Freddie July Report Shows 30% Decrease in MBS Issuance

Freddie Mac reported a 30% drop in the issuance of mortgage-backed securities in July, compared to the previous month, as refinancing activity slowed dramatically. Freddie said it issued $43 billion in MBS in July, down from $61.1 billion in June when it experienced heavy seasonal deliveries from some of its largest customers. Refinancing activity also dropped off by 33% from the previous month. Purchases of refinanced loans totaled $34.1 billion in July, down from $50.9 billion in June. Freddie has issued $302.7 billion in MBS during the first seven months of this year, compared to $269.8 billion in the same period last year. The government-sponsored enterprise also reported a 17 basis point monthly increase in its single-family delinquency rate. The percentage of Freddie loans 90 days or more past due and in foreclosure rose to 2.95% in July, up from 1.01% a year ago.