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Freddie Mac, known as FMCC in the stock market, is dedicated to making home ownership accessible and affordable for millions of families across the nation. Established in 1970 by Congress, Freddie Mac provides mortgage capital to lenders, ensuring a better housing finance system for homebuyers, renters, lenders, and taxpayers. They have partnered with various agencies to offer to purchase notes. Moreover, Freddie Mac's Single-Family Credit Risk Transfer programs channel credit risk away from taxpayers to private capital through securities and insurance policies. With a strong mission and commitment to the community, Freddie Mac plays a vital role in ensuring that individuals have access to safe and affordable housing.Freddie Mac (OTCQB: FMCC) reported in its Primary Mortgage Market Survey (PMMS) that the 30-year fixed-rate mortgage averaged 3.56% for the week ending January 20, 2022, an increase from 3.45% the previous week and up from 2.77% a year ago. The 15-year fixed-rate mortgage rose to 2.79%, and the 5-year adjustable-rate mortgage averaged 2.60%. Chief Economist Sam Khater noted that rising mortgage rates, driven by the 10-year U.S. Treasury yield and inflation concerns, have led to a decline in purchase demand as the spring homebuying season approaches, despite tight supply and high home prices.
Freddie Mac (OTCQB: FMCC) has priced a new offering of Structured Pass-Through Certificates, specifically the K-137 Certificates, backed by fixed-rate multifamily mortgages. The expected issuance will total approximately $1.1 billion, with settlement anticipated on or about January 21, 2022. The offering details include various classes and their respective amounts, weighted average life, spread, coupon rates, and yields. Freddie Mac aims to manage risk and enhance investor opportunities through these structured securities.
Freddie Mac (OTCQB: FMCC) has announced the pricing of its SB94 offering, a multifamily mortgage-backed securitization backed by small balance loans, totaling approximately $400 million in SB Certificates, expected to settle around January 21, 2022. This transaction marks the first SB Certificate issuance in 2022. Freddie Mac guarantees four senior classes of securities from the FRESB 2022-SB94 Mortgage Trust, while also acting as loan seller and master servicer. This initiative aims to provide greater liquidity to smaller apartment properties and enhance service in less populated markets.
Freddie Mac (OTCQB: FMCC) reported significant achievements in 2021, purchasing $70 billion in loans, reaching the FHFA volume cap. The company financed about 650,000 rental units, with 95% affordable to families earning 120% of area median income or less. Freddie Mac surpassed its mission-driven goals, achieving 57% of volume in that area. Key highlights included $9.6 billion in Targeted Affordable Housing Loans and a record $80.6 billion securitized. The FHFA increased the 2022 cap to $78 billion, maintaining previous mission-driven requirements.
Freddie Mac (OTCQB: FMCC) reported a rise in mortgage rates, with the 30-year fixed-rate mortgage averaging 3.45% as of January 13, 2022, up from 3.22% the previous week. This increase is attributed to expectations of tighter monetary policy amidst ongoing inflation and supply chain uncertainties. Although current mortgage rates have not yet dampened purchase demand, the escalating home prices may impact future demand negatively. The 15-year fixed-rate mortgage averaged 2.62%, while the 5-year adjustable-rate mortgage averaged 2.57%.
The Freddie Mac Multfamily Apartment Investment Market Index (AIMI) showed positive growth in Q3 2021, with an overall increase of 2.6% quarterly and 3.5% annually. Strong net operating income (NOI) growth was noted, particularly in New York and Tampa, where NOI grew 13.2% and 11.5% respectively. Mortgage rates decreased 5 basis points during the quarter. The AIMI rose in all 25 markets, indicating a favorable investment environment as markets recover from COVID-19 impacts.
Freddie Mac (OTCQB: FMCC) has announced the pricing of approximately $829 million in Structured Pass-Through Certificates (K-F128 Certificates), set to settle around January 20, 2022. These certificates are backed by floating-rate multifamily mortgages indexed to the Secured Overnight Financing Rate (SOFR) with a 10-year term. Co-lead managed by J.P. Morgan and Goldman Sachs, the offering includes both senior principal and interest classes. Freddie Mac aims to transfer some risk from taxpayers to private investors through these securities.
In 2021, Freddie Mac (OTCQB: FMCC) set a record by issuing $80.6 billion in multifamily securities, reinforcing its leadership in risk transfer. The company has now settled over $500 billion in multifamily securities since the K-Deal program's inception in 2009. Key metrics include:
- $63.5 billion in K-Deals
- $5.1 billion in SB-Deals
- $7.0 billion in Multi PCs
- Introduction of the When-Issued K-Deal
- $5.2 billion in Impact Bonds
Freddie Mac aims to provide affordable housing, with over 90% of funded units accessible to low-to-moderate income families.
Freddie Mac (OTCQB: FMCC) is set to market a new class of Multifamily WI Certificates, heavily composed of the A-2 guaranteed bond class from K Certificates Series K-140. This follows the successful execution of $2 billion in WI deals for A-M class bonds in 2021. The WI-K140 deal will be available the week of January 24, enabling investors to manage risk while gaining exposure to certain bond classes. WI Certificates are publicly traded and backed by Freddie Mac’s guarantee, allowing initial cash collateral while offering stable cash flow and credit enhancement options.
Freddie Mac's annual multifamily outlook forecasts a continued growth in multifamily origination volume for 2022, estimating a range of $475 billion to $500 billion. Rent growth is expected across all markets, with the Sun Belt outperforming others. However, after a robust 2021, growth is likely to moderate due to inflation and COVID-19 variants concerns. The report anticipates a 4% rent increase and flat vacancy rates at 4.8%. Freddie Mac remains a leader in multifamily housing finance, emphasizing affordable housing for low-to-moderate income families.
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