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) 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.
Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 2.87% for the week ending September 2, 2021, unchanged from last week. The 15-year fixed-rate mortgage averaged 2.18%, while the 5-year Treasury-indexed ARM averaged 2.43%. Economic growth and inflation have stabilized, contributing to steady home purchase demand and firm home sales above pre-pandemic levels. Unsold home inventory is tight but improving, leading to eased home price pressures over the year.
Freddie Mac (OTCQB: FMCC) is increasing its Low-Income Housing Tax Credit (LIHTC) equity investments from $500 million to $850 million annually, as announced by the Federal Housing Finance Agency (FHFA). This increase aims to support affordable housing in underserved communities across the U.S. Since reentering the LIHTC market in 2018, Freddie Mac has made over 120 investments, preserving or creating thousands of rental units. Recent projects include developments in Florida, Pennsylvania, and California, targeting low-income households and special needs individuals.
Freddie Mac (FMCC) released its Monthly Volume Summary for July 2021, detailing its mortgage-related portfolios and securities activities. The report illustrates Freddie Mac's commitment to enhancing housing accessibility by providing mortgage capital to lenders. This initiative aims to support homebuyers and renters across the nation, fostering a more robust housing finance system. Key metrics include updates on delinquencies, debt activities, and risk management strategies. For further details, the summary is accessible on Freddie Mac's investor website.
Freddie Mac (OTCQB: FMCC) announced disaster relief options for homeowners affected by Hurricane Ida in the Gulf Coast. The company urges those impacted to contact their mortgage servicers for immediate support. Freddie Mac offers short-term forbearance for up to 12 months without late fees, and various options for repayment, including reinstatement, repayment plans, payment deferral, and loan modifications. Additionally, homeowners outside declared disaster areas facing disaster-related losses are also eligible for relief. For further assistance, impacted homeowners should reach out to their servicers.
Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey, showing a slight increase in the 30-year fixed-rate mortgage (FRM) to 2.87% for the week ending August 26, 2021, up from 2.86% the previous week. A year prior, it averaged 2.91%. The 15-year FRM averaged 2.17%, a minor rise from 2.16%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) decreased to 2.42%. The report highlights that low inventory remains a major barrier to increasing home sales, despite improving purchase application demand.
Freddie Mac (OTCQB: FMCC) announced the results of its Primary Mortgage Market Survey, revealing that the 30-year fixed-rate mortgage averaged 2.86% for the week ending August 19, 2021, down slightly from 2.87% the previous week and 2.99% a year ago. The 15-year fixed-rate mortgage averaged 2.16%, and the 5-year adjustable-rate mortgage averaged 2.43%. Sam Khater, Freddie Mac’s Chief Economist, noted stable mortgage rates amidst strong demand but limited supply, which is driving prices up.