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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 has been awarded the titles of Issuer of the Year for both residential (RMBS) and commercial (CMBS) mortgage-backed securities by Global Capital. This recognition highlights Freddie Mac’s innovation in credit risk transfer through its STACR and K-Deal securities. Since launching the CRT program in 2013, Freddie Mac has transferred credit risk on over $2 trillion in single-family mortgages. Additionally, Freddie Mac has issued $515 billion in multifamily securities since 2009, focusing on making housing accessible for low- and moderate-income Americans.
Freddie Mac forecasts that low mortgage rates supporting the housing market will gradually increase later in 2021. Despite recent highs, indicators show softening demand in mortgage applications.
Total mortgage origination is expected at $3.9 trillion for 2021 and decline to $2.6 trillion in 2022. The average 30-year fixed-rate mortgage is forecasted at 3.1% in 2021 and 3.7% in 2022. House prices are anticipated to grow by 12.1% in 2021, slowing to 5.3% in 2022. Home sales are projected at 6.9 million in 2021. Refinance originations are set to decrease significantly from $2.2 trillion in 2021 to $713 billion in 2022.
Freddie Mac (OTCQB: FMCC) reported that the average 30-year fixed-rate mortgage (FRM) fell to 2.88% for the week ending July 15, 2021, down from 2.90% the previous week and 2.98% a year ago. This decline marks the third consecutive week of falling mortgage rates, providing modest relief to homebuyers amid strong home appreciation and limited inventory. The 15-year FRM averaged 2.22% and the 5-year adjustable-rate mortgage (ARM) averaged 2.47% during the week. Freddie Mac aims to enhance housing accessibility through mortgage capital provision.
Freddie Mac (OTCQB: FMCC) has priced approximately $912 million in new Structured Pass-Through Certificates (K-F116 Certificates), set to settle around July 22, 2021. These K Certificates are backed by floating-rate multifamily mortgages with SOFR-based rates and 7-year terms. Key details include a weighted average life of 6.66 years and a discount margin of 30-day SOFR average + 21 basis points. Co-lead managers for this offering are BofA Securities and Morgan Stanley. This move reflects Freddie Mac's ongoing strategy to mitigate risks associated with taxpayer-funded mortgage programs.
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Freddie Mac (OTCQB: FMCC) reported a decrease in mortgage rates, with the 30-year fixed-rate mortgage averaging 2.90% for the week ending July 8, 2021, down from 2.98% the previous week. The 15-year fixed-rate mortgage also fell to 2.20%, while the 5-year ARM averaged 2.52%. This decline in rates follows a drop in U.S. Treasury yields and suggests potential opportunities for homebuyers and refinance borrowers. Freddie Mac’s Chief Economist, Sam Khater, indicated that economic growth may lead to rising interest rates in the future.
Freddie Mac (OTCQB: FMCC) has announced the pricing of a new offering of approximately $900 million in Structured Pass-Through Certificates, known as the K-F115 Certificates. These certificates are backed by floating-rate multifamily mortgages indexed to the Secured Overnight Financing Rate (SOFR) with a 10-year term. The offering is set to settle around July 16, 2021. The K-F115 Certificates will include a senior principal and interest class and will not be rated. This move is part of Freddie Mac's strategy to manage risk by involving private investors.
Freddie Mac (OTCQB: FMCC) announced that the 30-year fixed-rate mortgage averaged 2.98% for the week ending July 1, 2021, down from 3.02% the previous week. The 15-year fixed-rate mortgage averaged 2.26%, a decrease from 2.34%. In contrast, the 5-year Treasury-indexed hybrid ARM rose slightly to 2.54% from 2.53%. Freddie Mac's Chief Economist noted steady economic growth but a slowdown in the housing market due to decreased affordability and inventory.
Freddie Mac (OTCQB: FMCC) has released a white paper analyzing the implications of the end of eviction moratoriums and the critical role of rental assistance amid the economic recovery from COVID-19. The report indicates that while eviction filings dropped significantly during the pandemic, renters still face back rent obligations. Federal funding of approximately $47 billion is available for rental assistance, but effective distribution is vital. Freddie Mac emphasizes the need for awareness among renters and property owners about available support as the nation transitions into a post-pandemic environment.
Freddie Mac (OTCQB: FMCC) announced the pricing of a new offering of Structured Pass-Through Certificates known as K-743 Certificates, backed by fixed-rate multifamily mortgages with 7-year terms. This offering is anticipated to total approximately $743 million, with settlement expected around June 30, 2021. The K-743 Trust will issue additional non-guaranteed classes, while the K-743 Certificates aim to provide stable cash flows and risk transfer from taxpayers to private investors. Major co-lead managers include J.P. Morgan Securities LLC and Amherst Pierpont Securities LLC.