GSE Loan Purchases Flat in January

The stagnant residential production market is affecting loan purchases by Fannie Mae and Freddie Mac.In January, Fannie purchased $51 billion in mostly residential loans from its seller/servicers, a slight decline from the level recorded in the same month a year ago. Compared with December's level, though, Fannie's purchases fell 12%. Freddie acquired $44.7 billion in product during January, a 4% gain from that of a year earlier. In 2006 Fannie bought $614.7 billion in mortgages, Freddie $501.9 billion, for a combined $1.11 trillion, a 7% decline from that of 2005.