Freddies Loan Purchases Hit Three-Year High in October
Freddie Mac purchased $50 billion of home mortgages from its seller/servicers in October, the highest reading since June of 2009, according to new figures released by the government-controlled secondary market giant.
Compared to September, loan acquisitions spiked 28%. Compared to a year ago the gain is a robust 52%.
During the month Freddie also issued $45.2 billion of mortgage-backed securities.
However, its mortgage portfolio increased slightly to $569 billion but is down 15% from a year ago.
In October, refinancings comprised 74% of loan purchases, compared to 75% the month prior, a signal that HARP refinancings remain strong.
Freddie Mac also reported that the serious delinquency rate on its guaranteed single-family mortgage portfolio dropped six basis points during the month.
The GSE’s serious delinquency rate (loans that are 90 days or more past due) fell to 3.31% in October compared to 3.54% a year ago.