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's recent survey reveals that nearly 60% of renters have faced rent increases over the past year, with 1 in 3 experiencing hikes of 10% or more. A mere 38% of renters reported wage gains, with one-third indicating their raises fall short of covering rising rents. Additionally, 20% of those with rent increases are likely to miss payments. The survey highlights a growing national housing affordability crisis, driven mainly by inflation, as 96% of respondents report being affected by higher costs across various categories.
Freddie Mac (OTCQB: FMCC) has announced updated results for its tender offer to purchase STACR® Debt Notes, with approximately $2,456 million in original principal amount validly tendered by the August 10, 2022 deadline. The offer was conducted under the terms specified in the Offer to Purchase dated August 2, 2022. Notably, several securities saw significant participation, including STACR 2017-DNA2, with a tender acceptance rate of 99.49%. This highlights market interest and participation in the offer, which may influence future financial strategies.
Freddie Mac (OTCQB: FMCC) released its 2022 stress test results, adhering to the Federal Housing Finance Agency’s Dodd-Frank guidelines. This assessment evaluates the company's resilience in a severely adverse economic scenario, underscoring its role in providing mortgage capital to lenders across the U.S. Established in 1970, Freddie Mac aims to enhance housing accessibility for homebuyers and renters. The full stress test results can be accessed on their investor resources page.
On August 11, 2022, Freddie Mac (OTCQB: FMCC) reported the latest results of its Primary Mortgage Market Survey (PMMS), indicating a significant rise in mortgage rates. The 30-year fixed-rate mortgage averaged 5.22%, up from 4.99% the previous week, a stark increase from 2.87% a year ago. The 15-year fixed-rate mortgage also increased to 4.59% from 4.26%. Despite rate fluctuations, the housing market appears to be stabilizing post-pandemic, with house prices expected to rise at a slower pace due to diminishing purchase demand and tight supply.
Freddie Mac (OTCQB: FMCC) announced the results of its offer to buy back Structured Agency Credit Risk (STACR) Debt Notes. By the expiration time of August 8, 2022, approximately $2.461 billion in the original principal amount of notes were tendered. The settlement date for accepted notes is expected on August 10, 2022. The tender offer was facilitated by BofA Securities and Wells Fargo Securities as lead dealer managers. The offer remains subject to certain conditions, and participation may be restricted in some jurisdictions.
Freddie Mac (OTCQB: FMCC) reported that the average 30-year fixed-rate mortgage is at 4.99%, down from 5.30% the previous week. This figure contrasts sharply with 2.77% a year ago. The 15-year fixed-rate mortgage averaged 4.26%, also decreasing from 4.58%, while last year it was 2.10%. The 5-year ARM averaged 4.25%, down from 4.29%, compared to 2.40% last year. Freddie Mac's Chief Economist, Sam Khater, noted ongoing volatility in mortgage rates due to inflation and economic growth uncertainties.
Freddie Mac (OTCQB: FMCC) has announced a unique integration with Mr. Cooper, the first servicer to connect its proprietary CMOD System directly with Freddie Mac’s Resolve® default management tool using an API. This integration facilitates real-time workout decisions, streamlining loss mitigation and enhancing risk management. Mr. Cooper’s seamless experience allows faster response times and improved accuracy in handling payment deferrals and modifications. The Resolve APIs deliver quick decisions in three to five seconds, aiding servicers in better case management for distressed homeowners.
Freddie Mac (OTCQB: FMCC) projects a moderated growth in multifamily fundamentals, with originations expected to contract to $440-450 billion in 2022, reflecting macroeconomic challenges like inflation and rising treasury rates. Despite an anticipated decrease in total volume, rent growth and occupancy rates are set to remain above long-term averages. Overall, gross income growth in multifamily markets is forecasted at around 6.8%, with vacancy rates stable at 4.8%. The Multifamily Midyear 2022 Outlook provides further insights into these trends.
Freddie Mac (OTCQB: FMCC) has initiated a fixed-price cash tender offer for its Structured Agency Credit Risk (STACR®) debt notes starting August 2, 2022, through August 8, 2022. The offer, managed by BofA Securities, Inc., Wells Fargo Securities, and Academy Securities, aims to purchase all listed notes with total considerations varying per $1,000 of original principal amount. Holders can withdraw their notes until the deadline. The expected settlement date is August 10, 2022. Freddie Mac continues its commitment to enhancing housing finance accessibility.
Freddie Mac (OTCQB: FMCC) reports the results of its Primary Mortgage Market Survey as of July 28, 2022, revealing a 30-year fixed-rate mortgage averaged 5.30%, down from 5.54% last week, but significantly up from 2.80% a year ago. The 15-year fixed-rate mortgage averaged 4.58%, down from 4.75%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.29%. Chief Economist Sam Khater noted a decline in purchase demand driven by higher rates, elevated home prices, and declining consumer confidence, suggesting a period of reduced sales activity until market normalization occurs.