FREDDIE MAC - FMCC STOCK NEWS

The Freddie Mac (OTCQB: FMCC) Multifamily Apartment Investment Market Index (AIMI) fell by 5.3% in Q1 2022, down 6.1% year-over-year. While net operating income (NOI) rose 19.8% and property prices increased by 21.1%, these gains were overshadowed by higher mortgage rates. The mortgage rates rose 41 basis points, the largest increase since 2018. Despite strong NOI growth, the AIMI’s decline indicates challenges in finding attractive investment opportunities.

All 25 markets tracked showed a decrease in AIMI, with notable growth in NOI across all metros, highlighting disparities in the multifamily investment landscape.

Freddie Mac (FMCC) reported tender results for its recent fixed-price cash offer for Structured Agency Credit Risk (STACR) notes, totaling approximately $2,489 million in original principal. As of the June 13, 2022 expiration, a significant portion of the tendered amounts was accepted, including 98.39% for STACR Trust 2018-DNA2 and 99.97% for STACR 2019-DNA1. The settlement for accepted notes occurred on June 15, 2022, with additional purchases following on June 16. The offer was managed by BofA Securities and Citigroup Global Markets.

On June 16, 2022, Freddie Mac reported that the average rate for the 30-year fixed-rate mortgage surged to 5.78%, marking a significant rise from 5.23% the previous week, and 2.93% a year ago. This increase of more than half a percentage point is the largest weekly jump since 1987, driven by changing inflation expectations and monetary policy shifts. The average 15-year fixed-rate mortgage also rose to 4.81%, and the 5-year ARM increased to 4.33%. These increased rates are expected to moderate housing activity as the market stabilizes.

Freddie Mac (OTCQB: FMCC) announced the preliminary results of its cash tender offer for Structured Agency Credit Risk (STACR®) notes. As of June 13, 2022, approximately $2.49 billion in original principal amount of notes had been tendered. The settlement date for accepted notes is expected on June 15, 2022. The offer includes various series of STACR notes, with substantial percentages of original principal amounts tendered, such as 98.39% for STACR 2018-DNA2 M-2. Lead managers for this offer are BofA Securities and Citigroup Global Markets.

Freddie Mac (OTCQB: FMCC) reported in its June 9, 2022, Primary Mortgage Market Survey that the 30-year fixed-rate mortgage averaged 5.23%, an increase from last week's 5.09%, and significantly higher than 2.96% a year ago. The 15-year fixed-rate mortgage rose to 4.38% from 4.32%, and the 5-year ARM averaged 4.12%, up from 4.04%.

Chief Economist Sam Khater indicated that rising rates have led to decreased demand in the housing market, suggesting a slowdown in price growth, which may benefit potential buyers.

Freddie Mac (OTCQB: FMCC) announced its first Equitable Housing Finance Plan on June 8, 2022, aiming to enhance sustainable homeownership and rental opportunities for underserved Black and Latino communities. This plan, part of a three-year initiative, addresses the homeownership gap, strengthens investments in redlined areas, and promotes affordable housing. Key areas include leveraging the Special Purpose Credit Program, financing affordable housing, and introducing new initiatives to improve capital access for diverse developers. Annual progress reports will track the plan's impact.

Freddie Mac (FMCC) has initiated a fixed-price cash tender offer for its STACR® notes as of June 7, 2022. The offer is open until 5 p.m. EDT on June 13, 2022, unless extended. Notably, holders who tender their notes will receive accrued interest from the last payment date to the settlement date of June 15, 2022. In total, Freddie Mac is targeting approximately $1.6 billion in STACR notes from various trusts, with specific consideration amounts detailed for each note series. The company emphasizes that this announcement is not a solicitation and that holders should make independent decisions regarding their notes.

Freddie Mac (OTCQB: FMCC) reported on June 2, 2022, that the 30-year fixed-rate mortgage averaged 5.09%, down from 5.10% last week but significantly higher than 2.99% a year ago. The 15-year fixed-rate mortgage increased to 4.32%, while the 5-year Treasury-indexed ARM decreased to 4.04%. Chief Economist Sam Khater noted that mortgage rates are still affecting affordability and demand, even as the housing market normalizes with increased supply. The PMMS® focuses on conventional loans for excellent credit borrowers putting 20% down.

Freddie Mac Multifamily has announced the promotions of Corey Aber and Erlita Shively to vice presidents, enhancing its mission to serve the multifamily market. Aber will lead the Multifamily Mission, Policy & Strategy, while Shively will oversee Multifamily Counterparty Risk Management. Aber, a 17-year veteran, will focus on affordable housing initiatives, and Shively, with extensive experience since 1997, will manage lender compliance and risk activities. These promotions align with Freddie Mac's commitment to stability and affordability in the housing sector.