Welcome to our dedicated page for Federal Home news (Ticker: FMCC), a resource for investors and traders seeking the latest updates and insights on Federal Home stock.
Freddie Mac (OTCQB: FMCC), formally the Federal Home Loan Mortgage Corporation, regularly issues news and updates that reflect its role in U.S. housing finance. The company describes its mission as making home possible for families across the nation by promoting liquidity, stability and affordability in the housing market throughout all economic cycles. Since 1970, it reports having helped tens of millions of families buy, rent or keep their home.
News about Freddie Mac often covers mortgage rate trends through its Primary Mortgage Market Survey® (PMMS®). These releases provide average rates for products such as the 30-year and 15-year fixed-rate mortgage, focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit. Such updates can give readers insight into movements in mortgage costs and the company’s commentary on housing demand.
Another key news theme is Freddie Mac’s activity in credit risk transfer and securities issuance. The company publishes updates on its Single-Family Credit Risk Transfer (CRT) programs, including STACR® and ACIS® transactions, and on multifamily securities such as K-Deals®, Multi PCs®, SB-Deals®, M-Deals, ML-Deals, Q-Deals, MSCR notes and MCIP policies. These announcements describe how Freddie Mac transfers credit, interest-rate and liquidity risk away from U.S. taxpayers to private investors and (re)insurers.
Freddie Mac also releases information on its Monthly Volume Summary, tender offers for STACR notes, and exchange offers for Gold PCs and Giant PCs. Governance and leadership developments, such as changes in executive roles or board membership, are disclosed through press releases and related SEC filings. Investors and observers can use this news feed to follow Freddie Mac’s mortgage market surveys, securities issuance, risk transfer activity and corporate updates in one place.
Freddie Mac (OTCQB: FMCC) forecasts a strong housing market despite rising mortgage rates and home prices. The Chief Economist predicts continued homebuyer demand and increased purchase originations in 2022. Key insights include an expected average 30-year fixed-rate mortgage of 3.0% in 2021 and 3.5% in 2022, with house price growth projected at 16.9% for 2021, slowing to 7.0% in 2022. Purchase originations are anticipated to rise to $2.1 trillion in 2022, compared to $1.9 trillion in 2021, while refinance originations are expected to decline significantly.
Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 3.05% for the week ending October 14, 2021, up from 2.99% the previous week and 2.81% a year ago. The 15-year FRM averaged 2.30%, while the 5-year ARM rose to 2.55%. Chief Economist Sam Khater noted that rising mortgage rates, alongside increasing home prices, are creating affordability challenges for potential buyers. The survey indicates that despite historically low rates, many are hesitant to enter the market due to high prices.
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Freddie Mac (OTCQB: FMCC) has priced a new offering of Multifamily WI K-Deal Certificates (Series WI-K133) worth approximately $180 million. These certificates are backed by cash assets and will indirectly secure a pool of fixed-rate multifamily mortgages mostly with 10-year terms. The offering is set to settle around October 13, 2021. Co-Lead Managers for this offering include Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC. The fixed-rate coupon for these certificates is anticipated to align with the reference K-Deal class.
Freddie Mac (OTCQB: FMCC) has priced a new offering of Structured Pass-Through Certificates (K Certificates), backed by fixed-rate multifamily mortgages. The offering, K-132 Certificates, is expected to total approximately $1.1 billion and settle around October 14, 2021. The K-132 Certificates feature various classes, including A-1, A-2, A-M, X1, and XAM, with distinct terms and yields. J.P. Morgan and Morgan Stanley act as co-leads, with ratings from Fitch and DBRS.
Freddie Mac (OTCQB: FMCC) announced plans to offer at least $3 billion in affordable housing bonds by the end of 2022. The program aims to support affordable homeownership and address the needs of historically underserved markets. The company will initially issue around $285 million in Uniform Mortgage-Backed Securities™ backed by loans from its Home Possible program, which supports low-income families. Freddie Mac's ongoing efforts have resulted in over 81,000 Home Possible mortgages in the first half of 2021, benefiting more than 623,000 families since 2015.
Freddie Mac (OTCQB: FMCC) announced the acquisition of a $4.6 million loan to finance Seal Beach Shores MHC, a resident-owned manufactured housing community in Seal Beach, California. This 20-year fixed-rate loan will support 125 affordable housing units, facilitated by Capital One. Freddie Mac's MHROC loan program, introduced in 2018, aims to enhance affordable housing options. The agency has been involved in the manufactured housing market since 2014, focusing on providing liquidity and affordable rental options for low-to-moderate income families.
Freddie Mac (OTCQB: FMCC) reported a 2.99% average for the 30-year fixed-rate mortgage in its latest Primary Mortgage Market Survey, a slight decrease from 3.01% the previous week. The 15-year fixed-rate mortgage averaged 2.23%, down from 2.28%. Conversely, the 5-year Treasury-indexed hybrid adjustable-rate mortgage edged up to 2.52%. Economic uncertainties contribute to the competitive mortgage landscape, driving down housing affordability. Despite the current rates being lower than last year, rising mortgage rates and home prices are expected to challenge prospective homeowners.
Freddie Mac (OTCQB: FMCC) announced the pricing of approximately $252 million in new Structured Pass-Through Certificates (K-J35 Certificates), backed by supplemental multifamily mortgages. The issuance is expected to settle around October 14, 2021. With a principal amount of $64.470 million for class A-1 and $188.139 million for class A-2, the weighted average life spans are 3.67 and 7.34 years, respectively. The K-J35 Certificates aim to transfer risk from taxpayers to private investors, featuring stable cash flows and structured credit enhancements.
Freddie Mac (OTCQB: FMCC) has priced its third Seasoned Credit Risk Transfer Trust (SCRT) offering for 2021, amounting to $564 million. This securitization, which includes both guaranteed senior and unguaranteed subordinate securities, focuses on seasoned re-performing loans. The offering consists of approximately $522 million in guaranteed senior certificates and $42 million in subordinate certificates, set to settle on October 14, 2021. The underlying collateral features 3,738 mortgage loans that have been performing and not delinquent for at least six months.