Fannie Mae's mortgage purchase activity fell for the fifth straight month in December to its lowest level in over two years.
The GSE reported Friday that it acquired $39.7 billion in mortgage from it seller/servicers, down 5.6% from the month prior. In December 2012, refinancings were hot and loan purchases totaled $72 billion.
Commitments to purchase new loans fell to $37.7 billion in December which is the lowest level since June 2011.
Overall, Fannie acquired $796.7 billion in mortgages from its lenders in 2013, down 13% from the prior year.
In November, Fannie's giant mortgage investment portfolio fell below $500 billion for the first time in over a decade. It fell to $490.7 billion in December. The GSE regulator has directed Fannie Mae and Freddie Mac to gradually reduce their giant portfolios. Back in 2010, Fannie’s portfolio exceeded $800 billion.
Meanwhile, the serious delinquency rate on Fannie's guaranteed single-family portfolio fell to 2.38% in December, down 91 basis points over the previous 12 months.