Freddie MBS Issuance Surges 40% in June

Freddie Mac's issuance of mortgage-backed securities jumped 40% in June, compared to the previous month, and purchases of refinanced loans jumped 25%. The government-sponsored enterprise attributed the surge in business activity due to heavy seasonal deliveries from some of its largest customers. Deliveries of refinancings totaled $50.9 billion in June, up 26% from the previous month, according to the GSE's monthly activity report. In March, refinance loan purchases totaled $52 billion — Freddie's largest refinance month since 2003. MBS issuance came in at $61.1 billion in June — the highest since September 2005 when Freddie issued $62.5 billion in MBS. Meanwhile, delinquencies continue to creep up at the GSE. The delinquency rate on single-family loans (90 days or more or in foreclosure) rose 16 basis points to 2.78% in June, up from 0.93% a year ago.