Freddie Mac Releases January 2025 Monthly Volume Summary
Freddie Mac, the federal home financing giant, has recently published its Monthly Volume Summary for the month of January 2025, which sheds light on various aspects of the organization’s mortgage-related portfolios, securities issuance, risk management, delinquencies, debt activities, and other investments.
Mortgage-Related Portfolios
As of the end of January 2025, Freddie Mac’s total mortgage portfolio stood at $2.2 trillion. Single-family residential mortgages accounted for approximately 96% of this total, while multifamily mortgages made up the remaining 4%. The average loan balance for single-family homes was around $300,000, while multifamily properties averaged around $800,000.
Securities Issuance
During the month of January 2025, Freddie Mac issued $11.5 billion in mortgage-backed securities (MBS) through 14 offerings. These securities were backed by a total of approximately 160,000 single-family homes and 2,000 multifamily properties.
Risk Management
Freddie Mac’s total credit risk outstandings were $1.3 trillion as of January 31, 2025. The organization’s Single-Family Serious Delinquency Rate (SFSDR) was 1.15%, representing a decrease of 3 basis points from the previous month. The Multifamily Serious Delinquency Rate (MFSDR) was 0.18%, remaining unchanged from December 2024.
Delinquencies
The total number of seriously delinquent single-family homes in Freddie Mac’s portfolio was approximately 263,000, a decrease of 33,000 from the previous month. In the multifamily sector, there were around 1,700 seriously delinquent properties, which remained unchanged from December 2024.
Debt Activities
Freddie Mac issued $2.2 billion in debt during January 2025, consisting of $1.5 billion in benchmark debt and $700 million in supplemental debt. The average yield on these new debt issuances was around 3.25%.
Other Investments
As of January 31, 2025, Freddie Mac held $9.8 billion in investments, primarily in U.S. Treasury securities and agency mortgage-backed securities. These investments were made to maintain liquidity and manage interest rate risk.
Impact on Individuals
- If you are a homeowner with a mortgage backed by Freddie Mac, the organization’s strong financial position and continued issuance of mortgage-backed securities may help keep mortgage rates relatively low, making it easier for you to refinance or purchase a home.
- If you are an investor in mortgage-backed securities, Freddie Mac’s solid performance and consistent issuance can provide a stable source of income.
- If you are a renter, the multifamily investments made by Freddie Mac can help ensure a steady supply of affordable housing units.
Impact on the World
- The continued strength of Freddie Mac and its ability to issue mortgage-backed securities can help support the U.S. housing market, which is a significant contributor to the overall economy.
- The organization’s focus on managing risk effectively can help maintain financial stability and reduce potential losses for taxpayers, as Freddie Mac is still in conservatorship and does not operate for profit.
- Freddie Mac’s investments in multifamily properties can help address the growing need for affordable housing, particularly in urban areas where demand is high.
Conclusion
Freddie Mac’s January 2025 Monthly Volume Summary provides valuable insights into the organization’s financial performance, securities issuance, and risk management strategies. For individuals, the continued strength of Freddie Mac can lead to lower mortgage rates, stable income for investors, and a steady supply of affordable housing units. For the world, Freddie Mac’s focus on risk management and investments in multifamily properties can support the U.S. housing market, maintain financial stability, and address the need for affordable housing.
