Federal Home Stock Price, News & Analysis

Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 2.86% for the week ending September 16, 2021, slightly down from 2.88% the previous week. Additionally, the 15-year fixed-rate mortgage averaged 2.12%, down from 2.19%. The 5-year Treasury-indexed ARM rose to 2.51% from 2.42%. Chief Economist Sam Khater noted that mortgage rates have remained stable amid economic concerns due to COVID-19. He highlighted ongoing shifts such as increased remote work and automation that could spur future economic growth.

Freddie Mac (OTCQB: FMCC) has announced the pricing of a new offering of approximately $779 million in Structured Pass-Through Certificates (K-F121 Certificates), expected to settle on September 23, 2021. These certificates are backed by floating-rate multifamily mortgages indexed to the Secured Overnight Financing Rate (SOFR) with a weighted average life of 6.71 years. The pricing includes one senior class and one interest-only class, guaranteed by Freddie Mac, aimed at enhancing cash flows and transferring the risk from taxpayers to private investors.

The Freddie Mac (OTCQB: FMCC) Multifamily Apartment Investment Market Index (AIMI) showed positive growth in Q2 2021, rising 0.7% quarterly and 2.6% annually. Strong net operating incomes (NOIs) and low mortgage rates contributed to this favorable environment, despite a 5 basis point increase in mortgage rates. The AIMI recorded growth in 22 of the 25 tracked markets, with notable NOI increases of 8.3% in Orlando and 8.5% in Phoenix. However, New York and San Francisco experienced significant NOI declines of 13.0% and 15.1%, respectively.

Freddie Mac (OTCQB: FMCC) has priced a new offering of Structured Pass-Through Certificates (K Certificates) amounting to approximately $1.1 billion. These K-131 Certificates are backed by fixed-rate multifamily mortgages with predominantly 10-year terms. Expected settlement is around September 17, 2021. The K-131 Certificates include various classes with diverse principal amounts and yield rates, such as A-1 with $52.793 million and an average yield of 1.14931%, and A-2 with $970.887 million at 1.51177%.

Freddie Mac (OTCQB: FMCC) has introduced enhanced tenant protections for Manufactured Housing Community (MHC) transactions, effective immediately. The protections exceed state and local laws and include one-year renewable leases, written notice of rent hikes, grace periods for late payments, and rights for selling manufactured homes. This initiative aims to support homeowners leasing pads in MHCs, addressing a gap identified in previous regulations. Freddie Mac plans to finance over 75 MHCs this year, amounting to over $700 million.

Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey® (PMMS®) for the week ending September 9, 2021. The 30-year fixed-rate mortgage averaged 2.88%, slightly up from 2.87% the previous week. The 15-year fixed-rate mortgage averaged 2.19%, also up from 2.18% last week. Meanwhile, the 5-year Treasury-indexed ARM fell to 2.42%, down from 2.43%. The survey indicates that low mortgage rates provide consumers more time to search for homes, albeit amid economic challenges from rising COVID-19 cases impacting consumer confidence.

Freddie Mac (OTCQB: FMCC) has announced the pricing of approximately $745 million in K Certificates, which are structured pass-through securities backed by floating-rate multifamily mortgages indexed to the Secured Overnight Financing Rate (SOFR). The K-F120 Certificates are set to settle on September 16, 2021. The offering includes a senior principal and interest class, as well as an interest-only class entitled to static prepayment premiums. These certificates will not be rated and are backed by corresponding classes issued by the FREMF 2021-KF120 Mortgage Trust, guaranteed by Freddie Mac.

Freddie Mac has announced the upcoming launch of its inaugural When-Issued K-Deal offering (WI K-Deal), set to provide investors an opportunity to purchase fixed-rate K-Deal A-M Certificates prior to issuance. This innovative program enables investors to gain early exposure while reducing Freddie Mac's market risk. The WI K-Deal trust certificates will be tradeable shortly after pricing and will mirror the fixed-rate coupon of the referenced K-Deal A-M class. This initiative aligns with Freddie Mac's strategy to transfer risk from taxpayers to private investors.

Freddie Mac (FMCC) has launched cash tender offers to purchase up to $650 million of its STACR® Debt Notes, commencing September 7, 2021. Barclays Capital Inc. and BofA Securities, Inc. are designated dealer managers for the Offers.

The tender offer period will run until October 4, 2021, with crucial dates including the Early Tender Time on September 20, 2021, and expected settlement dates on September 22 and October 6, 2021. The transaction will be subject to a Tender Cap and acceptance priority levels.