Federal Home Stock Price, News & Analysis

Freddie Mac (OTCQB: FMCC) has priced a new offering of Structured Pass-Through Certificates, specifically the K-134 Certificates, backed by fixed-rate multifamily mortgages. The offering is approximately $1.1 billion and is expected to settle on or around November 24, 2021. Key details include varying principal amounts, weighted average lives, yields, and spreads across different classes such as A-1 and A-2. Freddie Mac aims to transfer risk from taxpayers to private investors through these instruments, enhancing options for multifamily investments.

On November 18, 2021, Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey, revealing that the 30-year fixed-rate mortgage averaged 3.10%, up from 2.98% the previous week, and 2.72% a year ago. The 15-year fixed-rate mortgage rose to 2.39% from 2.27% last week, while the 5-year ARM decreased slightly to 2.49%. Chief Economist Sam Khater indicated that rising inflation and consumer spending are driving mortgage rates higher, indicating a challenging housing market due to strong demand amid inventory shortages.

Freddie Mac (OTCQB: FMCC) has announced a new offering of approximately $734 million in Structured Pass-Through Certificates (K-F125 Certificates), expected to settle on November 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 6.75 years. The offering has one senior principal and interest class and an interest-only class, not rated but guaranteed by Freddie Mac. Co-lead managers include BofA Securities and PNC Capital Markets.

Freddie Mac announced a year-to-date Credit Risk Transfer (CRT) issuance of $14.5 billion, safeguarding $585.5 billion in single-family mortgages. In Q3 alone, CRT issuance reached $4.6 billion, covering $166.6 billion in mortgage balances. Freddie Mac continues to lead the CRT market, engaging over 130 unique participants. Notably, the largest-ever transaction, ACIS 2021-SAP7, was issued at $1.2 billion. Since 2013, the CRT program has transferred approximately $81 billion in credit risk on $2.5 trillion in mortgages.

Freddie Mac (OTCQB: FMCC) has priced a new offering of Multifamily WI K-Deal Certificates, expected to generate approximately $185 million in funding. This offering, known as Series WI-K137, is scheduled to settle on or about November 16, 2021. The certificates will initially be backed by cash assets and then by a pool of fixed-rate multifamily mortgages predominantly with 10-year terms. Co-lead managers for this offering are BofA Securities and Wells Fargo Securities.

Freddie Mac (OTCQB: FMCC) has priced a new offering of approximately $933 million in Structured Pass-Through Certificates (K-746 Certificates), backed by fixed-rate multifamily mortgages with mainly 7-year terms. The issuance is expected to settle around November 18, 2021. The K-746 Trust will issue additional certificates not guaranteed by Freddie Mac. The K-746 Certificates are designed to transfer some risk away from taxpayers to private investors, making them a strategic part of Freddie Mac's business model.

Freddie Mac (OTCQB: FMCC) has priced a new offering of Structured Pass-Through Certificates, specifically K-G06 Certificates, expected to generate approximately $428 million. The issuance is scheduled to settle on or about November 18, 2021. The K-G06 Certificates will be backed by loans from Freddie Mac’s Green Advantage program, which focuses on environmental and social impacts. Key details include a weighted average life of 9.22 years and varying yields across different classes of certificates. This offering aims to transfer risk from taxpayers to private investors.

Freddie Mac (OTCQB: FMCC) has priced its SB92 offering, which involves a multifamily mortgage-backed securitization worth approximately $349 million. The SB Certificates will settle around November 19, 2021, and are backed by small balance loans typically ranging from $1 million to $7.5 million for properties with five or more units. This marks the eleventh SB Certificate transaction for 2021. Freddie Mac guarantees multiple classes of securities and acts as both a mortgage loan seller and master servicer for the trust involved.

Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey as of November 10, 2021. The 30-year fixed-rate mortgage averaged 2.98%, down from 3.09% the previous week. The 15-year fixed-rate mortgage averaged 2.27%, decreasing from 2.35%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.53%, slightly lower than last week's 2.54%. Although low mortgage rates are expected to sustain strong demand, affordability remains a concern for homebuyers.