Portfolio growth, a release of credit reserves and strong refinancing activity drove Freddie Mac's first-quarter earnings up 27% from a year earlier.
Freddie earned $3.6 billion on a net basis, up from $2.8 billion the previous quarter and
"Refinance loans accounted for 42% of total volume, the highest quarterly refinance share we have seen in the past four years," Chief Financial Officer Jim Whitlinger said. Twice as many households gained access to lower rates than a year ago as a result, he added.
While the reduction in purchase loans reduced total single-family acquisitions relative to the fourth quarter of 2025, homebuying is typically weak in the first three months of the year. Freddie's $60 billion in purchase loan volume nearly matched the $62 billion generated during the previous year's first quarter, which is more seasonally comparable.
Overall, Freddie's total mortgage portfolio totaled $3.7 trillion as of March 31 driven by 1% and 7% increases in single family and multifamily, respectively, compared to the previous year, Whitlinger said. Its delinquency rate was largely flat but slightly higher at 0.60%, compared to 0.59% in 2025's fourth quarter and a year earlier.
An 8% increase in net interest income from continued mortgage portfolio growth and an increase in the investment portfolio were key contributors to a 5% gain in net revenues over a year earlier, Whitlinger said. Net revenues totaled $5.2 billion.
Freddie also reported a $320 million benefit for credit reserves in the quarter compared with a $280 million provision expense during the same period in 2025 that contributed to its gain.
The second of two government-sponsored enterprises held in conservatorship additionally reported that its net worth climbed from $70.4 billion at year-end to $73.9 billion. Net worth was up 18% compared to a year earlier, according to Whitlinger.
Capital measures like net worth at both GSEs have drawn focus in plans for a new share offering that appears unlikely to occur
"We continue to make progress reducing the capital deficit, which has come down $37 billion since the end of 2022," Whitlinger said. "Excluding buffers, our capital shortfall was $105 billion at the end of the first quarter, largely because the $73 billion of senior preferred stock does not qualify."
Whitlinger also made note of Freddie's recent test of
Freddie's stock was up more than 6% at one point early in the trading day on Thursday with its price nearing $7 per share, but the extent of the gains were fluctuating.
