Tag Archives: Freddie Mac

On Friday, after years of bills from lawmakers to reform Fannie and Freddie, the Treasury Department unveiled a plan to finally ├â┬ó├óÔÇÜ┬¼├àÔÇ£wind down├â┬ó├óÔÇÜ┬¼├é┬Ø the mortgage giants. According to a release, the Treasury Department will end a past ├â┬ó├óÔÇÜ┬¼├àÔÇ£circular├â┬ó├óÔÇÜ┬¼├é┬Ø arrangement with Fannie and Freddie that allowed the companies to repay the agency with the very funds it received in the first place. The new agreement requires that Fannie and Freddie divert any new quarterly profits back to Treasury in order to repay taxpayers for their losses.

Could mortgage rates be on their way back? That's what today's mortgage rates just may suggest. Freddie Mac reported that the 30-year fixed-rate mortgage ticked up by a few basis points to arrive at 3.62 percent, up from 3.59 percent last week. The GSE also found interest rates for the 15-year home loan averaging 2.88 percent, with 5-year and 1-year adjustable-rate mortgages crawling to 2.76 percent and 2.69 percent, respectively. Bankrate.com likewise saw upward-bound changes in mortgage rates this week.

For borrowers who refinanced in the second quarter, fixed-rate mortgages dominated consumer preferences. Among those who refinanced in Q2, more than 95 percent opted for a fixed-rate mortgage, according to the Freddie Mac Quarterly Product Transition report. For those who had a hybrid ARM, 81 percent transitioned into a fixed-rate loan during the second quarter; the percentage represents the highest share in two years. In contrast, for those with a 15-year fixed rate loan, 2 percent transitioned into a hybrid ARM.

Strong employment reports boosted mortgage rates back up for the second week in a row, Freddie Mac reported Thursday. The GSE's Primary Mortgage Market Survey shows the 30-year fixed averaging 3.59 percent for the week ending August 9, an increase from 3.55 percent the previous week. The 15-year fixed also posted gains, averaging 2.84 percent for the week, up from 2.83 percent a week ago. The 5-year adjustable-rate mortgage followed, increasing to 2.77 percent from 2.75 percent the week before.

Following Tuesday├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós news that Freddie Mac will not require a draw from Treasury this quarter, Fannie Mae announced the same on Wednesday in its second quarter earnings report. This is the second consecutive quarter that the GSE has not required a draw from Treasury. Before this year, Fannie May required a draw from Treasury for the previous 11 consecutive quarters. The GSE reported a net worth of $2.8 billion with comprehensive income in the second quarter reaching $5.4 billion. This is up from $2.9 billion in the first quarter of this year.

HARP-assisted refinances drove record refinance activity in the month of June, FHFA revealed Tuesday. The agency released its Refinance Report for June 2012, showing that refinance volume remained strong in June as mortgage rates fell to all-time lows. An estimated 33 percent of refinance volume was done through HARP, the highest percentage since HARP's inception. The report revealed that at the end of June, Freddie Mac and Fannie Mae had refinanced 422,969 loans through HARP in 2012, more than in 2011.

Stalled confidence in the economy and personal finances apparently hasn├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ót brought down optimism in the housing market. Fannie Mae released its July 2012 National Housing Survey Tuesday, showing that consumer optimism regarding the slowly recovering housing market remained strong during the month. Survey respondents said they expect home prices to increase 1.7 percent in the next year, slightly down from the 2.0 percent survey high recorded in June, while 11 percent believe they will drop.

Freddie Mac announced Thursday that after more than three months of record-low drops, mortgage rates slid up this week. Freddie Mac's survey showed that the 30-year fixed-rate mortgage averaged 3.55 percent (0.7 point) for the week ending August 2, up from 3.49 percent the previous week. Before this week, the average 30-year FRM had fallen to or matched record-low levels for 13 of the past 14 weeks. The 15-year FRM also slid up, averaging 2.83 percent (0.6 point) from 2.80 percent last week.

Freddie Mac released the results of its second quarter refinance analysis Wednesday, revealing that homeowners who refinance continue to strengthen their housing situations. Freddie Mac's report showed that 81 percent of homeowners who refinanced their first-lien home mortgage either maintained the same loan amount or lowered their principal balance in the year's second quarter. Of these borrowers, 59 percent maintained about the same loan amount (the highest share ever recorded), while 23 percent reduced their principal balance.

In a long-running debate, Edward DeMarco, acting director of the Federal Housing Finance Agency, stated again this week that he does not support principal reductions and does not endorse their use at Fannie Mae and Freddie Mac. After stating his position, he immediately faced criticism and opposition from a broad spectrum of individuals, especially throughout the government. However, DeMarco's decision received a few words of praise as well. Industry insiders and pundits reacted to the decision on Monday and Tuesday.