In June the unpaid principal balance of Freddie Mac's total mortgage portfolio declined 2.6% from a year earlier, to $1.89 trillion, as total purchases shrank by almost half.
Freddie's portfolio includes mortgage-related securities and other guarantees, all mortgage loans, along with non-Freddie Mac mortgage-related agency and nonagency securities. Purchases and issuances declined 49% to $24.6 billion. (This figure includes cash purchases of single-family and multifamily mortgage loans and purchases of securities that are not backed by Freddie, as well as issuances of mortgage-backed securities and other issuances guaranteed by Freddie.)
At $23.1 billion, total liquidations also were down by almost half from a year earlier. Meanwhile, sales including multifamily mortgage loans and mortgage backed-securities not guaranteed by Freddie increased 14.2%, to $1.6 billion.
The total portfolio decreased at an annual rate of 0.1% in June, according to Freddie's June 2014 monthly volume summary report, released last week. By comparison, in June 2013 it increased at an annual rate of 0.5%.
The aggregate UPB of the mortgage-related investments portfolio, which includes purchases, sales and liquidations, decreased 19.4% from a year earlier, to roughly $420 billion, waning across all three categories. As a result the portfolio contracted at an annual rate of 7.3%, compared to a 6.3% annualized growth rate a year earlier.
In June, Freddie's single-family refinance-loan purchase and guarantee volume reached $9.2 billion, representing 42% of its single-family purchases; relief refinance mortgages made up about 26% of total single-family refinance volume.
Asset quality improved. The number of single-family loans that were seriously delinquent represented 2.07% of the total in June, down from 2.79% in June 2013; while the multifamily delinquency declined to 0.02%, from 0.09%, according to the report.