Q3 2024 Earnings Summary
Reported on Oct 30, 2024 (Before Market Open)
Pre-Earnings Price$1.32Last close (Oct 29, 2024)
Post-Earnings Price$1.33Open (Oct 30, 2024)
Price Change
$0.01(+0.76%)
- Strong Financial Performance: Freddie Mac reported a net income of $3.1 billion for the third quarter of 2024, an increase of $420 million or 16% year-over-year ,. The company's net worth increased to $56 billion, representing a 26% increase year-over-year ,.
- Growth in Mortgage Portfolio: The total mortgage portfolio grew 2% year-over-year, ending the quarter at $3.5 trillion. The single-family mortgage portfolio increased 2% year-over-year to $3.1 trillion, while the multifamily mortgage portfolio increased 5% year-over-year to $452 billion ,.
- Commitment to Affordable Housing and Social Impact: Freddie Mac helped 415,000 families purchase, refinance, or rent a home in the quarter. 51% of the primary home purchases financed supported first-time homebuyers, and 51% of eligible purchase and refinance loans were affordable to low and moderate-income families. On the multifamily side, 94% of the eligible rental units financed were similarly affordable.
- Increase in Delinquency Rates: The single-family serious delinquency rate increased by 4 basis points this quarter to 54 basis points, up from 50 basis points last quarter. Similarly, the multifamily delinquency rate rose to 39 basis points, which is 1 basis point higher than last quarter and 15 basis points higher than the end of September 2023.
- Decreased Benefit for Credit Losses: The benefit for single-family credit losses decreased significantly to $99 million this quarter, compared to a benefit of $304 million in the prior year quarter, primarily due to smaller credit reserve releases.
- Flat Home Price Forecast: The company forecasts that home prices will remain flat over the next 12 months, which may indicate limited appreciation in their mortgage portfolio's collateral value.
Research analysts covering FEDERAL HOME LOAN MORTGAGE.