The latest monthly volume report from Freddie Mac found a growing mortgage portfolio and a declining level of single-family delinquencies.
Freddie Mac reported that its entire mortgage portfolio totaled $137.2 billion in October, an annualized rate of 25.7%. One year ago, the portfolio totaled $51.1 billion.
The single-family refinance-loan purchase and guarantee volume in October was $89.7 billion, which accounted for 71% of total single-family mortgage portfolio purchases and issuances. The aggregate unpaid principal balance of Freddie Mac’s mortgage-related investments portfolio decreased by approximately $6.7 billion in October.
The government-sponsored enterprise also reported that its single-family delinquency rate dropped from 3.04% in September to 2.89% in October while its multifamily delinquency rate inched up slightly from 0.13% in September to 0.14% in October. One year earlier, the single-family delinquency rate was 0.61% and the multifamily delinquency rate was 0.05%.
Freddie Mac’s mortgage-related securities and other mortgage-related guarantees increased at an annualized rate of 26.1% in October, with an ending balance of $2.52 billion. In October 2019, by comparison, mortgage-related securities and other mortgage-related guarantees increased at an annualized rate of 5.8%, with an ending balance of $2.2 billion.
October marks the start of the fourth quarter, and Freddie Mac is coming off a third-quarter where it recorded $2.5 billion in third-quarter net income, up from $1.77 billion in the second quarter and up from $1.70 billion in the third quarter of 2019, as well as $2.4 billion in comprehensive income, up from $1.9 billion in the previous quarter and up from $1.8 billion one year earlier.
Freddie Mac reported $337 billion in new single-family business activity in the third quarter, a 45% increase from the previous quarter, while its new multifamily business activity declined to $18 billion, down 10% from the prior quarter. On a year-over-year measurement, Freddie Mac’s single-family and multifamily guarantee portfolios grew 11% and 14%, respectively.