Freddie Reports Lower Refinancings and Loan Purchases

Mortgage purchases by Freddie Mac slipped in May for the second month in a row as refinancing activity continued to decline.

Freddie reported Wednesday morning that it purchased $42.4 billion in mortgages and MBS in May, down 10% from the prior month.

Refinancings slipped to 72% of loan purchases, down from 76% in April and 80% back in February.

The serious delinquency rate on Freddie’s single-family guaranty portfolio fell 6 basis points to 2.85% in May. In April, the percentage of loans that are 90 days or more past due fell below 3% for the first time since the summer of 2009.

Meanwhile, Freddie Mac issued $44.2 billion in Participation Certificates in May, down nearly 7% from the prior month.