Freddie Mac reported a 38% drop in refinancing volumes in March from the previous month and a corresponding 33% drop in MBS issuance, providing more evidence of the slowdown in mortgage lending.
The secondary market agency said it purchased $19.4 billion in refinanced single-family loans from originators in March, compared to $31.4 billion in February.
In March, refinancings comprised 72% of loan purchases, down from 81% in the prior month.
The GSE's monthly activity report shows issuance of mortgage-backed securities fell to $23.9 billion, down from $35.8 billion in February.
Meanwhile, Freddie's single-family delinquency rate continues to trend downward.
The serious delinquency rate (90 days or more past due) fell to 3.63% in March, down 15 basis points from February. A year ago, the GSE had a 4.13% serious delinquency rate.
