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New Business Reaches Six-Month High at Freddie

FreddieFreddie Mac's [1] mortgage portfolio shrank in June at its slowest pace so far this year as new business hit a six-month high.

The mortgage giant reported in its June volume summary [2] that its total portfolio declined at an annualized rate of 0.1 percent, down from May's contraction rate of 2.1 percent and bringing the monthly growth average to -2.0 percent.

As of June 30, the portfolio was valued at nearly $1.9 trillion.

Purchases and issuances totaled $24.6 billion for the month, an increase of more than a quarter from May. That pickup was offset by increases in sales and liquidations, resulting in a net decrease.

Compared to a year ago, purchases and issuances in June were down by about half, Freddie Mac reported. Secondary market business has remained below $20 billion per month for most of the year and below $40 billion since June 2013.

According to Freddie Mac, the company's single-family refinance purchase and guarantee volume was $9.2 billion in June, representing 42 percent of its total single-family mortgage portfolio purchases and issuances. Relief refinances comprised nearly 26 percent of total single-family refinance volume based on unpaid principal balance.

Meanwhile, delinquency levels trended further downward. Freddie's single-family seriously delinquent rate dropped to 2.07 percent in its latest summary, down from 2.10 percent, while multifamily delinquency fell from 0.06 percent to 0.02 percent.

Freddie Mac reported 4,814 loan modifications in June, with the year-to-date total rising to 35,255.