since 2000. Over the past year, property prices rose by 21.8% and Net Operating Income (NOI) grew by 17.7%. Despite a strong NOI growth of 3.0% nationwide, the substantial increase in mortgage rates—95 bps quarterly and 131 bps annually—has moderated investment conditions.

The latest Freddie Mac Primary Mortgage Market Survey (PMMS) reports a rise in the 30-year fixed-rate mortgage (FRM) to 5.89% as of September 8, 2022, up from 5.66% the previous week. In comparison, the rate was 2.88% a year ago. The 15-year FRM is now 5.16%, and the 5-year ARM stands at 4.64%. Increased mortgage rates are linked to heightened inflation and tighter monetary policies, prompting borrowers to seek multiple quotes to potentially save up to $3,000 over a loan's lifetime.

Freddie Mac (OTCQB: FMCC) reported the average rate for a 30-year fixed-rate mortgage at 5.66% as of September 1, 2022, up from 5.55% the previous week. This marks a significant increase compared to 2.87% a year ago. The 15-year fixed-rate mortgage averaged 4.98%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) reached 4.51%. Chief Economist Sam Khater indicated that rising mortgage rates are challenging the housing market, causing price adjustments due to decreased buyer demand.

Freddie Mac's Single-Family Credit Risk Transfer (CRT) program reported record performance in Q2 2022, issuing approximately $6.5 billion and protecting about $151 billion in unpaid principal balance (UPB). Total CRT issuances for the first half of 2022 reached nearly $15 billion, covering $358 billion in UPB. The program attracted 17 new investors in Q2 and executed its largest CRT securities transaction at $1.9 billion. As of June 30, 2022, approximately 59% of the Single-Family mortgage portfolio was covered by credit enhancement.