Freddie Loan Purchases Fall to 2-Year Low
Mortgage purchases by Freddie Mac fell 20% from September to $22 billion in October as refinancings continue to fizzle.
The government sponsored enterprise reported Wednesday morning that its loan purchases fell to the lowest level since July 2011.
Refinancings comprised just 58% of loan purchases in October, down from 72% in May when the GSE purchased $42 billion in loans from its seller/servicers.
In its third quarter earnings release, Freddie reported that its loan purchases are helping more buyers finance a home.
The secondary market agency acquired $34 billion in home purchase mortgages in 3Q13, up from $30 billion in the second quarter and $20 billion in the first quarter.
The October report also shows that the serious delinquency rate on Freddie’s single-family guaranty portfolio continued to decline.
The percentage of loans that are 90 days or more past due fell to 2.48% in October, down 10 basis points from the month prior. A year ago, Freddie had a 3.3% serious delinquency rate.