Federal Home Stock Price, News & Analysis

Freddie Mac (OTCQB: FMCC) reported a rise in mortgage rates, with the 30-year fixed-rate mortgage averaging 3.45% as of January 13, 2022, up from 3.22% the previous week. This increase is attributed to expectations of tighter monetary policy amidst ongoing inflation and supply chain uncertainties. Although current mortgage rates have not yet dampened purchase demand, the escalating home prices may impact future demand negatively. The 15-year fixed-rate mortgage averaged 2.62%, while the 5-year adjustable-rate mortgage averaged 2.57%.

The Freddie Mac Multfamily Apartment Investment Market Index (AIMI) showed positive growth in Q3 2021, with an overall increase of 2.6% quarterly and 3.5% annually. Strong net operating income (NOI) growth was noted, particularly in New York and Tampa, where NOI grew 13.2% and 11.5% respectively. Mortgage rates decreased 5 basis points during the quarter. The AIMI rose in all 25 markets, indicating a favorable investment environment as markets recover from COVID-19 impacts.

Freddie Mac (OTCQB: FMCC) has announced the pricing of approximately $829 million in Structured Pass-Through Certificates (K-F128 Certificates), set to settle around January 20, 2022. These certificates are backed by floating-rate multifamily mortgages indexed to the Secured Overnight Financing Rate (SOFR) with a 10-year term. Co-lead managed by J.P. Morgan and Goldman Sachs, the offering includes both senior principal and interest classes. Freddie Mac aims to transfer some risk from taxpayers to private investors through these securities.

In 2021, Freddie Mac (OTCQB: FMCC) set a record by issuing $80.6 billion in multifamily securities, reinforcing its leadership in risk transfer. The company has now settled over $500 billion in multifamily securities since the K-Deal program's inception in 2009. Key metrics include:

• $63.5 billion in K-Deals
• $5.1 billion in SB-Deals
• $7.0 billion in Multi PCs
• Introduction of the When-Issued K-Deal
• $5.2 billion in Impact Bonds

Freddie Mac aims to provide affordable housing, with over 90% of funded units accessible to low-to-moderate income families.

Freddie Mac (OTCQB: FMCC) is set to market a new class of Multifamily WI Certificates, heavily composed of the A-2 guaranteed bond class from K Certificates Series K-140. This follows the successful execution of $2 billion in WI deals for A-M class bonds in 2021. The WI-K140 deal will be available the week of January 24, enabling investors to manage risk while gaining exposure to certain bond classes. WI Certificates are publicly traded and backed by Freddie Mac’s guarantee, allowing initial cash collateral while offering stable cash flow and credit enhancement options.

Freddie Mac's annual multifamily outlook forecasts a continued growth in multifamily origination volume for 2022, estimating a range of $475 billion to $500 billion. Rent growth is expected across all markets, with the Sun Belt outperforming others. However, after a robust 2021, growth is likely to moderate due to inflation and COVID-19 variants concerns. The report anticipates a 4% rent increase and flat vacancy rates at 4.8%. Freddie Mac remains a leader in multifamily housing finance, emphasizing affordable housing for low-to-moderate income families.

Freddie Mac (OTCQB: FMCC) reported in its latest Primary Mortgage Market Survey that the average 30-year fixed-rate mortgage rose to 3.22%, up from 3.11% last week and significantly higher than the 2.65% average from a year ago. The 15-year fixed-rate mortgage also increased to 2.43%, while the 5-year hybrid adjustable-rate mortgage remained stable at 2.41%. Chief Economist Sam Khater indicated that rising inflation and strong economic growth may lead to continued increases in mortgage rates, although demand from first-time homebuyers appears resilient.

Freddie Mac announced plans to issue at least $25 billion in Single-Family Credit Risk Transfer (CRT) in 2022, focusing on STACR and ACIS transactions. The issuance aims to meet the new capital requirements under the Enterprise Regulatory Capital Framework. New M-1A and M-1B slices will be introduced to attract investment-grade buyers. Additionally, Freddie Mac plans to offset issuances with $15 billion through financial maneuvers like paydowns and repurchases. In 2021, Freddie Mac issued over $18 billion across various transactions.