Tag Archives: Freddie Mac

Contract mortgage interest rates decreased slightly from January to February, according to data from the Federal Housing Finance Agency (FHFA). The agency reported late March that the national average contract rate for the purchase of previously occupied homes was 4.30 percent for loans closed in late February, a decline of 0.07 percent. Meanwhile, the average loan amount for all loans was down $8,700 to an average $275,700.

Freddie Mac’s book of business declined during both of the first two months of this year with an annualized growth rate of -2.2 percent during the month of February, according to the GSE’s monthly volume summary. Year-to-date, the annualized growth rate for Freddie Mac’s portfolio is -2.0 percent, on par with the growth rate of -2.1 percent reported for the year in 2013.

Freddie Mac released Wednesday its first Multi-Indicator Market Index, a gauge of market stability based on current levels of purchase applications, payment-to-income ratios, on-time mortgage payments, and employment. Based on a neutral, stable "0" point, the market in January sat at a score of -3.08, according to the index. However, that's still an improvement compared to the prior month and year.

In its weekly Primary Mortgage Market Survey, Freddie Mac reported an increase of 8 basis points in the 30-year fixed average rate, bringing up to 4.40 percent for the week ending March 27. Frank Nothaft, chief economist for Freddie Mac, explained the increase: “Mortgage rates rose following the uptick on the 10-year Treasury note after comments by the Federal Reserve Board Chair Janet Yellen indicated a possible increase in interest rates as soon as early 2015.”

Bank of America has agreed to a multibillion settlement with the Federal Housing Finance Agency (FHFA) to resolve allegations of securities fraud related to loans sold to Fannie Mae and Freddie Mac at the height of the housing bubble. Under the agreement, BofA will make an aggregate payment of approximately $9.33 billion, $3.2 billion of which will go toward the repurchase of certain RMBS at fair market value.

Following two other reports on home price changes in January, the Federal Housing Finance Agency (FHFA) released its own House Price Index (HPI), pinning monthly growth at a seasonally adjusted 0.5 percent. December’s index, meanwhile, was revised slightly downward to show a 0.7 percent increase. According to the agency, the most recent improvement marks the 23rd in the last 24 months.

After serving the Federal Housing Finance Agency (FHFA) for nearly six years, former acting director and current senior deputy director Edward DeMarco announced his intent to part ways with the agency at the end of April. DeMarco confirmed his departure plans in a letter directed to current agency director Mel Watt, saying, "I believe the time has come for me to seek other opportunities."

The American Enterprise Institute's National Mortgage Risk Index (NMRI), a measure of loans’ default risk under stressful conditions, retreated to 11.6 percent last month from January’s reading of 11.8 percent. To gauge where February’s index lies historically, 1990 vintage loans would have an estimated index value of 6 percent, while riskier 2007 loans would be up at 19 percent.

In its latest Economic and Housing Market Outlook, released Wednesday, Freddie Mac expects home sales to grow along with wages this year, despite a still-tough job market in most sectors. Freddie is projecting a 3 percent rise in home sales and a 20 percent rise in new home construction in 2014, which the agency expects to level out to a 5 percent overall growth.

Freddie Mac’s weekly Primary Mortgage Market Survey, released Thursday, showed the 30-year fixed-rate mortgage (FRM) averaging 4.32 percent (0.6 point) for the week ending March 20, down from last week, when it averaged 4.37 percent. A year ago, the 30-year FRM average was 3.54 percent. Since falling from 4.53 percent in 2014’s first weeks, the 30-year fixed average has seen limited movements since, staying in the 4.2-4.3 percent range.