Monthly Fannie Mae MBS Issuance Falls

Fannie Mae issued $40.7 billion in mortgage-backed securities in October, down 14.5% from September, according to the government-sponsored enterprise. October's issuance is the lowest since January, when the GSE issued $21.3 billion in MBS and it most likely reflects a decline in refinancing volume. Freddie Mac reported a similar 13.5% drop in MBS issuance in October. Freddie also reported that its purchases of refinanced loans fell by 15% month-over-month. Fannie did not report its purchases of refinanced loans. Recently it appears Fannie and Freddie MBS issuance has been tied to the refinancing market, while Ginnie Mae issuance has been tied to the homebuying market. Ginnie Mae MBS issuance totaled $38.7 billion in October, down only 2.5% from the previous month.