Freddie Mac's Total Mortgage Portfolio decreased from an unpaid principle balance (UPB) of $1.949 trillion at the end of April to $1.944 trillion at the end of May, an annualized rate of (3.0) percent compared to an increase of 0.6 percent from March to April. May was the first time the portfolio balance has dropped since February. Thus far in 2013 the value of the total portfolio has fallen at an annualized rate of (1.5) percent.

Single-family refinance loan purchases and guarantee volume was $30.5 billion in May, representing 72 percent of the total of $42.4 billion in purchases and issuances in the Total Mortgage Portfolio during the month. Relief refinance mortgages comprised about one-third of those refinances based on UPB. Sales in the Total Mortgage Portfolio were ($2.01) billion and liquidations ($45.2) billion for a net decrease of ($4.8) billion.

The Mortgage Related Investment Portfolio had an ending balance of $518.5 billion compared to $528.3 billion in April, a decrease of $9.8 billion. The annualized growth rate of the portfolio year-to-date is (16.8) percent. At the end of the reporting period that portfolio consisted of $175.2 billion in PCs, REMICs, and other structured securities; $20.12 billion in Agency Securities; $116.9 billion in Non-Agency Securities, and $206.2 billion in mortgage loans.

Mortgage related securities and other guarantee commitments increased by an annualized rate of 2.2 percent in May to an ending UPB of $1.601 trillion. That portfolio has increased for the last three months and by 2.4 percent thus far in 2013.

Freddie Mac's single family delinquency rate fell to 2.85 percent from 2.91 percent in April and 3.50 percent one year earlier. The rate for the non-credit enhanced portion of the portfolio was 2.35 percent, down 5 basis points from April and the credit enhanced portion dropped from 6.42 percent in April to 6.26 percent. One year ago that rate stood at 7.99 percent. The delinquency rate for the multi-family portfolio was 0.08 percent in May, down from 0.09 percent in April.

Freddie Mac completed 6,165 loan modifications in May and has completed a total of 32,846 in the first five months of the year.

The company said its exposure to changes in portfolio market value (PMVS-L) averaged $359 million in May. The duration gap averaged 1 month.