Freddie Mac reports recurring developments tied to U.S. housing finance, mortgage liquidity and its role as the Federal Home Loan Mortgage Corporation. Company news commonly covers the Primary Mortgage Market Survey® for conventional conforming mortgage rates, quarterly financial results, monthly volume summaries and activity across mortgage-related portfolios, securities issuance, delinquencies, debt activities and risk management.
Freddie Mac also reports capital markets activity connected to its Single-Family credit risk transfer programs. Updates include STACR® Structured Agency Credit Risk notes, ACIS® reinsurance transactions and tender offers for certain STACR securities, reflecting the company’s use of private capital markets to transfer residential mortgage credit risk.
Freddie Mac (OTCQB: FMCC) has priced a new offering of Multifamily WI K-Deal Certificates, amounting to approximately $685 million in Series WI-K140, expected to settle by January 31, 2022. The WI Certificates will initially be backed by cash assets and later by a pool of fixed-rate multifamily mortgages, primarily with 10-year terms. Key classes include A-2 with a principal of $500 million and A-M with $185 million, both featuring fixed-rate coupons of 2.25%. The offering involves multiple co-lead managers and aims to enhance Freddie Mac's multifamily financing strategy.
Freddie Mac (OTCQB: FMCC) revealed the results of its Primary Mortgage Market Survey®, indicating that the 30-year fixed-rate mortgage (FRM) averaged 3.55% for the week ending January 27, 2022, down from 3.56% the previous week. The 15-year FRM averaged 2.80%, up from 2.79%, while the 5-year Treasury-indexed hybrid ARM averaged 2.70%, up from 2.60%. Despite recent rate increases, demand for home purchases remains stable. Freddie Mac aims to enhance housing accessibility for all Americans.
Freddie Mac (OTCQB: FMCC) released its Monthly Volume Summary for December 2021, detailing its mortgage-related portfolios and debt activities. The report highlights the company's role in providing mortgage capital to lenders, contributing to accessible housing since its establishment in 1970. Freddie Mac aims to improve the housing finance system for homebuyers, renters, and lenders, thereby enhancing housing affordability nationwide.
Freddie Mac (OTCQB: FMCC) has released its 2022 Quarterly Forecast, predicting a stable single-family housing market despite rising mortgage rates. The report suggests homebuyer demand may moderate, resulting in slower house price growth. Key projections include a rise in purchase originations from $1.9 trillion in 2021 to $2.1 trillion in 2022, while refinance activity is expected to drop from $2.7 trillion to $1.2 trillion. The average 30-year fixed-rate mortgage is anticipated to increase to 3.6% in 2022, compared to 3.0% in 2021.
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.