Fannie Purchases Plunging

Fannie Mae mortgage purchases are dropping like a rock, reflecting a dramatic slowdown in refinancing activity in October and November.The giant secondary-market agency reported in its latest monthly summary that loan purchases totaled $75.2 billion in November, down 25% from October's purchases and 48% from September's. Purchases of loans and mortgage-backed securities totaled $100.3 billion in October and $145.6 billion in September. Fannie's retained commitments rose slightly in November, to $13.1 billion, up from $12.3 billion in September. Retained commitments totaled $27.9 billion in September. The company also reported that it expects its mortgage portfolio to shrink in the fourth quarter. After posting declines of 5.7% in October and 7.9% in November, portfolio growth has slowed to an annual rate of 15.5%. Fannie Mae can be found online at http://www.fanniemae.com.