Freddie Mac’s Portfolio Resumes Decline in August

After posting a slight increase in July, Freddie Mac's mortgage portfolio declined at an annualized rate of 0.4 percent over the month of August, according to the GSE's latest monthly volume summary.

Year-to-date, the portfolio's annualized growth rate has averaged -1.6 percent, bolstered by declines near or higher than 2 percent in each of the first five months of the year.

Mortgage-related securities and other guarantee commitments at the GSE increased at an annualized rate of 4.1 percent in August, marking the highest rate of growth this calendar year and any time in the past 12 months.

At $9.8 billion, single-family refinance purchases made up 41 percent of Freddie Mac's total single-family purchases and issuances in August based on unpaid principal balance, while relief refinances made up 18 percent.

Freddie Mac conducted $2.3 billion in new multifamily business in August, bringing the year-to-date total to $11.3 billion.

Both single-family and multifamily serious delinquencies decreased at Freddie Mac in August. Single-family serious delinquencies fell to 1.98 percent, from 2.02 percent in August. Serious delinquencies in Freddie Mac's multifamily portfolio decreased from 0.05 percent to 0.04 percent.

Freddie Mac also revealed that its exposure to changes in portfolio market value was about $23 million over the month of August.

Freddie Mac completed 5,374 mortgage loan modifications in August, bringing the year-to-date total to 47,356.