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) 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.
Freddie Mac (OTCQB: FMCC) released its Monthly Volume Summary for July 2022, detailing key insights into its mortgage-related portfolios and securities issuance. The report showcases Freddie Mac's commitment to providing mortgage capital, making housing more affordable for families nationwide. Established by Congress in 1970, Freddie Mac continues to build a better housing finance system aimed at benefiting homebuyers, renters, lenders, and taxpayers.
On August 25, 2022, Freddie Mac (OTCQB: FMCC) reported that the average rate for a 30-year fixed mortgage rose to 5.55%, increasing from 5.13% the previous week and significantly up from 2.87% a year ago. The 15-year fixed-rate mortgage also saw an increase, averaging 4.85% compared to 4.55% last week. In contrast, the 5-year Treasury-indexed hybrid adjustable-rate mortgage dropped slightly to 4.36%. Freddie Mac's Chief Economist noted that higher rates and economic slowdown are impacting the housing market, with home sales declining and consumer confidence low.
On August 22, 2022, Freddie Mac (OTCQB: FMCC) announced the appointment of Ian Ouwerkerk as senior vice president of Underwriting & Credit, having served in the interim role since early 2022. Ouwerkerk has been credited with implementing strategic solutions and driving significant business results during his tenure. Previously, he held positions as vice president of Multifamily underwriting and senior director for the Southeastern region. Freddie Mac continues to play a vital role in affordable housing finance, with a focus on facilitating access to mortgage capital for low-to-moderate income families.
Freddie Mac (OTCQB: FMCC) reported that the average rate for a 30-year fixed mortgage is 5.13% as of August 18, 2022, down from 5.22% the prior week but significantly higher than 2.86% a year ago. The 15-year fixed mortgage rate is now 4.55%, and the 5-year adjustable-rate mortgage averages 4.39%. Chief Economist Sam Khater noted that inflation has peaked, halting rapid mortgage rate increases, although affordability remains challenged, leading to lower purchase demand and decelerating home price growth.