Freddie Reports Steep Drop in Loan Purchases

Purchases of mortgage loans and MBS by Freddie Mac plummeted 46% in December after a huge spike in November, the mortgage giant reported Friday morning.

The secondary market agency said purchases fell to $33.6 billion in December from $62.5 billion in the month prior.

Refinancings represented 67% of purchases and 32% of those $22.5 billion in refis were HARP refinances. In November, 74% of purchases were refinancings.

Friday’s report also shows that MBS issuance by Freddie Mac dropped 50% from November to $30.1 billion in December.

The serious delinquency rate on Freddie’s loan portfolio was unchanged at 3.25%.