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Freddie Mac’s Mortgage Portfolio Experiences More Expansion to Start 2016

freddie-mac-twoFreddie Mac's total mortgage portfolio expanded at a compound annualized rate of 1.6 percent for the full year of 2015 and picked up in 2016 where it left off—by expanding at annual rate of 1.6 percent in January 2016, according to Freddie Mac's January 2016 Monthly Volume Summary released Wednesday.

January marked the 11th time in the last 12 months that the total mortgage portfolio expanded for Freddie Mac. Its value after January's expansion totaled $1.944 trillion, having increased by about $36 billion since January 2015.

Freddie Mac's mortgage-related investments portfolio expanded for the second straight month in January following eight straight months of contraction. In January, it grew at an annual rate of 9.6 percent after December's expansion of 6.7 percent.

For the full year of 2015, the mortgage-related investments portfolio contracted at a rate of 15.1 percent. As of the end of January, the portfolio's value stood at $349.6 billion, an increase of nearly $3 billion from the previous month and still slightly higher than the 2016 cap of $339.4 billion.

The serious delinquency rate on mortgage loans backed by Freddie Mac, took an unusual turn upward in January, moving up to 1.33 percent after the 0.1 percentage point. The number of loan modifications completed on Freddie Mac-backed loans in January was 3,474, down from 3,823 in December and down from the monthly average for 2015 of 4,491.

In January, Freddie Mac's single-family refinance loan purchase and guarantee volume was $11.9 billion (down from $12.9 billion in December), which represented 53 percent of Freddie Mac's total single-family mortgage portfolio purchases or issuances (up from 52 percent in December). Relief refinance mortgages comprised about 9 percent of the Enterprise's total single-family refi volume during the month of January, up from 8 percent in December.

Click here to view Freddie Mac's full monthly volume summary for January.

2-25 Freddie Mac infographic

About Author: Brian Honea

Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.

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