Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 10.7 percent in September, down from 12.9 percent the previous month. The portfolio balance at the end of the period was $2.295 trillion compared to $2.275 trillion at the end of August and $2.149 trillion a year earlier.
Purchases and Issuances totaled $61.804 billion and Sales were ($2.205) billion. The August numbers were $65.36 billion and ($3.641) billion respectively.
Single-family refinance loan purchase and guarantee volume was $22.2 billion in August, up from $21,7 billion in August and representing a 48 percent share of total single-family mortgage portfolio purchases and issuances compared to 42 percent the previous month.
Purchases in Freddie Mac's Mortgage Related Investments Portfolio totaled $46.142 billion for the month compared to $39.920 billion in August. Liquidations were ($2.912) billion and ($3,258) billion for September and August respectively and Sales for the two periods were ($40.249) and ($33.901) billion. The ending balance in the portfolio was $221.601 billion about 3.0 billion more than in August. Freddie Mac said this was primarily due to an increase in mortgage loans awaiting securitization. The annualized growth rate was an increase of 16.3 percent compared to a decline of 1.3 percent in August and a decline of 34.1 percent a year earlier.
The ending balance of the Mortgage Related Investments Portfolio was composed of $116.425 billion in Mortgage Related Securities, Mortgage Loans valued at $95.823 billion, Non-Agency, non-Freddie Mac Mortgage-Related Securities at $1.759 billion; and Agency non-Freddie Mac Mortgage related securities of $7.594 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 6.4 percent compared to 13.2 percent the previous month.
Freddie Mac's single-family delinquency rate was unchanged, remaining at 0.61 percent for the third month. In September 2018 the rate was 0.73 percent. The rate for credit-enhanced Primary Mortgage Insurance loans was up 1 basis point to 0.76 percent and the non-credit portion remained at 0.72 percent. The multi-family delinquency rate was 0.04 percent, the same as in August. The rate a year earlier was 0.01 percent.
Freddie Mac said the measure of its exposure to changes in portfolio value averaged $48 million in September, down from $61 million in August. The duration gap was an average of 1 month.