Welcome to our dedicated page for Federal Home news (Ticker: FMCC), a resource for investors and traders seeking the latest updates and insights on Federal Home stock.
Freddie Mac (OTCQB: FMCC), formally the Federal Home Loan Mortgage Corporation, regularly issues news and updates that reflect its role in U.S. housing finance. The company describes its mission as making home possible for families across the nation by promoting liquidity, stability and affordability in the housing market throughout all economic cycles. Since 1970, it reports having helped tens of millions of families buy, rent or keep their home.
News about Freddie Mac often covers mortgage rate trends through its Primary Mortgage Market Survey® (PMMS®). These releases provide average rates for products such as the 30-year and 15-year fixed-rate mortgage, focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit. Such updates can give readers insight into movements in mortgage costs and the company’s commentary on housing demand.
Another key news theme is Freddie Mac’s activity in credit risk transfer and securities issuance. The company publishes updates on its Single-Family Credit Risk Transfer (CRT) programs, including STACR® and ACIS® transactions, and on multifamily securities such as K-Deals®, Multi PCs®, SB-Deals®, M-Deals, ML-Deals, Q-Deals, MSCR notes and MCIP policies. These announcements describe how Freddie Mac transfers credit, interest-rate and liquidity risk away from U.S. taxpayers to private investors and (re)insurers.
Freddie Mac also releases information on its Monthly Volume Summary, tender offers for STACR notes, and exchange offers for Gold PCs and Giant PCs. Governance and leadership developments, such as changes in executive roles or board membership, are disclosed through press releases and related SEC filings. Investors and observers can use this news feed to follow Freddie Mac’s mortgage market surveys, securities issuance, risk transfer activity and corporate updates in one place.
Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 5.81% as of June 23, 2022, an increase from 5.78% the previous week and significantly up from 3.02% a year ago. The 15-year fixed-rate mortgage also rose to 4.92%, while the 5-year Treasury-indexed ARM averaged 4.41%. Rising mortgage rates and high home prices are attributed to declines in existing home sales, although demand remains competitive.
The Freddie Mac (OTCQB: FMCC) Multifamily Apartment Investment Market Index (AIMI) fell by 5.3% in Q1 2022, down 6.1% year-over-year. While net operating income (NOI) rose 19.8% and property prices increased by 21.1%, these gains were overshadowed by higher mortgage rates. The mortgage rates rose 41 basis points, the largest increase since 2018. Despite strong NOI growth, the AIMI’s decline indicates challenges in finding attractive investment opportunities.
All 25 markets tracked showed a decrease in AIMI, with notable growth in NOI across all metros, highlighting disparities in the multifamily investment landscape.
Freddie Mac (FMCC) reported tender results for its recent fixed-price cash offer for Structured Agency Credit Risk (STACR) notes, totaling approximately $2,489 million in original principal. As of the June 13, 2022 expiration, a significant portion of the tendered amounts was accepted, including 98.39% for STACR Trust 2018-DNA2 and 99.97% for STACR 2019-DNA1. The settlement for accepted notes occurred on June 15, 2022, with additional purchases following on June 16. The offer was managed by BofA Securities and Citigroup Global Markets.
On June 16, 2022, Freddie Mac reported that the average rate for the 30-year fixed-rate mortgage surged to 5.78%, marking a significant rise from 5.23% the previous week, and 2.93% a year ago. This increase of more than half a percentage point is the largest weekly jump since 1987, driven by changing inflation expectations and monetary policy shifts. The average 15-year fixed-rate mortgage also rose to 4.81%, and the 5-year ARM increased to 4.33%. These increased rates are expected to moderate housing activity as the market stabilizes.
Freddie Mac (OTCQB: FMCC) announced the preliminary results of its cash tender offer for Structured Agency Credit Risk (STACR®) notes. As of June 13, 2022, approximately $2.49 billion in original principal amount of notes had been tendered. The settlement date for accepted notes is expected on June 15, 2022. The offer includes various series of STACR notes, with substantial percentages of original principal amounts tendered, such as 98.39% for STACR 2018-DNA2 M-2. Lead managers for this offer are BofA Securities and Citigroup Global Markets.
Freddie Mac (OTCQB: FMCC) reported in its June 9, 2022, Primary Mortgage Market Survey that the 30-year fixed-rate mortgage averaged 5.23%, an increase from last week's 5.09%, and significantly higher than 2.96% a year ago. The 15-year fixed-rate mortgage rose to 4.38% from 4.32%, and the 5-year ARM averaged 4.12%, up from 4.04%.
Chief Economist Sam Khater indicated that rising rates have led to decreased demand in the housing market, suggesting a slowdown in price growth, which may benefit potential buyers.
Freddie Mac (OTCQB: FMCC) announced its first Equitable Housing Finance Plan on June 8, 2022, aiming to enhance sustainable homeownership and rental opportunities for underserved Black and Latino communities. This plan, part of a three-year initiative, addresses the homeownership gap, strengthens investments in redlined areas, and promotes affordable housing. Key areas include leveraging the Special Purpose Credit Program, financing affordable housing, and introducing new initiatives to improve capital access for diverse developers. Annual progress reports will track the plan's impact.
Freddie Mac (FMCC) has initiated a fixed-price cash tender offer for its STACR® notes as of June 7, 2022. The offer is open until 5 p.m. EDT on June 13, 2022, unless extended. Notably, holders who tender their notes will receive accrued interest from the last payment date to the settlement date of June 15, 2022. In total, Freddie Mac is targeting approximately $1.6 billion in STACR notes from various trusts, with specific consideration amounts detailed for each note series. The company emphasizes that this announcement is not a solicitation and that holders should make independent decisions regarding their notes.
Freddie Mac (OTCQB: FMCC) reported on June 2, 2022, that the 30-year fixed-rate mortgage averaged 5.09%, down from 5.10% last week but significantly higher than 2.99% a year ago. The 15-year fixed-rate mortgage increased to 4.32%, while the 5-year Treasury-indexed ARM decreased to 4.04%. Chief Economist Sam Khater noted that mortgage rates are still affecting affordability and demand, even as the housing market normalizes with increased supply. The PMMS® focuses on conventional loans for excellent credit borrowers putting 20% down.
Freddie Mac Multifamily has announced the promotions of Corey Aber and Erlita Shively to vice presidents, enhancing its mission to serve the multifamily market. Aber will lead the Multifamily Mission, Policy & Strategy, while Shively will oversee Multifamily Counterparty Risk Management. Aber, a 17-year veteran, will focus on affordable housing initiatives, and Shively, with extensive experience since 1997, will manage lender compliance and risk activities. These promotions align with Freddie Mac's commitment to stability and affordability in the housing sector.